September 2014 Standing Group on Organised Crime Volume 11, Issue 3 Newsletter Editorial note In ItNh TisH IiSs sISuSeUE

Coming back from the success of the Green Criminology and Organised Environmental Crime by Prof. Nigel South ECPR Conference in Glasgow Page 2

Cross-strait Cooperation in Fi- by FALKO A. ERNST and ANNA SERGI (Editors) ghting Against Chinese Organised Centre for Criminology, University of Essex Crime by Leo Lin Page 4 he ECPR Standing Group on Organ- n continuation of our efforts towards re- Tised Crime had the pleasure of par- Isearch and information on topics re- Top 5 terrorist groups 2013 (model- ticipating, once more, in the ECPR’s lated to organised crime, this newsletter led on Forbes Top 5 list of Business groups annual conference. The Section pro- proposes a number of contributions: Pro- by Prof. William (Bill) Tupman posed by the Standing Group on “Under- fessor Nigel South on organised crime Page 6 standing and Tackling the Roots of and green criminology, Leo Lin on cross- Trends in Post-Yugoslav Organised Insecurity: terrorism, straits cooperation be- Crime transnational organized tween China and Taiwan, by Matteo Albertini crime and corruption” Thanks to all Prof. Bill Tupman and his Page 8 was among the best at- top 5 list of terrorist organi- the speakers in Special Focus Summer School tended and was charac- Glasgow and to sations and Matteo Alber- Organised Crime as an actor in terized by a very high tini on trends in legal economy by standard of presentations the audience! post-yugoslav organised by Dario Giancane Page 10 and discussion. The Sec- crime. tion, which was our Special Focus Summer School largest so far with 65 participants, was fter the articles, students from the Corruption as Preface to Organi- composed of 9 panels, covering a large successful Intensive Summer School sed Crime A by Giuseppe Gabriele Finocchiaro, range of security topics interconnected on Organised Crime in Catania last sum- Petra Ježová, Enrico Leotta, Petr Netuka, with . We are very grate- mer have shared some of their contribu- Malwina Walenda ful for everyone’s participation and en- tions. Lastly, as usual, announcements Page 12 gagement! and calls for papers will follow in our mis- Miscellaneous cellaneous section. Happy reading! Page 14

ECPR General Conference Members of the ECPR SGOC in Glasgosw ECPR Standing Group on Organised Crime 2 September 2014, Volume 11, Issue 3

Green Criminology and Organised Environmental Crimes

by Nigel South

Nigel South is Professor of Socio- wanted’ – the most dangerous and the logy and Criminology at the University most legally prohibited – waste from pro- of Essex and has years of experience ducer and consumer nations to ‘victim’ in the field of critical criminology and sites, for example in the developing world. environmental issues. Mandel (1999: 66) describes this as the business of ‘deadly transfers’ of ‘unsan- What’s the connection between orga- ctioned hazardous materials’ - unwanted nised crime and the natural environment? and frequently toxic waste moved from re- Well, at one time, examining serious gulated spaces to sites where weak or no media reporting or the research literature opposition will be encountered and from would have suggested ‘not much’. Howe- developed to developing nations as part of ver, in the past decade, that has been a global industry. For Mandel, this occurs changing. In January this year, the New in a ‘disorderly world’ which poses a num- York Times ran a story headlined ‘A Mafia ber of problems for the development and legacy taints the Earth in Southern Italy’ application of law relevant to the environ- (Yardley, 2014) covering the public health ment. Transactions of this sort might re- and environmental implications of the bu- quire organised smuggling and forged rial of tons of toxic waste by organised Professor Nigel South documentation and involve operations that crime enterprises that were supposedly di- overlap with global routes and markets in- sposing of the waste safely. In the May cense are broken then corruption or fa- volving trafficking of other illegal goods 2014 issue of this newsletter, McNulty de- vours can help to support ‘business as and smuggling of human and animal car- scribed the impact of transnational organi- usual’. Environmental commodities invol- goes. sed crime on Pacific Ocean fisheries, and ved would include, for example, illegally in June 2014, UNICRI hosted a confe- harvested fish, timber or rare wildlife spe- Challenges rence on ‘The impact of organized crime cies or body parts (e.g. ivory, animal or- on the legal economy’ – with ‘environmen- gans for certain traditional medicines) as This is a mixed arena of sometimes di- tal crimes as sources of funding for orga- well as waste. In a world of over-produc- stinct, sometimes overlapping, small-scale nized crime’ featuring among the main tion and hyper-consumption the resulting and larger-volume activities and actors. topics. Of course, as Walters (2013: 282) waste poses the problem of how to di- The trading and trafficking involved may notes, this kind of organised criminal acti- spose of rubbish and commodities that are well be illegal yet hard to prevent and pe- vity is not new. Writers such as Block and now unwanted. Ruggiero and South nalise, or it may be ambiguous in terms of Scarpetti (1985) documented U.S. mafia (2010) have described the illegal services jurisdiction or responsibility. Where regu- take-overs and monopolisation of waste provided in response as ‘dirty collar crime’. lation and prohibition do make an impact management services in New York and In the U.S., studies have shown how the in terms of prevention or detection and New Jersey in the 1970s and 1980s, involvement of organised crime reaches prosecution, they may also (as with other based on tough elimination of industry into all aspects of the business, involving criminal markets) help to create the scar- competition, bribery of officials and under- control of companies offering services for city and rarity of certain commodities that cutting of prices by disposing of toxic the disposal of domestic and industrial then drive the demand for these goods waste using illegal means. But although waste. Avoidance of licensing require- (Hayman and Brack 2002: 7). Block (2002:61) has observed that ‘a new ments, the payment of bribes to dump site According to Elliott (2009: 65), whether generation of environmentally minded re- owners or the outright ownership of such ‘opportunistic and informal’ or ‘increasingly formers’ was taking note of this as far back land-sites are ways of expediting disposal systematic, well-financed and highly orga- as the 1970s, it has taken some decades cheaply though hazardously. nized’, such transnational environmental for environmental issues to climb up the Walters (2013: 281) notes that Szasz crime ‘is one of the fastest growing areas policy and policing agendas. (1986) argued such criminal enterprise of criminal activity, globally worth billions flourished as a result of ‘lax implementa- of dollars’. However it is difficult to find ap- Organised environmental crime tion and enforcement’ of rules and law and propriate and effective legal or civil reme- that today, this is ‘an insight pertinent to dies in the arena of environmental harms There is now growing acknowledge- southern Italy’s procurement of waste con- and crimes and problems of inadequacy ment of the damage caused by both legal tracts and lack of regulatory oversight’. In- of arrangements and resources for enfor- and illegal domestic and transnational tra- deed this is a business that is familiar cement of rules and laws are common- des in environmental goods. Even where internationally- both because it will operate place. Organised forms of crime operating transactions are legal, serious ecological in most or all advanced consumer econo- as illegal enterprises, frequently with legal damage can be caused with official appro- mies but also because it operates across fronts, tend to avoid effective sanction and val, and if the terms or spirit of legal li- borders, often transporting the most ‘un- disruption by means of intimidation, ECPR Standing Group on Organised Crime September 2014, Volume 11, Issue 3 3

Markets. : Royal Institute of Inter- national Affairs. Mandel, R. (1999) Deadly Transfers and the Global Playground: Transnational Security Threats in a Disorderly World, Westport, Conn.: Praeger. McNulty, J (2014) ‘Pacific Ocean fishe- ries and the opportunities for transnational organised crime’, ECPR Standing Group on Organised Crime, May, 11, 2. Ruggiero, V and South, N (2010) ‘Green criminology and dirty-collar crime’ Critical Criminology, 18, 4. South, N (2014) ‘Green Criminology: reflections, connections, horizons’, Inter- national Journal for Crime, Justice and So- cial Democracy, 3, 2. South, N and Brisman, A (eds) (2013) The Routledge International Handbook of Green Criminology, London: Routledge Szasz, A (1986) ‘Corporations, organi- sed crime and the disposal of hazardous waste’, Criminology, 24, 1. Walters, R (2013) ‘Eco mafia and en- vironmental crime’ in K. Carrington, M. Ball, E. O’Brien and J. Tauri (eds) Crime, Justice and Social Democracy: Internatio- nal Perspectives, Basingstoke: Palgrave. Yardley, J (2014) ‘A mafia legacy taints the earth in southern Italy’, New York Source: http://www.theepochtimes.com/n3/346967-environmental-crimes-cost-the-world-billions/ Times, January 29th. corruption and value to legitimate bu- margins’. siness as a way of ‘externalising crimino- THE ECPR SGOC genesis’ (Szasz, 1986: 23). And, of An environmentally-aware criminology course, their greatest strength lies in mee- can contribute to an interdisciplinary ap- Steering Committee 2012-2017 ting demand where supply is restricted proach to both public policy and environ- Who is Who due to externally imposed prohibitions or mental activism in ways that may help us protections or due to their own control over formulate new conceptions of offending Convenor: supply. and regulatory responses. There are Felia Allum, many fields of crime in which we need ‘joi- University of Bath Conclusion: A green perspective ned up thinking’ across national and tran- Co-convenor: snational government and Francesca Longo, Recent studies, covered by various non-government agencies but in terms of University of Catania terms such as green, environmental, con- global threats and intergenerational future Social Media Officer: Bill Tupman, University of Exeter, servation or eco-criminology (South, 2014; significance there can be few more impor- Anglia Ruskin University South and Brisman, 2013) have fused ele- tant than the challenge of crimes that pol- Funding Officer: ments of critical criminology and environ- lute and destroy our local environments Daniela Irrera mental awareness and produced a now and our shared planet. University of Catania substantial body of work examining crimi- Events & Publication Officer: nological, legal, cultural and public health References Helena Carrapico, Aston University consequences of environmental crimes Strategic Communication: and harms. This perspective has rele- Block, A (2002) ‘Environmental crime Panos Kostakos, University of Bath Newsletter Editors: vance here because, as Walters (2013: and pollution: wasteful reflections’, Social Anna Sergi & Falko Ernst 281) argues, the ‘environment’ is big busi- Justice, 29, 1-2. University of Essex ness for organised crime, noting estimates Block, A and Scarpetti, F (1985) Poi- European Review of Organised Crime from the United Nations Environment Pro- soning for Profit: The Mafia and toxic Felia Allum, University of Bath gramme that organised crime syndicates waste in America, Anita Lavorgna, earn between US$20-30 billion from envi- New York: Wm. Morrow. University of Wolverhampton ronmental crimes and that the NGO, the Elliott, L (2009) ‘Combating transnatio- Yuliya Zabyelina, Environmental Investigation Agency, con- nal environmental crime’ in K. Kanga- John Jay College of Criminal Justice, CUNY curs – suggesting that ‘Environmental spunta and I. Haen Marshall (eds) Member crime is currently one of the most profita- Eco-Crime and Justice, Turin: UNICRI Giap Parini ble forms of criminal activity’ and that it is Hayman, G. and Brack, D. (2002) In- University of Calabria therefore ‘no surprise that organised cri- ternational Environmental Crime: The Na- minal groups are attracted to its high profit ture and Control of Environmental Black ECPR Standing Group on Organised Crime 4 September 2014, Volume 11, Issue 3

Cross-strait Cooperation in Fighting against Chinese Organised Crime

by Leo Lin

Leo Lin is a senior law enforcement ternal and external source. Fourthly, in officer and professional interpreter in terms of means, NTS stress on gover- Taiwan. He specializes in transnational nmental and instrumental cooperation as organized crime issues and police/ju- means to gain security, because OC pro- dicial cooperation in East and Southe- blem cannot be solved by a single state. ast Asian region. Lastly, as to the roles of state and non- state actors, NTS recognizes non-state Fighting organized crime (OC) with actor as an important player, so the tran- joint efforts has already become a preva- snational OC groups can be recognized lent practice among different regions of as “illicit” non-state actors gaining the il- the world. However, if politics became legitimate profits. the major stumbling blocks for the mutual cooperation to combat OC, and that Now, if both sides of the Taiwan Strait would be interesting to see how this se- see OC as a common NTS threat, then curity issue can be addressed. In Asia, where is their common target? Probably People’s Republic of China (PRC) and the most serious NTS threat is Chinese Republic of China (ROC or Taiwan) are OC, which is considered by both sides as perhaps the two most peculiar states an obvious common target. When we whose bilateral relations are way too look at the Chinese OC, two things must complex to explain in any lengthy articles. be identified: who they are and what they Leo Lin Over the decades, contentions about the do. In terms of who they are, both sides history and national identities always In other words, globalization has helped have to realize which OC groups would come into play on both sides, and conse- transform OC in terms of the criminal ac- damage their security. Two ways to deter- quently, they see each other as potential tivities, the people and groups involved, mine this: the first one is to look into the enemies. This has largely thwarted the and the capacities to conduct their illegal “traditional” OC groups in the region. Per- cooperation in many aspects between businesses across the borders in the re- haps the most prominent groups are the them. gion. Chinese Triads. This term is not belong to any single syndicate, but is a general However, no matter how struggling Faced with this inevitable challenge, name for the OC groups which has exi- they are, they have to face the same chal- both side of the Taiwan Strait must do so- sted in Chinese underground society for lenges, as other nations do: transnational mething, putting aside their political and centuries. The UN and US has identified threats. Since the 1990s, the dynamics of ideological differences. One of the practi- at least five Chinese OC groups in PRC globalization has dramatically changed cal ways to look at the OC problem and and Hong Kong: the Liu Yong, the Zhang the socio-economic and security environ- to cooperate with each other is to per- Wei, and the Liang Xiao Min, The Fuk ment in East and Southeast Asia. The se- ceive OC as their common enemy, or, a Ching and The Tung On syndicate. In Tai- curity threats, such as terrorism, territorial common security threat. Given that the wan, The nearly 60-year-old Bamboo conflicts, possible warfare in the Korean OC has yet to become a direct threat to Union is the largest in the country, follo- Peninsula and Taiwan Strait, the prolife- national security to PRC and Taiwan, it’d wed by the Four Seas Gang and the Tien- ration of weapons and nuclear armament be down-to-earth to see it as a non-tradi- daomeng. The all have solid roots in local and transnational organized crime, have tional security (NTS) issue. THE Chinese society and run their own illicit busines- existed in the region for decades or even Art of War master Sun Tzu says, “Know ses, sometimes cooperate with OC centuries, and the irresistible wave of glo- your enemy and know yourself, and you groups in PRC, Hong Kong and . balization has transformed them massi- can fight a hundred battles without de- The second one is to look into any OC vely. Among them, OC is one of the most feat.” From the scope of NTS, there are groups in which the gang members work devastating security threats. Over the several key viewpoints on OC, from which together “temporarily” for gaining short- past decades, many Asian countries, we can know better about it: First, spea- term profits. The size of this type of Chi- PRC in particular, have enjoyed the eco- king about the reference object, since nese OC group is much smaller, and nomic booms. According to UNODC, the NTS considers OC groups as non-state most of them do not have a name for Asian countries’ growth in international actors, hence OC can be seen as an ob- themselves. Notwithstanding, with the trade has grown 527 times from 8.3 billion ject in security issue. Secondly, regarding help of modern technology, they can now dollars in 1948 to 4,353 billion dollars in the values, the threat posed by OC not operate transnational dirty jobs easily, 2008 (i). Following this tremendous eco- only harms the cross-strait and societal and the national revenue is of course nomic upgrades, the “illicit economy” has interests, but also the national ones. Thir- hampered by them. also boosted tremendously. This gives dly, concerning the source of threat, OC OC groups a great environment to grow. posts challenges on a state both from in- ECPR Standing Group on Organised Crime September 2014 Volume 11, Issue 3 5

Concerning what they do, the Chi- computer/ smart phone apps, such as mited within borders. On the contrary, it nese OC groups take advantage of the LINE, WeChat, Skype, Weibo, along with has spilled over across the boundaries of proximity, the insufficient rule of law and other telecommunication tools such as the countries in the region, and become poorer economy of the neighboring Sou- VOIP(voice over IP), to establish call cen- more transnational per se. In the past, theast countries, and run their cross-bor- ters and scam people in the region. Mil- both PRC and Taiwan addressed this der illicit businesses with more ease. lions of US dollars have been lost within issue separately, owing to the political im- Some of their major activities are listed as the past years. Surprisingly, their bases pediment as well as the different percep- the following: The first is human trafficking can be found all over the East and Sou- tions about the security threat. However, and smuggling, a modern type of slavery. theast Asia countries. the global trend has transformed the Chi- It is one of the major concerns for most nese OC modus operandi and it has be- Southeast Asian countries. The second is Recognizing the Chinese OC as a come a major NTS issue that both side of drug trafficking. East and Southeast Asia common threat and the necessity to work the strait can do nothing but to face it and has been had the problems of drug pro- hand-in-hand, PRC and Taiwan therefore really work hand-in-hand. It turned out duction and distributions which affected reached a consensus and signed the that the Chinese OC has been perceived the health security and human security to “Cross-Strait Joint Crime Combat and as their common enemy. Bearing this in a large extent. The third is trafficking in Mutual Legal Assistance Agreement” in mind, the Cross-strait started to institutio- small arms and light weapons. This has 2009. Both Taiwanese and Chinese po- nalize their joint efforts which led to the si- something to do with the small arms pro- lice forces implemented the Agreement gning of the agreement, which has liferation problems because of ethnic, cul- and established direct cooperation me- yielded a fruitful outcome. This type of tural and political diversity, and chanisms. Since then, many Chinese OC cooperation has indeed become a new emergence of major organized crime. The groups have been busted as a result of model of mutual cooperation in fighting fourth activity is counterfeit goods/phar- the cross-strait intensive joint operations. against Chinese OC in East and Southe- maceuticals. PRC, in particular, has Taking example of the transnational fraud ast Asian region. grown rapidly as the world’s workshop, crimes involving Chinese OC groups, in and according to World Customs Organi- Taiwan only, the annual average fiscal Endnotes: zation data, in recent years around two loss due to fraud amounts was more than thirds of counterfeits discovered wor- NT$10 billion from 2005 to 2009. Howe- (i) World Drug Report, 2010, Uni- ldwide were shipped from PRC. Finally, ver, after three years of cooperation ted Nations Office on Drugs and Crime. the telecommunication frauds have be- across the Strait, the fraud fiscal loss come a new profitable business in the re- amount dropped to NT$4.98 billion in (ii) Mainland Affairs Council, June gion. 2001 (ii). 2012 www.mac.gov.tw/public/Data/210191158 With the advancement of technology, To conclude, with the globalization 2271.pdf Chinese OC groups now make use of the process, the Chinese OC is no longer li-

Source: http://www.informationdissemination.net/2011/07/talking-taiwan.html ECPR Standing Group on Organised Crime 6 September 2014, Volume 11, Issue 3

Top 5 terrorist groups 2013 (modelled on Forbes Top 5 list of business groups)

by William Tupman

William Tupman (Bill) is Visiting ced stricter accountancy practices they Professor in Criminal Justice at BPP have become more centralised, making University, London; Research Fellow, them more vulnerable to intelligence agen- Department of Criminology at Anglia cies. Ruskin University, Cambridge; Hono- rary Fellow and retired academic, De- So who are my top five? partment of Politics University of There were a number of competing Exeter. candidates for fifth place: FARC in Colom- bia, ETA in , Shining Path in Peru, Recently I was arm-twisted into produ- the Naxalites in India, the remnants of the cing a list of the top five terrorist groups ac- Tamil Tigers, the IRA dissidents, the insur- cording to their wealth and financial gent groups in Burma and several African arrangements. This was for the Canadian groups. All are in flux at present, so I chose Broadcasting Company’s “Day 6” pro- the PKK as an example of this group. gramme on Saturday 5 October 2013. The list I produced has certain definitional pro- William Tupman 5. The PKK blems: some would call the groups I’ve li- sted “insurgents” rather than “terrorists”, week to keep his Iraqi franchise going in Europol’s 2011 Terrorist Situation Re- and some would call them “freedom fi- 2004. That suggests a possible continuum port says the PKK raised significant ghters”. But this is par for the course in any between insurgencies composed of volun- amounts of funding in Europe for its activi- discussion of “terrorism”, which like “orga- teers and insurgencies where people are ties in Turkey. Among its methods are drug nised crime” is a concept with over 100 paid to fight. Some insurgencies may be a smuggling, people trafficking, extortion, competing definitions. mix of zealots and mercenaries. In 1990 I members’ contributions, credit card skim- The interview for CBC concentrated calculated a figure 0f £20,000 a year for ming and fraud. State support, particularly my mind on just how far we can now esti- fully underground IRA members based on from Syria, has declined and funding from mate income and expenditure for typical the British mainland, and £10,000 a year the Kurdish diaspora has increased. Fun- groups and how far we have a clear idea for those based in Northern Ireland. The ding is down from an estimated $200–500 of what the variables are that need costing. costs of maintaining an underground pa- million per annum during the 1990s to The present account is an attempt to bring ramilitary in an urban environment will be $50–100 million today. The Turkish gover- out the thinking behind what was originally higher than those for a rural insurgent in a nment estimates a much higher $615–700 a tongue-in-cheek piece preparatory to less developed country. million, but most non-Turkish commenta- producing a longer academic article. tors consider this to be exaggerated. Di- To answer the Day 6 producer’s que- There are two ways of estimating fi- screpancies in estimates derive from stions, I googled a number of recent arti- nance for a paramilitary organisation. One perception of the drug trafficking business. cles, and discovered that “terrorist is by taking the estimated number of mili- The higher estimates attribute all profits accountants” now seem to be firmly in the tants in the field and working out what from drug trafficking to the group, the lower picture. Since al Qaeda was allegedly de- each one costs, plus overheads, so an ones assume that drug traffickers simply frauded of $10 million in the Sudan, “al analyst can start by working from the fun- pay a percentage of profits to the group, in Qaeda Central” has demanded regular ac- draising target. The other is to look at the the manner of other Kurdish businesses. counts from groups that carry the al Qaeda fund-raising activities the organisation is “brand”. Its accountants also estimate the known to engage in and work out what 4. Hezbollah wealth of citizens in areas under al their income must be. In an ideal world, we Qaeda’s control and levy a tax of around could do both and then produce a busi- It is disputed whether we are correct to 2% on overall annual wealth and profits on ness statement from which to draw conclu- call Hezbollah “terrorist”. It has status as a individual deals in order to fund the opera- sions about the viability of the legal political party in the Lebanon. Howe- tion. These methods have been identified organisation. ver, in July 2012 the EU designated its mi- in Somalia and Afghanistan and may be in litary wing a terrorist organisation and place in the Yemen and North Africa. The The top three in the list that follows are added it to its blacklist. The US, , Maghreb leadership has been criticised by more “brands” than individual groups, al- , Canada, Israel, Bahrain, the Gulf the central organisation for failing to submit though the same can probably be said for Cooperation Council and the regular accounts, so unfortunately I can’t most insurgent, paramilitary or terrorist have designated the whole organisation as be certain what system is in place in Mali groups. The cellular nature of individual terrorist. The Sunni Arab world sees it as and along the Libyan border. paramilitary operations is paralleled by the an agent of Iran and would like to reduce We have figures from Osama bin equally cellular nature of financial structu- its influence. Laden himself as to his costs. He has been res. An overseas-based leadership in exile The total membership of the armed quoted as saying it cost $1,500 per year to will use different funding structures from wing is also a matter of dispute. A low esti- keep an armed activist in the field in Che- those of regional and local groups. But mate puts it at 1,000 fully trained regulars, chnya and from $200,000 to $300,000 per now that the larger networks have introdu- backed up by 6–10,000 volunteers; a high, ECPR Standing Group on Organised Crime September 2014, Volume 11, Issue 3 7

Iranian, estimate puts it at 65,000 “fi- “Al Qaeda central” operators and aid projects. These all ghters”. Hezbollah has its own missiles amount to about $275 million, the UN re- and other high-tech weaponry. The leadership based in Afghanistan, port estimates. Opium is primarily impor- Funding comes from donations from North Waziristan and Pakistan consume a tant for the local insurgencies in Helmand, the Lebanese Shia community, from Iran proportion of the donations in living expen- Kandahar and Urzugan and raises about (estimates vary between $60 million and ses, and the money left over has frequen- $100 million, a very small proportion of the $200 million), from Syria and from smug- tly been used for seed funding for various estimated value of the drug trade of $3.6– gling networks in, of all places, South Ame- organisation from Indonesia and Cambo- 4 billion. The ISAF estimates about $100– rica. The extent of this South American dia to Mali. These organisations are then 155 million is spent on paramilitary connection may be exaggerated. It is not expected to become self-funding. operations and the rest on maintaining the clear that individual Lebanese involved in Al Qaeda in the Islamic Maghreb, until insurgency. criminal activities are necessarily working 2007 the Salafist Group for Preaching and for Hezbollah rather than for themselves. Combat (GSPC), is linked to Libyan and The Taliban in Pakistan Tunisian groups, in particular Ansar al- 3. Syrian jihadists Sharia Libya. It may also be linked to al Again, drugs are no longer seen as the Shabab in Somalia and Boko Haram in Ni- main source of funding. Estimates are at An IHS/Janes study has estimated that geria. A significant proportion Source: http://news.bbc.co.uk/1/hi/world/south_asia/8046577.stm there are 100,000 fighters in the field in of the Ma- Syria, and maybe 1,000 different groups. ghreb group’s Of these, 10,000 are linked to al Qaeda, in funding has particular Jabhat al Nusra and the Islamic come from kid- State in Iraq and the Levant. Another 30– napping for 75,000 are hard-line Islamists but focused ransom. on Syria. A further 30,000 are moderate Islamists. Al Qaeda These groups are considered to have in Iraq taken control of income-generating resour- ces in northern Syria, such as oil, gas and By late grain, but their funding comes primarily 2012, al from Middle Eastern states and private in- Qaeda was al- dividuals. If we take Osama bin Laden’s leged to have low figure of $1,500 per fighter and as- 2,500 mem- sume a figure of 70,000 fighters, then $105 bers in Iraq, million per year is a minimum requirement (now known as and almost certainly far too low, given that the Islamic this is a more hi-tech conflict than Che- State of Iraq chnya’s and more tribal groupings need and the Levant paying off in order to join the insurgency. – ISIL, someti- Unfortunately, there is a considerable mes ISIS), but overlap between this category and the was probably next one, the al Qaeda brands, which rai- more active in ses the question as to whether it is time to Syria. “de-brand” before preparing the next list Al Qaeda and work out individual financial figures for in the Arabian individual groups. Peninsula Here the 2. The al Qaeda brands organisation was relatively small in num- about $200 million. Donations are impor- bers – somewhere between 50 and 200 tant, but counterfeit brands of cigarettes Funding for al Qaeda has long been a members – but was seen as potentially a probably supply 20% of the funding. Kid- matter for debate. During the organisa- major threat. Al-Shabab al Muminin pre- nap, extortion, rackets and bank tion’s time in the Sudan it was alleged to sents a greater threat to the Yemeni gover- also bring in money, as do illegal logging, be raising astronomical sums, but those nment and is not yet under al Qaeda marble mining and emerald mining. The evaporated under closer scrutiny. Osama control. total income from these is about $400 mil- bin Laden’s personal fortune had been fro- lion. zen by Saudi authorities and many of the 1. The Taliban companies he was alleged to have owned I placed the Taliban at the top of my list were sanctions-busting devices run on be- The Taliban in Afghanistan on the basis that hard-sourced estimates half of the Sudanese authorities. He clai- exist. Further work is obviously required to med to have made an overall loss in A 2011 UN report estimates that the produce a more sophisticated accounting excess of $100 million during his time in Taliban has an annual income of $400 mil- method that takes into account the me- the Sudan. In Afghanistan, with the Tali- lion. This comes from donations and taxes thods these groups use themselves. Re- ban, the main source of revenue was pro- on the local economy – 10% on the har- peating the exercise annually will take us bably individual donations from wealthy vest and 2.5 % on personal wealth. Other closer to the truth. donors in the Gulf, and the sum total was sources are contributions from private do- probably about $30 million annually. nors in the Gulf states, extortion from drug dealers, construction, mining, cell phone ECPR Standing Group on Organised Crim 8 September 2014, Volume 11, Issue3

Trends in Post-Yugoslav Organised Crime

by Matteo Albertini

Dr. Matteo Albertini is a Balkanaly- sanctions against the Federal Yugoslavia sis.com correspondent based in Milan, during the preceding years. These groups covering the Western Balkans and the derived their names from the particular region’s relationships with Italy. At suburbs in which they were present, he lectures on Semiotics, Po- strongest: Surcin, Vozdovac, and Zemun, litics and Culture at the Alma Mater among the most famous. The ‘Zemun Studiorum University of Bologna. Clan’ became the most powerful of all under the rule of Dušan Spašojevic. In the Introduction: Background Context meanwhile, changing political balances meant that many people in the gover- Over the past twenty years, Balkan nment and military found their services organised crime has frequently featured extremely useful. in international newspapers, and has be- This phase lasted from 1999 to at come a growing concern for international least 2003, when Serbian Prime Minister security forces. These criminal groups lar- Djindjic was assassinated by Zvezdan Jo- gely originated during the Yugoslav wars vanović. He had been a member of the of secession; by exploiting these conflicts Matteo Albertini Red Berets special unit, headed by the and the rampant corruption that charac- criminal, former French Legionnare and terised the infamous post-Communist operation revealed the faciltatory role of Serbian paramilitary, Milorad Ulemek ‘transition’ period, these groups grew lar- Balkan organised crime groups with (more commonly known according to his ger and stronger. these two distant entities. nom de guerre, Legija). The Serbian sta- The development of weak states (due The activity of Balkan crime groups te’s strong police reaction led to the arrest to conflict and the events of this transition across European Union borders also con- of Legija and the dismantlement of the period) played the crucial role in fostering stitutes a major potential threat to EU se- Red Berets. Spasojevic died in a gunfight an environment conducive to organised curity and thus a serious problem in for on 27 March 2003. crime, as has been manifested by wide- Balkan governments seeking EU mem- The third generation of post-Yugoslav spread corruption, money-laundering and bership. organised crime soon emerged. The insti- white-collar crime. tutional stabilisation of Balkan states in Nevertheless, reducing the phenome- Evolution of Post-Yugoslav Crimi- the following years gave authorities more non to the sphere of politics would be an nal Groups freedom to investigate the endemic rela- oversimplification; rather, Balkan organi- tionships between politics, finance and or- sed crime has always flourished in the While significant organised crime ac- ganised crime. To survive, criminal murky world of the grey economy, at the tivity has long existed in Balkan EU mem- groups followed the example of the Italian level of society in which criminality mani- bers both new (, Romania, mafias, and chose to ‘disappear’ in the fests itself in everyday life, influencing it ) and old (Greece), the present society, changing both the shape and the and sometimes taking control of a wide analysis will focus on criminal groups in costumes of organised crime. spectrum of activities normally conside- the former Yugoslavia, leaving aside the The third generation of post-Yugoslav red ‘lawful.’ equally important Albanian mafia. In any organised crime soon emerged. The insti- Furthermore, Balkan criminal organi- case, such nomenclature may just be a tutional stabilisation of Balkan states in zations were able to quickly convert the matter of convenience since both groups the following years gave authorities more logistical routes used for arms and goods are now moving the fulcrum of their acti- freedom to investigate the endemic rela- trafficking during the wars into efficient vities across borders, with significant tionships between politics, finance and or- channels to supply drug dealers and crossover activity in countries like Monte- ganised crime. To survive, criminal others on the wider European level. Du- negro and Kosovo. groups followed the example of the Italian ring the 1990s, they also began to serve Today, three different generations of mafias, and chose to ‘disappear’ in the as money-launderers for their own and organised crime figures in the former Yu- society, changing both the shape and the others’ income. Balkan criminal groups goslavia can be distinguished. The first costumes of organised crime. were thus able to make alliances with one consisted mainly of common crimi- other entities operating far from the region nals who became soldiers and paramili- A New Convergence: Crime and itself. For example, a ‘Holy Alliance’ (only tary leaders during the 1990’s wars. Business partially dismantled with the operation The second generation, essentially a Balkan Warriors in 2009) uncovered the regrouping of the survivors of the Croatia During all this transformation, some links between drug cartels in South Ame- and Bosnia campaigns, developed mainly “hybrid” figures emerged: businessmen rica and established mafia organisations in and during the who acted as middlemen between proper like the Calabrian 'Ndrangheta; the police 1999 Kosovo conflict, and benefitted organised crime groups and the official greatly from the imposition of international ECPR Standing Group on Organised Crime September 2014, Volume 11, Issue 3 9

economy. Some of them were even- Pink Panthers, a criminal group able to act Nevertheless, the profile and points of tually investigated: Stanko “Cane” Subo- on an international level, and famous for activity of ‘third-generation’ Balkan crime tic, alleged to be the king of cigarette accomplishing daring and dramatic high- figures should be of no surprise. Analysts smuggling from his base in Geneva was level robberies: these total over $250 mil- now and in future will increasingly be pla- recently acquitted. And Miroslav Mišković, lion in robberies conducted in Dubai, cing scrutiny on the big cities of Western owner of the major firm Delta Holding and , Japan, France, , Lu- Europe (and further abroad), where the Serbia’s second-richest man, was detai- xembourg, Spain and . No longer crime bosses have their main bases- and ned in December 2012 over an inquiry does one speak of the Balkan crime sometimes work under the eyes of foreign into a privatisation. He has been suspec- gangs simply in terms of drug smugglers autorities. The general globalisation of or- ted of having laundered more than 100 and arms dealers; groups like the Pink ganised crime means that bosses will na- million for the . Panthers are directly in contact with the turally interact with confreres on a wider Mišković has also had involvement in 'upper crust' of buyers and banks required geographical span, while these figures will Bosnia-Herzegovina, where he supported to carry out the anonymous and risk-free continue to seek refuge abroad due to the Milorad Dodik's political campaigns while resale of valuable and desireable commo- often more hostile atmosphere in most also becoming involved with the current dities. Balkan countries, the governments of candidate for the Bosnjak seat at Bosnian which are showing a committment to Presidency, Fahrudin Radončić. Owner of Conclusions Brussels by engaging in official crack- the Avaz company, Radončić ‘s candidacy downs. was damaged when a Sarajevan daily, This current dynamic of post-Yugoslav Finally, the pattern of criminal activity Oslobodjenje, made public his alleged mafias, made more unpredictable by the currently witnessed indicates that post-Yu- past business relations with drug lord unsettled outcome of recent arrests, lea- goslav crime groups will be increasingly Naser Kelmendi, arrested in Pristina in ves room for the emergence of a new ge- involved with ‘high-end’ luxury items, thus March 2013. Kelmendi was reportedly the neration of leaders, which will affect the creating new synergies with financial insti- head of one of the region’s best-organised course of criminal activity in future. Conti- tutions and ‘respectable’ foreign busines- criminal cartels, allegedly smuggling nued instability in North Africa and the smen. The diversification strategy of these drugs and cigarettes, trafficking in people Middle East will also present an opportu- crime groups, borne of necessity but also and laundering money. These practices nity for Balkan gangs to exploit new traffic profitability, remains a challenge for law gained him some infamy in 2012, when from conflict zones. enforcement, especially considering the US President Obama designated him as As was strongly underlined by recent increasing internationalisation of opera- a narcotics trafficker under the 1999 Kin- police inquiries, most organised crime tions. gpin Act. Kelmendi had managed the San- groups in the Balkans are now moving dzak route connecting Kosovo and their local operations to Kosovo and Mon- Endnotes Bosnia-Herzegovina, through a narrow tenegro, where the bonds between politi- 1. Names are known: amongst other, corridor straddling the Serbian – Monte- cal power, economic system and Zeliko Raznjatovic aka Arkan and Milorad negrinian border. Much international secu- organised crime are still strong. However, Ulemek “Legija” in Serbia, Ramiz Delalić rity research has also focussed on this all of these countries see the EU as their and Ismet Bajramovic (both surnamed region due to the presence of radical Isla- final future destine. Celo) in Bosnia, Ramush Haradinaj and mists there. Although it seems to have comprehen- Hasim Thaci in Kosovo. Cruel warriors The heir of the Zemun Clan in Serbia, ded the threat of transnational organised and smart pirates, sometimes national he- Darko Šaric, was born not far from this crime relatively late and only in part, the roes, who profiteed from plundering, border, in the northern Montenegrin town Union has indeed defined some useful smuggling, the black market, drug and of Pljevlja. Under his rule and that of so- bases for tackling it, with the Lisbon Treaty human trafficking across the renewed Bal- metime lieutenant Rodoljub Radulović, the and the Stockholm Program. Some - kan state borders. The war was, for the Clan made an alliance with Colombian pean countries already make use of a new most part of them, the continuation of their mafias and made use of 'Ndrangheta's category of analysts, investigators and po- criminal action by other means. protection and logistic support, directly im- litics experts in the mixed routes of orga- 2.http://www.b92.net/eng/news/poli- porting drugs from South America into Eu- nised crime. These tend to be those with tics.php?yyyy=2013&mm=07&dd=23&na rope. a tradition of organised crime, and thus an v_id=87040 After several years of smooth sailing ‘institutional memory,’ like Italy. But other 3.http://www.balkaninsight.com/en/ar- over the middle of the last decade, the countries still lack tools and expertise re- ticle/serbia-police-arrests-tycoon-miskovic above-mentioned operation Balkan War- quired for the task. 4.http://www.theguardian.com/world/2 rior inaugurated a new stage in counter- At the same time, we must not forget 013/may/06/kosovo-arrest-suspected- organised crime actions, boosted by the that fighting organised crime is not just a drug-boss-kelmemdi will of the new political leaderships to get matter of chasing the ‘bad guys.’ It also re- 5.http://www.b92.net/eng/news/cri- credit in the eyes of the European Union. quires a better understanding of the pla- mes.php?yyyy=2014&mm=03&dd=18&na Last March, Darko Šaric surrendered to ces in which criminal organisations are v_id=89677 Serbian police, a move which clearly un- born and grow, thus informing security 6.http://www.b92.net/eng/news/cri- derlined the end of previously-existing po- operations with policies addressing civil mes.php?yyyy=2014&mm=02&dd=20&na litical protection. Heads rolled also at high society and public administration, and only v_id=89384 levels of the Serbian government. Radu- indirectly the mafia. This strategy can be 7.http://www.b92.net/eng/news/cri- lović is still at large, but was reported to particularly effective because organised mes.php?yyyy=2014&mm=05&dd=30&na have begun a negotiation with the police crime has a vital need for bureaucrats, le- v_id=90517 to give himself up. gitimate businessmen, IT experts, corrup- 8.For the activities of the Pink Pan- A final and intriguing aspect of the ted officials and so on, with links in the thers, http://www.newyorker.com/maga- post-Yugoslav crime groups is the versa- very centre of the state system. zine/2010/04/12/the-pink-panthers?mbid= tility and sophistication of groups like the social_retweet ECPR Standing Group on Organised Crime 10 September 2014, Volume 11, Issue 3

The ECPR_SGOC 4th Intensive Summer School on Serious and Organized Crime Special Focus (ISSOC) took place in Catania on 23 June - 5 ISSOC Summer School July 2014. It was directed by Daniela Irrera and Francesca Longo from the Department of Po- Contributions from Students litical and Social Studies - University of Cata- nia, in partnership with the University of Bath, UK; Masaryk University, Czech Republic; Ni- colaus Copernicus University, Poland and sup- ported – other than the ECPR and the Standing Group on Organised Crime - by EU Commission Lifelong Learning Program. The Intensive Summer School on Serious and Organised Crime (ISSOC) is an advanced and high quality training programme offered to Masters students eager to promote the study and discussion on the topic of serious and or- ganised crime and to the shifting challenges regarding its prevention. This year the acade- mic activities were particularly focused on the relevance of the European financial and eco- nomic crises on the criminal activities and on the ways the EU tackles it. The 2014 edition involved 24 students from partner Universities, enrolled in masters programmes on topics related to European and International studies in a set of differentia- ted activities, made of theoretical-academic lectures by an international team of scholars, including civil society representatives; working groups and students’ presentations; a final face-to-face simulation on the EU policy-ma- king. The ISSOC website is the following: http://issocct.wordpress.com/2014/02/21/is soc/

Organised Crime as an actor in legal economy by Money Laundering

by Dario Giancane

The goal of a large number of criminal acts crime, characterized by the placement stage, According to Sham’s reconstruction is to generate a profit for the individuals or layering/structuring stage and integration (Sham, 2004), Anti-Money Laundering has un- groups that carry out those acts. Money laun- stage, the organised crime becomes a real dergone four main phases. During the 1970s it dering (ML) is the process by which organized legal actor in legal economy. was in its incipient stage, suspicious record crime disguises its proceeds of crime. It is of Systems which fail to prevent money laun- keeping and transactions were reported by critical importance for them, as it enables them dering expose themselves to societal and po- banks. The second stage, started in the 1980s, to enjoy the profits without jeopardizing its litical risks, because it implies the undermining produced criminalization and internationaliza- source. Money laundering is a criminal activity of governance standards, fostering of corrup- tion. In 1989, the AML regime entered a supra- that involves the practice of concealing assets tion and crime; it has negative economic im- nationalization phase with the establishment of to avoid any discover of the unlawful activity pacts and it creates financial market instability, the Financial Action Task Force (FAFT), whose that sourced them. arising from decrease of investment, lower purpose was to develop and coordinate the ef- The historical development of ML is largely economic growth, distortion of competition forts to counter money laundering by identi- contained in the myth that the term was first and, generally, it impedes economical develop- fying the trail of money flows in order to seize used by the Chicago gangster Al Capone and ment. In addition, money laundering stokes the and confiscate ill-gotten gains systematically. by its use of launderettes for hiding illegal al- linkage between organized crime and terrorist Following 9/11/2001, a new phase emerged cohol revenues during the US Prohibition in the financing. when the FAFT’s mandate was extended to 1930s. However, it has become an issue of in- Considering the foremost dangers of ML, cover also terrorism financing. ternational concern, only in the last thirty years the need for a modern Anti-Money Laundering The FATF is a multi-disciplinary body brin- because it has become increasingly a process (AML) strategy has become widely accepted ging together the policy-making power of legal, that employs financial, accounting, legal and within the international community, so much financial and law enforcement experts and, other instrumental conjunction with an object that it has been termed “the white collar crime considering its aims and policies, it has be- that has either used in, or derived from, many of the 1990s” by the Union Nation Office for come increasingly the institutional centre of a unlawful activities. Drug Control and Crime Prevention (UNODC). global supra-national legal regime. The FATF The word “laundering” is used because Money laundering counter measures have the- currently consists of 36 countries and interna- these techniques are intended to turn dirty refore been achieving a central position both tional organizations, including the European money into clean ones. Dirty money enters the in national and global programs, political de- Union, and its membership includes the major financial system and is given the semblance of clarations and international treaties. With the financial centre countries of Europe, North and originating from a legitimate source often by upsurge of terrorist financing, the normative South America, and Asia. In 1990, it has given using corporate vehicles offering disguise, con- activity at the international level has further rise to 40 recommendations and in 2003 it is- cealment and anonymity. Through this financial risen. sued a paper to enhance its special Recom- ECPR Standing Group on Organised Crime September 2014, Volume 11, Issue 3 11

-mendations which were set out as Best customer due diligence, it expanded the provi- Lot of difficulties are found in catching, in- Practices for freezing of terrorist assets. FATF sions dealing with “politically exposed per- terpreting and comparing the data, even if not countries are clearly committed to accept the sons”, it ensured a better coverage of the all the Member States provide the data, but discipline of being subjected to multilateral sur- gambling sector (the former directive covered also in legal, operational and statistical dissi- veillance and peer review. All things conside- only casinos) and it included an explicit refe- milarity: an examples is given by the distinction red, in the European Union these measures rence to tax crimes. -and coexistence- of STRs, SARs, and UTRs. are essential for the creation of an effective A recent initiative legislative worthy of at- anti-money laundering framework, even if this tention is the ‘European Parliament Resolution could be facilitated by the entrance of all, and of 23 October 2013’ on organized crime, cor- not only of majority, of EU Member States. ruption and money laundering in which the Eu- Since money laundering is a complexwide- ropean Parliament calls on the Commission to spread and multi-faceted activity, the European launch a European Action Plan -for the period Union has approached it from different angles. 2014-2017- against organized crime, corrup- Given the various methods by which the crime tion and money laundering, which should in- can be facilitated, as well as the original crimes clude legislative measures and positive action that bring forth the revenue, combating the designed to combat these criminal activities ef- issue involves a multi-agency approach. fectively. REFERENCES The focus is on regulating financial institu- All EU acts have found support in many DAMATO A. - DE PASQUALE P. - PARISI tions with a view to preventing ML and on law agreements contract also by EU Member Sta- N. (2011) Argomenti di Diritto Penale Europeo, enforcement aspects. At first, until the Lisbon tes, such as the United Nations Convention Torino, Giappichelli Editore Treaty adoption, the European Union (EU) had Against Illicit Traffic in Narcotic Drugs and Psy- EUROPEAN COMMISSION (2013) Press chosen a cooperative approach about money chotropic Substances of 1988; European Con- release, Anti-Money Laundering: Stronger laundering: it had encouraged the Member vention on Laundering, Search, Seizure and rules to respond to new threats, available on States to adjust their domestic laws according Confiscation of the Proceeds from Crime of http://europa.eu/rapid/press-release_IP-13- to EU general aims. Then, the Treaty on the 1990; Schengen Agreements. Indirectly signi- 87_en.htm?locale=en Functioning of the European Union (TFEU) ficant are the European Convention on Extra- EUROPOL Threat Assessment Italian Or- started considering money laundering as an dition (1957) and the Convention establishing ganised Crime (2013) available on issue with cross-border dimension and it inclu- European Police Office (EUROPOL) (1995). https://www.europol.europa.eu/sites/default/file ded specific disposals in Judicial Cooperation Europol supports Member States in pre- s/publications/italian_organised_crime_threat_ in Criminal Matter, on the ground of “the prin- venting and combating criminal money launde- assessment_0.pdf ciple of mutual recognition of judgments and ring activities, particularly those relating to the EUROPOL Review General Report on Eu- judicial decisions, including the approximation analysis of suspicious transactions and any fi- ropol Activities (2011) available on of the laws and regulations of the Member Sta- nancial intelligence.Although money launde- https://www.europol.europa.eu/sites/default/file tes” (art. 82 TFEU) and establishing, through ring exists, a specific and strengthened legal s/publications/en_europolreview.pdf the adoption of the “minimum rules concerning framework to combat the matter is apparent. EUROSTAT (2013) Money Laundering in the definition of criminal offences and san- Consequently, this remains one of the main ac- Europe, available on http://epp.eurostat.ec.eu- ctions”, to combat the areas of particularly se- tivities of the European Organized Crime. Eu- ropa.eu/cache/ITY_OFFPUB/KS-TC-13- rious crime on a common basis. EU money ropol has produced a strategic analysis based 007/EN/KS-TC-13-007-EN.PDF laundering legislation has a history extending on the data collected in 2013 in Italy, and it has EUROSTAT (2010) Money laundering in for decades. Given the legal basis, as preven- observed that the two main activities of the Ita- Europe, Report of work carried out by Eurostat tive measures, EU adopted the first directive lian criminal organization are drug trafficking and DG Home Affairs, available on AML (91/308/EEC) in which it gives a definition and money laundering. Measures against http://epp.eurostat.ec.europa.eu/cache/ITY_O of money laundering, credit and financial insti- money laundering have become a core area of FFPUB/KS-RA-10-003/EN/KS-RA-10-003- tutions; it introduced the obligation of the “re- EU policy in the fight against organized crime EN.PDF gistration of the financial operations” against and ranks high on the current Member States HINTERSEER, K. (2002) Criminal finance: money laundering and it creates the National agenda, as it was again confirmed by the last the political economy of money laundering in a Financial Intelligence Units (FIU) in each Mem- EU directive. comparative legal context, London, The Hague ber State to collect and analyze information of Actually, the size of the phenomenon vary PALASTRA N. (2014) Transparency Internatio- credit or financial institutions. depending on the Member States, the refe- nal European Union Liaison Office, EU Policy In 2001, the EU adopted the second direc- rence years, and the specific financial crimes. Paper n° 1/2014, “Fighting money laundering tive AML (2001/97/EC) that extended the obli- The number of persons/legal entities convicted in the EU: from secret ownership to public re- gations anti-laundering to the “professionals” for money laundering offences -from 2005 to gistries”, (i.e. notaries and independent legal professio- 2010- decreased by 31.9%, and the number of RYDER, N. (2011) Financial Crime in the nals). The main keystone of the European sy- suspicious transaction reports sent to law en- 21st Century: Law and Policy Hardcover, Chel- stem is represented by the third directive AML forcement decreased by 44.1%. Despite this tenham, Edward Elgar Pub (2005/60/EC) on the prevention of the use of trend, the overall number of Unusual Transac- SCHNEIDER, F. WINDISCHBAUER, U. the financial system for the purpose of money tion Report (UTR) decreased by 59.9%, the (2008) Money laundering: some facts, Euro- laundering and terrorist financing. This Direc- Suspicious Transaction Reports (STR) increa- pean Journal of Law and Economics tive introduced a new approach to prevent and sed by 3.9% and the Suspicious Activity Re- SCHOTT P. A. (2006) Reference guide to to contrast the money laundering based on ports (SAR) increased by 7.7%. Therefore, anti-money laundering and combating the fi- “active partnership” of banks, financial interme- current EU money laundering regulations need nancing of terrorism, World Bank Publications diaries, insurance agents and professionals to to be better enforced and, in the future, to fight SHAMS, H. (2004). Legal globalization: report any suspicious or unusual transactions this problem it's necessary the continuous in- money laundering law and other cases. Lon- or activities. This directive, in addition, provided teraction and cooperation among the Member don, British Institute of International and Com- a common basis for implementing the FATF States. parative Law 40Recommendations. The last rule was adop- The instruments to deter the "washing" of UNGER, B. VAN DER LIND, D., (2013) ted a few months ago, and it included the 4th money across the EU are transparency on in- Research Handbook on Money Laundering, directive AML (2014/42/UE) and a regulation formation, coordination of actions and integra- Cheltenham, Edward Elgar Pub on information accompanying transfers of tion of laws. For this reasons, it's required that UNITED NATIONS OFFICE ON DRUGS funds to secure "due traceability" of these tran- the source of funds must be better identified AND CRIME (1988) Report on Financial Ha- sfers: both disposals provided for a more tar- and that the information on whom ultimately vens, Bank Secrecy, and Money Laundering, geted and focused risk-based approach. The owns and controls companies, trusts and other available on https://www.imolin.org/imolin/fin- 4th directive AML, among its regulations, im- legal structures need to be made publicly avai- haeng.html proved clarity and transparency of the rules on lable in registers across the EU. ECPR Standing Group on Organised Crime 12 September 2014, Volume 11, Issue 3

Special Focus Corruption as ISSOC Summer School Preface to Contributions from Students Organized Crime

by Although such an easy and quite clear de- portant to stress that nowadays there are pri- Giuseppe Gabriele Finocchiaro finition might seem to be well explaining the vate companies economically even more po- Petra Ježová term, for the purpose of proper explication it is werful than many states. These companies Enrico Leotta preferable to use the definition of Professor Pe- influence many people´s daily life, their deci- Petr Netuka trus van Duyne. His definition provides wider sion making process is distributed and direct Malwina Walenda and more accurate explanation: inspection of every employee is impossible. “Corruption is an improbity or decay in the The prerequisites for abuse of the power are decision-making process in which a decision- due to previously mentioned factors increased maker (in a private corporation or in public ser- also in the private sphere. To write about corruption requires seeking vice) consents to deviate or demands deviation There may be found many types of corrup- an appropriate definition first. Although the from the criterion which should rule his or her tive behaviour, e. g. bribery, embezzlement, term itself is well known, definitions vary. Se- decision – making, in exchange for a reward or , fraud or misuse of trust. To distinguish veral international institutions, dealing with this for the promise or expectation of a reward, and classify them in practice may be very diffi- phenomenon, experienced this difficulty. We while these motives influencing his or her de- cult as the real crime very often involves more can easily find different attempts to provide a cision-making cannot be part of the justification than one category. definition or even a classification: the World of the decision.” Bank, for example, in a famous report of 1997 The definition of Prof. van Duyne empha- An investigation on corruption has also “Helping Countries Combat Corruption: The sizes also the importance of taking into ac- been done by Transparency International. On Role of the World Bank”, gave a very general count the sphere of private sector. Referring TI´s website , there is available well illustrative definition (“the abuse of public office for private towards this part of definition, the corruption is graphics which quite clearly evaluates regions gain”) and then listed five types of corruption, not only the public issue but also the private according to the level of corruption. According namely bribery, theft, political and bureaucratic one. The main focus in its reasoning is devoted to the index from 2013, the highest corruption corruption, isolated and systemic corruption to the behaviour of the decision-maker, no perception is in Afghanistan, North Korea and and, eventually, corruption in the private sector more considering the transmission of public Somalia. When considering regions, we can . Only few lines were devoted to the latter: mo- power in favour of the private sector as the only see very high perception of corruption in nearly stly, the report studied the corruption in the pu- possible corruption model. The presented de- whole region of Asia and Africa. blic sector, recognizing that a systemic finition supposes that the beneficiary might be It is always difficult to estimate the costs of corruption in the public field, connected with a also any legal entity, public entities included, an illegal phenomenon because there are not complex legislation and an unsuited judiciary whilst private resources might be abused as official data to be consulted: however, estima- system, can favour corruptive practices in the well. tes from the World Bank Group (2012) quantify private sector. Relating to the offered definition, it is im- about 500 billion dollars the amount of private ECPR Standing Group on Organised Crime September 2014, Volume 11, Issue 3 13

sector corruption in the developing coun- also has adverse effect on the development of Every year in Italy, of a total volume of 108 tries. If we consider that all the foreign assi- whole state. Investors and consumers lose thousand tons of waste, 35 thousand are di- stance given in that year to developing confidence not only to brokers but also to state sposed of in not correct ways or completely il- countries was roughly a third of that figure, we institutions, such as supervisors of banks, legal. The turnover is estimated at 15 thousand can get an idea of the heavy impact of the cor- whose functions appear to be ineffective. The billion of tons. It will be interesting to follow fu- ruption especially in the private sectors of best example may be a case of quasi-banking ture development of environmental crime and these countries. This is true both in terms of institutions Amber Gold in Poland who created related corruption. the increased costs of the works to be carried a gigantic financial pyramid scheme based on out, both in terms of lost opportunities, as fo- legal gaps in the Polish financial supervision . Endnotes reign investments will be directed elsewhere: To ensure safety, each state should intensify 1. Buscaglia Edgardo, van Dijk Jan: Con- in the private sector, corruption is seen as a enforcement of the repair imperfections detec- trolling Organized Crime and Corruption in the massive tax on business, which causes lower ted by the supervisory authorities. The legisla- Public Sector; profits for investors . Removing (or rather, re- ture should also more closely follow the http://www.unodc.org/pdf/crime/forum/forum3_ ducing) the corruption is in the interest of many development of the market as to timely adjust Art1.pdf; 18. 8. 2014. actors involved in the economic processes: in the law and include the supervision of the ne- 2. van Duyne, Petrus C.; Will “Caligula” Go this regard, measures must be taken both in west forms of movement of capital. Transparent? – Corruption in Acts and Attitu- terms of prevention than on the side of repres- Related to the corruptive behaviour and des; Forum on Crime and Society, vol. 1, nr. 2, sion. mafia practices, there is in place to mention se- December 2011; ISBN 92-1-130216-1; United Nowadays, also very important, is to focus rious cases that lead to loss of lives. First case Nations; New York; 2001; also available at on the role of criminal organizations’ influence that is linked with corruption in banking sector https://www.unodc.org/pdf/crime/publications/f on corruption of banking sector as well as ca- is murder of Emanuele Notarbartolo from 1893 orum1vol2.pdf; 18. 8. 2014. pital market development. According to rese- . Emanuele was a former mayor of Palermo 3. Corruption Perceptions Index 2013. arch conducted by The American Commission and director of the Banco di Sicilia. When he http://www.transparency.org/cpi2013/results; on Law Enforcement and Administration of Ju- wanted to “clean” the management of the 18. 8. 2014. stice , immanent feature of modern criminal or- bank, damaging the Mafia political power, Ra- 4. Runde D., Haamed S., Magpile J., The ganizations is not only committing crimes on faelle Palizzolo, powerful politician at that time costs of corruption, Report of the CSIS (Center the conspiracy but also the monopolization of with links to the Mafia, ordered his dead. Se- for Strategic & International Studies) Project on certain spheres of economic activity, forcing cond case is connected with judge Antonio Sa- Prosperity and Development, February 2014. bankruptcies of banks, credit and subsidy fraud etta and his son, Stefano, that happened in 5. The challenge of crime in a free society, and financial manipulations effected through 1988 . Antonio was member of Court of Appeal Report by The President’s Commission on Law corruption. and was scheduled to hear the appeal of the Enforcement and Administration of Justice, Announced in June 2014 in Rome a report Maxi Trial. When he shown to be incorruptible United States Government Printing Office, Wa- prepared by Organised Crime Observatory he was killed together with his son when retur- shington, 1967. (L'Osservatorio sulla Criminalità Organizzata) ning to Palermo after the weekend in the coun- 6. Primo Rapporto Trimestrale Sulle Aree referred to the Mafia activity, there is indicated try. Settentrionali, Per La Presidenza Della Com- that the southern Italian mafia corrupt brokers The year 1984 is linked with murder of Giu- missione Parlamentare Di Inchiesta Sul Feno- on the Milan Stock Exchange to act in the ser- seppe Fava, called Pippo. Pippo was investi- meno Mafioso a cura dell’Osservatorio sulla vice of the Mafia. As a result, brokers make in- gative journalist and founder of monthly Criminalità Organizzata dell’Università degli sider dealing transactions on stock exchange magazine in Catania “I Siciliani” . Magazine in- Studi di Milano, direttore: prof. Fernando dalla to help members of organized criminal groups vestigated Cosa Nostra and tentacles in poli- Chiesa. to purchase large blocks of shares of the big- tics and business, especially those of Sicily’s 7. Benton E. Gup, Bank Failures in the gest companies. By becoming a significant biggest Catania-based construction firms. This Major Trading Countries of the World, Green- shareholder, criminals take control of many year, 2014 , in North-Rhine Westphalia, We- wood 1998. companies in northern Italy. stern Germany, there were revealed 17 see- 8. Park, J., Corruption, soundness of the Another example, showing growth of ma- mingly construction-related businesses. banking sector, and economic growth: A cross- fia’s activity on financial markets, is the case of Straw-man business was like clan copy Italian country study, Journal of International Money the Vatican bank. Already several years ago, it organizational structures and were using inti- and Finance, 2012. became clear that the bank probably had rea- midation and violence to secure a lucrative 9. http://www.pozew-ambergold.pl/ lised money-laundering activities: had accep- market. This lead towards decline in building 10. Dickie, J. Cosa Nostra: A History of the ted deposits from the mafia including income sector as honest businesspeople could not Sicilian Mafia. 2004, 170. New York: Palgrave from huge bribes taken by the ruling politicians compete with the prices of the companies Macmillan. ISBN 1-4039-6696-6. and had acted as a tax heaven in the heart of using illegal labour. 11. Dickie, J. Cosa Nostra: A History of the Rome with the Vatican extraterritoriality . The A new typology of crime, environmental Sicilian Mafia. 2004, p. 309. New York: Pal- problem had been caused by the fact that the crime, is a good platform for future corruption grave Macmillan. ISBN 1-4039-6696-6. Italian banking supervision does not include growth. Environmental crime is a heterogene- 12. http://isicilianidigiuseppefava.blog- the Vatican area. ous phenomenon, which comprises inside a spot.cz/ Taking into consideration examples pre- variety of illicit actions. It has recently develo- 13. Diehl, Jörg: “I Will Tear His Head Off”: sented above, the corruption has a significant ped the so called “organized environmental How Italian Mafia Is Infiltrating Germany. Spie- and negative impact on the functioning of ca- crime”: the criminal organizations are often gel Online International pital and financial markets because of it inhibits able to detect in advance new areas of global http://www.spiegel.de/international/germany/si- the free market economy and does not allow economy in which to invest. Paradigm of the cilian-mafia-infiltrates-german-construction-bu- for the development of real investors . Increase new prospects criminals is precisely the phe- siness-a-963194.html, 2014. in the level of corruption in a country not only nomenon of "eco-mafia" with its illegal disposal causes the spread of abuse in the markets but of industrial waste and radioactive waste. ECPRE CSPtaRn Sdtiangnd Ginrgo uGpr ounp O orng aOnrigseadn iCserdim Cerime 1414 SeptSeempbtemr 2b0e1r 42,0 V1o3l,u Vmoel u1m1,e I1ss0u,e I s3sue 3

MISCELLANEOUS

The European Review of Organised Crime

CALL FOR PAPERS EROC Special Issue Space Oddity? Exploring Organised Crime Ventures in Cyber Space

Special Issue editors: Dr. Helena Although organised crime is generally terature, this special issue welcomes Carrapico (Aston University, UK) and presented by policy makers and interna- theoretical and empirical articles on the Dr. Anita Lavorgna (University of Wol- tional organizations as a major actor in connections between traditional and new verhampton, UK) cyber crimes, the academic literature has, forms of organised crime and cyber so far, paid limited attention to this ele- space. Topics in this special issue include ment. More specifically, limited research (but are not limited to) definitional deba- Over the past two decades, the deve- has been conducted on how different tes, national and international political re- lopment of modern societies has become types of organised crime groups use sponses, online investigations (including intimately interconnected with information cyber space to conduct their traditional prevention and detection, investigation te- technologies. Such trend is particularly vi- activities, and on how new illicit online ac- chniques, search, seizure, forensics, pro- sible among the increasing number of tivities have emerged as a result of orga- secution and trial), law enforcement personal objects, household appliances nised crime’s digital shift. cooperation, and critical perspectives. and professional structures connected to information networks. Although such evo- In view of countering this gap in the li- The Special Issue will be published in lution is usually applauded from an eco- EROC in September 2015. Arti- nomic and societal perspective, it is cles should be submitted by the also understood as constituting a risk in 5th of January 2015. However, security terms. As the degree of con- authors are strongly encouraged nectivity dependence of individuals, to express interest and send ab- companies and critical infrastructures stracts of potential contributions grows, so does the likelihood of techno- to the editors by the 3rd of No- logy being abused, in particular for cri- vember 2014. minal purposes. As a result, cyber crime has become, over the past few years, For expressions of interest, the object of increased concern in Eu- please contact the editors of the rope. Not only does it represent a con- special issue at h.farrand-carra- siderable cost to societies, but it also [email protected] and Anita.La- continues to constitute an important [email protected]. For more challenge for law enforcement and judi- information about EROC, please cial systems, due to its technical com- visit our website at http://sgoc- plexity and rapid innovative character. n e t . o r g / s i t e / t h e - r e v i e w - eroc/.CALL gh

ECPR Standing Group on Organised Crime September 20134, Volume 110,, IIssssue 3 1515

MISCELLANEOUS

If you are near London... Second (annual) Queen Mary-Renmin Criminal Justice Conference Legal Responses to Financial Crimes 17-18 October 2014

Time: 8:30am - 5:30pm to open up a practice-focused, cross-cul- Professor Brigitte Unger, Utrecht Venue: Institute of Advanced Legal tural dialogue on the topic. Papers are in- University Studies , Charles Clore House , 17 Rus- vited on the themes of asset recovery, Professor Toine Spapens, Tilburg sell Square, London WC1B 5DR credit card fraud, money laundering, pu- University blic and private responses to financial Ms Michelle Coninsx, President of No registration fee crime, financial crime in the justice sy- Eurojust stems and many more. Mr Francesco Lo Voi, National This event is the second in a series of Member for Italy, Eurojust annual conferences on Criminal Justice Speakers include: Mr Richard Lowe, Economic Crime organised jointly by the Criminal Justice Professor Shi Yanan, Law School, Command, National Crime Agency Centre at Queen Mary University of Lon- Renmin University Mr Igor Angelini, Head of Financial don and Renmin University (Beijing, Associate Professor Wang Ying, Intelligence, Operations Department, Eu- China). The last conference took place at Renmin University ropol Renmin University in October 2013 and Professor Liu Mingxiang, Law Professor Wang Wenhua, Law focused on the different crime problems School, Renmin University School, Beijing Foreign Studies Univer- and legal regulations in the area of orga- Professor Xie Wangyuan, Law sity nised crime in China and Europe. This School, Renmin University Associate Professor He Ronggong, year's follow-up conference will bring to- Professor Valsamis Mitsilegas, Law School, Wuhan University gether experts from China and Europe to Queen Mary University of London Professor Lin Wei, Law School, discuss the impact of fraud and money Professor Peter Alldridge, Queen China Youth University for Political Scien- laundering, and more generally financial Mary University of London ces crime, on national, regional and interna- Dr Saskia Hufnagel, Queen Mary Associate Professor Wu Jiang, Law tional economies. University of London School, Suzhou University While focusing on legal perspectives, Professor Mike Levi, Cardiff Univer- this conference is open to other discipli- sity If you are interested in attending the nes exploring the field, such as crimino- Professor Clive Walker, University conference, please register at logy, sociology, geography and of Leeds http://www.law.qmul.ac.uk/events/items/1 accounting. It aims at engaging a variety Professor Simon Bronitt, University 37641.html of academic and practitioner perspectives of Queensland If you are near Cardiff... If you are near Shanghai... Transnational Organised Crime Organized Crime and Challenges and Responses Its Prosecution 30 October - 1 November 2014 17 October 2014 East China University of Political Science Cardiff University and Law Cardiff University is hosting a postgraduate researchers con- Organisers: Professor Federico Varese of Oxford University, ference centred on Transnational Organised Crime, exploring the Professor Qiu Geping of East China University of Political research methods and theory involved, the challenges it can pre- Science and Law and Professor Mary Vogel of University of Man- sent to society, and the policy responses that are implemented chester. in an effort to address it. PGRs are invited to submit abstracts of For our conference in Shanghai, we plan to host 60 to 80 no more than 200 words for a research paper they wish to pre- scholars from east and west to continue the dialogue begun in sent. London this past January and in Manchester in July. Our list of This University Graduate College-funded conference offers participants is an exciting one. We believe this can be the coreof a valuable opportunity not only to network with scholars from Car- an ongoing network. This third conference will spotlight, though diff and other UK institutions, but to submit your paper for peer again not exclusively, economic crime and cybercrime. The mee- review and feedback prior to publication or presentation at ano- ting will emphasize Asian crime and transnational cooperation in ther conference, as well as practicing public speaking, answering policing and prosecution. questions and engaging in a discussion with the audience, inclu- The fee for this third gathering will be 60 GBP, inclusive of a ding distinguished members of Cardiff’s academic faculty. conference dinner. For info: Prof. Mary Vogel ([email protected]) ECPR Standing Group on Organised Crime 16 September 2014, Volume 11, Issue 3

MISCELLANEOUS

CALL FOR PAPERS

Journal of Trafficking, Organized Crime and Security

This newly launched peer-reviewed journal acts as an inter- of criminal organizations, the trends and patterns of different national arbiter, bringing different key informants together and forms of trafficking, and the structural and functional mechanism works as a clearinghouse of knowledge and information in the that reproduces and reinforces the processes that perpetuate realm of trafficking and global crime. The journal invites research the phenomenon considering trafficking not as discrete events articles as a part of the open call from the scholars around the that are unconnected, but to scrutinize them within the wider fra- world. mework of human insecurity as structurally dogged based on the theoretical research and empirical evidence from cross- Visit us at country study. http://www.brownwalker.com/ojs/index.php/JTOCS Publication Frequency: 4 Issues per year The journal also aims to include research articles that ana- Mode of Publication: Open access with free submission & lyze the roles and functions of the formal and voluntary agencies immediate online publication upon acceptance that are involved in combating trafficking within the current in- ternational security debate. The inclusion of structures of vio- Why this Journal lence, high degrees of resilience, a remarkable degree of The academics should be leading the charge in informing adaptability, and the role of human agency within this re-con- policy makers and government leaders in the areas of trafficking ceptualization provides a manageable framework from which and crime. As a result, much has been discussed on the subject, human insecurity can be considered, and the magnitude of vio- but there is an immediate call for more empirical and action re- lence from trafficking may be understood and examined. search on ‘trafficking and its relationship to the broader subjects of organized crime and human security’. Trafficking has all the The journal broadly covers areas, but not limited to, including characteristics of a complex system, characterized by emergent the linkages between trafficking; smuggling and slavery, sex traf- behavior, network relationships, high degree of resilience, and ficking: role of perpetrators; pimps; clients and victims, labor traf- a remarkable degree of adaptability in response to law enforce- ficking, child and teen victims in trafficking, trafficking for sham ment efforts to disrupt this form of criminal network. For any go- marriages; forced begging and domestic servitude, trafficking vernment to respond more effectively and conduct and insecurity: identifying and supporting the victims, drug traf- counter-network and counter-market strategy, an equivalent or ficking, trafficking in organs; tissues and cells, trafficking in wil- similar system is needed. The limits of governmental abilities, dlife, endangered species and natural resources, trafficking in both in general and specifically in relation to combating traffic- arms and ammunition, politics and discourses surrounding traf- king, must also be scrutinized by the researchers. Networks in- ficking, trafficking as a business: profit; costs and risks, techno- volved in trafficking are difficult to combat, especially because logy and trafficking networks, traffickers and their organizations, they operate within a dynamic market characterized not only by strategies against trafficking: role of the security sector; gover- an increasing demand for forced labor and commercial sex but nment and non-government organizations, measures to combat also a ready supply of trafficking victims. Nevertheless, the ne- trafficking, and trafficking laws and regulations etc. This journal cessity of launching a journal which exclusively delves into dif- is highly interdisciplinary, involving subject areas such as politi- ferent forms of trafficking and organized crime is long overdue. cal science, law, environmental study, sociology, anthropology, social work, criminal justice, psychology, medical field, and Focus and Scope many others. This journal is an endeavor to understand the basic structure ECPR Standing Group on Organised Crime September 2014, Volume 11, Issue 3 17

You are also invited to CONTRIBUTIONS! propose things that could improve the quality of the newsletter. The Next Issue of the ECPR For the newsletter we are looking for short Standing Group on Organised original articles (1000-1500 words) on different Please send your sugge- Crime Newsletter will be organised crime-related themes. These contri- stions and articles to: published butions can stem from yur on- going research at the end of January 2015. or from summaries of published material, which Anna Sergi you might wish to circulate among the organi- [email protected] sed crime research community. Falko Ernst The deadline for articles and You may also contribute to the content of the [email protected] contributions newsletter by sending us any announcement of is 20th of January 2015. conferences/ workshops/ literature references SUGGESTIONS! you feel could be of interest to this field.

Announcing ECPR General Conference 2015 Université de Montréal 26 - 29 August 2015, Canada

http://www.ecpr.eu/Events/E ventDetails.aspx?EventID=94

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