World Wildlife Crime Report 2024

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Why in News?

The UN Office on Drugs and Crime (UNODC) recently published the 3rd edition of the World Wildlife Crime Report 2024. This report gives a detailed look at the illegal wildlife trade from 2015 to 2021.

What are the Key Highlights of the Report?

Trafficking in Animal and Plant Products:

• Animals and Plants Most Affected (2015-2021): Rhinos and cedar trees were the most affected by illegal wildlife trade.
• Illegal Animal Trade: Rhino horns made up 29% of the illegal animal trade, followed by pangolin scales at 28% and elephant ivory at 15%. Other animals involved included eels (5%), crocodiles (5%), parrots and cockatoos (2%), and various carnivores, turtles, tortoises, snakes, and seahorses.
• Illegal Plant Trade: Cedars and other trees in the Sapindales order, such as mahogany and holy wood, made up 47% of the illegal plant trade. Rosewoods followed at 35%, and agarwood and other myrtles made up 13%.

Commodities in Trade:

• Seizures: Coral pieces were the most seized item, making up 16% of all seizures in 2015-2016. Live animals made up 15%, and medicines made from animal products were 10% of all seizures.
• Bone Processing Shift: Traditionally, bones were processed in destination countries like those in the Far East. The report highlights a shift towards processing bones closer to the source countries (Africa, Latin America, Asia). This shift is concerning because processing bones into paste makes smuggling easier, and it's unclear if the processed bones are for local use, export, or both. There is also concern about substituting lion and jaguar bones for tiger bones in traditional Chinese medicine.

Off-Track from SDG Goal No. 15.7:

• New Indicator: In 2024, the UNODC introduced a new indicator to track progress on SDG target 15.7, which aims to stop illegal wildlife trafficking.
• Rising Illegal Trade: The proportion of illegal wildlife trade has been increasing since 2017. The problem worsened during the COVID-19 pandemic (2020-2021), with wildlife seizures reaching their highest levels at 1.4-1.9% of global trade, compared to 0.5-1.1% in previous years. This increase indicates that the world is not on track to achieve SDG target 15.7 by 2030.

What are the Factors Responsible for Wildlife Crime?

Organised Commercial Illegal Sourcing:

Organised Crime Involvement: Criminal groups engage in elephant and tiger poaching, illegal fishing, and logging. They operate remotely and often overlap with other criminal activities, using power relationships, corruption, illicit firearms, and money laundering.

Specialised Roles in Trade: Organised crime is evident throughout the trade chain in roles such as export, import, brokering, storage, breeding live specimens, and working with processors.

Supplementary Livelihoods and Opportunism:

Economic Necessity: Some trafficking is driven by large criminal groups, but many poor people participate to survive.

Desperation Poaching: People may poach to protect their crops or livestock from wild animals.

Black Markets Create New Demands:

• New Uses for Declining Legal Products: When legal uses decline, illegal traders invent new uses to keep selling products.
• Luxury Items and Scarcity: Scarcity of rare animals, plants, or endangered species trophies (like ivory and big cat skins) increases demand in illegal markets, attracting more buyers.

Corruption:

• Impact on Anti-Trafficking Efforts: Corruption undermines efforts to stop wildlife trafficking, from bribery at inspection points to higher-level influence on permits and legal decisions.
• Challenges in Prosecution: Despite strong laws against corruption, prosecution of wildlife trafficking organisers under these laws is rare.

Cultural Roots of Poaching:

• Cultural Practices: Poaching is not always for money; it can be a cultural practice. For example, in the Chinko reserve in the Central African Republic, some people see elephant hunting as part of their cultural identity, symbolizing bravery and manhood, passed down through generations.

What are the Impacts of Wildlife Crime and Trafficking?

Environmental Impacts:

• Species Overexploitation: Wildlife crime harms biodiversity by overexploiting species, leading to population declines and extinction threats. This loss of species diversity disrupts ecosystem functions.
• Ecological Impact: Overexploitation causes long-term ecological issues like imbalanced sex ratios and slowed reproduction rates. Population reductions disrupt species interactions and essential ecological functions such as food chains and food webs.
• Invasive Species: Illegal wildlife trade can introduce non-native species to new environments, leading to invasive species that harm native ecosystems and natural resources.

Social and Economic Harms:

• Well-being and Livelihoods: Wildlife crime impacts food, medicine, energy, and cultural values by undermining nature's benefits. A World Bank study estimated global economic losses from illegal wildlife trade at USD 1–2 trillion per year, mostly due to the loss of ecosystem services not priced by markets.
• Private Sector Costs and Losses: Wildlife crime increases costs and losses for businesses in the legal wildlife trade and related services. It reduces resource access, causes unfair competition, damages reputations, and incurs additional legality verification costs.
• Health Risks: Wildlife trade poses significant disease transmission risks to humans and animals and threatens natural ecosystems, livestock, and agricultural systems.
• Harm to Environmental Defenders: Wildlife rangers, police, and customs officials face harassment, violence from poachers, and even loss of life.

Governance Harms:

• Undermining the Rule of Law: Illegal wildlife trade weakens the rule of law and hampers natural resource management and criminal justice responses. Corruption facilitates this trade, compromising legislation and political stability. Money laundering is linked to wildlife crime, but financial investigations are limited.
• Loss of Government Revenues: Wildlife crime leads to significant government revenue losses in source countries by evading legal harvest fees, taxes, and tourism income.
• Financial Costs of Enforcement: Governments have increased spending on conservation, law enforcement, and criminal justice globally due to wildlife crimes.

What Measures Can be Taken to Effectively Reduce Wildlife Crime?

Banning Illegal Wildlife Products:

• This strategy aims to decrease demand by making it illegal to possess or trade goods made from illegally obtained wildlife.
• For instance, banning ivory products would discourage the killing of elephants for their tusks.

Strengthening Domestic Regulations:

• India's existing laws, like the Wildlife Protection Act (1972), Environment (Protection) Act (1986), and Biological Diversity Act (2002), require stricter enforcement and better implementation across different government levels.
• Penalties for breaking wildlife protection laws should be enforced effectively.

Effective Funding for Wildlife Protection:

• While funding exists, better allocation and management of resources are crucial. Funds should directly support wildlife protection agencies such as park rangers and anti-poaching units.
• Involving local communities in conservation efforts and offering them financial incentives can increase their involvement in preventing wildlife crime.

Public Awareness and Empowerment:

• Raising public awareness about the consequences of wildlife trafficking is vital. Educating citizens about the value of wildlife and the impact of illegal products can reduce demand.
• This helps foster a sense of responsibility and encourages people to report suspicious activity to authorities.

SC Limits ED's Arrest Powers in PMLA Cases

Why in News?

The Supreme Court recently ruled that once a special court takes note of a chargesheet filed under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate (ED) cannot make arrests.

This decision restricts the ED's authority to conduct arrests and highlights the importance of protecting personal liberty.

What is the Recent Ruling of the Supreme Court Regarding PMLA?

Provisions in Question:

• The Supreme Court's judgment arose from an appeal against the Enforcement Directorate (ED) concerning a Punjab and Haryana High Court decision that denied anticipatory bail.
• The case examined whether an accused could seek bail under the regular provisions of the Code of Criminal Procedure (CrPC) and whether such bail would also need to meet the conditions under Section 45 of the Prevention of Money Laundering Act (PMLA).
• The court also considered whether an accused, not arrested during the PMLA investigation, would have to meet the stringent PMLA bail conditions upon appearing before the court after being summoned or issued a warrant for non-appearance.

SC Observations:

Status of Accused Appearing on Summons: If an accused appears before a designated special court as per a summons, they cannot be treated as in custody. Thus, they are not required to apply for bail under the strict conditions of the PMLA. The ED must separately apply for the custody of the accused after their court appearance, providing specific grounds necessitating custodial interrogation.

Nature of Bonds/Sureties: The special court can direct the accused to provide a surety/guarantee (bonds) under Section 88 of the Code of Criminal Procedure. However, this surety does not equate to granting bail and does not require satisfying the stringent conditions of Section 45 of the PMLA.

Graded Arrest Procedure: If the accused fails to appear despite summons, the special court can issue a bailable warrant initially. If the accused still does not appear, the court can then issue a non-bailable warrant for arrest without bail.

Arresting Non-Accused Parties: The ED can still arrest individuals not named as accused in the initial PMLA complaint. However, to do so, the ED must follow proper arrest procedures outlined in Section 19 of the PMLA.

What is PMLA?

About the Prevention of Money Laundering Act, 2002 (PMLA):

• The PMLA was enacted to prevent money laundering and allow for the confiscation of property derived from such activities.
• It aims to combat money laundering linked to illegal activities like drug trafficking, smuggling, and terrorism financing.

Key Provisions of PMLA:

• Offences and Penalties: PMLA defines money laundering offences and imposes penalties, including rigorous imprisonment and fines. Money laundering involves converting illegally earned money into seemingly legal money.
• Attachment and Confiscation of Property: The Act permits the attachment and confiscation of property involved in money laundering, with an Adjudicating Authority overseeing these proceedings.
• Reporting Requirements: Certain entities, such as banks and financial institutions, must maintain transaction records and report suspicious transactions to the Financial Intelligence Unit (FIU).
• Appellate Tribunal: Section 25 of PMLA establishes an Appellate Tribunal to hear appeals against orders from the Adjudicating Authority.

Recent Amendments Related to PMLA:

Prevention of Money-laundering (Restoration of Confiscated Property) Amendment Rules, 2019:

New Rule 3A: Allows the Special Court to publish notices in newspapers for claimants with legitimate interest in attached/seized/frozen property to establish their claims for restoration after charges are framed.

Prevention of Money Laundering (Maintenance of Records) Amendment Rules, 2023:

• NGO Disclosure Requirements: Revised regulations to expand disclosure requirements for NGOs by reporting entities like financial institutions, banks, or intermediaries.
• Politically Exposed Persons (PEPs): Clarified definition to align with Financial Action Task Force (FATF) recommendations, defining PEPs as individuals entrusted with prominent public functions by a foreign country, such as heads of state, senior politicians, high-ranking government, judicial or military officers, senior executives of state-owned corporations, and important political party officials.

Concerns Regarding PMLA, 2002:

• Broad Definition of Proceeds of Crime: Debates over the broad interpretation of "proceeds of crime" include concerns about encompassing legal financial transactions. The law targets those involved in generating and laundering crime proceeds, even holding accountable those not directly involved in the crime but who participate in the laundering process.
• Coverage of Numerous Offences: The PMLA's schedule includes many offences unrelated to its original purpose of combating drug money laundering. The UN resolution that led to the law's enactment in India only mentioned laundering drug money, considered a serious economic crime threatening global economic stability and national sovereignty.
• Arrest Without Written Communication of Grounds: ED officers have violated Article 22(1) of the Constitution and Section 19(1) of PMLA by relying solely on verbal communication for arrests. The Supreme Court recently ordered the release of News Click founder Prabir Purkayastha, ruling his arrest under the Unlawful Activities Prevention Act (UAPA) invalid and emphasizing that arrested individuals must be promptly informed of the grounds for their arrest.

Way Forward:

Incorporating a Clearer Definition of "Proceeds of Crime:

• Need for Precision: To prevent misuse, the term "proceeds of crime" in the PMLA should be clearly defined.
• Specificity: Specify types of crimes and the direct or indirect methods by which proceeds are obtained. This reduces arbitrary interpretation by authorities.

Revising the Burden of Proof:

Current Issue: The existing framework places a heavy burden on the accused to prove the legitimacy of their assets.

Balanced Approach: Revising this to ensure a fairer distribution of the burden of proof between the prosecution and defence could result in a more equitable legal process.

Best Practices: Adopt practices from jurisdictions with a strong presumption of innocence.

Establishing Independent Oversight Mechanisms:

• Preventing Overreach: To avoid the overreach of law enforcement under the PMLA, independent oversight bodies should be established.
• Role of Oversight Bodies: These bodies would review and monitor enforcement actions to ensure they comply with legal standards and respect human rights.

Promoting International Cooperation and Compliance:

• Global Challenge: Given the international scope of money laundering, enhancing cooperation in enforcing PMLA provisions is vital.
• Alignment with Standards: Align India's PMLA with international standards set by bodies like the Financial Action Task Force (FATF) and ensure compliance with their recommendations.

Incorporating Technological Advances:

Leveraging Technology: Using technology can enhance the effectiveness of the PMLA.

Tools for Detection: Implement artificial intelligence and machine learning tools to analyse financial transactions and identify suspicious patterns indicative of money laundering.

Digital Arrest Scams

Why in News?

The Ministry of Home Affairs (MHA) has warned about a rise in 'digital arrest' scams. In these scams, cybercriminals pretend to be government officials to steal money from people.

The Indian Cybercrime Coordination Centre (I4C) is working with Microsoft to fight this online crime.

What are Digital Arrest Scams?

Cybercriminal Impersonation

Scammers are pretending to be officials from government agencies like the police, Central Bureau of Investigation (CBI), Narcotics Department, Reserve Bank of India (RBI), and Enforcement Directorate.

Intimidation Tactics

Victims get calls accusing them of illegal activities, such as dealing with drugs or fake passports. Scammers might also claim a loved one is involved in criminal activities or accidents, demanding money to "resolve" the case.

Digital Confinement

Some victims are forced to stay on video calls with the scammers until they pay the demanded money.

Demands for Money

Criminals extort money by threatening to expose false legal cases they have fabricated.

Steps Being Taken to Combat These Scams

1. Blocking Fraudulent Accounts: The Indian Cybercrime Coordination Centre (I4C) has blocked over 1,000 Skype accounts linked to these scams. They are also helping to block SIM cards, mobile devices, and bank accounts used by the scammers.

2. Cross-Border Crime Syndicates: The Ministry of Home Affairs (MHA) has identified that these scams are run by international crime syndicates, making it part of a larger organized crime network.

3. Alerts and Awareness: I4C is raising awareness through social media platforms like "cyberdost." If someone receives such a call, they should report it immediately to the cybercrime helpline or the "National Cyber Crime Reporting Portal" for help.