Money Laundering in Emissions Trading

Understanding the Basics:

What are Emission Certificates?: Tradable permits that authorize companies to emit a specific amount of greenhouse gases.
What is Emission Trading?: A market-based approach to control greenhouse gas emissions through tradable certificates.

The Mechanics of Money Laundering in Emission Trading:

How does it work?: Money laundering in this sector involves tactics such as buying excessive certificates, engaging in unusual transaction offers, and dealing with foreign aircraft operators.
Why is it a concern?: This form of money laundering undermines the integrity of emissions trading, intended to combat climate change.

Identifying Money Laundering Indicators:

Companies must look out for signs like unknown buyers in the sector, unusual trading patterns, and significant price deviations.

Implementing AML Compliance in the EU-ETS:

What are the key measures?: Enhanced due diligence, risk awareness, transaction monitoring, employee training, and collaboration with authorities are crucial.

Essential Measures for Companies:

What steps should companies take?:
- Conducting VAT ID verification.
- Ensuring account assignment in the registry matches.
- Determining the business purpose.
- Implementing thorough due diligence.

For more detailed information and ongoing updates on navigating the complexities of money laundering in emissions trading, please contact us.

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