The 2025 Illicit Trade Index of 158 countries

The 2025 Illicit Trade Index by the Transnational Alliance to Combat Illicit Trade (https://www.tracit.org/) provides a detailed analysis of how 158 countries are tackling various forms of illicit trade.

Here are some key insights from the Index:

1. Country Rankings: The Index ranks countries based on their resilience against illicit trade, highlighting top and bottom performers.
2. Evaluation Criteria: The Index assesses countries across six categories, including
1. Taxation and economic environment,
2. Regulatory framework and enforcement,
3. Criminal enablers of illicit trade, trade,
4. Customs and borders,
5. Supply chain intermediaries, and
6. Sectoral illicit trade indicators
3. Sector Vulnerabilities: It identifies vulnerabilities across sectors such as counterfeit goods, illegal wildlife trade, illicit pharmaceuticals, and money laundering.
4. Regional Analysis: Comparative analyses across regions and economic groupings like OECD, G20, BRICS, ASEAN, and the African Union.
5. Policy Recommendations: The Index offers practical recommendations to strengthen policies, enhance enforcement, and promote international collaboration.
6. Interactive Tools: Users can explore results through interactive visualization tools, including rankings, geographic and economic groupings, and radar charts.

Key Insights from the Index:

• Illicit Trade Is Widespread and Evolving –
• The global average score is just 49.9/100, showing most countries lack resilience.
• Even top performers like Denmark (76), the US (75.4), and Germany (73.5) have room for improvement.
• Low Scores, High Exposure
• Bottom-ranking countries, such as Yemen, Venezuela, and the Central African Republic, face conflict, weak governance, and porous borders, creating fertile ground for criminal networks.
• Digital Trade, Real Risks –
• E-commerce, postal networks, and Free Trade Zones (FTZs) remain weak spots.
• The average score for supply chain intermediary oversight is only 30.9/100, with postal security scoring just 3.8/100.
• Criminal Enablers & AML Weaknesses –
• Only 25 countries scored above 60 in controlling criminal enablers like money laundering, human trafficking, and corruption.
• Most fall short in anti-money laundering coordination.
• Sectoral Risks Underestimated –
• The lowest-performing area is enforcement against sector-specific illicit trade (e.g., fake medicines, agrochemicals, excise goods), with an average score of 44.6.
• No country scored above 66.4.
• Gaps in Interagency Coordination –
• Nearly 80% of countries lack a dedicated interagency anti-illicit trade task force, weakening the national response to organized criminal threats.

Why This Matters for AML & Compliance Professionals

Illicit trade not only fuels criminal economies—it erodes tax systems, undermines consumer trust, and finances organized crime. Financial institutions must:

• Enhance due diligence on high-risk jurisdictions and sectors.
• Strengthen controls around e-commerce, FTZs, and postal flows.
• Align with international AML standards and improve interagency cooperation.
• Support cross-border data sharing and policy harmonization.

This comprehensive framework aims to help policymakers and industry leaders fortify defences, improve regulatory frameworks, and disrupt illicit trade networks.

References

https://www.tracit.org/illicit-trade-index.html

https://www.tracit.org/uploads/1/0/2/2/102238034/tracit_illicittradefindings_executivesummary_mar2025.pdf