Case Studies Flashcards
Shuidong
Chinese and other Asian criminal syndicates dominate the IWT in Africa
Entities operating between
Tanzania, Mozambique, Nigeria, South Korea, Hong Kong, and China between 2016-2017
Over 20 tonnes of Ivory, $16 mill in China
Syndicate from Shuidong in Guangdon Province
Claimed to be active in the ivory trade for 10 years
also claimed that syndicates from Shuidong were responsible for 80% of the total volume of ivory traded globally
in 2019, 14 members of the syndicate were arrested and sentenced to between 6 and 15 years in prison
Eight categories: 1. Poachers, 2. Collectors, 3. Freight agents, 4. Customs Officers,
5. Coordinators, 6. Investors, 7. Buyers, 8. Money changers
EIA watched last 4 to follow money movement
Eight categories had some overlap - one individual as a coordinator and an investor
late 2016 - network shifted to Nigeria to take advantage of corruption and weak enforcement
Network relied on complicit freight agents, one in Busan, Korea
Traffickers are known to use circuitous routes to obscure the origin of shipments
Shuidong used a timber company to front activities in Nigeria. Concealed wildlife in shipments of plastic pellets, wouldn’t raise any suspicions between Busan and Hong Kong
Buyers came from known ivory carving centers in Putian and Xianyou in China
No physical shop premises
Cnducted international financial transactions using multiple currencies and ehicles:
- RMB Cash payments into accounts in China for successful delivery of shipment to China
next - International payments made via wire transfer to a money changer in source country, then disbursed the money in USD to the ivory collector
-Once USD was obtained, funds distributed to other network players and associates. Payments would occur in cycles and schedules
In the case of the poachers, may have been via mobile money payment platforms such as Mpesa
Primary financial flows:
- Funds transfer from China to Africa - made from bank acct in China to a Tanzanian-based money changer (of Chinese origin, originally from Fuji), where funds were then disbursed in USD to facilitate cash payments for the sourcing of ivory and other payments
- Bank transfer or cash payment
Kromah
Rhino horn and elephant ivory, valued at more than 7 mill, 35 rhino, more than 100 elephants
Charged for:
Participating in a conspiracy to traffic in rhino horns and elephant species
Also charged with conspiracy to commit money laundering
2 were charged with trafficking 10kg of heroin
Kromah - Liberian national living in Uganda
- 1st arrested in Uganda under wildlife crime charges with ivory
- charged with possession, unlawful importation, conspiracy to commit a felony and money laundering
Financial flows
- from Laotian company (Vannaseng Trading) to his personal account in Uganda of 190k through formal banking systems.
He and accomplices were extradited to the US
Highlights:
Syndicate members originating in Uganda used the Kenyan financial system to transfer funds for illicit wildlife products with falsified documents
Syndicate had a preference for using money transfer service businesses to transfer illicit cash
IWT syndicates work transcontinentally and transnationally
Convergence with drug trafficking
US-China Turtle Smuggling Network (Paypal)
Kang Juntao - Chinese national posing as an exchange student
5 species of turtle from US to Hong Kong and Japan
1500 turtles for 2.2 mill
(alleged to have engaged in IWT from Canada before moving to US)
Over 18 months - 40 payments made via paypal from Chinese banks totaling 78k, ranged in value 500-4k
Flowed through accounts the accused opened at a Chinese bank, sometimes involved the use of an alias
Malaysian authorities arrested them at the Kuala Lumpur airport in 2020. Awaiting extradition to the US on a money laundering charge
Learned:
US authorities were ale to target a Chinese national living in China through money laundering laws
shows how money laundering can be applied as a stand-alone offence in the context of wildlife crime
Xaysavang Network
Xaysavang network is a well-known international IWT syndicate involved in killing of endangered elephants, rhinos, pangolins, etc
This case is from S Africa
Chumlong Lemtongthai - Thai national
- role was to obtain rhino horn and lion bones through pseudo-hunting techniques
Chumlong would periodically travel to South Africa on a tourist visa to coordinate a network of plaers that helped facilitate the poaching of rhinos by utilizing Thai sex workers to pose as hunters to circumvent national Laws in South Africa. “hunters” were paid around USD 300
Financial investigations shothe wildlife products were paid for with combo of cash payments and international bank payments
Intl bank transfers made either from Xaysavang Trading Export Company in Laos, or from personal accounts of Lemtongthai in Thailand
to
various game farms for the illegal hunts
Chumlong routinely withdrew large amounts of cash in SA from his Bangkok bank account at casino ATM machines in South Africa- u to ZAT1 million per visit
Invoices were sent from various game farms and safari ompanies in South Africa for payment by Chumlong under the name of the Xaysavang Export company
Chumlong paide other syndicate members in cash to obtain the wildlife products and ensure they were ready for export via air travel
Vixay Keosavang, Lao national, was believe to be the leader and has been called the “Pablo Escobar” of the IWT
Chumlong originally sentenced in SA to 40 years under National Environmental Management Biodiversity Act 10 f 2004 for failure to comply with permitting requirements and customs and Excise act 91 of 1964 for improper use of licenses, permits, and documents
- sentence was reduced upon appeal to 13 years and 1 mill ZAR or addtl 5 years in prison
However Chumlong has been released and deported to Thailand
South African Authorities originally considered a money-laundering charge which was dropped to speed up prosecution
Assets accumulated with the proceeds were recovered in both South Africa and Thailand. Including a high-value vehicle in SA and multiple bank accounts linked to Chumlong
