Global Security Challenges Transnational Organized Crime emerging trends

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

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

Emerging trends in organized crime 1. Organized crime: definition & typologies 2. Drug trafficking 3. Illicit arms trade 4. CBRN trafficking 5. Trafficking in persons 6. Counterfeiting 7. Resource crimes 8. Maritime piracy 9. Cyber crime 10. Financial crimes: corruption, fraud, money laundering 3

1. Organized Crime 4

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 5

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 6

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 7 3. 2)

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 material benefit (UNTOC Convention, 8 art. 2 a)

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. 2 b) 9

1. Organized Crime Composite Organized Crime Index Indicators: - perceived organized crime prevalence; - the extent of the sshadow economy; - grand corruption; - money laundering; - unsolved murders (x 100. 000 population). (Jan van Dijk) 15 countries with the highest scores: 1. 2. 3. 4. 5. 6. 7. Haiti Paraguay Albania Nigeria Guatemala Venezuela Russian Fed. 8. Angola 9. Ukraine 10. Colombia 11. Mozambique 12. Bangladesh 13. Kazakhstan 14. Pakistan 15. Jamaica 10

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

1. Organized Crime: typologies 2. Regional hierarchy 12

1. Organized Crime: typologies 3. Clustered hierarchy 13

1. Organized Crime: typologies 4. Core group 14

1. Organized Crime: typologies 5. Criminal network 15

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 16 Sources: WEF GAC report on illicit trade, 2010 Counterfeiting of goods $ 200 billion

1. Organized Crime The Global Criminal Product The Havocscope Black Markets Products Index suggests that the global illicit trade reaches $1. 023 global illicit trade reaches trillion per year http: //www. havocscope. com/indexes/products/ http: //www. havocscope. com/ranking/countries/ http: //www. havocscope. com/black-market-prices/organs-traffickingprices/ 17 Sources: www. havoscope. com

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 18 services, … Is there a sense of urgency? services,

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

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

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

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

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

3. Illicit Arms Trade 24

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 25 * Federation of American Scientists: The Arms Sales Monitoring Project

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

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 ? 27

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

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

4. CBRN Source: IAEA ITDB Factsheet 2009 30

4. CBRN Source: IAEA ITDB Factsheet 2009 31

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

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

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

5. Human 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. 35

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

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

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 38

5. Human Trafficking Different forms of exploitation: • 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 39

5. Human Trafficking Crimes related to trafficking in persons 40

5. Human Trafficking in persons affects all sectors 41

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

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 43

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 44

6. Counterfeiting 45

6. Counterfeiting Risks for consumers 2007: A Canadian woman died from metal poisonin the ingestion of a counterfeit pill bought on th 2006: More than 100 people dead in Panama because of a counterfeit cough syrup 2005: Counterfeit Raki killed more than 20 people in Turkey 2001: Counterfeit Vodka killed at least 60 people in Estonia 46

6. Counterfeiting 1. 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 47

6. Counterfeiting By Lynn G. Crutchfield 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. 48

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

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 50

7. Environmental Crime 51

7. Environmental Crime 52

7. Environmental Crime 53

7. Environmental Crime Main challenges • Scarce awareness and knowledge of the phenomenon and poor resources assigned to law enforcement • Insufficient regulation of the phenomenon linked to insufficient sanctions • Harm posed to people and natural resources • Growing involvement of organized crime and its transnational dimension, linked to the low risk of detection • High profits behind the phenomenon 54

7. Environmental Crime Dumping and illegal trade in hazardous waste • The increased cost of safe disposal and stricter legislations have driven an export trade to many of the world’s least developed countries • Southern countries are now recipients of growing amounts of waste produced in the Northern countries • Main destination countries: Africa and, more recently, Eastern Europe 55

7. Environmental Crime A specific category of hazardous waste: e -waste • A growing phenomenon, particularly harming to human health and the environment • Mobile phones, PCs, TV sets, refrigerators are exported for disposal to countries other then the one of production or use, especially from western countries to Asia (in particular: China and India) and Africa • Disguised as donations from developed countries 56

8. Maritime Piracy 57

8. Maritime Piracy IMB Live Piracy Map 2009 58

9. Cyber-crime 9. Cyber crime 59

9. Cyber crime Complaints of online crime, 2008 at the Internet Crime Complaint Center (USA) YEAR COMPLAINTS RECEIVED US$ LOSS 2008 275, 284 265 million 2007 206, 884 239 million 2006 207, 492 198 million 2005 231, 493 183 million 2004 207, 449 68 million 60

9. Cyber crime Major sources of financial loss due to computer crime and security breaches in Australia, 2003 -06 ($ million) (AIC) 61

9. Cyber crime 62

9. Cyber crime 63

10. Financial crimes: money laundering, fraud and corruption 10. Financial crimes 64

10. Financial crimes Major financial crimes • Financial Crimes • Corporate Fraud • Securities and Commodities Fraud • Health Care Fraud • Mortgage Fraud • Identity Theft • Insurance Fraud • Mass Marketing Fraud • Money Laundering US Yearly Financial Crimes Report to the public 65

10. Financial crimes 66

10. Financial crimes 67

10. Financial crimes 68

10. Financial crimes 69

10. Financial crimes Corruption • Is an obstacle to development, governance, huma and the Rule of Law; • Is the paste holding together the criminal-politica • TOC buys power, consent and impunity; • TOC tends to target lower political and administrative levels and even buying elections. The UN Convention against Corruption provides goo practices and should become a global tool to fight c 70

Thank you for your kind attention alessandro. calvani@gmail. com www. sandrocalvani. it Dr. Sandro Calvani Chairman of the Global Agenda Council on Illicit Trade Phone: +39338 2715555 E-mail: alessandro. calvani@gmail. com Website: www. sandrocalvani. it