A report by the Environmental Investigation Agency documents how ‘formal’ and ‘legal’ mechanisms for timber extraction in Peru are serving to ‘launder’ wood of controversial or illegal origin. Species like mahogany, for instance, are protected under Peruvian law which stipulates they may only be felled in concession areas awarded to specific companies. However, according to EIA, many loggers are cutting down mahogany and cedar trees in non-concessionary areas and selling the wood illegally to formal companies, which in turn pass it off as mahogany and cedar originating from their own concession areas. This timber is ultimately exported.
See the complete report here: http://eia-international.org/wp-content/uploads/The-Laundering-Machine.pdf