Billions Lost as Secret Financial Networks Fuel Forest Destruction in Brazil and Cameroon

Africa , Asia-Pacific , Biodiversity , Development & Aid , Economy & Trade , Environment , Featured , Headlines , Natural Resources , Sustainable Development Goals , TerraViva United Nations , Trade & Investment Environment

Report say illegal logging, hidden ownership structures, and weak transparency laws are depriving governments of badly needed climate and biodiversity financing. Credit: Financial Transparency Coalition

SRINAGAR, India, Jun 8 2026 (IPS) - A new report has found that billions of dollars linked to illegal deforestation are flowing through global supply chains, with secrecy around land ownership and company records helping timber, soy, and beef products enter international markets unchecked.

The report , Financial Secrets of the Forests: How Secrecy Fuels Deforestation in Brazil and Cameroon , was released by the Financial Transparency Coalition in partnership with the Center for Economics and Finance for Latin American Development (CEFILAT) on May 26, this year, examined forest loss and illicit financial flows in Brazil and Cameroon, two countries that hold some of the world’s largest tropical forests.

Researchers behind the report say illegal logging, hidden ownership structures, and weak transparency laws are depriving governments of badly needed climate and biodiversity financing. They argue that while countries have passed anti-deforestation laws, the lack of public access to company ownership records allows those benefiting from environmental destruction to remain hidden.

The report estimates that trade mispricing linked to timber exports cost Cameroon an average of US$289 million every year between 2013 and 2023. In Brazil, unexplained discrepancies in timber exports amounted to around US$214 million over a similar period.

When asked whether the report argues that financial secrecy is central to illegal deforestation and what the biggest obstacles were faced while trying to identify the real beneficiaries behind timber, soy, and cattle businesses in Brazil and Cameroon, one of the report’s lead authors, Matti Kohonen , Executive Director of the Financial Transparency Coalition, told Inter Press Service (IPS) in an exclusive interview that they weren’t able to identify the beneficial owners of these businesses despite using the best available data, including satellite GIS data.

“For the state of Mato Grosso in Brazil, which represents a fifth of the country’s total deforestation, we identified hundreds of thousands of plots of land which had been illicitly deforested from 2010 to produce soy and cattle but could only find the ID of the plots and, in some cases, companies behind them, but not their beneficial owners. When we asked the local authority for this information for the top plots of land, they replied this could not be provided due to privacy concerns despite this being a clear example of a public interest request,” he said.

“For Cameroon, on the other hand, we focused on timber and were able to map the main timber concessions (Forest Management Units (FMUs) and Sales of Standing Volume (SSVs), described in the report) and the companies that had these concessions were mostly identifiable in the datasets, but we could not find out using the best data whether these were shell companies owned by foreign firms and also could not identify their beneficial owners.”

According to him, Cameroon does have a BO database, but this is not publicly accessible.  Matti said that there is some data on mining and fossil fuel companies through the EITI (extractive industries transparency initiative), but forestry is not in their scope.

“When we asked for this information from the Cameroonian government, we didn’t get any reply, not even about the updated list of sanctioned timber companies, which we actually found were still being given concessions as late as July 2025.  Some of these sanctioned timber companies were available online, but not for the most recent years and there was no historical data that we found through earlier reporting by Pulitzer.”

The findings suggest that existing international regulations are failing to stop products linked to deforestation from entering global markets. Matti said that the biggest enforcement gaps in producer countries or importing countries are the inability to identify the companies and their beneficial owners responsible for deforestation and the lack of transparency in the supply chains which prevent tracing products to the source.

“This is a good study by WRI highlighting these issues. Another key problem is the lack of political will to tackle these issues. This is reflected in our report in the case of Cameroon, whose authorities didn’t provide us with any data, as well as the state of Mato Grosso, which refused to reveal the beneficial owners of the top plots of land linked to illicit deforestation despite the freedom of information legislation in Brazil.”

Matti added that the lack of publicly available beneficial ownership registrie…