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189403NCJRS.Pdf If you have issues viewing or accessing this file, please contact us at NCJRS.gov. li~ ~i:i ~ ~ ~, ~;~.,,~;,~,~i~> O :,.'.~:~;~: ., i ~ , ""~:~...~ ....~: ~ ii ~iii!i::'i~17:., > ii i .~L ¸ m i um n m n i m am [] m all E m m m B I m I U m am g m I I g I g m I I International ThrcQ Asscssm¢ I [~¢¢¢mb¢~ 20GO I This global assessment was prepared by a US Government interagency working group in support of and pursuant to the President's International Crime Control Strategy. Representatives from the Central Intelligence Agency; Federal Bureau of Investigation; Drug Enforcement Administration; US Customs Service; US Secret Service; Financial Crimes Enforcement Network; National Drug Intelligence Center; the Departments of State, the Treasury, Justice, and Transportation; the Office of National Drug Control I Policy; and the National Security Council participated in the drafting of this assessment. W gD m Hg eta gD ggl na HI ggl ela naB gD gD ! Ha an an I HD an [] [] an an gD gD i an I an ID Ill Contents Page Introduction 1 Global Context of International Crime 3 Implications of a Changing World 3 Growing Global Reach of Organized Crime Groups 4 Greater Sophistication of Criminal Organizations 9 Insurgency and Extremist Group Involvement in 10 Organized Crime Activities E Corruption and the Political-Criminal Nexus 11 Institutional Shortcomings 13 International Crimes Affecting US Interests 15 Terrorism 15 Drug Trafficking 18 Alien Smuggling 22 Trafficking in Women and Children 25 Environmental Crimes 28 Sanctions Violations 31 Illicit Technology Transfers and Smuggling of 31 Materials for Weapons of Mass Destruction Arms Trafficking 32 Trafficking in Precious Gems 33 Piracy 35 Nondrug Contraband Smuggling 36 Intellectual Property Rights (IPR) Violations 40 Foreign Economic Espionage 44 Foreign Corrupt Business Practices 44 Counterfeiting 45 Financial Fraud 47 High-Tech Crime 49 Money Laundering 52 Worldwide Areas of International Criminal Activity 57 Western Europe 57 Italian Organized Crime 61 Eastern and Central Europe 64 Russia, the Baltics, and the Newly Independent States 66 Russia 67 The Baltic States 71 Ukraine and Moldova 71 iii The Caucasus and Central Asia 72 II Russian Organized Crime 72 The Balkans 77 Ethnic Albanian Criminal Groups 78 South Asia, Turkey, the Middle East, and Eastern 80 III Mediterranean Southeast Asia 85 China 87 ill Taiwan 94 Ethnic Chinese Criminal Networks 95 I Japan 98 Japanese Yakuza 99 Ill Africa 100 ! Nigerian Criminal Enterprises 104 South America 105 II The Caribbean 109 Central America 111 Iil Central American Alien Smuggling Networks 114 Mexico 115 II United States 118 g Consequences for US Strategic Interests 123 The Problem of Criminal Safehavens, Kleptocracies, and 124 Failed States The Future of International Crime 127 [] I [] [] [] [] [] [] [] [] [] !1 iv International Crime Threat Assessment Introduction communities, US businesses and financial institutions, and global security and stability. The assessment is I The rapid spread of international crime since the end divided into five parts: of the Cold War is unprecedented in scale, facilitated by globalization and technological advances, and • Chapter I addresses the Global Context of Interna- poses a significant challenge to the United States and tional Crime, identifying those factors--including E democratic governments and free market economies the implications of a changing world, the greater around the world. The President has identified interna- sophistication of criminal organizations, and institu- tional crime as a direct and immediate threat to the tional shortcomings elsewhere in the world--that national security of the United States. To meet this have contributed to the growing problem of interna- challenge, the Departments of Justice, State, and Trea- tional crime. sury-working closely with numerous federal agen- cies-jointly developed a comprehensive national ° Chapter II provides a comprehensive overview of strategy to fight international crime and reduce its specific International Crimes Affecting US Inter- nn impact on Americans. The International Crime Con- ests--including their effect on American lives and trol Strategy, which was released in May 1998, pro- livelihood, costs to US business interests at home vides a dynamic action plan that serves as a roadmap and abroad, and impact on US national security for a coordinated, effective, long-term attack on inter- interests around the world. national crime. The Strategy's eight overarching goals, supported by implementing objectives, are as • Chapter 111 addresses Worldwide Areas of Interna- follows: tional Criminal Activity, particularly as source areas for specific crimes and bases of operations for • Extend the first line of defense beyond US borders. international criminal organizations. This section includes an analysis of the driving factors in differ- • Protect US borders by attacking smuggling and ent countries and regions that allow criminal organi- smuggling-related crimes. zations and international criminal activity to flourish, as well as an assessment of the impact of • Deny safehaven to international criminals. international criminal activity on stability in these countries and regions, including threats to the • Counter international financial crime. growth and nurturing of democratic and free market systems. Finally, this section discusses the charac- • Prevent criminal exploitation of international trade. teristics, criminal operations, and international pres- ence of organized crime groups originating in these • Respond to emerging international crime threats. countries or regions. o Foster international cooperation and the rule of law. Chapter IV addresses the Consequences of Inter- national Crime for US Strategic Interests, includ- • Optimize the full range of US efforts. ing the ability to work cooperatively with foreign I governments and the problem of criminal safe- At the direction of the President and as part of the havens, kleptocracies, and failed states. International Crime Control Strategy, a US Govern- ment interagency working group has prepared the Chapter V offers a perspective on the Future of following comprehensive assessment of the threat International Crime as it develops in the next 10 posed by international crime to Americans and their years. Reverse Blank 1 I til ID a i ! [] aid Oil im @ OlD Ogl a oil oH glD OlD 9gl gD OH [] gla ggl ggl gig gig gig @ HI glD [] Chapter I Global Context of International Crime I Implications of a Changing World Multilateral economic agreements reducing trade barriers in North America, Europe, Asia, and other Law enforcement officials around the world have regions of the world have substantially increased the reported a significant increase in the range and scope volume of international trade. In the United States, of international criminal activity since the early 1990s. the volume of trade has doubled since 1994, accord- The level and severity of this activity and the accom- ing to the US Customs Service, and will double panying growth in the power and influence of interna- again by 2005. Criminal groups have taken advan- tional criminal organizations have raised concerns tage of the high volume of legitimate trade to smug- among governments all over the world--particularly gle drugs, arms, and other contraband across in Western democracies--about the threat criminals national boundaries. pose to governability and stability in many countries and to the global economy. International criminal net- The advent of intermodal commercial shipping-- works have been quick to take advantage of the oppor- including standardized cargo containers, computer- tunities resulting from the revolutionary changes in ized cargo tracking, and automated cargo-transfer l world politics, business, technology, and communica- equipment--enables shippers to securely and effi- tions that have strengthened democracy and free mar- ciently transfer containers delivered by sea to other kets, brought the world's nations closer together, and ships for onward shipment or to commercial railroads given the United States unprecedented security and and trucks for overland transportation. Criminals are prosperity: able to exploit the complexity of the intermodal sys- tem to hide drugs or other contraband or to conceal the I Post-Cold War landscape. The end of the Cold War true origin and ownership of cargo within which con- resulted in the breakdown of political and economic traband is hidden. barriers not only in Europe but also around the world. This change opened the way for substantially Technological advances. The last decade has pre- I increased trade, movement of people, and capital sented revolutionary advances in information and flows between democracies and free market coun- communications technologies that have brought the tries and the formerly closed societies and markets world closer together. Modern telecommunications that had been controlled by Soviet power. The end of and information systems that underpin legitirnate the Cold War also brought with it an end to super- commercial activity in today's fast-paced global power rivalry in other regions of the world, encour- market are as easily used by criminal networks. aging movement toward peace and more open Commercially available state-of-the-art communica- borders. These developments have allowed interna- tions equipment greatly facilitates international I tional criminals to expand their networks and criminal transactions--including making deals and increase their
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