What are the prospects for ‘follow-the-money’ methodologies in the fight against the illegal wildlife trade? Presentation by Dr Annette Hübschle, University of Cape Town  4th ESAAMLG AML/CFT PUBLIC-PRIVATE SECTOR DIALOGUE (PPSD) 

Structure of my presentation Brief research background Choreography of an illegal hunt Structure of illegal wildlife economies The role of illicit finance and money laundering What are the prospects for ‘follow-the-money’ methodologies?

Research background and data points 20 years of applied policy research on organized crime research in southern and East Africa PhD on the illicit rhino horn economy – ‘A game of horns’ Consultant on the ESAAMLG study on typologies of poaching, wildlife trafficking and related financial flows Research project: A study of illegal and legal wildlife economies, associated markets, their leverage points and enrolments  Ongoing research into licit wildlife ranching industry in South Africa Research grant on ‘follow the thing’ Baseline study on wildlife poisoning in the GLTP

What happens during an illegal rhino hunt?

Organized rhino crime Source: Stop Rhino Poaching

Illegal flows (Source: Focus Africa)

Who is missing along the value chain? Diplomats, government officials, law enforcers Transport sector Wildlife and hunting industry NGOs and conservation organisations Private security & military companies Financial and banking sector Local communities

Legal wildlife markets Live animals (CITES permits) Trophies from legally wildlife Pre-Convention animal parts (tusks and horns) Legitimate “fakes” (museums, galleries and art collections) Antique art works

Grey markets Grey markets Flouting of regulatory determinations Pseudo-hunting Trade exchanges (e.g. horns for animals) Exploitation of loopholes Round-tripping Identification of unregulated/undetermined terrain Fakes including zuo jiu (to make old) Art collections and investment portfolios

Stolen wildlife products Illegal markets Poached wildlife Stolen wildlife products Fake products

Wildlife economy Illegal market Grey market Legal market

Embedded markets Wildlife economy Hunting markets Tourism Transport markets Consumer markets Art markets Banking and financial services Luxury goods Farming Security Arms markets Paraphernalia for consumption Forgeries Organized crime

Current responses to illegal wildlife trade in the region Law enforcement measures are targeted at poachers Militarization of anti-poaching responses & framing of a “war on poaching” No or limited attention to “white collar” crime & illicit money and arms flows Historical lock-in/path dependency of conservation & wildlife crime paradigms continued exclusion of local and indigenous peoples fences and fines

Prospects for ‘follow-the-money’ methodologies: Key issues to consider Poachers are not self-funded – who are the intermediaries, funders and organizers? Be careful of red herrings such as the ‘poacher as terrorist’ narrative Focus on charismatic megafauna (rhinos & elephants) problematic: plant blindness & illicit collection of small species just as detrimental (giant bronze gecko & ‘love nuts’) Law enforcement operates in silos and seldom across borders – ‘winner takes it all’ instead of controlled deliveries or ’follow-the-thing’ Role of trade exchanges and cashless transactions

Prospects for ‘follow-the-money’ methodologies: Key issues to consider (cont.) Displacement, layering and diversification of transnational criminal networks The role of public and private sector corruption along the supply chain? Role of arms and ammunition industries What about the military-industrial complex? Anti-poaching & military companies The role of Western NGOs and conservation organizations & donor drives What about the demand and consumer profiles? Careful of xenophobia and stigmatizing Asians or certain nationalities within the region

Available for free download: http://globalinitiative.net/wp- content/uploads/2018/08/TGIATOC-Wildlife- Trafficking-Report-WEB-4.pdf

Design principles for disrupting the illegal trade in wildlife Render live wildlife more valuable than dead ones to local communities Establish inclusive, not exclusive, institutions Regulatory interventions should entail positive outcomes for local communities Change the flow of money from interventions that support anti-poaching to interventions that support communities that live with wildlife Apply follow-the-money methodologies to track illicit activities associated with IWT and linked protection economies (Who is funding the wildlife protectors?) Cross-agency and regional collaborations are key Render IWT a high-risk low profit activity – not to the poachers but to their backers When you strike a woman, you strike a rock Ubuntu: a person can only be a person through others

Many thanks for listening Annette Hübschle, PhD Email: annette.hubschle@uct.ac.za