This paper investigates trade-based money laundering from environmental crimes by examining timber product trade misinvoicing between Southeast Asian countries and their trading partners from 2018 to 2022. By applying a gravity-based empirical model with the Poisson Pseudo Maximum Likelihood (PPML) estimator, the study highlights financial technology (Fintech) innovation as a potential driver of TBML. The results reveal that economic size, distance, and Fintech innovation variables collectively influence TBML, although their effects differ across jurisdictions. In Southeast Asia, greater use of mobile payments and e-commerce aligns with higher TBML, suggesting that emerging technologies may be misused. Conversely, in partner countries, advanced Fintech capabilities are associated with lower TBML, indicating more effective regulatory safeguards. regulatory sandboxes exhibit conflicting patterns. They mitigate TBML in origins but heighten it in partner jurisdictions. Overall, these findings underscore the complexity of Fintech’s innovation influence on TBML across diverse contexts, emphasising the importance of targeted policy measures to curb TBML from environmental crimes and reinforce financial integrity.