Cattle can both themselves be laundered (if they are grazed on land that has been illegally cleared and converted to pasture) and used as a means of laundering criminal proceeds from other exploits, like drugs trafficking. In Brazil, cattle have been laundered to obscure their links to land clearing, when they are moved from ranches that have contributed to land conversion through “clean” ranches that have not resulted in recent forest loss.
In 2009, several Brazilian slaughterhouses signed the Terms of Adjustment of Conduct, an initiative of the Federal Prosecution Office and the Public Commitment on Cattle Ranching, and a voluntary protocol developed by Greenpeace, which precludes them from purchasing cattle reared on deforested land. However, a single cow might pass through up to 10 farms before it is slaughtered (from birth, through rearing and fattening). Any of these farms might be linked to illegal deforestation but many slaughterhouses assess links to deforestation only on the last farm a cow passes through - their direct supplier. As long as the last farm in the supply chain is from a “clean” ranch that is free from recent deforestation then slaughterhouses (and subsequent transporters and retailers, like supermarkets) are likely to mark them as deforestation-free, even if they have spent the majority of their life on and have passed through nine other ranches that have been converted from forested land. Indeed, data indicates that some ranchers own both “dirty” and “clean” ranches and launder cattle through their own properties. So long as one property is kept clean, they can continue to clear land for cattle grazing purposes on any number of other ranches.
Other investigations by Global Witness have found that ranchers have fraudulently edited the boundaries of their ranch once they have cleared areas of land, so that this land conversion is no longer included within the property’s scope and the ranch appears free from deforestation. This is alleged to be the case for the Fazenda Espora de Ouro II Ranch in Brazil’s Pará state, which Global Witness also found appears to be registered in the name of an individual who could not legally be its owner (based on assessment of a database of land titles and beneficiaries).
Cattle can also – and concurrently – be used as a means of laundering the proceeds of illicit activity. Drug traffickers – especially in Colombia (where the traceability of beef produce is particularly poor), Honduras, and Guatemala – are known to launder revenue from drugs by buying or grabbing land which they convert into pasture for cattle, which they also purchase with narcotrafficking proceeds. When the cattle are sold, profits are hard to trace back to the drug network and their illicit proceeds are effectively laundered. This practice, known as “narco-ranching”, is suspected of contributing up to 87% of deforestation in the Maya Biosphere Reserve, a large UNESCO heritage area of forest which covers over 2 million hectares of rainforest across northern Guatemala and borders other protected forests in Mexico and Belize. The Reserve is highly vulnerable to deforestation by crime groups due to its strategic location along a significant drug trafficking route up through Guatemala and Mexico leading to the US.
Cattle ranching in such areas also frequently serves to hide airstrips and production facilities used by traffickers to produce and transport drugs or other illicit products. Airstrips now pepper the Maya Biosphere reserve, which are used by planes coming in from Colombia and Venezuela with cocaine to be smuggled across the border into Mexico.
Keywords: Latin America, Colombia, cattle, primary production, drug trafficking, money laundering, illegal deforestation
Source: https://www.vox.com/science-and-health/2022/10/19/23403330/amazon-rainforest-deforestation-cattle-laundering
In Colombia, labour rights violations in the palm oil industry are rampant, characterised by exploitative practices and corporate impunity. The industry is large and promoted by the government, yet most of its 130,000 workers are employed in illegal and harsh conditions. Major companies, such as Paligrow, have been involved in wage theft and have denied their workers collective bargaining rights. Employees also often work in unsafe conditions, with injuries being frequent. Paligrow also uses subcontracting schemes, such as “worker cooperatives” and “simplified stock corporations” in order to avoid employment costs, including contributing to social security benefits. This undermines workers’ rights and complicates enforcement under the U.S.-backed Labor Action Plan, which mandates fines for such subcontracting but remains largely unenforced. Paligrow is only one of the numerous major companies that reportedly employ such exploitative practices. Furthermore, the climate for labour organising is highly dangerous, with over 150 union leaders in the palm oil sector murdered since 1998. Between 2011 and 2015, there were over 1,933 threats and acts of violence against workers, including 121 assassinations.
Keywords: Latin America, Colombia, palm oil, primary production, forced labour, human rights violations
Sources: https://laborrights.org/blog/201605/displacement-death-and-worker-exploitation-corporate-crimes-colombia%e2%80%99s-palm-oil-industry
In Santander, a region of Colombia, corruption is a common practice in the timber industry. Timber traders will exploit the regulatory, police, and judicial systems in order to enable the illegal trafficking of wood. Government agencies, such as the Autonomous Corporation of Santander (CAS) and the Corporation for the Defense of the Bucaramanga Plateau (CDMB), which are responsible for regulating timber extraction, have become riddled with corruption. Officials within these bodies have been found to issue false permits, recycling old ones and creating fake licences to launder illegally sourced timber. Police officers, bribed by the criminal organisations, frequently allow trucks carrying illegal timber to pass through checkpoints. In addition to this, the judicial system is also compromised, with prosecutors being influenced by bribes to exploit procedural loopholes. This allows seized timber to be returned to traffickers. An example of this corrupt behaviour is the Los Ingenieros criminal network’s use of intermediaries. These individuals will manage the logistics of illegal timber transport, securing false permits, and connecting loggers with buyers. Businessmen in major cities including Bogotá or Bucaramanga purchase timber through these intermediaries. This corruption has led to widespread deforestation in natural reserves such as Yariguíes National Park, while key figures often evade punishment.
Keywords: Latin America, Colombia, timber, primary production, trade and transport, corruption and bribery, serious organised crime, illegal timber trade, illegal logging, fraudulent documentation, deforestation
Sources: https://insightcrime.org/investigations/colombia-purveyors-illegal-wood/
In Colombia’s Guaviare department, the nomadic Indigenous tribe Nukak Makú is currently endangered by illegal palm oil plantations, coca cultivation, and cattle ranching. The tribe first made contact with the outside world in 1988, and since then, the incursion of external activities has pushed them to the brink of physical and cultural extinction. Indeed, despite their territory being an officially recognised Indigenous reservation, the Nukak have been losing their home to illicit activities. Deforestation and land grabs are driven by criminal groups and former settlers transforming the land for agricultural use. Illegal palm oil plantations have spread in the Guaviare region, encroaching on the reservation. In the past, the region was also heavily affected by armed conflict involving paramilitary groups and guerrillas, further displacing the Nukak people. Despite legal protections and court orders aimed at curbing deforestation and environmental crimes, enforcement has been weak, and illegal activities continue to threaten the Nukak's territory.
Keywords: Latin America, Colombia, palm oil, cattle, primary production, Indigenous rights
Sources: https://news.mongabay.com/2020/12/palm-oil-coca-and-gangs-close-in-on-colombias-indigenous-nukak-maku/
Mongabay reports on a case in Colombia’s tropical Andes, where a group of farmers and villagers are resisting the construction of a large copper mine by international gold mining giant AngloGold Ashanti. The company has been working for over a decade to obtain a license to extract nearly 1.4 million metric tons of copper from the mountains surrounding the town of Jericó. Concerned about the impact of the mine on their underground water supply, the group blocked the company from performing the final environmental studies needed for its pending mining license. The company claims that the mine would bring in around $5 million in annual profit for the town and create at least 3,000 jobs. However, the town is sharply divided over the issue.
Farmers fear their livelihood will vanish if the mine disrupts the water table. The area is predominantly agricultural and has never been a mining zone. The potential impact of the mine on the aquifer and the farmers’ water sources isn’t clear yet. The farmers and villagers have kept constant watch on the land rented by the company and have disrupted operations. As of mid-May, the legal process was still ongoing, with the town’s police inspector in charge of mediation between the two sides. Despite the resistance, AngloGold Ashanti has invested millions of dollars in Jericó since it first launched the project in 2010.
Keywords: Latin America, Colombia, minerals, procurement of permits, copper
Source: https://news.mongabay.com/2024/05/in-a-village-divided-farmers-stall-massive-copper-mine-in-colombian-andes/
The Colombian peace process left a power vacuum in rural areas formerly controlled by FARC, leading to increased deforestation and environmental damage due to the lack of government oversight. Criminal groups have exploited this situation by engaging in illegal timber trafficking, amongst other environmental crimes. The Colombian Ministry of the Environment estimates that 47% of the timber sold nationally is illegally sourced. A 2020 investigation also found irregularities in Colombian timber exports, including over-invoicing and under-invoicing to move value in and out of the country. Logging operations often occur in protected areas of the forest, despite licences indicating authorised zones. Overall, the illegal logging of timber in Colombia causes 10% of all deforestation. Another issue is that existing regulations are only weakly enforced. For instance, the environmental authority of Corpoamazonia, responsible for protecting forests in the southern departments, is understaffed, with just 30 officers overseeing an area the size of Ecuador. In addition, the Transport Handbook, a permit required for cutting and transporting timber in Colombia, is frequently falsified in order to launder illegal timber. Merchants exploit these permits as blank cheques to justify volumes logged in protected forests.
Keywords: Latin America, Colombia, timber, primary production, trade and transport, illegal timber trade, illegal logging, fraudulent documentation, illegal deforestation, trade misinvoicing
Sources: https://ojo-publico.com/921/how-timber-trafficking-operates-colombia#:~:text=Although%20the%20authorities%20point%20to,of%20illegal%20timber%20is%20traded
https://gfintegrity.org/wp-content/uploads/2020/03/IFFs_Enviro_Final_eng.pdf
A report by the Colombian Centro de Estudios Regionales Cafeteros Y Empresariales details the extent of child labour in Colombia’s coffee sector. Colombia's coffee zone covers 22 of 32 departments, with significant small-scale, traditional production. Child labour is allegedly prevalent in these zones due to familial economic needs, despite the national regulatory framework which includes international conventions and laws aimed at protecting young workers. The report finds that while most children in coffee-growing households attend school, attendance rates decline with age. Children and adolescents are involved in various coffee-related activities such as harvesting, carrying food, and processing coffee. According to the report, most children explain that their involvement in coffee activities does not interfere with their rights. However, some do mention reduced free time and fewer social interactions. There are also several safety concerns associated with specific tasks, particularly those involving machinery or harmful chemicals. Approximately 13.2% of surveyed children are engaged in child labour, primarily in hazardous activities like handling machinery or chemicals. These tasks pose significant risks to their health and safety.
Keywords: Latin America, Colombia, coffee, primary production, child labour
Sources: https://www.dol.gov/sites/dolgov/files/Gayar.Arwa.T%40dol.gov/AN5F2E~1.PDF
In May 2013, InSight Crime reported that Colombian authorities seized 11 tons of contraband meat in Cucuta, near the Venezuelan border. These contraband goods were linked to money laundering operations by guerrilla and drug trafficking groups. The contraband meat, originating from Venezuela, was packed in a truck and discovered in Cucuta, Norte de Santander, Colombia. The meat was estimated to come from about 600 cows. Authorities believe these groups use the meat trade to launder drug money and generate revenues to purchase coca, a key ingredient in cocaine production. The process involves buying meat in Venezuela at black market prices and selling it in Colombia, taking advantage of the significant difference between the official and black market exchange rates of the Venezuelan bolivar. By purchasing meat cheaply on the black market in Venezuela and selling it at higher prices in Colombia, the groups maximise their profits. The FARC along with neo-paramilitary groups like the Urabeños and Rastrojos, are implicated. These groups are heavily involved in drug trafficking and use various methods, including contraband trade, to launder their illicit earnings.
Keywords: Latin America, Colombia, cattle, primary production, terrorist and conflict financing, drug trafficking, money laundering
Sources: https://insightcrime.org/news/brief/contraband-meat-colombia-drug-trafficking-cocaine/
Research from NGO Verité found that up to 91% of Venezuela’s and 87% of Colombia’s gold exports are illegally produced, often controlled by organised crime groups backed by large-scale investments. Some of the world’s most active organised crime groups and non-state armed groups are reportedly directly involved in the production and sale of such illegal gold, including Mexico’s Sinaloa cartel and Italy’s ’Ndrangheta mafia, as well as Brazilian, Russian, and Chinese syndicates.
Illegally produced gold from Latin America is exported to refineries (with the help of corrupt officials), melted down and blended with legally produced and scrap gold, or mixed to make alloys, then exported to global markets. Canada and the US are the biggest importers of Latin American gold – indeed, the latter’s gold imports from Latin America exceed the volume of gold that Latin America claims to export.
Whilst Switzerland is responsible for refining around 70% of globally-produced gold, some of the county’s refineries have stopped purchasing gold from Latin American suppliers linked to illegal gold mining and human rights abuses, leaving a gap in the market which US refineries have rushed to fill, purchasing this surplus gold in Switzerland’s place and introducing it to global markets. Indeed, Verité found that 90% of the Fortune 500 companies that filed conflict mineral disclosures last year (from across telecoms, IT, car manufacturers, and machinery producers) had purchased gold from refineries linked to illegally mined gold from Latin America.
In 2022, over 320 illegal gold mines were counted in the nine states that make up Brazil’s Legal Amazon. Major drug trafficking factions, including the Primeiro Comando da Capital, have infiltrated mining operations in Indigenous territories, running protection rackets, extorting taxes, controlling pits, and forging partnerships with gangs in neighbouring Venezuela to sell contraband minerals. Gold is also the top export of Bolivia, with the mining region transecting national parks and reserves.
Keywords: Latin America, Colombia, minerals, gold, primary production, serious organised crime illegal mining, corruption and bribery, drug trafficking, tax evasion, Indigenous rights, human rights violations, gold trafficking
Source: https://www.theguardian.com/global-development/2016/aug/16/illegal-mines-local-mafia-take-shine-off-latin-american-gold-peru