Transnational Crime And The Developing World
Transnational Crime and theDeveloping WorldChanning MayMarch2017Dev Kar andJosephTransnational Crime11SpanjersJune 2016
Global Financial Integrity
Transnational Crime and the DevelopingWorldChanning MayMarch 2017Copyright 2017 by Global Financial Integrity . Some rights reserved.This report is published under a Creative Commons Attribution license (CC BY).For more information on the license, visit: http://creativecommons.org.Global Financial Integrity and the Global Financial Integrity Logo areregistered trademarks of Global Financial Integrity.
Global Financial Integrity
Global Financial Integrity is pleased to present here its analysis of Transnational Crime and theDeveloping World. This follows a similarly named report we produced in 2011, which receivedconsiderable attention around the world. Unfortunately, transnational crime in multiple categoriescontinues to grow in every region.The international community has been aggressively combatting drug trafficking for more than 40 years,yet supplies of drugs are undiminished and prices have not risen. Often utilizing the same channels,human trafficking for forced labor and sexual exploitation has exploded. Counterfeiting and pirating ofpharmaceuticals, consumables, luxury goods, and intellectual property is the biggest single transnationalcriminal activity, likely exceeding US 1 trillion in retail value.Illegal logging, mining, fishing, wildlife trade, oil theft, and trafficking in cultural property withdrawhundreds of billions of dollars of resources from developing countries. The illegal organ trade preys uponthe poor, while arms trafficking protects the criminals.The global community is failing in efforts to curtail transnational crime. Why? Largely because lawenforcement is focused on the materials and manifestations of the crimes rather than on the money thecrimes generate.Take just one aspect of the transnational crimes analyzed in the following pages—drug trafficking—asan example. The United Nations Office of Drugs and Crime estimates that globally 40 percent of cocaineand heroin are interdicted somewhere between production and consumption, but less than one percentof drug money is ever recovered. The United States Drug Enforcement Administration and similarorganizations across the globe concentrate heavily on seizing drug products and expend far fewerresources on tracking and blocking drug money. The truth is, drug traffickers can afford to lose not just40 percent but 60 or 80 percent or even more of their product if they can keep more than 99 percent ofthe revenues.The fight against transnational crime needs to be redirected to combatting the money the crimesgenerate. This means shutting down the global shadow financial system that facilitates the moving andsecreting of illicitly generated funds. The good news is, none of this is technically difficult. It is a matterof political will.Our great appreciation is extended to Channing May and Christine Clough for this thoughtful andcomprehensive analysis of transnational crime, one of the most serious issues we must address in the21st century.Raymond BakerPresidentGlobal Financial IntegrityMarch 27, 2017Transnational Crime and the Developing Worldiii
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ContentsGlossary. ixExecutive Summary. xiI. Introduction. 1II. Drug Trafficking. 3III. Trafficking of Small Arms and Light Weapons. 13IV. Human Trafficking. 21V. Illegal Organ Trade. 29VI. The Illicit Trade in Cultural Property. 35VII. Counterfeiting and Piracy. 43VIII. Illegal Wildlife Trade. 53IX. Illegal, Unreported, Unregulated Fishing. 61X. Illegal Logging. 69XI. Illegal Mining. 75XII. Crude Oil Theft. 83XIII. Policy Recommendations. 93XIV. Conclusion. 99Appendix: Methodology. 101Bibliography. 117About. 147Transnational Crime and the Developing Worldv
Tables and Figures in the ReportTable X1. The Retail Value of Transnational Crime. xiTable A. Inflation Adjusted Value of Global Drug Market, 2014 (US ). 3Table B. Price vs. Distance: Colombian Cocaine (US , street wholesale). 5Box 1. Brief History of Drug Trafficking in Mexico. 10Table C. Composition of Illicit Arms Trade. 13Table D. The Average of an AK-47 Around the World (US ). 14Table E. Price vs. Distance: The Weapon’s Route. 15Table F. Seizure by Location, 2013. 17Figure I. Estimated Annual Profits from Human Trafficking by Region (US billion). 21Figure II. Profits and Victims. 22Table G. Human Smuggling vs. Human Trafficking. 23Table H. Regional Trends in Laundering the Proceeds of Human Trafficking. 25Table I. Retail Prices of Organs (US ). 29Table J. Kidney Transplants: Vendors vs. Recipients. 30Table K. Prices Paid to Kidney Vendors Around the World. 30Table L. Participants in the Illegal Organ Trade. 31Table M. Notable Art Heists. 36Figure III. Trade-Based Money Laundering Scheme. 40Table N. Trade in Counterfeit and Pirated Goods, 2013 (US ). 43Table O. Trade in Digitally Pirated Goods, 2015 (US ). 43Table P. Top Counterfeited Items and Brands. 46Box 2. Pharmaceutical Crime. 47Figure IV. Terrorist Financing and Counterfeiting. 49Table Q. Sample Retail Market Prices (US). 54Table R. Poacher vs. Consumer Prices (US ). 55Table S. Illegal Wildlife Markets. 55Box 3. Superstition vs. Reality: The Case of Ivory and Rhino Horn. 56Table T. What is IUU Fishing?. 61Table U. Flags of Convenience. 64Figure V. Trade Misinvoicing to Launder Illegally-Caught Fish. 65Table V. Value Chain for Peruvian Mahogany, per cubic meter (US ). 69Table W. Value Chain for West African Rosewood, per 10-ton container (US ). 70Figure VI. Division of Value: US 140/m3 of Russian timber. 70Figure VII. Mining Spectrum. 75Table Y. Annual Value of Illegal Gold Mining in Latin America (US millions). 76Figure VIII. Illegal Mining, Trade Misinvoicing, and Tax Fraud. 81Table Z. Crude Oil Theft Volume and Value (US ). 83Box 4. Oil and War. 86Figure IX. Pipelines and Drug Trafficking Organization Territory, 2015. 87Figure X. Cocaine and Crude. 88Table AA. The Retail Value of Transnational Crime. 99Appendix Table A. Global Drug Market Values by Rate of Inflation (US ). 101Appendix Table B. Global Drug Market Value by Percent of GDP (current US ). 102Appendix Table C. Global Drug Submarket Values by GDP Growth (US ). 102Appendix Table D. The Average Cost of an AK-47 Around the World (US ). 103Global Financial Integrityvi
Appendix Table E. Estimated Value of the Illegal Organ Trade. 104Appendix Table F. Prices Paid to Kidney Vendors Around the World. 104Appendix Table G. Price Range of Liver Transplants (US ). 105Appendix Table H. Price Range of Heart Transplants (US ). 106Appendix Table I. Price Range of Lung Transplants (US ). 107Appendix Table J. Price Range of Pancreas Transplants (US ). 107Appendix Table K. Kidney Transplants: Vendors vs. Recipients (US ). 108Appendix Table L. Prices Paid to Kidney Vendors Around the World. 108Appendix Table M. Notable Art Heists. 110Appendix Table N. Global Illegal Wildlife Trade Values (US ). 111Appendix Table O. Sample Retail Market Prices (US ). 112Appendix Table P. Source vs. Market Country Prices (US ). 113Appendix Table Q. Summary of Regional Estimates of Illegal Fishing, Averaged Over 2000-2003. 114Appendix Table R. Estimated Illegal Catch Volume, 2011-2014. 115Transnational Crime and the Developing Worldvii
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GlossaryACTAnti-Counterfeiting ToolAMLAnti-money launderingATSAmphetamine-type stimulantsAvg.AverageBACRIMBandas criminals (criminal gangs)BPDBarrels per dayCARCentral African RepublicCFTCombatting the financing of terrorismCISCommonwealth of Independent StatesCITESConvention on International Trade in Endangered Species of Wild Fauna and FloraDTODrug trafficking organizationEEZExclusive economic zoneELNEjército de Liberación Nacional (National Liberation Army)ETAEuskadi Ta Askatasuna (Basque Country and Freedom)EUEuropean UnionEUCEnd-user certificateFAOFood and Agriculture Organization of the United NationsFARCFuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces ofColombia)FATFFinancial Action Task ForceFBIFederal Bureau of InvestigationFDLRForces démocratiques pour la libération du Rwanda (Democratic Forces for theLiberation of Rwanda)FIUFinancial intelligence unitFOCFlag of convenienceFSIFinancial Secrecy IndexGDPGross domestic productGFIGlobal Financial IntegrityGLEIGlobal legal entity identifierHIVHuman immunodeficiency virusHSHarmonized systemILOInternational Labor OrganizationIMOInternational Maritime OrganizationIPIntellectual propertyIPMInterface Public-MembersIRAIrish Republican ArmyISILIslamic State of Iraq and the Levant (also referred to as ISIS, IS, and Daesh)IUUIllegal, unreported, and unregulatedkgKilogramLao PDRLao People’s Democratic RepublicLGBTLesbian, gay, bisexual, and transgenderTransnational Crime and the Developing Worldix
LRALord’s Resistance ArmymCubic meterMDMA3,4-methylenedioxymethamphetamineMSBMoney service businessNo.NumberNPSNew psychoactive substancesOCGOrganized crime groupOECDOrganisation for Economic Co-Operation and DevelopmentRUFRevolutionary United FrontSALWSmall arms and light weaponsSARSSouth African Revenue ServiceSMSShort message servicetTonTBMLTrade-based money launderingTJNTax Justice NetworkTOCTransnational organized crimeUNUnited NationsUNEPUnited Nations Environment ProgrammeUNITAUnião Nacional para a Independência Total de Angola (National Union for the TotalIndependence of Angola)UNODCUnited Nations Office on Drugs and CrimeUSUnited StatesUS United States dollarsUVIUnique vessel identifierVATValue-added taxWCOWorld Customs Organization3Global Financial Integrityx
Executive SummaryOverviewTransnational crime is a business, and business is very good. Money is the primary motivation forthese illegal activities. The revenues generated from the 11 crimes covered in this report—estimatedto range between US 1.6 trillion and 2.2 trillion per year—not only line the pockets of theperpetrators but also finance violence, corruption, and other abuses. These crimes undermine localand national economies, destroy the environment, and jeopardize the health and wellbeing of thepublic. Transnational crime will continue to grow until the paradigm of high profits and low risksis challenged. This report calls on governments, experts, the private sector, and civil societygroups to seek to address the global shadow financial system by promoting greater financialtransparency.Table X1. The Retail Value of Transnational CrimeTransnational CrimeDrug TraffickingSmall Arms & Light Weapons TraffickingHuman TraffickingOrgan TraffickingTrafficking in Cultural PropertyCounterfeitingIllegal Wildlife TradeIUU FishingIllegal LoggingIllegal MiningCrude Oil TheftTotalEstimated Annual Value (US ) 426 billion to 652 billion 1.7 billion to 3.5 billion 150.2 billion 840 million to 1.7 billion 1.2 billion to 1.6 billion 923 billion to 1.13 trillion 5 billion to 23 billion 15.5 billion to 36.4 billion 52 billion to 157 billion 12 billion to 48 billion 5.2 billion to 11.9 billion 1.6 trillion to 2.2 trillionDrug TraffickingThe global drug trafficking market was worth US 426 billion to 652 billion in 2014. It representsabout one-third of the total retail value of the transnational crimes studied here. Cannabis wasresponsible for the largest share of drug trafficking, followed in order by cocaine, opiates, andamphetamine-type stimulants (ATS). ATS and cannabis are produced all over the world, while theproduction of cocaine and opiates is concentrated in South America and Afghanistan, respectively.Drug trafficking organizations (DTOs), organized crime groups (OCGs), guerrilla groups, and terroristorganizations are all involved in drug trafficking. OCGs in West Africa have increased their control of thedrug market in the region, and the volume of heroin trafficked from Afghanistan through East Africa isescalating, stoking consumption.Arms TraffickingThe trafficking of small arms and light weapons (SALW) is one of the least profitable transnationalcrimes studied in this report, but it is also one of the most consequential for human security indeveloping countries. This market was worth US 1.7 billion to 3.5 billion in 2014, which represents10 to 20 percent of the legal arms trade. Three main factors drive prices: an area’s level of conflict,political unrest, and political tension; the distance over which the items are smuggled; and, the levels ofenforcement traffickers must overcome. Internet-based trafficking represents a growing challengeto combatting SALW smuggling. Decommissioned weapons that had been sold and then illegallyreactivated were used in several recent terrorist attacks in Western Europe and represent anothertrending threat of arms trafficking.Transnational Crime and the Developing Worldxi
Human TraffickingHuman trafficking, for labor and for sex, is one of the fastest-growing transnational organizedcrime markets. Twenty-one million men, women, and children around the world are currentlythought to be victims of human trafficking, which the International Labor Organization estimatesgenerates US 150.2 billion in profits each year. The Asia-Pacific region is responsible for US 51.8billion of this market, with around 11.7 million victims. Developed Economies and the European Union isresponsible for another third of the market value with US 46.9 billion, even though there are “only” 1.5million victims, one-eighth as many as the Asia-Pacific region. Human trafficking is playing a growingrole in terrorist and insurgent activities and groups, and the spread of the internet has providedtraffickers with additional, far-reaching means to reach both victims and victimizers.Illegal Organ TradeOrgan trafficking conservatively generates approximately US 840 million to 1.7 billion annually fromaround 12,000 illegal transplants. This estimate c
enforcement is focused on the materials and manifestations of the crimes rather than on the money the crimes generate. Take just one aspect of the transnational crimes analyzed in the following pages—drug trafficking—as an example. The United Nations Office of Drugs and Crime estimates that globally 40 percent of cocaine
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May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
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Dr. Sunita Bharatwal** Dr. Pawan Garga*** Abstract Customer satisfaction is derived from thè functionalities and values, a product or Service can provide. The current study aims to segregate thè dimensions of ordine Service quality and gather insights on its impact on web shopping. The trends of purchases have
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Chính Văn.- Còn đức Thế tôn thì tuệ giác cực kỳ trong sạch 8: hiện hành bất nhị 9, đạt đến vô tướng 10, đứng vào chỗ đứng của các đức Thế tôn 11, thể hiện tính bình đẳng của các Ngài, đến chỗ không còn chướng ngại 12, giáo pháp không thể khuynh đảo, tâm thức không bị cản trở, cái được
Global Initiative against Transnational Organized Crime Tipping Point: Transnational organised crime and the ‘war’ on poaching incidents increase from four in 2013 to 30 in 2014 and 90 in 2015.3 In Zimbabwe, 51 rhinos were killed, up from twenty in 2014. It was the country’s worst year on record since 2008, when 164 rhinos were lost to .
The Evolution of Organised Crime into Transnational Organised Crime . The second theme is to understand the ’tipping point’ where individual thoughts and ideas turn into criminal action with regard to being a member of a TNOC group or becoming a victim? The third theme is to understand the relationship between transnational organised .
