Annual Report

ORGANISED Assessment and Threat CRIME TASK FORCE 2006 - Organised Crime in Northern Ireland Crime in Northern - Organised

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www.octf.gov.uk 1 Introduction IRELAND ORGANISED CRIME IN NORTHERN INTRODUCTION

to relentlessly pursue those who engage in organised criminal activity. Our message to them is clear – we will disrupt your activities, prevent you from inflicting harm on our communities, and seize your assets. The results of law enforcement activity against organised criminals in Northern Ireland during 2005/06 confirm that we are having significant success: over £7 million worth of drugs and almost £10 million worth of counterfeit goods have been taken off our streets, and over £30 million worth of criminal assets have been restrained, confiscated or seized.

I also very much welcome the interest which the Northern Ireland Affairs Committee is I am pleased to introduce the sixth Annual taking into the whole question of organised Report by the Organised Crime Task Force crime in Northern Ireland. Their review has (OCTF) and congratulate all of our law been valuable both in focusing thinking enforcement partners on the impressive about how to deal with the problems and successes they have had during 2005/06. in demonstrating very tangibly Parliamentary They are providing a vital service to the support for the law enforcement agencies in people of Northern Ireland and I look forward carrying out their important work. to their continued success in 2006/07. An important development this year was This has been a year of change and the launch of the Serious Organised Crime opportunity for the OCTF which began with Agency (SOCA) on 2 April 2006. OCTF forged the review commissioned by Paul Murphy links with SOCA during its creation and the in February 2005. The review provided an new Agency is already a key member of OCTF excellent opportunity to assess critically at a number of levels. That partnership will how we tackle organised crime in Northern continue to develop over the coming year. Ireland and to ensure our structures are fit for purpose. I am also grateful to Shaun Woodward for his endeavours as Chair of the OCTF and I know I am grateful to all those who contributed to that Paul Goggins will build on that work in the review. Your opinions and ideas have the coming months and years. helped to shape the OCTF into an even more robust multi-agency partnership to face the challenges posed by organised crime to Northern Ireland society.

The Government is fully committed to tackling RT HON PETER HAIN MP SECRETARY OF organised crime in Northern Ireland and the STATE FOR NORTHERN IRELAND OCTF and its partner agencies will continue 2 Foreword FOREWORD

of dealing decisively with a problem that has the capacity to corrupt our society. Organised crime creates victims across the spectrum, from shop keepers robbed at gunpoint, to families destroyed by drugs, to citizens whose safety and livelihoods are jeopardised ORGANISED CRIME IN NORTHERN IRELAND by counterfeit goods or extortionists.

The Secretary of State has already commented on the achievements by Law Enforcement Agencies (LEAs) over the last twelve months and further details of the impact made by OCTF partners against organised crime are provided in Chapter One. I am very grateful to these agencies for their commitment and efforts in the past year.

Every citizen can play their part in tackling organised crime in Northern Ireland and OCTF is committed to continually raising I am pleased to be taking up the role of awareness of the dangers of and harms Chair of the Organised Crime Task Force caused by organised crime and the ways in (OCTF) in Northern Ireland and welcome which public vigilance can help counter it. It the opportunity to work with OCTF members is equally important that public confidence to tackle organised crime here. My former is sustained by demonstrating that the Ministerial responsibilities in the Home steps we are taking are successfully putting Office included serious and organised criminals out of business. To that end a new crime, drugs, the Assets Recovery Agency strategy to raise public awareness is being and the Security Industry Authority and I developed by OCTF. am fully aware of the problems we face nationally. I am also aware that organised Since joining the OCTF last year the Head crime in Northern Ireland differs from the of the Northern Ireland Civil Service (NICS) rest of the United Kingdom because of its has formed a NICS interdepartmental group, history of paramilitary involvement and the whose aim is to promote awareness of land border with the Republic of Ireland but the organised crime threat in Government I am confident that the OCTF and the links Departments and the wider public sector. it has with agencies in these, and other, It is taking forward a range of initiatives, jurisdictions are effectively addressing these including considering how existing laws issues. and regulations can best be exploited and enhanced to tackle organised criminality. We should not exaggerate the scale of the problem posed by organised crime – I have already mentioned the land border Northern Ireland is not a mafia society - but with the Republic of Ireland. In some nor should we shy away from the necessity areas of criminality, such as smuggling and money laundering, the border offers 3 ORGANISED CRIME IN NORTHERN IRELAND ORGANISED CRIME IN NORTHERN FOREWORD

criminal opportunities to avoid detection and crime, distinguishes between the activities conceal assets. That is why cross border of individual members and those of the co-operation at all levels across government organisation. The Government is clear that and law enforcement is vital and I am criminal activity will not be tolerated, from pleased to report that it has never been whatever source, and therefore welcomes better. This year we have seen a number of this report of PIRA moving away from co-ordinated large-scale operations involving organised crime. It hopes and expects that agencies from both jurisdictions against these commitments will continue to be met those engaged in cross border organised and that other paramilitary groups will follow crime. These close working relations are suit without delay. further strengthened through an annual cross border co-operation seminar to improve There are no quick fixes to tackling organised our shared understanding of cross border crime. It needs to be tackled at a number of organised crime and to review and evaluate levels - operational, legislative and political. our progress in tackling it. I firmly believe that by working in partnership – by combining effective enforcement with Organised crime is not, of course, confined ongoing public support - we will succeed in to Northern Ireland or the Republic and we our fight against organised crime. are working with SOCA and law enforcement agencies in other jurisdictions to tackle I would like to thank OCTF partners and all organised criminals across the UK and those who have contributed to this report. further afield. It is encouraging - and revealing - to note that during 2005/06 12 law enforcement operations in the UK and 17 international operations impacted on organised crime networks in Northern Ireland.

It is clear from the Threat Assessment PAUL GOGGINS MP in Chapter Two that persons linked, now SECURITY MINISTER AND CHAIR OF THE or previously, with paramilitary groups in ORGANISED CRIME TASK FORCE Northern Ireland continue to be actively engaged in organised crime. It is not always clear if these activities are by individual members for their own gain or by members authorised by the organisation. PIRA’s Easter message said that “The IRA has no responsibility for the tiny number of former republicans who have embraced criminal activity. They do so for self-gain. We repudiate this activity and denounce those involved.” This is supported by the IMC’s latest assessment of PIRA in its tenth report which, despite recognising that some PIRA members may still be involved in

5 CHAPTER 1 PRIOR YEAR RESULTS Chapter 1 Prior Year Results - Assessing Our Impact

MISSION exercised by these gangs; stripping criminals of their assets and lavish 1.1 The mission of the Organised Crime lifestyles derived from ill gotten gains Task Force is to help secure a sends a powerful message that safe, just and prosperous society crime doesn’t pay; and successfully in Northern Ireland by confronting tackling organised crime stimulates organised crime through a multi- our economy and encourages inward agency partnership between central investment. and NI Government Departments, law enforcement, the Policing Board, 1.4 Measuring the social and economic the business community and the harm caused by organised crime and community at large. assessing the extent to which that harm is reduced by law enforcement intervention is difficult but it is also ASSESSING OUR IMPACT IN essential if we are to establish the scale of the problem we face, and 2005/06 whether (and which of) our strategies are working. The OCTF is putting 1.2 OCTF’s Threat Assessment last year additional resources into research identified the range of organised in this area to establish firmer data criminality which poses the greatest to inform policy and operational threat to Northern Ireland as decisions and priorities. Progress extortion, blackmail and intimidation, will be reported in future Annual drugs, excise and tax frauds, money Reports. laundering, intellectual property crime, armed robbery and cash-in- 1.5 During 2005/06 OCTF partner transit attacks, and illegal dumping agencies continued to direct their and agreed that these would be the efforts against prolific criminal gangs key priorities for concerted action by posing the greatest threat to our OCTF during 2005/06. society: details of their successes follow throughout this chapter. A 1.3 This section of the report reflects the number of these successes were the extent of law enforcement success in result of joint operations, some were tackling these crimes. It is important co-ordinated with law enforcement to remember that the impact of from outside Northern Ireland. their success is more than simply Their actions have removed large the numbers of gang disruptions, quantities of illegal and harmful arrests and seizures. Successful law commodities from our streets and enforcement intervention against have prevented organised criminals organised criminals, particularly from profiting from their crimes. The those with paramilitary links, has results are encouraging: over £7 important social and economic effects million worth of drugs, almost £10 too. Disrupting and dismantling high million worth of counterfeit goods level organised crime gangs frees and over 35 million cigarettes have communities from the sinister control been seized by law enforcement. In PRIOR YEAR RESULTS CHAPTER 1 6 coming year. the in successes these on build to is their illegal in enterprise and OCTF’s intention reinvesting from criminals organised prevent and crime of out profit the take which powers crime of proceeds effective and we robust have that demonstrates clearly this complacent way any in being Without level. Regional and District at gangs wide crime organised level a lower of range taken against also action has successful PSNI seized. confiscated or restrained, been have assets of million £30 over addition, . Te betvs f h OT in OCTF the of objectives The 1.6 2005/06 OBJECTIVES 1.7 We have assessed progress against progress assessed have We 1.7 . o eeo co-operation develop To b. the of activities the To confront a. 2005/06 were: 2005 dated19December 2005. Report Performance Autumn and 05 published in the Annual 2004- Report as stated, otherwise unless 2005, Customs March – 2004 Her April period the cover and for Revenue shown Majesty’s Figures Northern in Ireland. enterprises organised criminal undermine and arrests convictions seizures, the how as well the as activity operational reflect of levels that and indicators impact activity using objective each cross-community develop To d. To c. develop intelligence gathering h pann ad odcig of conducting and planning in the agencies operational other and enforcement law between the majorcriminalnetworks. and activities illegal serious on in concentrating Ireland, Northern networks crime organised support and work, where where private and publicsector. the work, with appropriate, and support of thosenetworks. activities the improve of understanding and networks crime organised against capabilities operations. 7 CHAPTER 1 PRIOR YEAR RESULTS

OBJECTIVE 1 (a) Drugs

To confront the activities of the organised 1.9 During 2005/06 there were 2,767 crime networks in Northern Ireland, seizures of illegal drugs by PSNI, concentrating on serious illegal activities and 1,440 arrests for drug related and the major criminal networks. offences. The drugs seized were worth more than £7m. Cannabis and ecstasy remain the most commonly 1.8 The key headline successes are: abused drugs and account for the majority of seizures in Northern • Over £7m worth of drugs were Ireland. seized by PSNI. 1.10 The PSNI Drugs Squad has a strategic • Over £30m of assets were either focus on Level 2 and 3 organised crime restrained or confiscated by gangs, in particular those trafficking PSNI, HMRC and ARA. Class A drugs such as cocaine • Almost £10m worth of and heroin. By focusing resources counterfeit goods were seized proactively against the top level gangs by PSNI; and involved in drug trafficking, the Drugs • over 35 million cigarettes were Squad has enjoyed considerable seized in NI by HMRC. success and has disrupted a number of major importation routes and arrested some of the most significant drug traffickers. PSNI has also had significant success at Regional and District level to tackle local drugs markets. Intelligence from the PSNI Drugs Squad has also led to some significant arrests and seizures outside the jurisdiction but which do not get recorded as Northern Ireland successes.

PRIOR YEAR RESULTS CHAPTER 1 8 TOTAL ESTIMATED STREETVALUE: £7,157,566 VALUE: STREET ESTIMATED AND PSNI 2005/06 BY SEIZURES DRUGS CLASS C B A Cannabis: Joints Cannabis: Oil(gms) Cannabis: Plants Cannabis: Herbal(kgs) Cannabis: Resin(kgs) Amphetamine: Tablets Amphetamine: Wraps Amphetamine: Powder(kgs) Opiates: Wraps Opiates: MIs Opiates: Ampoules Opiates: Tablets Opiates: Powder(gms) LSD: Microdots LSD: Doses Ecstasy: Ecstasy: Powder(gms) Ecstasy: Tablets Cocaine: “Crack”(gms) Cocaine: Wraps Cocaine: Powder(gms) Capsules DRUG SEIZURES 2,086 197 180 256 168 138 11 45 13 11 11 30 14 0 1 0 5 0 1 0 1 QUANTITY 27,123.8 92,107 1,503 426.2 391.7 385.1 321.8 68.6 73.7 267 258 306 0.0 0.0 10 38 32 35 0 0 2 9 CHAPTER 1 PRIOR YEAR RESULTS

1.11 The following are some examples of • 2 kilos of Amphetamine with an the type, quantities and location of estimated street value of £20k drug seizures in NI during 2005/06: seized in Magherafelt DCU in December 2005. One person • 6 kilos of cocaine with an was arrested. estimated street value of £360k • 2.5 kilos of cocaine with an seized in Dungannon DCU in estimated street value of £500k April 2005. One person was seized in Foyle DCU in February arrested. 2005. One person arrested. • 61 kilos of cannabis resin and • 2 kilos of Amphetamine with an 43 kilos of cannabis herbal with estimated street value of £20k an estimated street value of seized in North Belfast in March £735k seized in Lisburn DCU in 2006. May 2005. Three persons were arrested. • 10 kilos of cannabis herbal with (b) Intellectual Property Crime an estimated street value of (IPC) £100k seized in East Belfast DCU in June 2005. One person 1.12 During 2005/06 PSNI, working closely was arrested. with HMRC and representatives from the trademark holders and • 5.5 kilos of cocaine with an brand owners, seized almost £10 estimated street value of £330k million worth of counterfeit goods seized along with a substantial and production equipment such as amount of cash across a number computers and CD burners. of DCU’s in August 2005. One person was arrested. 1.13 The goods seized covered a broad • 6 kilos of cannabis herbal with spectrum and included items used an estimated street value of for entertainment purposes as well £60k seized in East Belfast in as consumables: DVDs, CDs and September 2005. computer games, cigarettes, alcohol • Over 300 cannabis plants with and perfumes. The range of seizures an estimated street value of illustrates the growing sophistication £150k seized in Newry DCU in of the counterfeiter and the disregard October 2005. One person was for the health and safety of those arrested. purchasing their goods. The principal offence in respect of counterfeit • 66 kilos of cannabis resin with cigarettes is one of evasion of excise an estimated street value of duty and their treatment is similar £330k seized in North Belfast in to legitimately produced cigarettes November 2005. Three persons and as such form part of the HMRC were arrested. PSA target to reduce illicit market penetration to 13% by 2007/08. PRIOR YEAR RESULTS 10 CHAPTER 1 GOODS SEIZEDBYPSNI STREET VALUE OFCOUNTERFEIT has OCTF the year the Throughout 1.14 Value (£million) a nationalstrategytotackleit. developed has and Crime IP on party working national a established Office has Patent the practice, good of asan example the workofthisgroup Taking investigation. to barriers and risks potential identifying as well as practice good and ideas exchanging Group Expert the problem and for provides a forum to approach The coordinated a enables Piracy. and Counterfeiting Against Alliance the and Group Anti-Counterfeiting the as other national anti-piracy bodies such to links has also group The Diageo. and Association Office, Patent UK Leisure the (ELSPA), Publishers and Software Entertainment the (BPI), Industry Phonographic British the (FACT), Theft Copyright Against Federation the NIO, the ARA, SOCA, HMRC, comprises PSNI, from Group representatives Expert IPC The legislation. copyright on and trademark Service Prosecution Public the from prosecutors for event a training hosted Group Expert IPC OCTF’s the 2005 November In and criminality. with industry of form this combat to owners brand closely of work representatives to continued 2003/04 £7.6 2004/05 £7.0 2005/06 £9.9 1.15 The following are some examples of examples some are following The 1.15 15 million cigarettes, • a proportion £390k worth of counterfeit goods • & CDs counterfeit of worth £75k • bythepolicein2005/06: seizures the types, quantities and locations of PSNI’s Intellectual Property Crime • initiative ongoing an of part As • arrested andcharged. arrested were persons Five 2005. in June province the of south the in searches following seized were andcharged. arrested were persons Three 2005. April in Clogher in seized were DVDs of the UK and into Europe. of theUKand intoEurope. rest the throughout distribution onward for Scotland to shipped being were goods The Northern Ireland. in goods counterfeit of manufacture the in involved individuals of 2006 February in Unit made four arrests in Scotland up of15individuals. prosecution follow in searches and goods operations, and the of worth at £700k further a and goods market the counterfeit million of £1.5 worth of seizure the in resulted around operation This Armagh. South and in Market in Jonesborough 2005 late in operations of series a ran police local with working Squad Crime goods at markets, PSNI Organised counterfeit of sale the tackle to and moneylaundering. offences revenue with charged subsequently and arrested were persons Three 2005. November were seized in a PSNI operation in (10%), counterfeit were which of 11 CHAPTER 1 PRIOR YEAR RESULTS

(c) Oils Fraud Figures for 2005/06 will be published in the HMRC Annual Report in December 1.16 The UK Oils Strategy was introduced 2006. in 2002 to tackle misuse of rebated fuels such as red diesel 1.18 The following highlight specific and kerosene throughout the UK, examples of successful operations including Northern Ireland. The lead during 2005/06: responsibility for its implementation lies with HM Revenue and Customs. • In May 2005, two fuel laundering plants were dismantled at 1.17 The main revenue loss in the UK premises in South Armagh in a continues to be from the misuse of joint operation with PSNI. It was rebated fuels, including laundering estimated that the plants had to remove chemical markers and the ability to produce 3 million dyes. In Northern Ireland the main litres of laundered fuel with an loss is derived from fuel smuggling estimated annual revenue loss of across the Irish Land Boundary. £1.5 million. Over 3,000 litres of Results of HMRC operations and highly toxic acid waste was also intelligence confirm that the strategy removed. and interventions are helping • In June 2005, two fuel laundering to reduce the fraud by making plants were dismantled in it more difficult for criminals to Coalisland in a joint operation acquire rebated fuels and by using with PSNI. Various items of intelligence to detect those who equipment, two vehicles and misuse it in road vehicles. The 8,000 litres of laundered fuel continued effort of officers from were seized during the operation HMRC in tackling Oils Fraud in and a number of further searches Northern Ireland is evidenced by resulted in the detention of a the results achieved in the tax year further 23,000 litres of fuel. 2004/05. • In July 2005, a fuel laundering plant was dismantled in Co. Armagh in a joint operation with Laundering plants disrupted 18 PSNI. Various items of equipment, two vehicles and 17,000 litres Seizures of illicit oils (Million 1.78 of laundered fuel were seized. litres) Four tonnes of highly toxic acid waste was also removed from Vehicles Seized 812 the premises. It was estimated that the plant had the capacity to process 40,000 litres of diesel per week, with a potential annual revenue loss of £1 million. PRIOR YEAR RESULTS 12 CHAPTER 1 • In February 2006, three three 2006, February In • the sametime. at conducted were Republic the in enforcement law by searches Co-ordinated million. £2.25 of of estimated annual loss of revenue litres an with week per fuel 80,000 laundered produce to capacity combined a had plants the that estimated was It sites. the from removed were sludge 7,000 litres of toxic addition contaminated In 5,000 litres of sulphuric acid and seized. were fuel and 30,000 litres of contaminated items of equipment, a fuel tanker were joint operation with PSNI. Various plants a in Armagh South in dismantled laundering fuel • In March 2006, a fuel laundering fuel a 2006, March In • the plant. with connection in arrested was man A £750k. of loss revenue annual estimated an with week, per fuel of litres 30,000 produce that the plant had the capacity to estimated was It site. the from toxic of tonnes contaminated sludge were 4 cleared addition In seized. were litres fuel 10,000 laundered of over forklift and lorry, truck a items equipment, Various of Co. in Londonderry. dismantled was plant 13 CHAPTER 1 PRIOR YEAR RESULTS

Map of Northern Ireland with county boundaries showing locations of Laundering Plants detected by H.M. Customs & Excise , from 1st April 2004 to 31st March 2005

Londonderry

Londonderry Antrim

Tyrone Belfast

Down Fermanagh Armagh PRIOR YEAR RESULTS 14 CHAPTER 1 .0 h “akig oac Smuggling Tobacco “Tackling The 1.20 Tobacco (d) Between April 2000 and March 2005, 1.19 .1 MC s o yt be o uls an publish to able yet not is HMRC 1.21 seized overseas (1,060 million) than million) (1,060 overseas seized were cigarettes strategy, the more of for the first time since the introduction period. survey However, in 2004/05, becomes available 18 around months after the only GHS the and period Household General (GHS) the and Omnibus both Survey from data on rely illicit 2004/05 estimates because market cigarette the for estimate havebeenevaded. otherwise would that revenue in billion £5.8 a saving UK, the across 16% to 21% from reduced was 2003/04 market illicit the and 2000/01 Between market share of smuggled cigarettes. in HMRC 2000 aims March the to reduce illicit by announced Strategy” Secured • Disrupted • Seized • Dismantled • over Seized • Ireland: HMRC inNorthern f 8 ag ivle i tobacco in involved disrupted. smuggling were gangs 68 total of a and million) (960 UK the in illicit fuel. fraud offences. involved inoilsfraud. fraudsters. plants. 4,285 27 17 ovcin fr oils for convictions 9.94 million litres million 9.94 83 eils rm oils from vehicles rmnl gangs criminal ul laundering fuel of .3 Notable successes in the fight against 1.23 to continues smuggling Tobacco 1.22 market. local the for destined be necessarily not would Ireland Northern cigarettes in seized the of proportion high that a context the in read be should but year, previous the an from increase represents figure This Ireland. 35 than more seized HMRC of year officers past the In Ireland. Northern in investigations criminal HMRC for areas priority highest the of one be In December 2005, over 3 million • million 15 2005, November In • connection in 2005, October In • million 6 over 2005, May In • include: /06 2005 during smuggling tobacco million cigarettes in Northern Northern in cigarettes million exchequer ofover£500k. the to loss revenue potential a represented and crates glass, plate of within concealed were arrived from China. The cigarettes had that container a from Docks Belfast at seized were cigarettes planned operation. multi-agency a during cigarettes were seized in Armagh, discharges. conditional received others three and years 2 to sentenced was man one Down, Co. in cigarettes million 7 over of seizure the with contents described asflat-packfurniture. with Malaysia, arrived had from cargo The Co. in Down. seized were cigarettes 15 CHAPTER 1 PRIOR YEAR RESULTS

(e) Large– Scale Robbery • Three individuals have been charged in connection with the 1.24 The number of armed robberies in Northern Bank robbery. The NI attributed to organised criminals charges flow from the PSNI continues to decline. During 2005/06, investigation and the police there were 58 armed robberies in continue to work closely with their Northern Ireland, including 7 tiger colleagues in An Garda Síochána kidnaps. This represents a 10% in respect of the robbery, the decrease in armed robbery attacks laundering of the proceeds and compared to the previous year. The the recovery of monies in Cork 2005/06 figure also represented a and Dublin. decrease of almost 50% on the 113 armed robberies that took place in (f) Money Laundering and Asset 2002/03. Recovery 1.25 The OCTF Armed Robbery Expert Group continues to work closely with 1.27 Traditionally criminals have sought to the banks, cash-in-transit companies, cover their money trail by transferring other private sector partners and funds between accounts into different the PSNI to develop initiatives to jurisdictions in the belief that this tackle the problem. These include makes detection and confiscation the development of a risk matrix to more difficult but PSNI, HMRC and identify high risk delivery locations ARA work together closely, as well and the creation of a joint control as with law enforcement in other room involving PSNI and the cash-in- jurisdictions, to trace and seize transit companies. criminal assets. This year we saw a number of multi-agency operations against money laundering, including 1.26 The following are examples of PSNI one that involved ARA, the Criminal successes against armed robbers Assets Bureau (CAB), PSNI and the during 2005/06: Metropolitan and Manchester police services. • An extensive police operation resulted in two arrests in Newry Criminal Recovery in April 2005 and thwarted a robbery of £1.2million from a 1.28 Prosecuting money laundering cash-in-transit vehicle. offences and confiscating assets acquired through criminal activity are • A police operation in Belfast pursued by PSNI and HMRC using led to four arrests in December criminal recovery procedures set out 2005 of a key armed robbery in proceeds of crime legislation. Only and tiger kidnap gang. They were if criminal recovery is not possible, later charged with possession for whatever reason, can the police of firearms with intent and or customs refer the case to ARA for conspiracy to rob. civil recovery or tax action. PRIOR YEAR RESULTS 16 CHAPTER 1 .0 u sse o ast eoey with recovery, asset of system Our 1.30 recovery asset of hierarchy This 1.29 SEIZED BYPOLICEANDHMREVENUE CUSTOMS AMOUNTS OFCRIMINALASSETSRESTRAINED, CONFISCATED OR POLICE ANDHMREVENUECUSTOMS NUMBER OFCONFISCATION &RESTRAINTORDERSOBTAINED BY Confiscated (million) Restrained (million) Restraint Orders Confiscation Orders of Ireland. Republic the including jurisdictions, other in agencies between operation structure facilitates our effective and productive year co- that this taxation confirmed cases have of and number a recovery but civil criminal and for responsibility has CAB where Republic the in operates that the system from components, differs recovery civil and criminal separate to themexcellenteffect. HMRC have used the powers available option and during 2005/06 PSNI and first the as pursued is sentence) and confiscation conviction, for potential (with recovery criminal that ensures .1 uig 050 te CF Criminal OCTF the 2005/06 During 1.31 1.32 In addition to the number and value and number the to addition In 1.32 2003/04 2003/04 £1.03 £10.2 the risk of third using parties cheques against mitigate will UK, the of rest the in practice with line into Ireland Northern brings change The it. for their on payee of the cheque can receive value crossing the only that ensure to chequebooks only” payee “account the introduced have banks NI major the all 2006, Spring since example, For crime. financial tackle to introduce a number of initiatives to been Authority (FSA) the Financial Services and sector has private the with Group working Expert Finance – PSNI made 36 such seizures seizures involvingover£74k. cash seizures such 3 made HMRC 36 and £677k involving made PSNI – year the during cash made were of seizures number a below, outlined orders restraint and confiscation of has beenfullyendorsedbytheFSA. as a means of money laundering, and 26 7 2004/05 2004/05 £1.4 £6.4 32 12 2005/06 2005/06 £1.04 £13.5 22 11 17 CHAPTER 1 PRIOR YEAR RESULTS

1.33 These are some examples of • Following a major PSNI operation successful assets recovery into the financial dealings of a operations during 2005/06: Ballyclare businessman, seven persons were charged in January • Searches in July 2005 in the 2006 with money laundering, Ballyclare area resulted in police deception and conspiracy to seizing more than £10k of cash, pervert the course of justice vehicles worth £100k and a offences. large amount of records. Four individuals were arrested for money laundering. Civil Recovery

• In July 2005, PSNI charged an 1.34 As explained at paragraph 1.28, PSNI individual in the Carrickfergus and HMRC can refer cases to ARA area with drugs offences, to pursue civil recovery of assets and restrained property worth if criminal recovery is not possible. £350k. ARA is a vital part of the process and • In September 2005 PSNI was since the introduction of the Proceeds granted a certificate of realisation of Crime Act in 2002, PSNI and HMRC for £259k and an Order for have made almost 200 referrals to immediate payment of £26k ARA, detailed in the following table. following the prosecution of a Figures for the Metropolitan Police, drugs dealer in East Belfast. Greater Manchester Police, the West Midlands Police and the National • In September 2005 HMRC Crime Squad are included by way of searched a number of properties comparison1: in the Tyrone area. Two individuals were arrested on suspicion of 1.35 The Assets Recovery Agency in money-laundering. A substantial Northern Ireland has also had a very sum of cash was seized in the successful year. In total, the Agency course of the operation, in excess disrupted 21 criminal enterprises by of £500k. early restraint or taxation in respect • In November 2005, PSNI of £15.9 million of assets, against seized £125k and charged two a target of £6 million. Progress in individuals with money laundering some cases was delayed pending in the Armagh area. legal challenges to ARA’s powers and authority during the year. These were

HMRC PSNI MPS GMP WMS NCS 2003/04 30 24 14 1 4 15 2004/05 16 30 8 0 1 9 2005/06 46 36 12 3 3 12 Total 92 90 34 4 8 36

1 Figures supplied by the Assets Recovery Agency PRIOR YEAR RESULTS 18 CHAPTER 1 include: 2005/06 during successes ARA’s 1.36 BY ARA2005/06 AMOUNT OFCRIMINALASSETSRESTRAINEDORSEIZED Assessments Mareva/IRO/Tax Adopted Referred As i Spebr 05 ARA 2005, September in Also • froze ARA 2005, September In • £1.4 froze ARA 2005, June In • an lodged ARA 2005, April In • Agency ineachcase. of Appeal in ruled Court favour of the legislation the and it is encouraging to note that the of tests important fuel smugglingandlaundering. in involved be to alleged Newry from brothers two by held £750k of excess in worth assets froze involving case Social Securitybenefitfraud. a in £3million around worth Belfast in property who was sellingsmuggledtobacco. Belfast from trader street million of assets held by an illegal May 2001. in Belfast in who killed and shot was dealer drug alleged an of estate the from £180k worth be to estimated assets over Order Recovery Civil a for application NUMBER 22 49 21

I fie eaae ae during cases separate five In • froze ARA 2006, February In • was ARA 2005, December In • was ARA 2005, November In • laundering and construction construction fraud. industry and laundering and smuggling fuel dealing, and smuggling drug included cases £8.28 million. The around worth assets froze ARA 2006, March alleged fuel smugglinginSouthArmagh. involving cases two in £700k around at valued assets Antrim. Co Kells, from extortionist an and shark by loan held paramilitary alleged £406k worth to be estimated assets Receiving on Interim Order an granted Newry. from dealer drug murdered a of estate the to from £387k worth be estimated assets Receiving on Interim Order an granted VALUE (million) £10.1 £15.9 £6.6

19 CHAPTER 1 PRIOR YEAR RESULTS

(g) Extortion need further testing. The IPSIG model has been reconfigured and applied to 1.37 Extortion, intimidation and blackmail a further six to eight public sector within the private and public sectors building contracts. That will provide means that, ultimately, we all pay more a clearer assessment of how IPSIG for the services that are affected. can be applied effectively in Northern For example, extortion within the Ireland. construction industry may mean higher costs in the housing sector, or 1.39 The PSNI, who have lead responsibility lower standards of finish. So called for investigating blackmail demands, “protection” money demanded from have had significant success this a local business may be passed on to year in tackling those engaged in customers through increased prices. extortion and intimidation and have Extortion also deters others from developed a range of techniques investing in our economy and prevents to aide their investigations. During Northern Ireland from realising its full 2005/06, PSNI’s operations against economic potential. And there is also extortionists included: the human cost of fear for those who are threatened at the hands of those • In May 2005, a PSNI investigation demanding money. into extortion of a business led to four individuals in North Belfast 1.38 According to reported incidents, the being arrested and charged. construction industry is subjected to a Firearms and ammunition were significant level of extortion demands found in follow-up searches. and, to assist police efforts, OCTF is • In May 2005, following a proactive exploring additional ways of dealing operation into UVF extortion, with the problem. A pilot project to three males in East Belfast test the Independent Private Sector were arrested and charged Inspector General (IPSIG) concept with blackmail, intimidation, was introduced to public sector possession of firearms, threats building contracts by the Central to kill and money laundering. Procurement Directorate (CPD) of the Department of Finance and Personnel • In December 2005, PSNI arrested earlier this year. A Steering Group, five persons in North Belfast and comprising representatives from CPD, charged them with blackmail, PSNI, HMRC, NI Housing Executive, intimidation, possession of Environment and Heritage Service firearms, threats to kill and and NIO, monitored the project money laundering. and commissioned an evaluation • In March 2006, PSNI arrested six to assess its potential broader persons in Bangor and charged application. The IPSPIG concept four with offences of blackmail, has potential to deter and detect threats to kill and obtaining extortion within public sector building property by deception. Reports contracts but our understanding and have been made to the Public practical application of the concept Prosecution Service for similar PRIOR YEAR RESULTS 20 CHAPTER 1 .1 h lts aalbe estimate available latest The 1.41 perpetrated is fraud alcohol Most 1.40 Alcohol (h) prt fad s t a becoming was it tackle as fraud to spirits strategy its announced Government the 2004 In 2003/04. in market UK legitimate the of 7% for accounted spirits illicit that indicates legitimategoods. illicit from distinguish can trader honest the nor consumer the Neither through price. retail mainly to) close (or full sold at outlets licensed is Illicit alcohol market. UK the into system warehousing EU the from products paid non-duty of removal illegal the through gangs criminal organised by ehnig prtoa activity operational enhancing • stamps duty of introduction the • to thestrategyare: central in measures The activity. engaging illicit with associated risks the increase and fraud of profitability the reduce to designed is and 2005 June in HMRC across launched was strategy The market. illicit the down drive to order in necessary be would encompassing a number approach, of co-ordinated measures, a that clear suspended alcohol within the UK the within alcohol suspended duty the of movement governs and holding that framework regulatory the along to changes 2006) with (from spirits for two. other the of respect in offences risk owners, warehouses, warehouses, supply their and owners, high transporters on resources risk focus to exploit; that fraudsterscurrently .2 lea dmig a ietfid as identified was dumping Illegal 1.42 IllegalDumping (i) 1.43 Since EHS became the regulatory regulatory the became EHS Since 1.43 working closely with the • legitimate 5 poeuin wr tkn in taken were prosecutions 57 • in 2005/06. The main regulatory regulatory main The time first 2005/06. in the for priority OCTF an convicted. During2005/06: potential for unlimited fines for those has and offence, the of severity the recognises this – Court Crown the at trial for sent being are number cases of increasing An offenders. 103 prosecutions against illegal taken successfully waste has it 2002 late in management waste for authority Service. Public Prosecution the for cases prepares and dumping illegal of incidents investigates team The movement. waste unauthorised serious and conditions licensing of breaches dumping, illegal includes team Ireland. enforcement the of Northern remit The in problem the tackle to team enforcement waste the the of dedicated a has Department which Environment the with of (EHS) Service Heritage and lies Environment responsibility minimise opportunities forfraud. minimise opportunities all to used that is information available so memoranda understanding of through industry and effect; powers available to the maximum and sanctions the using chains, to await direction. An increasing increasing An direction. await to PPS the to submitted been have the cases 131 2006. to March of end 23 further a and 2005 21 CHAPTER 1 PRIOR YEAR RESULTS

number of cases are being sent be a more common method. Similarly, for trial at the Crown Court by the some waste is being hidden under PPS, in recognition of the severity development works. Officers are of the offence and because of discovering increasing amounts of the possibility of unlimited fines shredded material, treated in this as a deterrent. way to mask its point of origin. The Environmental Crime Team is taking a • EHS has referred a number very proactive role in developing new of these cases to the Assets investigative techniques to address Recovery Agency who are these issues. New legislation, to investigating possible seizure be introduced later this year, will of assets in the event that a increase the Department of the conviction is obtained by EHS. If Environment’s power to stop, search successful this may enable the and seize vehicles believed to be cost of remediation of sites to be involved in illegal waste activities. The funded by the perpetrator. new provisions will also significantly • At present EHS’s Environmental increase the levels of fines and Crime Team is involved in 236 penalties that can be imposed by the investigations into illegal waste courts on conviction of an offence. management.

1.44 EHS works with PSNI on specific investigations, and routinely where the situation requires. EHS also works with a range of other regulatory agencies to ensure that best use is made of the collective range of measures to deter those engaging in illegal dumping. Liaison with authorities in the Republic of Ireland has enabled EHS to co-ordinate responses to illegal waste movement into Northern Ireland and improved communications and shared intelligence have enabled effective action to be taken.

1.45 EHS’s enforcement work has disrupted those engaged in the illegal waste trade, and caused them to modify their activities. As a result, large illegal dump sites are being discovered less frequently. Small sites, where waste is buried at night for a short period of time, appear to PRIOR YEAR RESULTS 22 CHAPTER 1 .7 h OT Epr Gop network Group Expert OCTF The 1.47 has OCTF the inception, its From 1.46 operational other operations. law of conducting and and planning the in agencies between co-operation enforcement develop To OBJECTIVE 2 joint operations with industry industry goodstrade. against thecounterfeit with appropriate, where representatives, operations joint Group Crime Expert mounts Property Intellectual the and attacks transit cash-in- against measures effective Group has developed Expert Robbery crime. For example, the OCTF Armed organised of types to specific together combat work to sector valuable private the and a enforcement law for provide forum to continues since 2000. OCTF of achievements the on build will Three, described Chapter in detail more structure, in new the OCTF and of membership broader network. The Group Expert the through well as private and public sector agencies as enforcement law with strong links forged has tackle and partnership to need crime organised through multi-agency the recognised .8 h prnr gnis have agencies partner The 1.48 • A further 17 international international 17 further A • UK the within operations 12 • resulting operations joint 13 • Northern in operations joint 219 • conducted: prtos ht matd on impacted that operations organised crime networksinNI. on impacted which Groups. Expert from the work of the multi-agency Ireland. organised crimenetworksinNI. organised 23 CHAPTER 1 PRIOR YEAR RESULTS

OBJECTIVE 3 1.50 Considerable work has been undertaken to establish a National To develop intelligence gathering capabilities Intelligence Model-compliant against organised crime networks and framework to manage work against improve understanding of the activities of organised crime gangs to ensure that those networks. resources are focused against the gangs which have potential to cause 1.49 The PSNI Crime Operations the most significant harm to the Department was created in 2003 community. This framework uses the to integrate all elements of tackling nationally accredited SARA (Scanning, serious and organised crime including Analysis, Response, Assessment) intelligence gathering, investigation, problem-solving model to examine surveillance and technical support the attributes of organised crime and analytical and forensic support. gangs and uses these to prioritise The Organised Crime Branch (C1) investigations and operations. within Crime Operations, headed by a Detective Chief Superintendent, has 1.51 The collection plan for the annual responsibility for tackling high-level OCTF Threat Assessment, contained organised crime gangs operating in Chapter Two of this Report, has in Northern Ireland. The Branch evolved since the inception of OCTF consists of the Organised Crime in 2000 and the number of sources Squad, the Drugs Squad and the from which information and data are Economic Crime Bureau, each headed gathered has increased significantly. by a Detective Superintendent. Each year we have sought to enhance Crime Operations Department also our methodology, and good practice comprises C2 Serious Crime Branch, and ideas from other jurisdictions have C3 Intelligence Branch, C4 Special helped to develop our approach. Operations Branch, C5 Analysis Centre, C6 Scientific Support and C7 Serious Crime Review, all of which have a significant role to play in the collective work against organised crime. Operations against lower level organised crime are also undertaken at Regional and District Command Unit level. PRIOR YEAR RESULTS 24 CHAPTER 1 .4 n aur 20, hu Woodward, Shaun 2006, January In 1.54 Global EconomicCrimeSurvey groups expert and sub OCTF The 1.53 Groups Expert just not is crime organised Tackling 1.52 and publicsector private the with appropriate, where work, and support cross-community develop To OBJECTIVE 4 unrblt o bg uies to the business big highlighted of which vulnerability Crime Economic Survey Global Cooper’s the OCTF, launched Price of Waterhouse Chair and Minister Security then Armed the Group. Expert Robbery with closely work who the banking and and cash-in-transit sector accompany operations, IPC some on PSNI who representatives trade including work, this in involved Both private problem. and public sector are partners crime the organised of aspects particular examine Policing Board. the and community business the of representatives Departments, NI the NIO, the Office, Home the Crime SOCA Agency), Organised ARA, Serious new HMRC, (the PSNI, the of representatives comprises now OCTF the role that others have to play. The and the OCTF revised structure reflects sector and the community as a whole law enforcement, government, with the private responsibility shared a is but enforcement law of domain the .5 akig onefi gos means goods counterfeit Tackling 1.55 Crime Property Intellectual on Project Research 1.56 As in previous years the As Minister in and previous 1.56 Media Briefings nesadn wy epe buy people why supply. Understanding and demand both tackling laundering crimes. and fraudrelated money of problems the reduce to sectors public and private the with working is OCTF the how on audience wider a to communicate to and awareness raise to opportunity financial fraud. The event provided an carried inlocalpress. carried were stories 1,000 over and given excess of were 200 media interviews in action; providing enforcement law of details Minister the by released the year 17 notices to the press were Throughout Russia. and China from delegations and Ireland Committee Northern Affairs the for briefings included These Ireland. Northern in interest groups about organised and crime journalists special to or sessions briefing speeches of number gave a OCTF the of representatives messages. and help to industry create anti-piracy UK the across IPC tackling on policy launched last June was and is being used to inform crime” everyday into an study resulting A - Nation The “Fake report: goods. towards attitudes counterfeit research consumer into independent commissioned OCTF innovative the 2004 In element. key a is goods counterfeit 25 CHAPTER 1 PRIOR YEAR RESULTS

Omnibus Survey • almost three quarters (73%) of those taking part in the 1.57 The Chair of the OCTF publicly survey thought that organised endorses operational successes by crime could lead to fear in the law enforcement, when appropriate, community. and promotes the collective efforts of • over half (53%) of those surveyed the Task Force. A new strategy to raise said that they would report awareness is being developed for the someone if they knew they were OCTF, that will take into account its associated with organised crime. new structures and membership. The Over two thirds of respondents OCTF endeavours to gauge the level (67%) said they would report this of public awareness and to measure information to the police. the success of its publicity initiatives by placing questions in the Northern • the majority of people surveyed Ireland Omnibus Survey. This is (91%) thought that the police a useful measurement for us, and had the main role in managing others, of how effective we are at organised crime. getting our message across. The • almost half (45%) of those latest survey, published in March surveyed thought that they had 2006 found: a role in tackling organised crime themselves. Of this proportion, • of those surveyed, almost all 74% thought that they should (96%) thought that there was a report this information to the problem with organised crime in police or customs while 56% were Northern Ireland, of which almost of the opinion that they should two thirds (60%) thought that the refuse to buy counterfeit or illicit problem was very serious. goods. • over three quarters (77%) of • three tenths (30%) of those those surveyed thought that surveyed had heard of the paramilitary organisations were Organised Crime Task Force. Half mainly responsible for committing these respondents (50%) thought offences related to organised that it was effective or very crime in Northern Ireland. effective in raising awareness • over three quarters (81%) of about organised crime. those surveyed said that they associated drug dealing with 1.58 While some of these results are organised crime in Northern disappointing compared to previous Ireland, 52% said armed robbery years overall they show that a good and 42% said money laundering. level of support for the Task Force, • almost three quarters (70%) of and partner agencies, has been respondents thought that the maintained. A solid platform exists individual victim suffered as a and our challenge is to develop result of organised crime. and implement the new awareness strategy (see Chapter Three) so that PRIOR YEAR RESULTS 26 CHAPTER 1 Northern Ireland. Ireland. Northern crimein knowledge oforganised and publicawareness we improve 27 Chapter 2 CHAPTER 2 THREAT ASSESSMENT Threat Assessment

OVERVIEW produce counterfeit alcohol and tobacco pay little heed to health and 2.1 It is clear from this year’s Threat safety, and the end product is often Assessment that criminal gangs based potentially lethal. The harm caused in and operating from Northern Ireland by the counterfeiting of clothing, are continuing to make significant electronic media and other goods is sums of money from organised crime. both to legitimate manufacturers and This also has the effect of depriving traders and to customers who may be both the government and ultimately buying something of shoddy quality the public and legitimate private or which may actually be dangerous businesses of income. The sums – the potential hazards of counterfeit of money involved run into hundreds goods are evident in some of the of millions of pounds: intellectual items recovered in Northern Ireland property theft is estimated at £200 in recent years including power tools, million; drugs worth over £7 million batteries, children’s toys, condoms were seized by PSNI in 2005/06; and veterinary drugs. Counterfeit some 35 million cigarettes were cigarettes, for example, have been seized during the year, amounting to found to contain 160% more tar, 80% almost £7 million in terms of revenue; more nicotine, 133% more carbon environmental crimes such as illegal monoxide and five times the level of dumping is worth at least £25 million cadmium (a carcinogen linked to lung, and extortion probably generates in kidney and digestive tract damage) excess of £10 million criminal profit. than their genuine counterparts. The revenue loss from fuel smuggling and legitimate cross border shopping 2.3 While the scale of the illegal drugs is estimated at £245 million (though market in Northern Ireland may not it should be stressed that the majority be as great as that in the rest of the of this sum is not the result of criminal UK or the Republic of Ireland, there activity). are indications of a growing demand for, and availability of, cocaine. In 2.2 Certain types of organised crime 2005/06, PSNI seized 27 kilos are viewed by some as ‘victimless’, of cocaine, an 800% increase on this is not the case. Laundering fuel 2002/03. However, while increase in produces hazardous waste products cocaine use is often associated with which are dumped in unregulated an emerging crack market, this is not sites causing damage to the yet the case in Northern Ireland. environment and wildlife and allowing dangerous chemicals to leak into 2.4 Intellectual property theft continues watercourses; illicit fuel is frequently to be a major local problem and transported in unsuitable containers remains a focus for law enforcement. and vehicles, causing a severe risk In the last three years, much has to the motoring public and laundered been achieved in tackling this area of fuel can also cause major damage to criminality: nearly £25 million worth a vehicle’s engine. The production of counterfeit goods have been seized facilities and ingredients used to and numerous production facilities THREAT ASSESSMENT 28 CHAPTER 2 2 further provides chapter This 2.6 Although much of the organised crime 2.5 Published 26April2006 Pbi Sco Rsos to Response Sector Public • ImmigrationCrime; • Extortion; • Robbery; Armed • Currency; Counterfeit • Crime; IntellectualProperty • Drugs; • Fraudandmoneylaundering • and excise – fraud sector Public • expenditure – fraud sector Public in • involvement Paramilitary • on: information involve GB Ireland. investigations Northern mainland individuals from on their fuel of into all nearly that assess Customs and Revenue HM elsewhere; criminals influence have based also Ireland Northern West Africa as well as across Europe. and America, South and North East, been identified as far afield as the Far have Connections Ireland. and Northern outside links from people of overseas involvement of increasing evidence is there controlled, and based locally is Ireland Northern in disrupted. and outlets for such goods have been Organised Crime. Organised tax; programmes; crime; organised . The extent, sophistication and impact 2.7 Crime inOrganised Involvement Paramilitary (a) 2.8 xeine n a edns to readiness a and experience associations of clandestinely,operating with familiar networks organised crime to bring report paramilitaries tenth IMC’s The organisations. paramilitary to of linked, previously involvement or linked, persons the by influenced significantly are crime organised of and distrust within thecommunity.and distrust fear increase which of all disorder civil and businesses and individuals intimidate to assaults attempts murders, and violent of series a to led also has factions loyalist various the illegal operations. their Ongoing for feuding between cover as firms taxi legitimate use and clubs pubs, notably businesses, to known also They are robbery. armed and lending money extortion, goods, contraband crime, and property importation distribution of intellectual supply, drugs groups Loyalist over communities. control exert to associations gain. They also use their paramilitary personal for and organisations their for both finance raising of means as a paramilitaries by used is two crime the objectives when required. Organised combining enterprises, terrorist criminal lucrative effective into organisations from evolve them to allowed have organisations paramilitary the in place were in already which structures disciplined The threats. and violence to resort ean novd in involved remain 2 oe that noted

29 CHAPTER 2 THREAT ASSESSMENT

2.9 The Provisional IRA (PIRA) has long 2.10 The dissident republican groups been involved in a range of criminal (Continuity IRA (CIRA) and Real enterprises, including organised IRA (RIRA)) are heavily involved in crime. However evidence suggests robberies, smuggling contraband that since their statement of 28 July goods and intellectual property 2005 announcing a cessation of all crime. Proceeds from their organised illegal activities, the leadership has crime activities have been used to actively sought to prevent criminal fund attacks and threats against activities being carried out by its members of the police and army, members. While it appears that some Prison Service, Policing Board, members, including senior ones, District Policing Partnerships and are still involved in fuel laundering, locally elected representatives of money laundering, extortion, fraud the community. The Irish National and smuggling the IMC has made Liberation Army (INLA) continues a clear distinction between the to engage in robbery, intellectual activities of members and those of property crime and extortion. PIRA as an organisation. The IMC ‘s tenth report stated “We have found signs that PIRA continues to seek to stop criminal activity by its members and to prevent them from engaging in it. We believe that some senior PIRA members may be playing a key role in this. We believe that volunteers who had previously engaged in illegal fundraising have been told to refrain from doing so. That said, there are indications that some members, including some senior ones(as distinct from the organisation itself), are still involved in crime, including offences such as fuel laundering, money laundering, extortion, tax evasion and smuggling. Some of these activities are deeply embedded in the culture of a number of communities, not least in the border areas, and increasing proportions of the proceeds may now be going to individuals rather than to the organisation.” THREAT ASSESSMENT 30 CHAPTER 2 .2 ruuet tak o te scheme the on attacks Fraudulent 2.12 has Ireland Northern Historically, 2.11 Fraud Industry Construction Programmes Expenditure PublicSector Fraud– (b) . igiig h poreo’ own proprietor’s the Disguising f. Covering e. payments of “protection” tax further Supplementing d. to payments free tax Covering c. contractor’s a of Suppression b. by cash of withdrawals Covering a. loss tax of avenues, including: number a facilitate Construction the Scheme(CIS). Industry within status, deduction tax from work used exempt to vouchers subcontractor’s misuse of the around is centred within This mainly fraud Industry. of Construction level the high a had frauds. CIS deductions;benefitand identity / PAYE /CorporationTax /VAT / laundering ofmoney;Income Tax misused CISdocuments; invoices; criminal involvementinthesupplyof isevidenceoforganised There payments free oftax payments free contractors and facilitating labour personal drawings. money own workforce contractors’ a to pay free workers unregistered own businessprofits

.3 Te ruses ec qiky to quickly react fraudsters The 2.13 .4 Wt te rain f M Revenue HM of creation the With 2.14. labour. Becoming a labour provider provider labour a Becoming labour. of sources alternative seeking are now who contractors, main direct against a be taken action HMRC to of consequence believed is This trend sphere. this into Industry experience, Construction previous no with criminals, of movement the of evidence obtained have HMRC year past the In the projects. building scale large to involving labour of supply more organised frauds seen have developed trends tactics. Recent investigation enforcement tem wrig oehr sharing andtactics. information together, working streams up Investigation the of all further with approach joined a are adopt to there opportunities Customs, and as detailedabove. frauds other for and used laundering money being business the with legitimacy, of veneer a provide can 31 CHAPTER 2 THREAT ASSESSMENT

(c) Public Sector Fraud – 2.16 To combat this threat HMRC have Excise and Tax around 160 officers dedicated to oils activity in Northern Ireland. As a fiscal authority with a law enforcement arm Oils Fraud HMRC have a number of sanctions available other than criminal justice 2.15 As noted above, HMRC estimate an tools. For example, they can seize annual loss of revenue in Northern fuel and vehicles, impose tax Ireland in the region of £245 million, assessments, and to a certain extent representing about 30% of the control the supply chains of products market, a decrease from 40% of the like red diesel and kerosene, making market four years ago. While cross– it more difficult for criminals to border fuel shopping accounts for a source rebated fuels. This activity significant proportion of this revenue all contributes to the fight against oil loss, there is a large element of fraudsters. This dedicated resource loss through organised fraud. This coupled with the multi – agency is perpetuated by both the misuse co-operation championed by the of rebated oils such as red diesel, OCTF has led to a series of recent kerosene and tied oils, and the successes against oil fraudsters, smuggling of fuel across the land detailed in Chapter One. boundary with the Republic of Ireland. This fraud also brings the harms already described: the undermining of legitimate business, the damage to the environment and to vehicles and the risk to the public posed by unsafe fuel being transported unsafely. THREAT ASSESSMENT 32 CHAPTER 2 .7 oac sugig otne t be to continues smuggling Tobacco 2.17 Tobacco Fraud in Northern Ireland. Organised Organised Ireland. Northern investigations in criminal areas HMRC priority for highest the of one totalled over 33 million cigarettes. totalled over33millioncigarettes. directly have be criminality, organised to linked to believed are which year past the in seizures significant criminality, organised to attributable directly is Ireland Northern in seized amount the of percentage what sure Ireland market. Northern While it is not possible to be the for destined been mainland have may UK internationally, and the in both Ireland, Northern outside Additionally, seized cigarettes the Ireland. to and of UK Republic the of rest the to transhipment onward before Ireland, Northern into cigarettes smuggle to Ireland known are and smuggling UK cigarette of Northern levels higher the at operate in criminals h mi suc ae fr these for area source main The levels of harmful chemicals. levels ofharmful higher significantly contain to known the Counterfeit manufacturers with specifications and are comply not do cigarettes products. to opposed genuine as counterfeit increasing being with East, quantities of the smuggled Far cigarettes the is cigarettes of quantities commercial 33 CHAPTER 2 THREAT ASSESSMENT

(d) FRAUD and MONEY immediately. They then vanish LAUNDERING without paying the supplier for the goods. Serious and organised 2.18 The effect of strong law enforcement criminals have used this type has led to organised criminals of fraud in Northern Ireland to developing more sophisticated raise capital for other criminal methods to generate and conceal ventures. their criminal profit and to make it - Lottery prize fraud: Letters and appear legal. Some of the methods emails are sent to people stating they use are outlined below. that they have won a large lottery prize and are asked to send a fee to an address, usually (i) Fraud abroad, to secure it. The letters are relatively sophisticated and 2.19 Fraud covers a wide variety of criminal often include certificates and enterprises, which for the most other material to give them an part seek to exploit weaknesses in air of authenticity and credibility. controls and systems to generate There is, of course, no prize and money. The true level of fraud the fraudsters keep the money. is difficult to estimate because a - Criminal Cash back: A new fraud significant amount of it remains dubbed ‘criminal cash back’ has unreported – the business sector, for recently made an appearance example, is often reluctant to report in Northern Ireland. This scam frauds because of concerns about targets people who are selling reputation, customer confidence and goods advertised on the Internet impact on share values. With these or in the local or national press. caveats in mind, the most recent When goods are advertised for comprehensive study by the National sale a “buyer” will send a UK Economic Research Associates has cheque or bankers draft for an estimated the economic cost of fraud amount significantly above the to the UK at £14 billion in 2000. amount of the sale and enters into an agreement with the PSNI’s Fraud Unit has encountered a vendor that goods will be shipped broad range of cases in recent years. to an overseas address and that The following are examples of the the overpayment will be returned cases they have found: to them once the amount ‘clears’ into the vendors account. The - Long Firm Fraud: Fraudsters victim does not realise there is set up or take over a business risk involved but is, in effect, and place orders with suppliers. being duped into sending his or Initially, the fraudsters pay her own cash to the fraudster promptly to establish their credit by irreversible money transfer, worthiness and then place a large on top of losing the goods. For order for goods, which are sold example: THREAT ASSESSMENT 34 CHAPTER 2 bsns fad tks a takes : fraud business - the that discovers then Bank • and dispatched are goods The • and cheque the ‘clears’ Bank • cheque/ the lodges dealer Car • and email by contacts “Buyer” • parts car advertises dealer Car • elrs ak con ad the and account bank dealer’s car the to ‘unpaid’ returned is it and fraudulent is cheque/draft tothebuyer as agreed, forwarded, is overpayment the vendor todrawon the for available become funds draft amount paid over (normally the send to where on instructions with goods, the for counterfeit or altered) as payment cheque/draft fraudulent a sends sale, agrees on theInternet to beworkingsatisfactorily. appear may measures control as detect, to difficult be can together which working to parties more or and two involving fraud collusive hacking, and computer deception and theft, includes organisation the outside individuals from fraud external to vulnerable also are Businesses stocks. or cash as such assets, carried out by staff with access to often most and organisation the inside individuals by perpetrated fraud including forms, of number theamount bank recoups .0 raie ciias osaty seek constantly criminals Organised 2.20 MoneyLaundering (ii) .2 Criminals are becoming more aware of 2.22 also criminals of numbers Significant 2.21 by making false declarations for the for declarations false making by money launder, and make, to frauds other other with activity criminal organised in bank jurisdictions. sometimes They often numerous combine their accounts, across money their spreading or abroad), or (here property purchasing by done often is This crime. organised of aspects all assets activity is for a key supporting legitimate apparently into proceeds to increase their profit and turning the their clients’ financialactivities. severe penalties for failing to disclose laundering money regulations and face and prosecution with comply to required are professions other, and solicitors or financial advisers. These, accountants, as such professionals of services the use some and profits their hiding of means sophisticated more use to forced been have they confiscate and seize their assets and restrain, to powers enforcement law used. being trusts offshore and overseas bought being properties of evidence is there and expanding are criminals international The horizons of Northern Ireland organised difficult. more to make detection by law enforcement and trail money their cover to Ireland of Republic the with border the use VAT. and tax evade to or benefits obtain false income providing statements to or mortgages; obtaining of purpose 35 CHAPTER 2 THREAT ASSESSMENT

2.23 There have been a small number of cases where professional advisers appear to have assisted and advised criminals to conceal assets and avoid attention. Others may have unwittingly assisted criminals out of ignorance in circumstances where they ought to have known better. THREAT ASSESSMENT 36 CHAPTER 2 Research, University ofGlasgow; April 2006 Research, 3 increasing of evidence clear is There 2.25 in market drugs the of scale The 2.24 Drugs (e) Estimating the Prevalence of Problem Opiate and Problem Cocaine Use in Northern Ireland; The Centre for Drug Misuse Drug for Centre The Ireland; Northern in Use Cocaine Problem and Opiate Problem of Prevalence the Estimating cocaine seizures have increased 16- increased have seizures cocaine where Ireland, of Republic the both in trends national in reflected is This locally. processed and imported be can cocaine purity high of quantities cannabis or ecstasy. Relatively small margins profit involved in cocaine are higher than the for and increasing is demand as driven market largely is this shifting cocaine; towards focus are their traffickers major indicators that clear are There 2005). December in Magherafelt in kilos 4 6 2004, and 2005 July in Dungannon July in kilos in Lisburn in seized kilos 6 2004, May in Belfast in West seized kilos 9 (e.g. this reflects years three last the in PSNI by made seizures multi-kilo of number the and demand for and availability of cocaine since 2001. in 68% as much users as of Ireland Northern drug problem of the number in increase an represents this figures are not readily available, it is possible previous with comparisons and 15.39forScotland.Whiledirect England in 8.91 Ireland, of Republic the for 5.58 are figures comparable population; of head 1,000 This per users three over just of Ireland. rate a represents Northern in users 3,300 problem opiate and / or cocaine report a In April 2006, the DHSSPS published changing. is this that suggest which trends emerging there and indicators but are Ireland, of Republic or UK the the either reflect in not levels national does Ireland Northern 3 finding that there are some are there that finding 2.26 An emerging cocaine market is often is market cocaine emerging An 2.26 .7 h cmaaiey ml sz of size small comparatively The 2.27 Northern Ireland. Ireland. in Northern widespread is problem this that assessed currently not is it usage, are there some indicators of low-level crack Although cocaine. ‘crack’ of presence the with associated closely 2005/06 in with2004/05. compared kilos 27 over to kilos 21 from increased Ireland Northern in seizures Cocaine 2005. in 16% UK, where cocaine offences increased the in and years, five last the in fold rm t 31 rm i 2005/06 in year. withtheprevious compared grams 321 5 to from grams increased seizures Down. Heroin North and Belfast South as across Ireland Northern in areas such abuse of ‘pockets’ growing indicates of average of just 32%. Intelligence Ireland also average Northern a and UK 40% around a with providers, compared treatment to known are of opiate users in the Ballymena area 74% that estimated is It are available. that services treatment the to some time and for this community is Ballymena well known in small community a with associated been has Ireland Northern in use Heroin use. more is users in small quantities for personal drug the commonly brought into the by country that indicate Ireland Northern in seizures heroin 37 CHAPTER 2 THREAT ASSESSMENT

2.28 Cannabis and ecstasy remain the 2.30 The PSNI Drugs Squad has a strategic most commonly abused drugs and focus on Level 2 and 3 organised crime account for the majority of seizures in gangs, in particular those trafficking Northern Ireland. Class A drugs such as cocaine and heroin. By focusing resources 2.29 There is an established market for proactively against the top level gangs amphetamine in Northern Ireland. The involved in drug trafficking, the Drugs largest ever seizure of amphetamine Squad has had some considerable in Northern Ireland was made in successes and has disrupted December 2004 when 50 kilos were some major importation routes and recovered in the Ballymena area. arrested some of the most significant drug traffickers. Intelligence from the PSNI Drugs Squad has also led to some significant arrests and seizures outside the jurisdiction. THREAT ASSESSMENT 38 CHAPTER 2 4 major a is theft property Intellectual 2.32 an is Theft Property Intellectual 2.31 Crime IntellectualProperty (Counterfeiting) (f) www.bpi.co.uk nent o ec a ie audience wider a reach to Internet Ireland have been using the Northern in based Criminals genuine. is sale with assurance every that the item for Other sites sell the item. counterfeit version copyrighted or trademark a of popularity the on capitalise to merely public, the deceive to there intention no is and counterfeit as clearly identified are these counterfeit of Some distribute goods. and internet sell the of to use the in a growth is There activity. criminal deadly potentially and destructive a fact in is it noted, previously as but, many by pound victimless as seen is that multi-million crime a a is It Ireland. Northern in business are and markets local via distributed widely goods local are problem. Counterfeit music piratemarket. a US$4.6 billion creating counterfeit, be to assessed are worldwide sold discs music all of 34% 2000. since quadrupled almost nevertheless has here rate piracy commercial the of music piracy in the world, but 2004. the value in The UK has one of prices) the lowest rates of pirate £76.9 (at worth million was UK the in piracy BPI estimates that commercial music times that for legitimate product. The in rate ten a growth 2004, representing volume in 31% value, in 37% by Phonographic music piracy in the UK had increased British Industry the 2005, In phenomenon. global increasing 4 reported that commercial commercial that reported

for their illegal merchandise. While merchandise. illegal their for 2.33 In contrast to the legitimate market, legitimate the to contrast In 2.33 portable generator, a number of DVD of generator,number a van, portable a of consisted This Armagh. unit counterfeiting was discovered in a field DVD in South mobile a February others 2005 In locally. are Ireland, manufactured multimedia electronic as such Northern into as such imported are cigarettes and clothing goods counterfeit some a goodprice. believes they have bought a legitimate item at genuinely who customer unwitting the retail to appeal actual may prices below just at products selling quality better Other fad. expect the goods to last until the next latest ‘must-have’ items and will only the for looking usually are customers victimless nature of the crime. These breaking the law due to the are perceived they that consider not do most cheaper than are the genuine article; they may be of inferior quality, as they knowing goods, fake buy to prepared price. For example, some people are opportunities and commodity outlet, on depending criminal provides This additional knowing unwitting. the the and customer: of types potential two has crime organised CDs, counterfeit DVDs andcomputersoftware. manufacture to of worth computers and other equipment million used £2.2 over seized PSNI year, past the In discs. blank of quantity significant a and burners 39 CHAPTER 2 THREAT ASSESSMENT

(g) Counterfeit Currency As well as sterling, increasing quantities of counterfeit Euro notes 2.34 There are over 50 bank notes in are being produced and Euro notes common circulation in Northern manufactured in Northern Ireland Ireland, including Euros, which makes have been recovered throughout it difficult to be sufficiently familiar Europe. More recently a significant with their appearance and security number of counterfeit £1 coins have features to identify counterfeits. been discovered in circulation; these The majority of counterfeit notes are are of very good quality, indicating identified by sorting machines rather sophisticated production techniques than recovered in circulation by requiring specialist equipment and shops. The face value of counterfeit knowledge. currency recovered in Northern Ireland increased significantly (by 137%) to 2.36 Counterfeit notes and coins are in over £520,000 in 2005. In addition, the main distributed by criminals over e11,000 in counterfeit notes with links to drug trafficking and both was recovered. republican and loyalist paramilitary organisations. They are passed in 2.35 In recent years there has been a shops and businesses throughout shift from importation of counterfeit Northern Ireland, often small, family- currency to local production. Several run outlets which are more vulnerable counterfeit currency production to this type of crime. and distribution facilities have been disrupted by PSNI, most recently in Loughgall, Cookstown and Newry. The quality of counterfeit notes produced in Northern Ireland continues to improve, with more security features being replicated, due to the increased access and ability to use high quality computer and reprographic technology. THREAT ASSESSMENT 40 CHAPTER 2 5 been have robberies Cash-in-transit 2.38 Organised crime has been responsible 2.37 Robbery Armed (h) Data supplied by the British Security Industry Association Datasupplied bytheBritish SecurityIndustry in-transit companies. control room involving PSNI and cash- joint a of creation the and delivery locations risk high identify to matrix risk a of development have the initiatives included Key problem. the relevant developed and implemented to tackle been the have strategies Group, in Expert and sectors security the banking in partners with the by partnership close in priority Working OCTF. a as adopted was of incidents in 2001 and the problem number the in increase sharp a was There 1990s. organised late the since of crime feature significant a in 2005. UK the in attacks CIT all of 8% some ranks for currently accounting terms national in fifth areas; Ireland hardest-hit Northern four the being Midlands Manchester, West the and London, Merseyside with years, three last the over rising been has attacks cash-in-transit of number the Nationally work. of place their from robbery a facilitate to employee an compel to members hostage taken been ‘tiger’ family have which of in use kidnaps the included have Some goods. high-value and cash in which have netted millions of pounds robberies high-profile of number a for 5 , 2.39 Although the levels of violence used violence of levels the Although 2.39 The OCTFismonitoringthiscarefully. increasing. be may violence of levels that indications are rest there UK, the the of in than lower be to tends Ireland Northern in attacks such in 41 CHAPTER 2 THREAT ASSESSMENT

(i) Extortion individual can ‘realistically afford’. It is in the extortionists’ interest to 2.40 As well as being a means of raising make it easier for the victim to pay finance for terrorist operations, the demand, as this will reduce the extortion has also been used chances of the crime being reported effectively since the early 1970s to to the police. exercise paramilitary control over the community. Extortion probably 2.42 The building trade is worst affected generates millions of pounds per though fast food outlets, restaurants annum for paramilitary organisations. and licensed premises, car Although the activity is assessed dealerships and other retail outlets to be carried out predominantly by have also been affected. Extortion loyalist groups, members of dissident threatens inward investment and Republicans have been convicted increases the cost of doing business. of such offences during 2005. This may be reflected in higher prices Detailed analysis suggests that the for the consumer and additional costs true extent of Northern Ireland’s to the taxpayer. Extortion destroys extortion problem is not reflected in families and relationships and the number of cases successfully businesses – particularly in witness prosecuted; it is likely that less than intimidation cases. Extortionists 10% of extortion is reported to police drive people out of business and out although the number of businesses of their homes and police are forced coming forward to ask for PSNI to devote scarce resources to the assistance is increasing. protection of vulnerable individuals. In a UK context, extortion as described 2.41 Demands are usually made in person, here is almost unique to Northern mostly in the form of a visit from Ireland. two or three individuals to collect payment. This is most often done as 2.43 The PSNI Extortion Unit mounts an ‘invitation’ to purchase security proactive and reactive operations to services from the organisation which tackle extortion. It is often a difficult they represent – it is rarely explicitly crime to investigate due to the victim’s stated which organisation it is, fear of reprisal and the threatening but the victim will be left under no nature of the crime itself and often illusions. For new businesses, a one- involves the use of undercover officers off payment will often be demanded in order to obtain the necessary with subsequent monthly or weekly evidence while protecting the victim. sums to be paid in addition once the In approximately 85% of cases business has started trading. For reported, the victim declines to work existing businesses, demands for with PSNI to conduct an investigation. regular monthly or weekly payment Where PSNI has been able to conduct will be made. The size of the demand an investigation, every case has will usually be tailored to reflect the resulted in the extortionists being size and probable turnover of the convicted. In 2005, the Unit arrested business – i.e. what the business or and charged 24 people with extortion offences. 42 CHAPTER 2

(j) Immigration Crime 2.47 There are two areas of crime which are linked with immigration crime: THREAT ASSESSMENT THREAT 2.44 Northern Ireland continues to attract people from a wide variety of countries. - People Smuggling – where the During 2005/06 over 10,200 migrants are willing participants individuals from the Accession States and the criminal profits from registered under the Accession States facilitating their movement from Workers Registration Scheme to work one jurisdiction to another. in Northern Ireland and a further - Human Trafficking – where the 2,550 work permits were granted. intention behind the facilitation is This is in addition to nationals of to exploit the migrant once they the pre-existing EU states who were reach their destination. already entitled to live and work in Northern Ireland. The links between the latter and 2.45 These individuals are legally resident the vice trade are well documented. in Northern Ireland, but the increase The UK passed the Sexual Offences in legal migrants is believed to be Act 2003 which strengthens accompanied by an increase in the the case against those who are number of immigration offenders involved in this area of criminality who are living and working here. A and introduced an offence of multi-agency, cross border operation trafficking for the purposes of sexual headed by the United Kingdom exploitation within the UK. Immigration Service (UKIS) and the Garda National Immigration Bureau 2.48 There are a number of female (GNIB), Operation Gull, was conducted foreign nationals working as last year. Failed asylum seekers prostitutes in Northern Ireland, and other immigration offenders and their presence appears to were detected, some of whom used have facilitated an increase in forged or counterfeit documentation. the number of brothels in Belfast, Most of these persons use Northern particularly South Belfast, as Ireland as a transit route in both well as the appearance of several directions between Great Britain and establishments in areas where the Republic of Ireland. none existed before. The latter tend to be in locations where there 2.46 The lead agency for dealing with are a number of foreign national immigration is UKIS which is in the workers and it is likely that these process of establishing a dedicated are controlled by members of that enforcement unit in Northern Ireland. community. PSNI is aware of the Recruitment and training are underway possibility of trafficked women being and in the meantime, operations forced to work as prostitutes but in Northern Ireland continue to be none of the women interviewed covered by immigration officers in has indicated this to be the case, Liverpool. though some are in the UK illegally. 43 CHAPTER 2 THREAT ASSESSMENT

2.49 Foreign nationals legally resident in the Republic of Ireland have been detected coming north to commit distraction burglaries, shoplifting and begging for funds in the streets. Criminality by those legally resident in Northern Ireland includes shoplifting, road traffic offences and violent crime. There is a likelihood that intimidation and extortion are also occurring within migrant communities; PSNI is working to build confidence and trust within these communities to encourage reporting of such activity.

2.50 Later this year the Gangmasters Licensing Act 2004 comes into force across the UK, including in Northern Ireland. From October 2006 it will be an offence for a labour provider to provide labour to the agriculture and shellfish sectors without a licence. Applications for licences have been accepted since April 2006, since when 5 organisations based in Northern Ireland have applied for or received a licence from the Gangmaster Licensing Authority. THREAT ASSESSMENT 44 CHAPTER 2 .3 eet ru i cue b people by caused is fraud Benefit 2.53 is Agency Security Social The 2.52 Social SecurityBenefits activities of range wide and size The 2.51 Crime to Organised ThePublicSectorResponse (k) relevant changes of circumstances circumstances of report changes to to relevant fail who order or misrepresent Benefit, in gain circumstances deliberately their who been 2001/02. has This in £60m estimated an from reduced category. organised crime the in been have which would of proportion small a fraud, through lost was million that £30 almost estimated is It fraud. tackling for strategy robust a has Agency The billion. £3.5 approximately totalling expenditure benefit for responsible detailedbelow.are attention current of areas Significant co-operation. inter-agency encourage further to and crime, promote organised from threat the of effort, awareness enhanced of co-ordination Ireland Civil to Service ensure greater Northern the with place in have put been arrangements new Security and Social field the in particularly been a number of notable successes have There bodies. regulatory enforcement and law with co-operation building on and fraud from schemes revenue and expenditure protecting is on Departments Priority by placed therefore groups. organised and individual by both abuse, for target obvious an it make in Ireland Northern Sector Public the by out carried .5 eet ru asrs substantial absorbs fraud Benefit 2.55 strategy counter-fraud Agency’s The 2.54 • The manipulation of instruments instruments of manipulation The • the followingareas: in occur may fraud Benefit organised Allowance. The Agency’s belief is that Allowance, Income Living Disability and Benefit Housing Jobseekers Benefit, Support, Incapacity are abuse The to subject payment. Benefits in principal is Benefit when scal uacpal cie The crime. unacceptable socially a it make and fraud security social of awareness raise to press the in and public run a publicity campaign on has other television Agency the for Recently services. used better could be which resources scarce and thepublic. from fraud referrals systems, a fraud hotline to encourage other against records Security Social of matching Scheme, Rewards Office Post a allocation, number Insurance National secure include processes security benefit Agency’s the fraud of investigation and detection the in as deploying fully trained investigators well As abuse. from risk at most are the Agency monitors those claims that losses. process assessment risk reduce a Through to a way in structured problems existing target and outset the at fraud prevent to seeks Number Insurance National • hi-jacked or false of use The • infiaty eue wt the (organised bookpayments). ending oforder with reduced has area significantly this payments in activity fraud of Fraud. identities. 45 CHAPTER 2 THREAT ASSESSMENT

success of this campaign is reflected 2.57 HM Revenue & Customs have, in in comments by magistrates when discussions with the Department for convicting and sentencing social Social Development (DSD), indicated security fraudsters to jail sentences that they may have encountered a in recent months. The BBC also ran a small number of NI charities that series of news articles on benefit fraud appear to have been set up as vehicles with which the Agency co-operated. for sophisticated tax avoidance. Sums One other notable case of positive involved can be substantial. Some publicity and which demonstrates sham charities established in NI were the Agency’s determination to tackle used to avoid Stamp Duty before serious crime relates to an ongoing new legislation was enacted, with an ARA investigation. This case was estimated tax loss of approximately originally identified by the Agency and £2m. One NI charity appears to have referred to ARA following a protracted been set up to receive large gifts of and complex benefit investigation. An shares thereby attracting tax relief at interim receiver has taken control of 40% for the donor. Tax at risk in this assets of around £3m which includes case is estimated at £14m and an 42 properties. enquiry is underway.

Charities 2.58 Certain organisations associated with current and former paramilitary 2.56 There are three distinct charity law groups or individuals have charitable regimes in the UK, each with its own purposes that would be recognised legislation. At present England and under current NI legislative provisions Wales has a Charity Commission and and all deliver against these purposes, a full Register of Charities. Scotland to varying degrees. Anecdotal has established the Office of the evidence, however, suggests that Scottish Charities Regulator (OSCR) some of the resources are used to and has just set up a register of fund expenditure not wholly compliant charities operating in Scotland. In the with charitable purposes and the Republic of Ireland draft legislative proceeds of informal collections proposals to establish a charities do not, in fact, reach the named regulator and register have been recipient. published. Northern Ireland currently does not have a register of charities 2.59 DSD is responsible for charities or a charity commissioner/regulator. legislation and its existing statutory Concerns about the regulation of powers in relation to charities are charities in Northern Ireland have already available for use in appropriate been expressed in Independent cases, if evidence of wrongdoing is Monitoring Commission reports, and available. The Department has no there is evidence of sham charities existing power to require charities to being established here to avoid the register, however, or to investigate regulatory framework that exists charities in the absence of evidence elsewhere. of wrongdoing. DSD is proposing to introduce new charities legislation THREAT ASSESSMENT 46 CHAPTER 2 regarding charities. Customs regarding & Revenue and PSNI the with and Ireland of Republic the and UK the across between regulators other the information of exchange greater for providing place in put be greater through will and controls. scrutiny Structures restricted be will of charities mock or benefits elements charitable criminal by abuse for opportunity regulator.The charities a already have or are about to establish either which Ireland of Republic the and administrations devolved other the with consistency ensure will This Ireland and a NI Register of Northern Charities. for Commission Charity a with Scotland, and Wales England, with line into broadly it bringing NI in .1 lea iprain f at into waste of importation Illegal 2.61 Northern in waste of disposal Illegal 2.60 Illegal DumpingofWaste Heritage and Environment The 2.62 waste) from the Republic of Ireland Ireland of municipal Republic the from waste) and household waste (mainly of disposal illegal the being patterns, the most lucrative operation Ireland Northern displays a number of criminals. organised of involvement economy, the the from as well local damage as and to potential environment its of terms in issue serious a is Ireland p o ac 20, frhr 202 further beingconducted. investigations were a 2005. 2006, March in to cases Up 1167 in and dumping 2004 illegal of cases 1256 Service investigated Department The Prosecution (PPS). Public the to cases the submits EHS gathered, be are management can evidence sufficient and detected waste illegal of instances When Ireland. Northern in management waste illegal tackle to approach multi-strand a uses which Crime Teamdedicated Environmental a formed has (DOE) Environment the of Department the of (EHS) Service Ireland. Northern in legal sites illegal in or either landfilled, is waste the recycling, of Instead recycling. of into guise the Ireland under Ireland of Northern Republic the from transported Northern also is in Waste sites Ireland. dump illegal in

47 Chapter 3 CHAPTER 3 WAY FORWARD Way Forward

Introduction OCTF Review

3.1 Tackling organised crime at a 3.4 Last year’s review of the OCTF provided number of different levels and by all an opportunity to critically assess how available means – through effective we tackle organised crime in Northern law enforcement, appropriate Ireland and to ensure that our regulation, political pressure and structures and membership are fit for public awareness – is a key priority purpose. One recommendation was for the Government, for the OCTF and the creation of a Ministerially-chaired for our colleagues in Great Britain, OCTF Stakeholder Group with broader Ireland and overseas. Chapter Two membership than the previous OCTF, demonstrates the extent of the threat and this has been implemented. that still exists and confirms that it continues to evolve: organised 3.5 Another recommendation led to the criminals are sophisticated and creation of the Strategy Group which cunning as well as ruthless. Since brings together senior representatives its inception in 2000 the OCTF of law enforcement to consider how has worked to develop a joined up, the overall strategy endorsed by the collaborative approach to confronting OCTF Stakeholder Group can best organised criminality in NI. Today’s be implemented, how operational co- challenge is to ensure that the ordination between the Task Force wealth of knowledge, expertise and partners can be strengthened, and commitment that exists is built on how complementary priorities can and deployed effectively to establish most appropriately be developed. the kind of normal society that the One significant development, for people of NI deserve. example, is the adoption of a standard methodology by all the 3.2 We recognise that we must stay ahead partner agencies to identify and target of the game and adapt to meet the the main organised crime gangs in challenge of organised criminal gangs Northern Ireland. who diversify with ease into other areas of business. We also know that the fight against organised crime will be fully effective only when it has the support of the whole community.

3.3 The following paragraphs describe some of the measures that are being taken collectively to ensure that we are in a position to meet the challenge. WAY FORWARD 48 CHAPTER 3 . Eight 3.8 the of functions The 3.7 shown structure, new The 3.6 Structures xmnn priua apcs f the groups of aspects expert particular examining and sub supported further are by streams work The finance. criminal and drugs, robbery armed offences, revenue as such threats crime organised specific on The Enterprises measurement. and analysis enhance and and international co-operation awareness facilitate confidence, public procedures, improve and policy legislation, to changes implement and identify ordination Enterprises Co-ordination and the them. to overcome strategies tackling develop and to problem barriers of identify nature Ireland, Northern in the crime organised of understanding Group’s The enhance effectiveness. their politically to presentationally, climate, a and creating duties statutory by their in out agencies carrying enforcement law support the to and Ireland Northern in objectives to combat organised crime cross-cutting achieving in progress Group Task workisbased. Force’s the which the on focus strengthen analytical and co-operation, operational improve lines, reporting clarify to predecessor, its by made progress significant the on building intended, is below, diagrammatically workstreams are to advise on and monitor and on advise to are role is to establish a shared shared a establish to is role oktem ok to looks workstream oktem focuses workstream The . focus on nbig n Co- and Enabling and , Stakeholder Enabling Strategy Criminal Criminal . W hv bodnd ebrhp to membership broadened have We 3.9 Extended Membership 3.10 Our new structures will be effective effective be will structures new Our 3.10 ly Te hv jie te PSNI, the joined have They play. to roles important have others that and enforcement law of domain the the just not is crime reflecting organised that fact Board, Policing the and community business the include involved inthiswork. private both and public sector are partners and problem crime organised respond to a different environment. toadifferent respond to necessary if future in again change OCTF will we and changing to circumstances adapt can they if only the on NIO Stakeholder Group. and Office, Departments Home NI SOCA, ARA, HMRC, 49 CHAPTER 3 WAY FORWARD

OCTF Structure

Stakeholder Group

Strategy Group

Work Streams

Enabling/Co-ordination Criminal Enterprises

• Analysis & Measurement • Revenue Offences • Joined up Government • Drugs • Communications • Armed Robbery • Cross Border • Criminal Finance WAY FORWARD 50 CHAPTER 3 3.14 We will also continue to utilise other utilise to continue also will We 3.14 strategy a developing is OCTF The 3.13 general the that important also is It 3.12 public general the that essential is It 3.11 Raising Awareness press statements & providing providing & statements press issuing newspapers, local annual leading in supplements placing our Report, OCTF publishing including mediums to get our message across, business community. take account of issues specific to the our will that strategy communications a utilising develop to representatives business membership and structures new our of account take will strategy The Ireland. Northern through a series of roadshows across specific audiences with our messages law enforcement; and thirdly to target to crime reporting in proactive more be of to public general the encouraging terms in secondly do; to needs else everyone what and is response firstly in terms of levels: what three the on Task awareness Force’s raise to their ownpockets. stifle our communities and who economy to line predators the of Ireland Northern rid to responsibility a have all we that but enforcement, tackling law for matter that a just not is crime organised understand public funding. valuable hospitals denies and schools indirectly, that our loss or revenue through goods, counterfeit dangerous in trading or people young either society our directly, through peddling drugs to to our does crime organised that dangers the realise .5 e nw ht raie cie is crime organised that know We 3.15 Measuring Impact n qatttv maue o the of measures quantitative and qualitative reliable have currently not or the community in general but we do NI, whether as individuals, businesses – it impacts upon all of the citizens of discriminatory nor victimless neither OCTF the OCTFwebsite the maintaining and magazine quarterly publishing briefings, r rlvn ad eeca t our to Ireland. inNorthern circumstances beneficial and relevant are that measures those implement and the outcomes of this review research UK law enforcement agencies. We the of will activities the through reduced being are harms such how assess to help will This outputs. rather just than outcomes on based regime harms performance a the develop and caused measure to Office Home research monitor will we work that of part As harms. social and of criminal markets and the economic size the of measures qualitative and quantitative reliable, develop to ways exploring is OCTF the and criminality as information possible on organised It is that important we gather as much economic and social harms it causes. www.octf.gov.uk

51 CHAPTER 3 WAY FORWARD

Prioritising Gangs • Charities - legislation is planned for the end of 2006 to introduce 3.16 The Strategy Group is developing a a full statutory regime, including different approach and is moving a NI Charities Register regulated away from targeting commodity types by a newly appointed Charities such as oils fraud or armed robbery Commission. to identifying and targeting the main • Taxi Licensing - Revised taxi criminal gangs who move between licensing legislation should be commodity types to make greatest in effect in 2007; to provide for profit and to protect themselves operator licensing and enhanced from being caught. OCTF partner enforcement powers. agencies have agreed a framework for identifying, prioritising and managing • Liquor Licensing – consultation work against criminal gangs. This ended in January 2006. allows us to maintain a common Responses are being considered understanding of the criminal networks and a Ministerial statement is which present the greatest threat to due in the summer. The paper the Northern Ireland community. It included proposals in relation to will also provide a clear picture of new licensing objectives, powers the impact which law enforcement of enforcement, simplified activity has on the scale and scope of registered club accounting organised crime, enabling us to review processes, surrender of licenses, and adapt and our techniques on an transfer of responsibility from ongoing basis. OCTF’s partnership courts to district councils and the approach to using this method of abolishment of the 12 categories prioritisation means that intelligence of licence. can be improved, duplication can be • Petrol Licensing - it is proposed avoided and chances of success can that responsibility for petroleum be increased. licensing across Northern Ireland will transfer to the Health and Safety Executive, which will allow Licensing Regimes for a more consistent and robust approach to enforcement as well 3.17 OCTF is taking steps to strengthen as a more targeted approach to licensing regimes and regulatory inspection. frameworks to prevent legitimate businesses being used by organised criminals to launder the proceeds of crime. Measures are being introduced to protect licensed premises, taxis, security firms, the fuel trade and charities: WAY FORWARD 52 CHAPTER 3 3.21 An incentivisation scheme to rebate rebate to scheme incentivisation An 3.21 Assets Recovery immigration multi-agency, new, A 3.20 Immigration provisions existing the of review A 3.19 Private SecurityIndustry Crime Environmental dedicated A 3.18 Illegal Dumping ovce o seic ru and financial their of records detailed full fraud provide to offences specific crime organised of convicted offenders require which 2006, April from Orders Reporting Financial new of introduction the with together This 2006. April in effect into came LEAs half of the monies received back to the Republic ofIreland. the Garda in Bureau the Immigration and National PSNI with directly liaise will It 2006. late by Belfast, in enforcement office will be established years. two next the within Industry Security Private NI the specific regulate to legislation introducing to view a with 2006 Summer during place take Consultation will underway. is this for planned. fines andpenaltiesare of levels higher for and dumping used illegal being vehicles seize and and enhanced powers to stop, search Environment the the of Department the by formed of Service Heritage and Environment been has Team 3.22 The OCTF Criminal Finance Expert Expert Finance Criminal OCTF The 3.22 .3 xoto rmis significantly a remains Extortion 3.23 Extortion proceeds of crime are pursued. ofcrimeare proceeds the which in cases of proportion the increase to and Ireland, Northern in from economy criminal the removed and criminals assets criminal of amount the increase to NI to tailored an developing specifically Strategy Recovery Assets currently is Group assets inNI. criminal seize to capacity overall our enhance further will years conviction 20 after to up period a for affairs to 4pm. Monday to Friday,and is staffed 8am The telephone number is 028 90922 help. 267 get to targeted are who to victims make it blackmail as easy as possible for those for helpline telephone special a up set has PSNI contracts. building sector public six another on tested be will and learnt has lessons reflect to project reconfigured been has The industry evaluated. been construction the in the extortion detect and deter in to project resulted pilot A convicted. being have extortionist cases extortionists. investigate, all to able is tackling PSNI Where in record proven a and techniques successful have PSNI but crime under-reported

53 CHAPTER 3 WAY FORWARD

Tobacco Fraud SOCA

3.24 In March 2006, the Reinforcing 3.25 The creation of SOCA, the new the Tackling Tobacco Smuggling Serious Organised Crime Agency Strategy was published by HMRC. which became operational on 1 April This demonstrated HMRC’s success 2006, is another clear indication in driving down fraud but also the of the Government’s commitment challenges in the future. Building on to enhancing law enforcement’s the resources and controls already response to organised crime. The in place to tackle tobacco smuggling Agency, already a key partner on the the Government introduced a range OCTF, is working closely with us to of measures to reinforce the tobacco ensure that it fits with our existing strategy. The new measures are in structures and responsibilities. In four main areas: addition, SOCA will give us an insight into national and international • working with tobacco developments in organised crime. manufacturers to improve the The Agency will operate in Northern targeting of counterfeit product Ireland in a supportive and enabling and further restrict the supply role and will work in partnership with of hand rolled tobacco (HRT) PSNI to broaden operational capability and genuine cigarettes through here. Work is ongoing to develop a revised MOUs; working agreement between SOCA and NI. • enhancing HMRC’s operational response to strengthen enforcement at all the key points along the supply and distribution Cross Border Seminar chain; 3.26 The excellent relationships between • using technology to increase individual law enforcement agencies HMRC’s ability to detect illicit on both sides of the border are goods and target resources further enhanced through the annual effectively; and Cross Border Organised Crime • utilising publicity to increase seminars which bring together the full awareness of HMRC enforcement range of agencies, North and South, action and to undermine the with responsibility for tackling cross appeal of smuggled product to border organised crime. The seminars current and potential customers. are organised and funded by the two Governments. Last year’s event produced action plans to improve co- operation across the whole spectrum of cross border organised crime. Progress will be reported at this year’s event which will take place during Autumn 2006. WAY FORWARD 54 CHAPTER 3 3.28 The SARS regime, the process process the regime, SARS The 3.28 Reports Activity (SARS) Suspicious Affairs Ireland Northern The 3.27 NIAC Inquiry awareness andcompliance. awareness the raise to sectors, principally legal and financial sector, the with regulated working be will OCTF the reviewed was 2006/07 during and year this earlier regime The financial crime. investigate and detect to valuable resource for law enforcement a is enforcement, law to reported is laundering money indicate might that activity financial suspicious whereby the rangeofevidence. following its detailed consideration of recommendations Committee’s the the seeing to in forward looks and matter interest welcomes Committee’s OCTF the including partners. broad organisations, OCTF a of from range evidence oral written taken and has Committee The relevant and agencies Government the by the Ireland, the and economy in Northern crime organised of crime the examining is into crime organised here and inquiry conducting Committee an is currently effectiveness of effectiveness measures taken in Northern Ireland, in the Northern to counter crime. organised nature of organised organised of nature n oit and society on impact .9 Chapter Two highlights the continuing 3.29 Key Threats the principal threats ifnecessary. the principalthreats reassess and year coming the during crime organised from threat the monitor will Force TaskThe priority. of order in not is list This Drugs; • Armed Robbery & Cash-In-Transit • MoneyLaundering; • for 2006/07asfollows: threats principal the assesses OCTF which in crimes organised criminals are involved. The of range NI the in and crime organised from threat IllegalDumping. • & Crime; IntellectualProperty • blackmail Extortion, • (including frauds tax & Excise • attacks; intimidation; oils fraud); 55 CHAPTER 3 WAY FORWARD

MISSION STATEMENT

To help secure a safe, just and prosperous society in Northern Ireland, by confronting organised crime through a multi-agency partnership between central and NI Government Departments, law enforcement and the community at large.

OBJECTIVES

1. To confront the activities of the organised crime networks in Northern Ireland, concentrating on serious illegal activities and the major criminal networks.

2. To develop co-operation between law enforcement and other operational agencies in the planning and conducting of operations.

3. To develop intelligence gathering capabilities against organised crime networks and improve understanding of the activities of those networks.

4. To develop cross-community support and work, where appropriate, with the private and public sector.

WAY FORWARD 56 CHAPTER 3 Annual Report

ORGANISED Assessment and Threat CRIME TASK FORCE 2006 - Organised Crime in Northern Ireland Crime in Northern - Organised

EVERYONE’S HELP IS NEEDED TO COMBAT ORGANISED CRIME …

ARE YOU CONTENT TO ALLOW THE CRIMINALS TO CONTINUE TO ENJOY THEIR LAVISH LIFESTYLES WITH YOUR MONEY?

CALL CUSTOMS CONFIDENTIAL, ARA CONFIDENTIAL LINE OR PSNI’S EXTORTION HELPLINE OR CRIMESTOPPERS NOW

ARA: 028 9031 5039 HMRC: 0800 59 5000 PSNI Helpline: 028 9092 2267 Crimestoppers: 0800 555 111 Annual Report and Threat Assessment 2006 www.octf.gov.uk Organised Crime in Northern Ireland

www.octf.gov.uk