Global Security Challenges Transnational Organized Crime: emerging trends of global concerns

1. Transnational Organized Crime:emerging trends of global concern Lecture by SandroCalvani, Chairman, Global Agenda Council on Illicit Trade NATO Defence College, Rome, Italy, 20 May 2010 Global Security Challenges Transnational Organized Crime:emerging trends of global concerns Lecture by SandroCalvani, Chairman, Global Agenda Council on Illicit Trade NATO Defence College, Rome, Italy, 20 May 2010

2. A dangerous nexus The 3C factor Capital Failed State Conflicts Crimes

3. Emerging trends in organized crime 6. Counterfeiting 7. Resource crimes 8. Maritime piracy 9. Cyber crime 10. Financial crimes: corruption, fraud, money laundering • Organized crime: • definition & typologies • 2. Drug trafficking • 3. Illicit arms trade • 4. CBRN trafficking  • 5. Trafficking in persons

4. 1. Organized Crime

5. 1. Organized Crime United Nations Convention against Transnational Organized Crime (UNTOC) and its Protocols Status (9 November 2009) UN Convention against Transnational Organized Crime Entry into force: 29 September 2003, Parties: 150 Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children, supplementing the UN Convention against Transnational Organized Crime Entry into force: 25 December 2003, Parties: 133

6. 1. Organized Crime UNTOC Protocol against the Smuggling of Migrants by Land, Sea and Air, supplementing the UN Convention against Transnational Organized Crime Entry into force: 28 January 2004, Parties: 121 Protocol against the Illicit Manufacturing of and Trafficking in Firearms, Their Parts and Components and Ammunition, supplementing the UN Convention against Transnational Organized Crime Entry into force: 3 July 2005, Parties: 79

7. 1. Organized Crime • An offence is transnational if: • It is committed in more than one State; • It is committed in one State but a substantial part of its preparation, planning, direction or control takes place • in another State; • It is committed in one State but involves an organized criminal group that engages in criminal activities in more than one State; or • It is committed in one State but has substantial effects • in another State.”(UNTOC Convention art 3.2)

8. 1. Organized Crime • An organized criminal group is : • A structured group of three or more persons existing • for a period of time • Acting in concert with the aim of committing • one or more serious crimes or offences • established in accordance with the Convention • To obtain, directly, or indirectly, a financial • or other materialbenefit • (UNTOC Convention, art. 2a)

9. 1. Organized Crime • A serious crime is: • A conduct constituting an offence punishable • by a maximum deprivation of liberty • of at least four years or a more serious penalty • (UNTOC Convention, art. 2b)

10. 1. Organized Crime Composite Organized Crime Index15 countries with the highest scores: 1. Haiti 2. Paraguay 3. Albania 4. Nigeria 5. Guatemala 6. Venezuela 7. Russian Fed. 8. Angola 9. Ukraine 10. Colombia 11. Mozambique 12. Bangladesh 13. Kazakhstan 14. Pakistan 15. Jamaica • Indicators: • - perceived organized crime prevalence; • the extent of the sshadow economy; • grand corruption; • money laundering; • unsolved murders • (x 100.000 population). (Jan van Dijk)

11. 1. Organized Crime:typologies Organized crime group typologies: 1. Standard Hierarchy

12. 1. Organized Crime:typologies 2. Regional hierarchy

13. 1. Organized Crime:typologies 3. Clustered hierarchy

14. 1. Organized Crime:typologies 4. Core group

15. 1. Organized Crime:typologies 5. Criminal network

16. 1. Organized Crime Major Global Illicit Trades Trafficking of humans 2.4 million people $ 32 billion. Human Smuggling $ 10 billion Drug trafficking $ 400 billion Illegal logging $ 5 billion Environmental, pollution, natural resources $ 2 billion Trafficking in weapons 200.000 dead $ 1 billion CBRN 1,562 incidents 65 % lost Trafficking in art $ 6 billion Counterfeiting of goods $ 200 billion Counterfeit medicines 700.000 dead $ 75 billion Cigarette smuggling unpaid taxes $ 5 billion Money Laundering 2-5% of gl.GDP $ 800-2,000 bil. Cyber-crime Sources: WEF GAC report on illicit trade, 2010

17. 1. Organized Crime The Global Criminal Product The Havocscope Black Markets Products Index suggests that the global illicit trade reaches $1.023 trillion per year http://www.havocscope.com/indexes/products/ http://www.havocscope.com/ranking/countries/ http://www.havocscope.com/black-market-prices/organs-trafficking-prices/ Sources: www.havoscope.com

18. 1. Organized Crime Organised crime´s trends and unsolved issues • TOC prioritizes systemic advantages, markets, power, and exploits States’ weaknesses; TOC is increasingly effective in hiding its plans and activities. • Lack of innovative applied research on sources of HR and motivation for TOC, on citizen security and on vulnerability. • Are mafias primitive states? • Which action comes first? Corruption, law enforcement, social justice, education (incl. ethics), control of illicit trade effective public services, … Is there a sense of urgency?

19. 2. Drugs 2. Drug Trafficking 2. Drug Trafficking

20. 2. Drugs Trafficking in heroin & morphine, 2007(countries reporting seizures of more than 10 kg)

21. 2. Drugs Trafficking in cocaine, 2007(countries reporting seizures of more than 10 kg)

22. 2. Drugs Trafficking in amphetamines, 2007(countries reporting seizures of more than 10 kg)

23. 2. Drugs Illicit drugs and society issues • Drug trafficking has fuelled and fuels several conflicts. • Can the world stop drugs without stopping wars ? • When a part of an open society wants to use drugs, • can the authority and the laws effectively stop drug users? • In a society with a significant drug problem, • what should be the correct definition • of a drug addict citizen?

24. 3. Illicit Arms Trade

25. 3. Arms Trade Some estimates of arms trade * $ 10 billion - illegal arms trafficking • $ 1-4 billion from trade in small weapons • 2 million people involved in illicit arms trafficking • 2000 US weapons smuggled into Mexico by drug traffickers daily • 140.000 illegally smuggled weapons in Kenya • 1 mil lost/stolen light weapons end up on the black market • 60% of the arms illegally trafficked are originated from a legal transaction * Federation of American Scientists: The Arms Sales Monitoring Project

26. 3. Arms Trade Estimates of arms production * * www.ppu.org.uk

27. 3. Arms Trade Arms, people, politics, and violence issues • Arms kill more than diseases, but they are men made. • Do people and political power really want to get rid of armed violence among civilian population? • What are the new definitions of the monopoly of force in a post-modern State ?

28. 4. CBRN 4. CBRN* trafficking *Chemical, Biological, Radiological and Nuclear Substances

29. 4. CBRN IAEA Illicit Trafficking Database International Atomic Energy Agency

30. 4. CBRN Source: IAEA ITDB Factsheet 2009

31. 4. CBRN Source: IAEA ITDB Factsheet 2009

32. 4. CBRN http://cartographia.wordpress.com/2008/05/13/cbrn-hazards-in-central-asia/

33. 5. Human Trafficking 5. Trafficking in Persons All data on human trafficking are extracted from UNICRI research

34. 5. Human Trafficking Trafficking in PersonsA“modern-day slave trade that fuels corruption and organized crime, bringing with it the potential to weakenand destabilize fragile governments” Source: NATO’s Policy on Combating Trafficking in Human Beings

35. 5. Human Trafficking Trafficking in Persons • The ACT: the recruitment, transportation, transfer, harbouring, receipt of persons. • The MEANS: by means of threat or use of force, or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power, or of a position of vulnerability, or of the giving or receiving of payments or benefits to achieve consent of a person. • The PURPOSE: having control over another person for the purpose of exploitation.

36. 5. Human Trafficking Origin countries of human trafficking Source: “Trafficking in Persons: Global Patterns,” UNODC, April 2006. HUMAN TRAFFICKING, A GLOBAL PROBLEM COUNTRIES OF ORIGIN

37. 5. Human Trafficking Destination countries of human trafficking Source: “Trafficking in Persons: Global Patterns,” UNODC, April 2006. HUMAN TRAFFICKING, A GLOBAL PROBLEM COUNTRIES OF DESTINATION

38. 5. Human Trafficking Severity of Human Trafficking • People are trafficked from 127 countries to be exploited in 137 countries. (UNODC) • Estimated number of persons in forced labour, including sexual exploitation, as a result of trafficking at any given time is 2.5 million. (ILO) • Estimated annual profits made from the exploitation  at the global level are 31.7 billion US$. (ILO) • Total financial cost of coercion to the workers affected, excluding the victims of forced commercial sexual exploitation, is approximately US$ 21 billion. (ILO)

39. 5. Human Trafficking Different formsofexploitation: • Forced labour • Sexual exploitation • Removal of organs and body parts • Use for criminal activities • Use for begging • Forced marriage • Illicit adoption • Use for armed conflicts

40. 5. Human Trafficking Crimes related to trafficking in persons

41. 5. Human Trafficking Trafficking in persons affects all sectors

42. 6. Counterfeiting 6. Counterfeiting All data on counterfeiting are from UNICRI research

43. 6. Counterfeiting Overview of the current situation Counterfeiting is a growing phenomenon and estimates on its dimensions are alarming According to OECD estimates, international trade in counterfeits would total USD 200 billion No region in the world is free from counterfeiting

44. 6. Counterfeiting In the European Union in 2007 +62% of seizures of foodstuff and beverages +264% of seizures of cosmetics +98% of seizures of toys and games +51% of seizures of medicines Significant increase for: clothing, electrical and, computer equipment, jewelry and watches

45. 6. Counterfeiting

46. 2006: More than 100 people dead in Panama because of a counterfeit cough syrup 2007: A Canadian woman diedfrom metal poisoningafter the ingestionof a counterfeitpillbought on the internet 6. Counterfeiting Risks for consumers 2005: Counterfeit Raki killed more than 20 people in Turkey 2001: Counterfeit Vodka killed at least 60 people in Estonia

47. 6. Counterfeiting • No one knows how big • the counterfeiting problem really is. • 2. Revenue losses are only • one part of the equation. • 3. Counterfeiting is a growing criminal enterprise • that encompasses • an everexpanding list • of products. By Lynn G. Crutchfield

48. 6. Counterfeiting 4. Counterfeiters are extremely difficult to find. 5. The internet is a well- established marketing tool and is contributing to the proliferation of counterfeits. 6. Counterfeiting is not a victimless crime. 7. Protecting one’s brand is possible. By Lynn G. Crutchfield

49. 7. Resource crimes and dumping of toxic waste 7. Environmental Crime

50. 7. Environmental Crime What is environmental crime? • Five main areas of offence: • illegal trade in wildlife and natural resources • dumping and illegal trade in hazardous waste • illegal trade in ozone-depleting substances • illegal, unregulated and unreported fishing • illegal logging and trade of timber