U.S. Department of Justice Office of Justice Programs

J National Institute of Justice AN. 07

Special REPORT

Asian Transnational Organized Crime and Its Impact on the United States

www.ojp.usdoj.gov/nij U.S. Department of Justice Office of Justice Programs 810 Seventh Street N.W. Washington, DC 20531

Alberto R. Gonzales Attorney General

Regina B. Schofield Assistant Attorney General

David W. Hagy Deputy Assistant Attorney General, Office of Justice Programs and Principal Deputy Director, National Institute of Justice

This and other publications and products of the National Institute of Justice can be found at:

National Institute of Justice www.ojp.usdoj.gov/nij

Office of Justice Programs Partnerships for Safer Communities www.ojp.usdoj.gov JAN. 07 Asian Transnational Organized Crime and Its Impact on the United States

This monograph is based on “Asian Transnational Organized Crime and Its Impact on the United States: Developing a Transnational Crime Research Agenda,” final report to the National Institute of Justice, November 2004, NCJ 213310, available from the National Criminal Justice Reference Service at www.ncjrs.org/ pdffiles1/nij/grants/ 213310.pdf.

Findings and conclusions of the research reported here are those of the authors and do not reflect the official position or policies of the U.S. Department of Justice. Support for this research was provided by contract number TDL#1700–215 from the National Institute of Justice.

NCJ 214186 ISSUES IN INTERNATIONAL CRIME / JAN. 07

ABOUT THIS REPORT

The National Institute of about the importance of Asian Justice, as part of its effort transnational crime. The U.S. to build an international authorities viewed several research agenda that will offenses, including drugs, help the United States better arms, and human trafficking, understand potential threats as serious problems that from transnational crime, affect interests of the United supported this project to— States and undermine the stability of its Asian allies. ■ Determine high priority Asian respondents generally areas for research on Asian tended to view “traditional” transnational organized organized crime activities— crime. such as extortion, gambling, loan sharking, prostitu­ ■ Assess the impact of Asian tion, debt collection, and transnational organized violence—committed by crime on the United States. local and regional groups as a higher priority than ■ Identify relevant data and transnational crimes. information sources in Asia. Respondents in this study ■ Identify potential collabora­ characterized the transnation­ tive research partners and al organized crime networks institutions in Asia. operating in the region as This report focuses on the highly specialized, with any first two project goals. overlapping of criminal activi­ ties occurring mostly at the level of transportation of What did the goods and people. Contrary to the views of some U.S. researchers find? authorities, the commonly There is little consensus expressed view among the among Asian authorities as study respondents was that to what their main organized there is no linkage between crime problems are. Further, transnational organized crime Asian and U.S. interview par­ groups and terrorist groups. ticipants had differing opinions

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Preface

This study was undertaken in eight Asian sites. Meetings on behalf of the National were also held with Asian Institute of Justice between crime experts in the United July 2003 and August 2004. States. Interviews and site Its purpose was to prelimi­ visits were supplemented narily assess the impact of with surveys and analysis Asian transnational organized done by local Asian re­ crime on the United States searchers, an analysis of while, at the same time, U.S. indictments, and the determining high-priority review of a large volume of areas for further research and literature. The sites covered identifying potential collabo­ by the research are Cambo­ rative research partners and dia, China, Hong Kong, sources of relevant data and Japan, Macau, the Philip­ information in Asia. The aim pines, Taiwan, and Thailand. was thus not to examine the organized crime situation in The first chapter of this the region in detail, but rather monograph describes the to lay the foundation for a divergent perceptions of research agenda that would Asian transnational organized ultimately accomplish this crime held by the Asian ver­ purpose. sus the U.S. interview participants and also offers A variety of techniques were a researcher’s perspective. used as part of the overall The second chapter explains exploratory methodology. the scope and patterns of These included 4 months of Asian organized crime. The interviews and field observa­ final chapter offers an initial tions with experts including assessment of the impact of law enforcement officials, Asian transnational organized policymakers, and scholars, crime on the United States. as well as U.S. officials,

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Contents

About This Report ...... ii

Preface ...... iii

Introduction...... 1

Chapter 1: In the Eye of the Beholder: Perceptions of the Problem...... 5

Asian Authorities’ Perspective...... 5

U.S. Authorities’ Viewpoint ...... 15

Researchers’ Vantage Point ...... 16

Chapter 2: Scope and Patterns of Organized Crime ...... 19

Scope ...... 19

Specialization...... 21

Structure or Opportunity?...... 21

The Flow...... 22

Chapter 3: Impact on the United States ...... 25

Threat, Impact, and Harm to the United States ...... 26

Impact on Broader U.S. Interests...... 31

Conclusion...... 33

Notes...... 35

v ASIAN TRANSNATIONAL ORGANIZED CRIME

James O. Finckenauer and Ko-lin Chin

Introduction

By the late 20th century, globalization than legitimate organized criminal groups businesses, which are subject throughout the world were to domestic and host country able to exploit the same laws and regulations. Transna­ economic liberalization, tional crime syndicates and technology advances, and networks, abetted by official open borders that enabled corruption, blackmail, and multinational corporations intimidation, can use open to grow and prosper. Today, markets and open societies organized crime is a transna- to their full advantage. tional phenomenon—and a cause for worldwide concern. As part of its effort to build an international research Transnational crime groups agenda that will help may have profited more from the United States better

DEFINITION OF TERMS

This study uses the definition of an organized crime group that was established by an ad hoc committee of United Nations member states working on a convention to facilitate the prevention and combating of transnational organized crime: “A structured group of three or more persons existing for a period of time and acting in concert with the aim of committing one or more seri­ ous crimes or offen[s]es in order to obtain, directly or indirectly, a finan­ cial or other material benefit.” About the Authors According to the convention, an offense is transnational if— James O. Finckenauer, Ph.D., is Distinguished 1. It is committed in more than one state. Professor of Criminal 2. It is committed in one state but a substantial part of its preparation, Justice at Rutgers Univer­ planning, direction, or control takes place in another state. sity and former director of NIJ’s International Center. 3. It is committed in one state but involves an organized criminal group that engages in criminal activities in more than one state. Ko-lin Chin, Ph.D., is a Professor in the School of 4. It is committed in one state but has substantial effects in another Criminal Justice at Rutgers state. University.

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STUDY METHODS

To achieve the multiple purposes of this project, researchers pursued several paths of inquiry:

■ Interviews. On three separate visits to Asia—together comprising about 4 months—researchers interviewed people familiar with organ­ ized crime in that part of the world. Altogether, they interviewed 139 subjects, including 61 Asian law enforcement officials, 30 U.S. officials (e.g., Federal Bureau of Investigation legal attachés, Drug Enforce­ ment Administration representatives, immigration and customs offi­ cials, resident legal advisors for a U.S. embassy and consulate, and secret service personnel), 27 professors/researchers, 13 nongovern­ mental organization (NGO) workers, 6 persons engaged in commer­ cial sex acts (i.e., prostitutes, exotic dancers, and other employees) or owners of sex establishments (such as brothels, sex clubs, and massage parlors), and 2 reporters. In addition, researchers spoke with law enforcement officials from the FBI and the U.S. Department of Justice’s Organized Crime and Racketeering Section in Washington, D.C., who are dealing with organized crime matters and with staff in the Office to Monitor and Combat Trafficking in Persons at the U.S. Department of State.

■ Field visits. Researchers participated in a police raid of a sex club in Taipei, visited a detention center for illegal immigrants outside Taipei (where they interviewed two young Chinese women detainees), talked extensively to local residents of a leading migrant-sending community in China, and toured some crime hot spots accompanied by other U.S. or local authorities.

■ Surveys. Researchers asked a select number of experts in Beijing, Taipei, and Hong Kong to complete a survey instrument on organized crime in their respective jurisdictions and to prepare brief analyses on two illegal markets—drug trafficking and human smuggling and trafficking.

■ Collection and analyses of documents. Researchers examined 11 indictments involving Asian crime groups in the United States and a large volume of both the English and Chinese literature on Asian organized crime. They also had unique access to the original data from two studies undertaken by Ko-lin Chin (one of this report’s two investigators): a recently completed study on the social organization of human smuggling groups and an ongoing project on the drug trade in Southeast Asia’s Golden Triangle. These two studies involved inter­ views with hundreds of human smugglers and drug growers, produc­ ers, and traffickers.

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understand potential threats on these issues; and locate from transnational crime, the indigenous data sources that National Institute of Justice would be accessible to U.S. (NIJ) supported a project to investigators. preliminarily assess organ­ ized crime in eight Asian For the most part, this mono­ countries or administrative graph focuses on the project’s regions (Cambodia, China, preliminary assessment and Hong Kong, Japan, Macau, provides a framework for the the Philippines, Taiwan, and issues associated with trans­ Thailand); pinpoint research national organized crime in issues of mutual interest to Asia. Interested readers may U.S. and Asian researchers; obtain the full report, which is identify potential research available on the National Crim­ partners (and their affiliated inal Justice Reference Service institutions) in Asia who Web site at www.ncjrs.org/ might work collaboratively pdffiles1/nij/grants/213310.pdf.

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Chapter 1 In the Eye of the Beholder: Perceptions of the Problem

What are the most serious Asian Authorities’ problems associated with organized crime in the eight Perspective study sites? The answer to Cambodia that question depends on who is asked. U.S. officials, The two leading organized whether in Asia or Washing­ crime problems in Cambodia ton, D.C., responded differ­ are drug production/trafficking ently than Asian authorities, and human trafficking. Cam­ and even among the latter bodian officials are concerned group, opinions varied that drugs produced in neigh­ according to jurisdiction. boring countries are being trafficked into Cambodia for The U.S. authorities who local consumption. Drug traf­ were contacted viewed sev­ fickers also use Cambodia as eral offenses (including drug, a transit country, but Cambo­ arms, and human trafficking) dian authorities are less as serious problems that alarmed by this. The trafficking affect interests of the United of Cambodian women into States and undermine the Thailand for sexual activities stability of its Asian allies. and the presence of a large number of Vietnamese Asian respondents, broadly women in Cambodia who are speaking, tended to view engaged in prostitution are “traditional” organized crime major concerns for nongovern­ activities (such as extortion, mental organizations (NGOs) gambling, loan sharking, in Asia. According to NGO prostitution, debt collection, representatives in Cambodia, and violence) committed by however, local authorities are local and regional groups as reluctant to crack down on the a higher priority than trans­ local commercial sex trade national crimes. The following because they want to pro­ section offers a brief country- mote Cambodia as a place for by-country summary of the cheap sex to attract tourists.1 major organized crime issues Some NGO personnel believe and problems perceived by that Cambodian authorities Asian authorities. are either directly involved in

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the sex trade or benefit from rival gang members, ordi­ it. These same sources indi­ nary citizens, business cate that there is no link be­ owners, and government tween terrorism and human authorities. trafficking in Cambodia. As for the future, according to Chen Xiao-cun of the Crim­ China inal Investigation Division, For Chinese authorities, the Ministry of Public Security, gravest organized crime even more serious problems problems, in order of serious­ may lie ahead: ness, are:2 Our main concerns are ■ Drug distribution. The that: (1) organizations with government is alarmed by an underworld nature will the dramatic increase in penetrate into the legiti­ the number of heroin ad­ mate business sector, (2) dicts in China, and authori­ gangsters will get involved ties believe that local and in politics and run for public foreign-based drug syndi­ office, and (3) they will cates are importing heroin eventually hook up with from the neighboring foreign-based organized Golden Triangle area and crime groups. distributing it throughout the country (see “Drug Evidence suggests that many Production and Trafficking crime groups in China have in the Golden Triangle”). already monopolized certain wholesale businesses and ■ Gambling and prostitu­ that the majority of these tion. After being nearly groups are protected by local eradicated following the authorities known as baohu­ 1949 communist takeover san, or “protecting umbrella.” in China, gambling and In general, official corruption prostitution are now is seen to be a large and thriving. growing problem in China. Organized crime is a munici­ ■ Violence. Crime groups are pal, local, or regional (rather becoming better armed and than national or transnational) more violent, and Chinese phenomenon. Given the pace authorities are concerned of economic development in about violent acts commit­ China, and the interest of ted by mobsters against external investors in this

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DRUG PRODUCTION AND TRAFFICKING IN THE GOLDEN TRIANGLE

The focal point of illicit drug production and trafficking in Southeast Asia is known as the Golden Triangle, a rugged, mountainous region that overlaps the borders of Burma (Myanmar), Laos, and Thailand. Although the tri-border region accounts for the majority of heroin pro­ duction in Southeast Asia, the amount of heroin produced in the area has decreased by approximately 70 percent in the past 5 years. In 2004, Burma and Laos accounted for nearly all heroin produced in the region. Eradication efforts and the enforcement of poppy-free zones have com­ bined to depress cultivation levels. However, the decline in heroin production is being offset by an increase in the production of amphetamine-type stimulants (ATS). Methampheta­ mine is cheaper and easier to produce than heroin; it entails a simple process that starts with ephedrine, the principal alkaloid of ephedra, a shrub that grows wild on vast expanses of the nearby Chinese province of Yunnan. Much of the heroin produced in the Golden Triangle reaches markets through southern China, although increased law enforcement pressure by Chinese authorities has forced some traffickers to seek new routes through Thailand. In Laos, the Mekong River is a major conduit for heroin trafficking and is patrolled in only a few areas. Many key drug areas, particularly in the north, are virtually inaccessible to Laotian officials. According to Interpol, “ethnic Chinese traffickers control the heroin trade in Oceania (often with Vietnamese criminal organizations), Malaysia, and the few remaining markets in Canada and the United States.” Hong Kong’s position as a key port city and its proximity to the Golden Triangle and mainland China have made it a natural transit point for heroin moving from Southeast Asia to global markets. Although the amount of heroin transiting through Hong Kong appears to be diminish­ ing, drug traffickers continue to use it as a base of operations. development, the involvement laborers or to be sexually of criminal organizations has exploited. The arrival of large significant implications, includ- numbers of undocumented ing a potential chilling effect Chinese persons for these on economic growth. purposes is a cause of major concern in many countries.3 Tens of thousands of Chinese Nonetheless, Chinese authori­ men and women are smug- ties do not consider this to be gled abroad each year to be an organized crime problem—

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or even a Chinese problem, people to and from the main­ because most snakeheads land. U.S. Drug Enforcement (human smugglers) are Administration (DEA) repre­ Chinese-Americans.4 Local sentatives in Hong Kong authorities noted the many reported that some 18 million benefits of having large num­ tons of cargo (both legal and bers of their own people illegal) destined for the United working abroad and sending States pass through the port money home. Indeed, study of Hong Kong in a year—a researchers observed consid­ situation that clearly poses erable new housing develop­ a security concern for the ment that is being fueled by United States. money allegedly sent home by illegal workers in the According to the elite Orga­ United States. nized Crime and Triad Bureau (OCTB) of the Hong Kong Police, the leading organized Hong Kong crime problems in Hong Hong Kong was a British Kong are car theft and smug­ colony for more than 100 gling, human smuggling, years before it returned to cross-border organized crime Chinese control in 1997. It is involving China and Macau, now a special administrative money laundering, drug traf­ region—meaning that it has ficking, debt collection, and a degree of autonomy— triad monopolies. Triad soci­ although that status is in eties control private bus constant contention with routes, fish markets, street the mainland. Hong Kong markets, wholesale markets, has long been home to the entertainment centers, park­ secretive, ritualistic criminal ing services, prostitution, organizations known as tri­ illegal gambling, and extor­ ads.5 Authorities have a tion. In addition, each of the strong history of combating three triads (the Wo Shing these triads—and of battling Wo, the San Yee On, and the corruption as well—and the 14K) is said to be involved in jurisdiction is widely known the manufacture and street- for its sophisticated and well­ level distribution of pirated resourced police operations.6 VCDs and DVDs. At the same time, Hong Kong is subject to much illicit move­ As a major transportation and ment of goods, services, and financial center of Asia and a transit point in and out of

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China, Hong Kong has been businesses. According to a hub for transnational organ­ Chief Seijirou Ikegami of the ized crime activities for the Anti-Organized Crime Divi­ past 30 years. Although triad sion, Ueno Police Depart­ organizations are active in ment, Tokyo Metropolitan Hong Kong, the OCTB indi­ Police, Japanese officials are cated that no international also alarmed by the presence triad organization exists. DEA of a large number of legal representatives in Hong Kong and illegal immigrants from said that drug trafficking was China (mostly Shanghainese, not well organized at the Fujianese, and Northeastern­ wholesale level. Instead, ers) who are involved in small groups of individual organized crime activities entrepreneurs serve as and considered to be heavily wholesalers, and the triads armed and dangerous. are mostly involved in organ­ izing the street-level retail Because of its wealth and drug business. the spending power of Japan­ ese businessmen, Japan has Authorities interviewed said become a major destination that the triads “are not inter­ country for women from Thai­ ested in involving themselves land, the Philippines, Colom­ in politics.” The kinds of politi­ bia, China, Korea, and several cal/ideological missions asso­ other countries. In addition to ciated with terrorism are said women from abroad, Japan to be outside the ambitions has a large number of local or interests of the Hong Japanese women who are Kong triads. involved in the sex industry.8 Japanese authorities are con­ Japan vinced that yakuza members are heavily involved in the In Japan, the most serious transportation and control of organized crime problems are foreign persons for sexual almost always related to the purposes, but they do not notorious Japanese organized view this as their most seri­ crime groups—the yakuza.7 ous organized crime problem Japanese authorities are because (1) they believe mostly concerned with these persons are not being yakuza involvement in gam­ forced into their activities, bling, prostitution, ampheta­ and (2) the Japanese public mine trafficking, and the has not pressured authorities victimization of legitimate to do something about it.

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Macau same time, Macau’s com­ mercial sex establishments Macau, a former Portuguese are booming because of the colony, is, like Hong Kong, a arrival of large numbers of special administrative region prostitutes from China. of China. Macau aspires to be a tourist mecca and is domi­ nated by gambling casinos, The Philippines prostitution, and drugs. Ac­ Because of political instability cording to Sio-chak Wong, and corruption, the country’s director of the Judiciary Police economy is in disarray, which of Macau, the two major results in large numbers of organized crime problems in Filipino people having to go Macau are gambling and ille­ overseas to work. Many of gal immigration/prostitution. them are women, and a Gambling is dominated by significant percentage of triad groups transplanted these women leave with an from Hong Kong, while illegal “entertainer visa” and end immigration/prostitution is up being sexually exploited controlled by crime groups abroad.9 Although the Philip­ formed by mainland Chinese. pine government has recently Recently, these Chinese passed an anti-trafficking law, crime groups began to be few human traffickers have involved in fraud, money laun­ ever been prosecuted and dering, and the smuggling of punished (see “Trafficking in stolen goods from Macau to Persons Report”). But Filipino China. officials are less concerned with the problem of Filipino Because the Macau adminis­ persons engaged in prostitu­ tration relies heavily on taxes tion abroad than with high- from gambling—and prostitu­ profile crimes such as drug tion is considered to be an trafficking, kidnapping for ran­ important adjunct to the som, hijacking, bank robbery, gambling industry—Macau prostitution, illegal gambling, authorities are reluctant to and firearms smuggling. crack down on crime groups involved in these activities. The trafficking of ampheta­ As a result, organized crime mine (called shabu in the groups maintain a strong Philippines) from China to the presence in the gambling Philippines has been a major business in Macau. At the concern of Filipino authorities

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TRAFFICKING IN PERSONS REPORT

The International Labour Organization (ILO)— ■ There is a failure to provide evidence of the United Nations agency charged with increasing efforts to combat severe forms of addressing labor standards, employment, human trafficking from the previous year— and social protection issues—estimates that including increased investigations, prosecu­ 12.3 million people throughout the world are tions, and convictions of trafficking crimes; enslaved in forced labor, bonded labor, sexual increased assistance to victims; and de­ servitude, and involuntary servitude at any creasing evidence of complicity by govern­ given time. Millions of these victims are traf­ ment officials. ficked within their own national borders. ■ The determination that a country is making According to the State Department’s 2005 significant efforts to bring itself into compli­ Trafficking in Persons (TIP) Report, approxi­ ance with minimum standards was based on mately 600,000 to 800,000 men, women, and commitments by the country to take addition­ children are trafficked across international al future steps over the next year. borders each year; of these, about 80 percent are female, and up to half are minors. The Since trafficking likely extends to every country majority of transnational victims are trafficked in the world, the omission of a country from the into commercial sexual exploitation. TIP Report may only indicate a lack of ade­ quate information. Tier Ranking System The TVPA defines severe forms of trafficking as The TIP Report evaluates the performance of “(1) sex trafficking in which a commercial sex 150 countries in terms of their compliance with act is induced by force, fraud, or coercion, or the minimum standards of the Trafficking Vic­ in which the person induced to perform such tims Protection Act (TVPA) of 2000 (reautho­ an act has not attained 18 years of age; or (2) rized in 2003 and 2005). Tier 1 countries are the recruitment, harboring, transportation, deemed to be in full compliance. Tier 2 coun­ provision, or obtaining of a person for labor tries are not in compliance but are making sig­ or services, through the use of force, fraud, nificant efforts to become so. Tier 3 countries or coercion for the purpose of subjection to are not compliant and are not making involuntary servitude, peonage, debt bondage, significant efforts toward that end. A Tier 3 or slavery.” assessment could trigger the withholding of certain types of U.S. aid. Status of the Eight Sites in The 2003 reauthorization of the TVPA created This Report a Tier 2 Watch List of countries that warrant Of the eight sites that researchers visited, only special scrutiny. The list consists of countries Hong Kong was considered fully compliant whose rating changed from the previous year’s with the minimum requirements of the Traf­ TIP Report or countries listed as Tier 2 in the ficking Victims Protection Act of 2000. Japan, current report where— Taiwan, and Thailand were assigned Tier 2 rankings, and Macau (due to insufficient ■ The absolute number of victims of severe information) was not listed at all. forms of trafficking is very significant or significantly increasing. (continued on page 12)

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TRAFFICKING IN PERSONS REPORT (CONTINUED) Two countries—China and the Philippines— prosecuted under the anti-trafficking law and were put on the Tier 2 Watch List. In the case other statutes . . . . [But] corruption and a weak of China, this designation is due to its failure to judiciary remain serious impediments to the provide evidence of increasing efforts to com­ effective prosecution of traffickers.” bat trafficking (specifically, its inadequate pro­ Cambodia, a source, destination, and transit tection for trafficking victims—especially country for men, women, and children traf­ foreign women and Chinese women deported ficked for the purposes of sexual exploitation from Taiwan). The Philippines was placed on and forced labor, was assessed as Tier 3 for its the watch list because, despite widespread lack of progress in combating severe forms of allegations of law enforcement complicity in trafficking, particularly its failure to convict trafficking, the Government reported no prose­ traffickers and public officials involved in traf­ cutions of trafficking-related corruption. The ficking. In addition, the Government failed to Government made “modestly better efforts” take effective action during the performance during the performance period to implement period to ensure that those responsible for a its 2003 anti-trafficking law, i.e., it dedicated raid on an NGO shelter for trafficking victims four state prosecutors to focus on trafficking- (which included removal of several victims) related cases and provided training to law were held accountable and brought to justice. enforcement officials. The 2005 TIP Report indi­ In short, Cambodia’s anti-trafficking efforts cates that “28 cases are currently under inves­ remained hampered by systemic corruption tigation” and that “at least 15 cases are being and an ineffectual judicial system.

TIP Report Assessment of Eight Countries Tier 2 Inadequate Country Tier 1 Tier 2 Watch List Tier 3 Information

Cambodia X China X Hong Kong X Japan X Macau X Philippines X Taiwan X Thailand X

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for a long time. Recently, mobsters into the legitimate many shabu laboratories have business sector and the polit­ been established in the ical arena.10 Many influential Philippines, in part because gangsters in Taiwan are now of the improved effectiveness chief executive officers of of tighter coastal patrols in major business conglomer­ stopping the drug flow from ates, and they are heavily abroad. Authorities indicated involved in the businesses of that the drug business in the bid-rigging, waste disposal, Philippines is controlled by construction, cable television predominantly Filipino- networks, telecommunica­ Chinese, or Chinese from tions, stock trading, and China, Hong Kong, and Tai­ entertainment. Further, start­ wan who are protected by ing in the mid-1980s, many local politicians. criminals have successfully run for public office in order A U.S. Government official to protect themselves from interviewed in Manila said police crackdowns. that organized crime and terrorism in the Philippines In addition to heijin, Tai­ are separate activities. The wanese authorities are con­ terrorists are said to be iso­ cerned with traditional lated groups and not involved organized crime activities in such transnational crimes such as gambling, prostitu­ as human trafficking and drug tion, loan sharking, debt col­ smuggling. A Filipino official lection, extortion, and gang indicated that some terrorist violence. Kidnapping for groups may be involved in ransom is also a serious kidnapping for ransom, but concern; influential and they do not play a major role wealthy figures are often in such crimes because their targeted and, as a result, a numbers are not strong in large number of Taiwanese Manila, where most of the entrepreneurs have departed wealthy Chinese (who are for a safe haven abroad. potential victims) live. A relatively recent and grow­ ing transnational crime prob­ Taiwan lem is the production and In Taiwan, the number one distribution of pirated CDs and organized crime problem is DVDs. Each of the three major heijin, the penetration of criminal gangs surveyed in

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Taiwan is said to be involved As in mainland China, respon­ in this business. Another dents in Taiwan reported no transnational crime—drug concerns about any possible trafficking—was cited as a connections between organ­ problem but considered less ized crime groups and either worrisome to authorities than terrorist groups or so-called human smuggling. Even armed opposition groups. though Taiwan is a destination country for heroin from the Thailand Golden Triangle and ampheta­ mine from China, Taiwanese The two leading organized authorities are more con­ crime groups in Thailand are cerned with the influx of pros­ the jao phor (godfathers) and titutes (or potential prostitutes) the United Wa State Army (or from China, who are smug­ the Red Wa).12 Jao phor are gled into Taiwan by boats mostly ethnic Chinese based across the Taiwan Strait or in the provinces who have arrive through fraudulent business interests in both marriages with Taiwanese legitimate and criminal activi­ citizens.11 ties. Moreover, they have groups of associates and At the time of this study, one followers; move closely with detention facility was holding powerful bureaucrats, police­ more than 1,000, mostly men, and military figures; sit young, Chinese women in positions in local adminis­ awaiting deportation back to tration; and play a key role mainland China, some for as in parliamentary elections. long as 9 months. Taiwanese According to Thai authorities, law enforcement authorities jao phor groups reside in 39 were frustrated by dealing of Thailand’s 76 provinces. with uncooperative Chinese The United Wa State Army is authorities on this issue. Also also a major concern for the frustrating them were rulings Thai government because of Taiwanese judges who do this organization, located in not consider human traffick­ the Burmese part of the ing to be an organized crime Golden Triangle, is believed problem and thus do not to be responsible for manu­ apply the country’s anti- facturing and trafficking mil­ organized crime laws to the lions of methamphetamine networks engaged in these tablets (called yaba or mad activities. drug in Thailand) into the

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country for local consump- serious organized crime tion. Although heroin pro- problems in Asia. This could duced by the Red Wa and be explained by differing other groups in the Golden focuses of the two groups, or Triangle continues to pass might be attributable in some through Thailand, Thai authori- cases to lack of knowledge ties are less concerned with and understanding of the this drug because the coun- local situation by the Ameri- try’s local heroin market is cans as a result of having to relatively small. depend on outside sources for information. In any event, Thailand is also a source, tran- from the U.S. viewpoint, the sit, and destination country problems of drug production for trafficked women,13 but and trafficking, human smug- Thai officials are not con- gling, trafficking in women cerned by the sizeable pres- and children for the purpose ence of Burmese women of prostitution, arms traffick- engaged in prostitution in ing, and money laundering their country or by the traf- are all very serious problems ficking of Thai women to in Asia. Americans inter- Japan and Europe to be sexu- viewed also thought these ally exploited. Because prosti- activities have either a direct tution is vital to the country’s or indirect impact on U.S. enormous tourist industry interests or, at the very least, and Thai policemen are that they have undermined believed to be heavily bribed the stability and well-being by sex establishment owners, of ally countries in Asia. authorities do not consider the illegal sex industry to be None of the Americans inter- an organized crime problem. viewed believes that terrorist groups and transnational organized crime groups are U.S. Authorities’ linked. (As previously indicat- Viewpoint ed, this is the view held by some of the Asian authorities As already noted, U.S. as well, among those who authorities are much more expressed any opinion on likely than their Asian coun- the issue.) terparts to consider trans- national organized crime activities to be the more

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Researchers’ pose challenges for collabora­ Vantage Point tive research but are not insurmountable. Contrary to the opinions of many in U.S. law enforce­ Based on the interviews, ment, this study found that fieldwork, and literature the relationship between review conducted as part of traditional organized crime this project, the five leading groups (such as the triads organized crime problems in and the yakuza) and trans­ Asia (not necessarily ranked national crime is tenuous. in the order presented here) Asian authorities in China are (1) drug production and and Hong Kong indicated that trafficking, (2) trafficking in human smuggling, for exam­ women and children, (3) ple, is carried out primarily by human smuggling, (4) the loose networks or “mom and links among organized crime/ pop” groups with no ties to politics/official corruption, and organized crime—a claim (5) the penetration of organ­ borne out by data from per­ ized crime into legitimate sonal interviews with such businesses. For research smugglers. This difference in purposes, it is recommended understanding about who is that funding be targeted to engaged in transnational the first three problems (de­ crime may account for some tailed below) because of the of the disparity in priorities inevitable obstacles that U.S. between criminal justice researchers would face in agencies in the East and trying to study criminal West. Another difficulty has infiltration into politics to do with what constitutes and business—areas that, in transnational crime. As dis­ any event, do not affect the cussed earlier, Asian authori­ United States directly. It is ties may be reluctant to treat further recommended that certain transnational activities research efforts be both bi­ as crime because they are lateral (principally with China) beneficial to the local econo­ and multilateral in nature. The my, and the people who are full report identifies a wide involved may not be gang­ variety of potentially will­ sters or professional crimi­ ing research partners and nals. Such perceptual and assesses their strengths communication problems and weaknesses.

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■ Drug production and ■ Trafficking in women and trafficking. Traffickers are children. This human rights taking advantage of China’s problem, which affects open-door policy and using many thousands of victims, the land route from the is getting worse rather than Golden Triangle to distrib­ better. Research is needed ute heroin both to markets to differentiate between inside China and to ports trafficking and smuggling, where it can be shipped and their respective conse­ to other countries. This quences, to put to rest enables them to move hun­ claims made by Asian law dreds of kilograms in one enforcement that women delivery and helps them cross borders voluntarily develop a huge market as to increase their income, they wend their way and to remove the emo­ through a country with tionalism surrounding this more than 1.3 billion peo­ issue—as reflected in ple. In addition, large quan­ terms such as “sex slave” tities of this heroin may and “debt bondage.” reach the United States. ■ Human smuggling. In Massive quantities of meth­ some ways, this is a more amphetamine produced in serious problem than the Golden Triangle are traf­ human trafficking because ficked to Thailand. The explo­ of the numbers involved sion of methamphetamine (millions, not thousands). use in Thailand has caused In addition, smuggling fees a serious internal problem per person have increased and also exacerbated exist­ from about $30,000 in the ing hostility between Thai­ early 1990s to $65,000 land and Burma, thus after the events of Septem­ worsening a volatile inter­ ber 11, 2001. Smuggling national situation. Ampheta­ has a direct impact on the mine production in China United States because has caused a problem of its many illegal aliens end up use there, and trafficking of in America. amphetamine to Taiwan, Japan, and the Philippines has created problems for those countries.

17 ASIAN TRANSNATIONAL ORGANIZED CRIME

Chapter 2 Scope and Patterns of Organized Crime

Many crime groups exist in No doubt, some members of Asia, some of them indige­ such local/regional organiza­ nous and others imported tions may have influence at from abroad or formed by the national level, but their foreigners. As with the task legal and illegal operations of ranking the seriousness of are more likely to be local in organized crime problems in nature. An exception is the Asia, an attempt to generalize yakuza in Japan. A Japanese the scope of each and every official said in an interview organized crime group is that yakuza members are difficult because this may very much involved in the depend on the country, the trafficking of persons and the group, and the product or operation of sex establish­ service involved. ments in Japan, and some members of these various crime groups may also travel Scope to other countries or may be involved in bilateral or multi­ In general, most traditional national criminal activities. organized crime groups (i.e., However, they, and the mem­ mafia-like criminal organiza­ bers of other Asia-based tions in China, organized organized crime groups, gangs in Taiwan, triad soci­ are not key players in trans­ eties in Hong Kong and national criminal activities.15 Macau, and jao phor in Thai­ land) are local in scope. Three A Chinese official in Beijing Chinese organized crime (referring to mafia-like crime syndicates identified in a groups known in China recent U.N. study—the Liu as “black societies”) ex­ Yong Syndicate, the Zhang plained the organized crime/ Wei Syndicate, and the Liang transnational crime connec­ Xiao Min Syndicate—were all tion this way: “According to said to be local or at most our law, there are four types regional in their scope, and to of organized crime groups: be without cooperative rela­ (1) criminal groups; (2) crimi­ tionships with other organ­ nal organizations; (3) black ized crime groups.14

19 ISSUES IN INTERNATIONAL CRIME / JAN. 07

society-like criminal organiza­ There is not much relation­ tions; and (4) black societies. ship existing between the At this point, we don’t yet influential groups and the have black societies, but we transnational organized crime expect them to be formed groups.” in the very near future. The [other] above-mentioned three Even those nontraditional groups are not involved in organized crime groups transnational crime. That is that are heavily involved in because these groups are all transnational crimes such as territorial—their spheres of drug trafficking and human influence and their activities smuggling/trafficking are local are restricted to their own or at most national in scope. turfs. They are not mature Their transnational criminal enough to establish a trans­ operations are almost always national crime network.” compartmentalized. Most Similarly, assessments of large-scale transnational specific criminal organizations criminal activities, such as in Taiwan do not indicate any the trafficking of hundreds involvement on the part of of kilograms of heroin or the these groups in transnational smuggling of hundreds of crime. A drug market analysis illegal immigrants, involve in Taiwan, however, showed numerous independent that some organized crime groups operating in source, groups may be active in the transit, and destination coun­ transnational trafficking of tries. There are also, how­ new, synthetic drugs. ever, “mom and pop,” small-scale transnational In the Philippines, interview criminal activities involving, participants said specifically for example, a couple trying that the transnational “head­ to smuggle a small amount hunters” who recruit people of drugs or two or three for prostitution there are not migrants from one country members of organized crime to another. What is unique groups. And, a Thai official about transnational crime is stated: “In Thailand, there are that it can be carried out in influential groups [organized some cases by an individual crime groups] and there (e.g., computer crime) or by are transnational organized a group or network with groups formed by foreigners. hundreds of members or associates.16

20 ASIAN TRANSNATIONAL ORGANIZED CRIME

Specialization may cross over in providing services for smuggling and Most of the study subjects trafficking. Even though dif­ suggested that there is little ferent groups operate each specialization among tradition­ transnational criminal activity al organized crime groups. in the source and destination Most of these groups are countries, and these various involved in a variety of both groups do not get involved legitimate and illegitimate in more than one type of businesses. While these transnational crime, the same crime groups continue to be group responsible for trans­ involved in traditional organ­ portation (e.g., a boat captain ized crime activities such as and crew) may simultaneous­ gambling, prostitution, drug ly be involved in smuggling distribution, loan sharking, both drugs and human debt collection, and violence, beings. they are also expanding their influence into legitimate busi­ nesses such as the stock Structure or market, construction, waste Opportunity? disposal, wholesale markets, and the food industry. Traditional organized crime groups are longstanding, However, according to the preexisting groups, while study subjects, transnational transnational crime networks crime networks are highly are developed in response specialized. It is relatively to current criminal opportuni­ unlikely for a human smug­ ties. Some of the traditional gling organization to be in­ organized crime groups men­ volved in drug trafficking, or tioned above have been in for a drug-manufacturing existence in Asia for cen­ group to participate in the turies and they are most like­ trafficking of women for ly to continue to exist. These prostitution. groups have names, struc­ ture, territory, and a strong The only overlapping or non- attachment to their environ­ specialization that may occur ment, and as a result are is among offenders who are handicapped in taking advan­ involved in transportation. tage of criminal opportunities In this instance, individual that are transnational in members, as opposed to nature.17 The second group, crime groups as a whole, the networks of transnational

21 ISSUES IN INTERNATIONAL CRIME / JAN. 07

crime, are more likely to The Flow emerge around specific op­ portunities. Very often, a There are several major nuclear or an extended family movement patterns involving will initiate an operation in people who are sexually response to a new opportuni­ exploited, drugs, and laborers ty and people from the same on the transnational scene. village or at least the same ethnic group who are living Prostitutes. In Asia, the most in source, transit, and desti­ notable flows of trafficked nation countries will be re­ women are (1) from the cruited to participate as Philippines to Japan, (2) from members of a network that Thailand to Japan, (3) from may dissolve after the crimi­ Burma (Myanmar) to Thai­ nal operation is successfully land, (4) from Vietnam to carried out. Cambodia, and (5) from Nepal to India. There are also This distinction has implica­ somewhat less notable tions for both research and movements such as (1) from policy. For research, there is Cambodia to Thailand, (2) a need to expand the current from Laos to Thailand, and thinking about the causes of (3) from the Philippines to organized crime and about Korea. the risks and vulnerabilities that may lead to the creation The most significant develop­ of criminal markets. There is ment in human smuggling also a need to better under­ and trafficking, however, is stand how those criminal the massive movement of markets operate in order to women from China to other provide useful information Asian countries and, indeed, to shape strategies and tac­ to the rest of the world. tics to disrupt them. For poli­ Authorities in all the countries cy, law enforcement officials visited indicated that many need to do more thinking Chinese women are showing “out of the box” of tradition­ up in their sex industries; al, mafia-like structures in sex establishments in Hong order to effectively combat Kong, Taiwan, Macau, and the crime networks that are Japan have almost been dominating transnational taken over by Chinese organized crime. women. The presence of large numbers of Chinese

22 ASIAN TRANSNATIONAL ORGANIZED CRIME

women in the sex industries or through Laos and Cambo­ of Burma, Thailand, Singa­ dia. Amphetamine is mainly pore, Malaysia, Indonesia, produced in China and smug­ Australia, and the United gled into Taiwan, Japan, the States has also been heavily Philippines, and other Asian reported. countries.

Drugs. In Asia, heroin is pro­ Undocumented workers. duced in the Burmese part of A large number of Chinese the Golden Triangle and flows laborers are smuggled by into the international market boat into Taiwan across the via either Thailand or China. Taiwan Strait. Chinese are China’s heroin market is ex­ also arriving in Japan and panding rapidly, and heroin Burma in large numbers. markets exist in most South­ The presence of a substantial east Asian countries and also number of Chinese, both in Australia. Methampheta­ legal and illegal migrants, is mine also is produced in the a matter of concern for the Burmese part of the Golden majority of nations in Asia. Triangle; Thailand is the main Undocumented workers are market for the drug. It is also a matter of concern in smuggled into Thailand either the United States. across the Burma-Thai border

23 ASIAN TRANSNATIONAL ORGANIZED CRIME

Chapter 3 Impact on the United States

The following discussion are developing U.S. business does not deal with the gar­ interests, such as in China den variety of crimes that and in the casino industry in just happen to have been Macau, again there is the committed in the United potential for a criminal impact States by Asians, nor the on U.S. interests. Asian street gangs that operate in certain U.S. cities. Additionally, a word about Instead, the focus is on those methodology is necessary. crimes that appear to be As noted, principal respon­ transnational in nature— dents in the interviews were the United States being on nationals (scholars, law en­ the receiving end—and that forcement officials, and in originate in (or at least in­ some cases victims) of the volve) any of the eight respective countries that countries (or administrative were visited. Thus, their regions) that were the focal perspectives of how what point of the study. they know might impact the United States are pretty Further, impact and harm are much speculative. Even in construed broadly here, to the cases of the U.S. officials include not only direct crimi­ that were interviewed in each nal activities in the United country, their perspectives on States, but also harm and/or the crime and organized potential harm to U.S. inter­ crime problems are an “in ests both at home and country” view, albeit keeping abroad. For example, given U.S. interests very much in the history and the volatility mind. of relations between main­ land China and Taiwan, and In addition to the interviews the strong U.S. interest and and field visits that were con­ investment in that area, crimi­ ducted, local scholars in nal developments involving Hong Kong and Taiwan pre­ those entities are of critical pared market assessments interest to the United States. of the criminal markets of In other cases, where there human trafficking and drug

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trafficking and analyses of the ■ Blood Brothers: The Crimi­ major organized crime groups nal Underworld of Asia by in each of their respective Bertil Lintner (2002).21 areas. It should be recog­ nized that these reflect the perspectives of the native Threat, Impact, scholars. and Harm to the None of this should be con­ United States strued to mean that the inter­ When asked about transna­ views, assessments, and tional crime, only a few of the analyses are not valuable— Asian respondents referred quite to the contrary. The to specific crimes impacting original sources provided a the United States. For exam­ foundation, a stepping-off ple, according to members point, to compare and relate of the faculty of the Fuzhou what was learned from them Police College in China, the with a plethora of existing principal forms of transna­ secondary materials. The tional crime involving China latter include in particular: and the United States are kidnapping and human traf­ ■ The U.S. State Depart­ ficking. Officials of the ment’s Trafficking in Per­ Bureau of Investigation of sons (TIP) Report for 2004. the Ministry of Justice of Taiwan stated that fake IDs ■ “Sex Trafficking of Women in the United States” are used to gain Taiwanese (a 2001 report to NIJ by passports for travel to the Janice Raymond and United States by Chinese who are being smuggled Donna Hughes).18 here. But these are not seen ■ “The Commercial Sexual as high priority (or even medi­ Exploitation of Children um priority for the most part) in the U.S., Canada, and problems in Asia. On the Mexico” (a 2002 report to other hand, human trafficking NIJ by Richard Estes and and smuggling were indeed Neil Weiner).19 high-priority issues for most of the U.S. authorities inter­ ■ “Survey of Practitioners to viewed. These included U.S. Assess the Local Impact officials both in Washington of Transnational Crime” and abroad. For instance, an (a 2003 report to NIJ by FBI official indicated that Abt Associates).20 such activities as trafficking in

26 ASIAN TRANSNATIONAL ORGANIZED CRIME

women/children who are sex­ Kong. A correspondent in ually exploited, trafficking in Hong Kong indicated that human beings for the pur­ none of the three most promi­ pose of labor, and illegal nent organized crime groups immigration were transna­ in Hong Kong (the San Yee tional criminal activities of On, the Wo Shing Wo, and the Chinese organized crime 14K) are involved in human groups in the United States. smuggling or human traffick­ ing. Other authorities in Hong Human trafficking is one Kong likewise said that there problem for which there is is very limited trafficking in a seemingly vast difference Hong Kong, that the vast in priority and perspective majority of people moving between Asian and U.S. transnationally are smuggled authorities. The Asian authori­ (not trafficked), and that this is ties view what is happening a “mom and pop” industry in the transnational move­ not controlled by organized ment of people as mostly crime. These views reflect smuggling. People wanting to those of authorities in the leave China, for example, pay other locations visited as well. smugglers to transport them For example, representatives to Taiwan or even to the of the National Police Admin­ United States. There is little istration in Taiwan said there is or no coercion or deception no evidence of human smug­ in these cases. This is part of glers engaging in other trans­ the reason for the Asian national organized crime authorities’ lack of concern. activities, nor are they involved with well-established organ­ The Asian experts interviewed ized crime groups. In fact, as also do not see this smug­ previously noted, because the gling as an activity of tradition­ judges in Taiwan do not con­ al organized crime groups. A sider human smuggling to be top criminal investigator with an activity of organized crime, the Ministry of Public Security they do not enforce the Orga­ in Beijing told researchers that nized Crime Prevention Law human trafficking was indeed against smugglers. “organized,” but that it was not a form of organized crime. So what is the impact of He indicated the main desti­ Asian human smuggling/ nation countries for Chinese trafficking on the United women were Japan, Korea, States? Both the United Russia, Taiwan, and Hong Nations and the United

27 ISSUES IN INTERNATIONAL CRIME / JAN. 07

States (in the Department Thailand or elsewhere in of State’s annual TIP Report) Southeast Asia. From the make much of the connec­ brief descriptions of these tion between organized cases, some are clearly crime and human trafficking. alleged to have organized The 2004 TIP Report con- crime involvement, but a cludes that trafficking fuels dozen or so cases over a organized crime. As indicated 10-year period does not seem above, interviews conducted to be a very large number. for this study and examina- Further, Raymond and tion of the data from the TIP Hughes’s interview respon- Reports seem to belie that dents in the 2001 study indi­ claim—at least as far as the cated that the trafficking specific problem of smuggling/ organizations with which they trafficking from Asia to the were familiar were mostly United States is concerned. small, having only one to five people involved. This sup­ Some empirical evidence ports a “mom and pop” sheds light on the issue. The characterization rather than Raymond and Hughes study22 one of organized crime. tracked incidents of traffick- ing to the United States So what does a typical mom- between 1990 and 2000. and-pop case look like? The Of 38 specific cases they “News Item” is illustrative. described, 18 had an Asian connection, particularly from

NEWS ITEM

U.S. Federal authorities arrested in Miami a husband and wife team who allegedly smuggled thousands of Chinese illegal immigrants into the United States over the past 20 years. Alexan­ dre Wei, a Taiwanese national with French citizenship, and his wife Bing Xei, a Chinese citizen, used Miami, Florida, as the U.S. entry point for their clients, who usually ended their round-the­ world journey in New York City. In Manila, U.S. and Philippine authorities arrested the couple's son Jacques, a suspected co-conspirator, along with six other Chinese. This family of people smugglers would first send their clients from China to the Philippines and several other Asian countries. They would then be moved to France, Suriname, or the French territories in the Caribbean, Jamaica, or the Bahamas. From the West Indies, the illegal immigrants were moved to Florida. The illegal immigrants were charged as much as $50,000 each by the smuggling ring. —Tanya Weinbert, Sun-Sentinel (Fort Lauderdale, Florida), November 11, 2003

28 ASIAN TRANSNATIONAL ORGANIZED CRIME

The Estes and Weiner of human trafficking. Extrapo­ study23 surveyed a variety lating from this to how much of sources, including 1,000 of their activity may have informants in 17 U.S. cities, involved Asian organized in an examination of the com­ crime, this would again seem mercial sexual exploitation of to produce relatively small children (including trafficking). figures. The study concluded that among the “less common” A review of recent Federal forms of this exploitation was indictments involving all participation by international forms of Asian organized organized crime networks. crime supports the point fur­ Only 10 percent of the chil­ ther. A request to the Orga­ dren they encountered had nized Crime and Racketeering been trafficked internationally, Section of the U.S. Depart­ and that included from all ment of Justice produced sources (Africa, Central and 11 Racketeer Influenced and Latin America, and Central Corrupt Organizations (RICO) and Eastern Europe) not just indictments of Asian crimi­ from Asia. Thus again, these nals for a variety of crimes findings do not support a in the United States. The belief that human trafficking indictments covered the to the United States by Asian period 1993 to 2002. (These organized crime is a major were not all the cases involv­ problem. ing Asian organized crime, nor a representative sample In its survey of 184 State of all the cases. Instead, they and local police departments are simply an opportunity from across the United sample.) States, Abt Associates24 asked how many had con­ Seven of the eleven indict­ ducted investigations and ments charged crimes that made arrests for human traf­ could be construed to be ficking (which was among a related to human trafficking, list of transnational crimes e.g., interstate travel for they asked about). The illegal sexual activities, prosti­ sources of the trafficking tution, kidnapping and host­ were not delineated, but age taking, asylum fraud, and fewer than a third had con­ alien smuggling. Perhaps the ducted investigations, and best known of these cases is fewer than a quarter had the “Sister Ping” case. Chen made arrests in any instances Chui Ping, who is referred to

29 ISSUES IN INTERNATIONAL CRIME / JAN. 07

as “the mother of all snake- observation that it is the heads,” allegedly earned opportunistic, rather than the $30 million over 15 years organized, crime groups who transporting thousands of are the key players in Asian undocumented Chinese peo­ transnational crime. ple into the United States. To do so, she retained subcon­ That the transportation of tractors in New York and human beings across borders other United States cities. is a smuggling rather than a These included the notorious trafficking issue, that it is Fuk Ching gang in New York, conducted by entrepreneurial who performed the domestic criminal networks rather than chore of transporting smug­ by traditional organized gled Chinese from Boston to crime, and that the estimates New York City. Apart from of victims and cases may be this connection with a known overstated does not mean criminal group, Sister Ping that there is no reason for and her operation very much concern. There are current exemplify an entrepreneurial estimates that some 11 mil­ criminal network as opposed lion illegal immigrants are to a transnational organized living in the United States. crime group. No one knows how many of these may be Asian. What Keeping in mind the proviso can be assumed, however, about representativeness is that any substantial num­ above, the first general ob­ ber affects United States servation that can be made is resources. Demands on edu­ that seven such cases over a cation, health care, and social 10-year period again does not services and for jobs have a appear to be an especially financial impact. This point is large number. Secondly, an reflected in a study visit to a examination of the details in village near Fuzhou in China the indictments indicates that that has been the source of most of these cases involved much smuggling of people crimes that were indeed to the United States. There, organized by opportunistic 35 to 40 Chinese children of networks, e.g., Sister Ping, preschool age were referred and not by traditional and to by an official guide as well-defined Asian organized “citizens,” as in U.S. citizens. crime groups having the char­ They were children born in acteristics outlined previous­ the United States, now being ly. This reinforces the earlier raised in China until they

30 ASIAN TRANSNATIONAL ORGANIZED CRIME

reach school age, at which and supply sides of the point they will return to the human trafficking/smuggling United States for schooling. equation. Economic develop­ The costs of educating these ment and opportunity must children—many of whom be coupled with action to have parents who were ille­ combat exploitative sex gal immigrants—will obvious­ tourism, corruption, and offi­ ly have a financial impact on cial indifference. the United States. U.S. business interests in Asia include casinos in Macau and Impact on Broader trade in China and Taiwan. U.S. Interests To the extent that the local and regional organized crime Irrespective of how much in these countries penetrates, crime emanating from Asia interferes with, and jeopardiz­ may actually show up on es business, it is harmful to United States shores, broad­ U.S. interests. A specific er United States interests are example of this sort of harm at stake here. These interests is the crime of intellectual relate to humanitarian con­ property theft, including soft­ cerns, to business interests, ware piracy. All six of the to political relationships, to criminal organizations sur­ investments in training and veyed in Taiwan and Hong assistance, and to law Kong, for example, are re­ enforcement cooperation. ported to be involved in pirated CDs and DVDs. In The United States does, and the case of the Wo Shing Wo, very much should, have an it is said to be the dominant interest in what happens to activity in which the group is trafficking victims and to per­ involved. A U.S. customs offi­ sons who are being smug­ cial interviewed in Beijing gled across national borders. stressed the problem of intel­ This interest exists apart from lectual property theft as a the question of how many major concern. such persons actually end up in the United States. It is As elsewhere, the United a humanitarian and human States has made a consider­ rights issue. As elsewhere in able investment in law en­ the world, the problem in Asia forcement training and requires effort and invest­ assistance in Asia. The ment on both the demand United States, for example,

31 ISSUES IN INTERNATIONAL CRIME / JAN. 07

operates the International problems covered by this Law Enforcement Training study are, for the most part, Academy in Bangkok that regional problems, they has trained hundreds of law require regional solutions. enforcement operatives from It is in the U.S. interest to throughout the region. It is play the role of honest broker obviously in the best inter­ in helping the region deal ests of the United States to with organized crime. see this investment pay off, which would lead to more Finally, a number of law en­ effective combating of the forcement officials, particu­ crime problems described larly in Taiwan and China, herein. With respect specifi­ expressed dissatisfaction with cally to drug trafficking, the Interpol and with cooperation DEA emphasized in the from U.S. law enforcement. course of this study that Interpol is regarded as basical­ China is a critically important ly ineffective. With respect to player on the Asian drug U.S. cooperation, the officials scene; it was described as complained of essentially the key to heroin trafficking. being ignored when they What is needed, according made requests for information to the DEA, is more joint and assistance. The Mutual investigative training and Legal Assistance Treaty sys­ exchanges of intelligence tem was criticized as involving information between the too much “red tape.” What­ United States and China. ever the merits of these complaints, they obviously The United States must bal­ have implications for U.S. ance politically its interests in efforts to secure information China, Hong Kong, and and assistance for its own Taiwan. Because the crime investigations.

32 ASIAN TRANSNATIONAL ORGANIZED CRIME

Conclusion

The National Institute of preliminary assessment of Justice has recognized that Asian organized crime, includ­ crime and criminals more and ing the pinpointing of poten­ more have a global face. This tial research issues of mutual recognition means expanding interest and the identification NIJ’s international research of potential research partners agenda to both better appre­ in Asia, lays a solid founda­ ciate and to better under­ tion for that expanded re­ stand potential threats from search agenda. transnational crime. This

33 ASIAN TRANSNATIONAL ORGANIZED CRIME

Notes

1. Gilboa, Amit, Off the Rails in Berkeley: University of California Phnom Penh: Into the Dark Heart Press, 2003. of Guns, Girls, and Ganja, Bangkok: Asia Books, 2001. 8. Kaplan and Dubro, Yakuza: Japan’s Criminal Underworld (see note 7). 2. He Bingsong, Organized Crime in China, Beijing: China Legal Press, 9. Santos, Aida, Patterns, Profiles 2002 (Chinese language publication). and Health Consequences of Sexual Exploitation: The Philippine Report, 3. Smith, Paul, ed., Human Smug­ Manila: Coalition Against Trafficking gling, Washington, DC: Center for in Women, 2002. Strategic and International Studies, 1997; Kwong, Peter, Forbidden 10. Chin, Ko-lin, Heijin: Organized Workers: Illegal Chinese Immigrants Crime, Business, and Politics in and American Labor, New York: The Taiwan, Armonk, NY: M.E. Sharpe, New Press, 1997; Emerton, Robyn, 2003. “Trafficking of Women Into Hong Kong for the Purpose of Prostitution: 11. Chang Tseng-liang, “A Study on Preliminary Research Findings,” Oc­ the Problem of ‘Fake Marriage’ casional Paper No. 3, Hong Kong: Across Taiwan Strait, Focusing on University of Hong Kong, 2001; Fake Marriage for the Purpose of Brazil, David, No Money, No Honey!: Prostitution,” Central Police A Candid Look at Sex-for-Sale in University Journal of Police Science Singapore, Singapore: Angsana 33 (1) (2002): 203–236 (Chinese Books, 2004. language publication).

4. Chin, Ko-lin, Smuggled Chinese: 12. Phongpaichit, Pasuk, and Clandestine Immigration to the Sungsidh Piriyarangsan, Corruption United States, Philadelphia: Temple and Democracy in Thailand, Chiang University Press, 1999. Mai: Silkworm Books, 1994.

5. Chu, Yiu-kong, Triads as Business, 13. Asia Watch, A Modern Form of London: Routledge, 2000. Slavery: Trafficking of Burmese Women and Girls Into Brothels in 6. Lo, T. Wing, Corruption and Politics Thailand, New York: Human Rights in Hong Kong and China, Bucking­ Watch, 1993; Brown, Louise, Sex ham: Open University Press, 1993. Slaves: The Trafficking of Women in Asia, London: Virago Press, 2000; 7. Hill, Peter, The Japanese Mafia: Jeffrey, Leslie Ann, Sex and Borders: Yakuza, Law, and the State, New Gender, National Identity, and York: Oxford University Press, 2003; Prostitution Policy in Thailand, Chiang Kaplan, David, and Alec Dubro, Mai: Silkworm Press, 2002. Yakuza: Japan’s Criminal Underworld,

35 ISSUES IN INTERNATIONAL CRIME / JAN. 07

14. United Nations Centre for Inter- 19. Estes, Richard, and Neil Weiner, national Crime Prevention, “Over- “The Commercial Sexual Exploitation view of the 40 Criminal Groups of Children in the U.S., Canada, and Surveyed,” Trends in Organized Mexico,” final report for the National Crime 6 (2) (2000): 131–135. Institute of Justice, grant number 1999–IJ–CX–0030, 2002, NCJ 15. Chu, Yiu-kong, Triads as Business 195561. (see note 5); Hill, Peter, The Japa­ nese Mafia: Yakuza, Law, and the 20. Abt Associates, “Survey of State (see note 7); Zhang, Sheldon, Practitioners to Assess the Local and Ko-lin Chin, “The Declining Impact of Transnational Crime,” final Significance of Triad Societies in report for the National Institute of Transnational Illegal Activities,” Justice, contract number 99–C–008 British Journal of Criminology 43 T005, Washington, DC, December (3) (2003): 463–482. 2003.

16. Zhang, Sheldon, and Ko-lin Chin, 21. Lintner, Bertil, Blood Brothers: “Enter the Dragon: Inside Chinese The Criminal Underworld of Asia, Human Smuggling Operations,” New York: Palgrave McMillan, 2002. Criminology 40 (4) (November 2002): 737–768. 22. Raymond and Hughes, “Sex Trafficking of Women in the United 17. Zhang and Chin, “The Declining States” (see note 18). Significance of Triad Societies in Transnational Illegal Activities,” 23. Estes and Weiner, “The Com­ 463–482 (see note 15). mercial Sexual Exploitation of Children in the U.S., Canada and 18. Raymond, Janice, and Donna Mexico” (see note 19). Hughes, “Sex Trafficking of Women in the United States,” final report for 24. Abt Associates, “Survey of the National Institute of Justice, Practitioners to Assess the Local grant number 98–WT–VX–0032, Impact of Transnational Crime” 2002, NCJ 187774. (see note 20).

36 The National Institute of Justice is the research, development, and evaluation agency of the U.S. Department of Justice. NIJ‘s mission is to advance scientific research, development, and evaluation to enhance the administration of justice and public safety.

NIJ is a component of the Office of Justice Programs, which also includes the Bureau of Justice Assistance, the Bureau of Justice Statistics, the Office of Juvenile Justice and Delinquency Prevention, and the Office for Victims of Crime.

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