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Date: April 30, 2024 Tue
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Results for black markets
23 results foundAuthor: International Consortium of Investigative Journalists Title: Tobacco, Terrorism, and Illicit Trade: China, Paraguay, Ukraine: Inside the World's Top Smuggling Hubs; Taliban, al-qaeda, Other Terrorists Funded by Cigarette Black Markets Summary: The six-part series is part of Tobacco Underground, a year-long investigation by ICIJ into cigarette smuggling — featuring interactive maps, undercover video, online interviews with experts, and links to groups and documents worldwide. In addition to fueling corruption, organized crime, and terrorism, the illicit trafficking of tobacco robs governments of needed tax money and spurs addiction to a deadly product, the ICIJ series reports. “ICIJ shows again how the illicit trafficking of tobacco is out of control,” said Center Executive Director Bill Buzenberg. “Renegade factories, multinational companies, and weak enforcement all play a role in fueling this multi-billion dollar illegal trade, whose profits rival those of narcotics.” Experts believe that smuggled cigarettes — either untaxed legitimate brands or counterfeits — account for 12 percent of all cigarette sales, or about 657 billion “sticks” annually, making tobacco the world’s most widely smuggled legal substance. The cost to governments worldwide is massive: an estimated $40 billion to $50 billion in lost tax revenue each year. ICIJ first exposed the complicity of Big Tobacco in smuggling nine years ago, helping spark lawsuits and government crackdowns around the world. This report includes the following articles: (1) Terrorism and Tobacco: Extremists, Insurgents Turn to Cigarette Smuggling. Terrorists are increasingly turning to cigarette smuggling for funding. The move is part of a larger trend toward use of criminal rackets by terrorists, who find trafficking in cigarettes a high-profit, low-risk way to finance operations. Among the groups are Pakistan’s Taliban militias, for whom cigarettes are now second only to heroin as a funding source. (2)China’s Marlboro Country: A Massive Underground Industry Makes China the World Leader in Counterfeit Cigarettes. China now produces an unprecedented 400 billion counterfeit cigarettes annually. Cheap Chinese fakes are now sold in major cities worldwide, from New York delis to London storefronts. Officials believe China is the source of 99 percent of U.S. counterfeit cigarettes and up to 80 percent of those in the European Union. Lab tests reveal the Chinese counterfeits release 80 percent more nicotine and 130 percent more carbon monoxide than brand-name cigarettes, and have impurities that include insect eggs and human feces. (3) Smuggling Made Easy: Landlocked Paraguay Emerges as a Top Producer of Contraband Tobacco. Paraguay’s renegade factories produce more than 20 times what the country consumes, and are now responsible for 10 percent of the world’s contraband tobacco, experts estimate. The vast majority of the cigarettes — up to 90 percent of production, worth an estimated $1 billion— disappears into an often violent black market, law enforcement officials say. (4) Ukraine’s “Lost” Cigarettes Flood Europe: Big Tobacco’s Overproduction Feeds $2 Billion Black Market. Each year, the world’s four top multinational tobacco companies — Philip Morris International, Japan Tobacco International, Imperial Tobacco, and British American Tobacco — produce and import 30 billion cigarettes in Ukraine beyond what the country can consume, fueling a $2 billion black market that reaches across the European Union. Today, Ukraine is rivaled only by Russia as the top source of non-counterfeit cigarettes smuggled to Europe. Details: Washington, DC: International Consortium of Investigative Journalists, 2009. 36p. Source: Internet Resource: Accessed February 11, 2011 at: http://www.publicintegrity.org/news/entry/1534/ Year: 2009 Country: International URL: http://www.publicintegrity.org/news/entry/1534/ Shelf Number: 119537 Keywords: Black MarketsCounterfeit ProductsIllegal TobaccoIllicit TradeSmugglingTerrorism |
Author: Wang, Hao Title: China’s Organ Transplant Industry and Falun Gong Organ Harvesting: An Economic Analysis Summary: This thesis evaluated the allegation that systematic, large-scale organ seizures from unwilling Falun Gong practitioners have been supplying the majority of organs for the organ transplant industry in China since 1999. Despite the tremendous growth in the organ transplant industry after 1999, the known sources of organ supply — namely the living donors, brain-dead, Non-Heart-Beating-Donors and executed prisoners—have not shown significant growth over time and fail to explain the huge quantity of annual transplants. The detained population of Falun Gong practitioners is found to have the requisite population size and characteristics of a large “organ bank.” They are the only prison group that provides an adequate explanation for the explosive growth in the volume of China’s organ transplants between 2000 and 2005. It is the conclusion of this paper that the organs of detained Falun Gong practitioners are being systematically harvested for use in China’s organ transplant industry — and that such practice is an industrialized form of the Communist Party’s systematic persecution against Falun Gong. Details: New Haven, CT: Yale University, 2007. 57p. Source: Internet Resource: Accessed April 19, 2011 at: http://organharvestinvestigation.net/events/YALE0407.pdf Year: 2007 Country: China URL: http://organharvestinvestigation.net/events/YALE0407.pdf Shelf Number: 121397 Keywords: Black MarketsTransplantation of Organs, Corrupt Practices |
Author: von Lampe, Klaus Title: Provisional Situation Report on Trafficking in Contraband Cigarettes Summary: This report provides an assessment of the cigarette black market in Northwest Europe, based on a review of open source data. It also serves to tentatively explore the possibilities for a comprehensive and meanting assessment of the organized crime situation in this particular sector. Details: Brussels: European Commission, 2005. 53p. Source: Internet Resource: Assessing Organised Crime Research Project: Accessed July 8, 2011 at: http://www.organized-crime.de/AOC-DLV18-vR3.pdf Year: 2005 Country: Europe URL: http://www.organized-crime.de/AOC-DLV18-vR3.pdf Shelf Number: 122013 Keywords: Black MarketsIllegal TobaccoOrganized Crime (Europe)Smuggling (Tobacco) |
Author: Gabler, Nachum Title: Combatting the Contraband Tobacco Trade in Canada Summary: Contraband tobacco has been a recurring problem in Canada, and one that has become noticeably worse over the past decade. It has been estimated that contraband tobacco makes up roughly 30% of the total Canadian tobacco market. In 2009, the RCMP seized a record high of 975,000 cartons of contraband cigarettes. Key factors fueling the contraband trade include relatively high and rising tobacco excise taxes, the inability of law enforcement to impede tobacco smuggling, Aboriginal autonomy in taxation and on-reserve law enforcement, and the erroneous perception that lawful and contraband tobacco are close substitutes. Health Canada contends that contraband tobacco undermines existent anti-smoking initiatives. Furthermore, the black market for tobacco deprives the private sector of business revenues and the public sector of excise tax receipts. Perhaps most alarming of all, the contraband tobacco trade has been linked by the RCMP and other law enforcement agencies to an assortment of related criminal activities. This study proposes six policies for combatting the contraband tobacco trade. Details: Fraser Institute, Studies in Risk and Regulation, 2011 Source: Internet Resource: Accessed on December 6, 2011 at: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/combatting-contraband-tobacco-trade-in-canada.pdf Year: 2011 Country: Canada URL: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/combatting-contraband-tobacco-trade-in-canada.pdf Shelf Number: 123494 Keywords: Black MarketsIllegal TobaccoTobacco Smuggling |
Author: Physicians for a Smoke-Free Canada Title: Estimating the Volume of Contraband Sales of Tobacco in Canada: 2006-2010 Summary: Although contraband tobacco sales have been identified as a major concern by health organizations, tobacco suppliers and governments, there have been no official government estimates provided of the level of contraband activity in Canada. We previously attempted to estimate the volume of contraband cigarettes in Canada by comparing actual sales to historic levels of consumption on a per‐smoker basis. To do this we used estimates of the number of smokers produced by the Canadian Tobacco Use Monitoring Survey, sales data from Health Canada reports of wholesale shipments, and historic levels of consumption by taking an average consumption from the first 3 years of the CTUMS survey (1999‐2001). We believe that problems and limitations of this approach have increased over time. • CTUMS is no longer the only annual survey of tobacco use, and discrepancies between it and the other large national survey, the Canadian Community Health Survey, are increasing. • Health Canada has changed the way it reports wholesale shipments of tobacco products, in ways that produce discrepancies with volumes we cited earlier. This data is not provided in a consistent manner (i.e. either weight or unit measurement), and adjustments are required to some reports. • Basing actual consumption on measurements that were taken a decade earlier, before smoking bans were implemented and taxes were increased seem less reliable over time. • The largest tobacco company has changed its manufacturing and wholesaling practices, which have unknown effects on regional reports of shipments. To respond to these challenges, we are repeating our estimation exercise with a few changes and several additional caveats. Details: Ottawa, ONT: Physicians for a Smoke-Free Canada, 2011. 18p. Source: Internet Resource: Accessed February 13, 2012 at: http://www.smoke-free.ca/pdf_1/2011/contraband2010.pdf Year: 2011 Country: Canada URL: http://www.smoke-free.ca/pdf_1/2011/contraband2010.pdf Shelf Number: 124118 Keywords: Black MarketsContraband Tobacco (Canada)Illegal CigarettesIllegal Tobacco |
Author: Levinson, Bruce Title: An Inquiry into the Nature, Causes and Impacts of Contraband Cigarettes Summary: The US Food and Drug Administration (FDA) is contemplating a ban on menthol-flavored cigarettes. Prior to reaching a preliminary decision, the agency and their independent science advisory panel are required to consider the “countervailing” effects a ban would have on smokers and non-smokers, including the creation of significant demand for contraband cigarettes. This monograph addresses the potential negative effects of a menthol ban by analyzing three facets of the contraband cigarette issue: 1) the nature of contraband cigarettes including consideration of how they may materially differ from legal products, such as by containing higher levels of heavy metals and other contaminants; 2) factors influencing the size of the contraband market and an estimation of how it would respond to a menthol ban; and 3) a discussion of the impacts of contraband cigarettes on society. Academic literature, findings by US government and foreign government agencies, and accounts from major media publications serve as the databases for the analyses. The monograph concludes that a ban on menthol-flavored cigarettes would significantly inflate the market for contraband cigarettes, many of which present even higher health risks than legally-made products. The increased health hazards from illicit cigarettes disproportionately impact underage and African American smokers. Details: Washington, DC: Center for Regulatory Effectiveness, 2011. 73p. Source: Internet Resource: Accessed February 13, 2012 at: http://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeetingMaterials/TobaccoProductsScientificAdvisoryCommittee/UCM243625.pdf Year: 2011 Country: United States URL: http://www.fda.gov/downloads/AdvisoryCommittees/CommitteesMeetingMaterials/TobaccoProductsScientificAdvisoryCommittee/UCM243625.pdf Shelf Number: 124121 Keywords: Black MarketsContraband Cigarettes (U.S.)Contraband TobaccoIllegal Tobacco |
Author: Sweeting, Jeff Title: Anti-Contraband Policy Measures: Evidence for Better Practice Summary: Tobacco taxation has been used in many jurisdictions as a policy measure to discourage smoking. The effectiveness of taxation strategies can be undermined by widespread availability of tobacco products. This knowledge synthesis presents information on a wide-range of tobacco anti-contraband measures, in an effort to ascertain the relative effectiveness of various policy measures for addressing contraband in Canada and around the world. This report is based on a comprehensive literature search, a series of key informant interviews, and four Expert Focus Panels with participants from Canada, the United States and several European jurisdictions. This paper identifies and defines the different forms of contraband tobacco, including casual bootlegging, organized international smuggling, illicit manufacturing, tax-avoidance from duty-free sources, and counterfeit cigarettes. The effectiveness of ten anti-contraband policy measures are explored: licensing, tax-markings/stamping, tracking and tracing, record-keeping/control measures, enhanced enforcement, export taxation, tax harmonization, tax agreements/compacts, legally binding agreements with the tobacco industry and memoranda of understanding (MOUs), and public awareness campaigns. Analysis suggests that both type of contraband and means of distribution influence the effectiveness of different policies and the unintended consequences of action. For example, policy measures that were effective for legally manufactured, but cross-border smuggled cigarettes in the 1990s are less effective for illicitly manufactured and counterfeit cigarettes that dominate contraband activity today in many countries. Case studies of Brazil, Australia and Canada indicate that while contraband sources often emerge domestically, given the ease of transport and manufacture, sources can be easily displaced to neighboring or overseas jurisdictions. Inter-agency cooperation (both domestic and international) emerges as a vital component of all successful anti-contraband strategies. The dynamic nature of contraband supply requires a comprehensive approach that focuses on both immediate and future threats. Policies designed to ensure contraband tobacco products do not appear in the legitimate retail sector (such as tax-paid markings, licensing, record-keeping) and measures to ensure that counterfeit products are easily identified (such as enhanced taxation stamps) are vital resources. Adequate investment in enforcement is critical to the success of anti-contraband measures. Ontario Tobacco Research Unit 2 Given the global scope of the phenomenon, greater international cooperation and information sharing is paramount. Obstacles and potential solutions to implementing various anti-contraband measures are examined from the unique perspective of Canadian First Nations. Very little data exists on contraband tobacco and there is almost no evaluative research on the effectiveness of anti-contraband policy measures, making study of the problem extremely challenging. Details: Toronto, ON: Ontario Tobacco Research Unit, 2009. 141p. Source: Internet Resource: Special Report Series: Accessed February 13, 2012 at: http://www.otru.org/pdf/special/special_anti_contraband_measures.pdf Year: 2009 Country: International URL: http://www.otru.org/pdf/special/special_anti_contraband_measures.pdf Shelf Number: 124123 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal TobaccoSmugglingTaxes |
Author: Ablon, Lillian Title: Markets for Cybercrime Tools and Stolen Data: Hackers' Bazaar Summary: Markets are good because they facilitate economic efficiency, but when that efficiency facilitates criminal activity, such "black markets" can be deemed harmful. Criminal activities in cyberspace are increasingly facilitated by burgeoning black markets in both the tools (e.g., exploit kits) and the take (e.g., credit card information). As with most things, intent is what can make something criminal or legitimate, and there are cases where goods or services can be used for altruistic or malicious purposes (e.g., bulletproof hosting and zero-day vulnerabilities). This report describes the fundamental characteristics of these markets and how they have grown into their current state in order to give insight into how their existence can harm the information security environment. Understanding the current and predicted landscape for these markets lays the groundwork for follow-on exploration of options that could minimize the potentially harmful influence these markets impart. This report assumes the reader has a basic understanding of the cyber, criminal, and economic domains, but includes a glossary to supplement any gaps. This report should be of interest to cybersecurity, information security, and law enforcement communities. It was sponsored by Juniper Networks as part of a multiphase study on the future security environment. Details: Santa Monica, CA: RAND, 2014. 83p. Source: Internet Resource: Accessed April 19, 2014 at: https://www.rand.org/content/dam/rand/pubs/research_reports/RR600/RR610/RAND_RR610.pdf Year: 2014 Country: International URL: https://www.rand.org/content/dam/rand/pubs/research_reports/RR600/RR610/RAND_RR610.pdf Shelf Number: 132082 Keywords: Black MarketsComputer CrimesCybercrimesCybersecurityHackersIllegal MarketsInternet Crime |
Author: KPMG Title: Project Sun: A study of the illicit cigarette market in the European Union. 2013 Results Summary: One in every ten cigarettes consumed in the European Union in 2013 were illicit, 33% of which were "illicit whites", an emerging type of illegal, branded cigarettes manufactured for the sole purpose of being smuggled, according to a KPMG study. At these levels, EU governments lost approximately L10.9 billion to the illegal market. KPMG found the highest illegal trade incidence levels for 2013 in Latvia (28.8%), Lithuania (27.1%), Ireland (21.1%), Estonia (18.6%) and Bulgaria (18.2%). The highest volumes of illegal cigarettes were consumed in Germany and France with 11.3 billion and 9.6 billion illegal cigarettes, respectively, and Poland and Greece where "illicit whites" accounted for 9.1% and 12.2% of consumption respectively. Other key findings include: - Overall, 58.6 billion illegal cigarettes were consumed in the EU; this is equivalent to the total legal cigarette markets of Spain and Portugal combined and represents a total tax revenue loss of L10.9 billion; - In 2013, 10.5% of all cigarettes consumed in the EU were illegal, compared to 11.1% in 2012 and 10.4% in 2011; - The prevalence of contraband - which excludes "illicit whites" and counterfeit - dropped significantly by 26.7% to 35.6 billion cigarettes; - "Illicit whites" reached a record high of 19.6 billion cigarettes, from virtually zero in 2006; and - The highest "illicit white" volumes for 2013 were measured in Poland (4.0 billion), Greece (2.8 billion), Spain (2.5 billion), Bulgaria (1.6 billion) and Germany (1.4 billion). Despite the overall decline in the illegal market in 2013, the EU's black market for tobacco remains a significant source of revenue loss for governments and a resilient competitor to the legitimate manufacturers and trade. This illegal activity not only comes at a financial cost, but it fosters criminality in local communities. British American Tobacco plc (BAT), Imperial Tobacco Group plc (Imperial), Japan Tobacco International (JTI) and Philip Morris International Inc. (PMI) continue to devote significant resources to combat this problem - above the requirements set out in their Cooperation Agreements with the European Commission - underpinned by the conviction that effective solutions require solid cooperation between governments, law enforcement agencies, manufacturers and retailers. For the first time since its inception in 2006, KPMG's study was commissioned by all four major tobacco manufacturers operating in the EU - BAT, Imperial, JTI and PMI. This allowed KPMG access to a wider set of data sources, which further refined and improved the completeness of the analysis. Prior to 2013, the study was commissioned by PMI as part of the company's commitments under its Cooperation Agreement with the European Commission. Details: Lausanne, Switzerland: Philip Morris International, 2013. 362p. Source: Internet Resource: Accessed July 31, 2014 at: http://www.pmi.com/eng/media_center/media_kit/pages/sun_report_2013.aspx# Year: 2013 Country: Europe URL: http://www.pmi.com/eng/media_center/media_kit/pages/sun_report_2013.aspx# Shelf Number: 132850 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal Cigarettes (Europe)Illegal TobaccoIllegal Trade |
Author: Miklian, Jason Title: Illicit Trading in Nepal: Fueling South Asian Terrorism Summary: A tight-knit network of informal traders is exploiting a vacuum of law enforcement in southern Nepal to generate significant operating capital for the Pakistani militant group Lashkar-e-Taiba (LeT). The traders employ the same money laundering techniques as others in Nepal did a decade before, as the legal loopholes, lack of infrastructure, and widespread corruption that created these opportunities were not addressed. Nepal and India continue to focus on individual criminals in their attempts to shut down the networks, rather than reforming the structural conditions allowing the networks to operate. As a result, the traders operate in an environment conducive for the creation of vast sums of informal wealth with few barriers to operation and at little risk. Short-Term Suggestions 1) Arrest the criminals without destroying the hawala system. Large scale raids are counterproductive, as most overseas workers require hawala to support their families. Reform can be achieved by integrating legitimate hawaldars into the formal banking sector, provided they comply with transparency and recordkeeping guidelines designed to decrease the likelihood that they are unknowingly laundering money. 2) Improve Indo-Nepal bilateral relations through border security. India and Nepal should jointly consider how border security policy can be more than a zero-sum game. Mutual cooperation on border security strategy benefits both bilateral relations and internal stability. Frameworks whereby either country could propose a joint operation on an ad hoc basis, keeping authority clearly under control of the host country, can build trust without encroaching upon sovereignty. Further, the link between corruption and national security needs to be recognized and problematized. 3) International actors can contribute to Nepal's security at border points by providing logistical support, providing equipment and securing directed funding to modernize and bolster existing checkpoints. The United Nations should maximize Nepal's request for increased border security assistance. Countries hosting direct flights to/from Kathmandu should increase scrutiny of incoming passengers for illicit materials. Long-Term Suggestions 1) Roll back the growing culture of corruption. Nepal's culture of corruption is pervasive at the individual, local, regional, and national levels. Practical measures can reduce demand, but punitive approaches may backfire in a society where the judicial system is itself corrupt. Nepal has steadily deteriorated in both real and comparative terms regarding corruption indicators, but leadership-by-example can be a powerful attitudinal tool for change, and need not involve massive bureaucratic undertakings. 2) Comprehensive banking sector reform would include a trident of reforms to prevent graft, institutionalize checks and balances for day-to-day operations, and increase the availability of services in areas currently underrepresented. However, opening more bank branches catering to microcredit needs can be counterproductive. Indian efforts to push more money flows through the formal sector could also be adopted by other countries. 3) Create and enforce anti-corruption and pro-transparency laws. The challenge of prosecuting transgressors is immense, as suspects are put into the hands of a poorly-paid, corrupt judicial system that lacks legal precedent and impartiality for its most difficult cases. Solutions must also incorporate Nepal's youth population as stakeholders, emphasizing rule of law over militancy, informal trade and corruption. 4) International donors should continue to tie funding to the implementation of banking, money laundering and counter-terrorism measures that raise Nepal's laws and oversight to international standards. Although conditionalities are unpleasant, they have a proven track record in Nepal of forcing needed legislation on the agenda in Kathmandu. Details: Oslo: International Peace Research Institute (PRIO), 2009. 19p. Source: Internet Resource: PRIO South Asia Briefing Paper #3: Accessed January 28, 2015 at: http://file.prio.no/Publication_files/Prio/Illicit%20Trading%20in%20Nepal%20(South%20Asia%20Briefing%20Paper%203).pdf Year: 2009 Country: Nepal URL: http://file.prio.no/Publication_files/Prio/Illicit%20Trading%20in%20Nepal%20(South%20Asia%20Briefing%20Paper%203).pdf Shelf Number: 134446 Keywords: Black MarketsIllegal Trade (Nepal)Illicit TradePolitical CorruptionTerrorist Financinc |
Author: Jeffray, Calum Title: Underground Web: The Cybercrime Challenge. Summary: The two papers in this Special Report examine the central role that cybercrime plays in modern society and how technological developments create new opportunities for criminals to exploit. Calum Jeffray's paper, Caught in the net: the law enforcement response to international cybercrime, surveys the strategic cybercrime landscape and illustrates that, despite calls for law enforcement to 'do more' to prevent and investigate cybercrime, the agencies involved are often hampered in acting due to jurisdictional issues or the complexity of the investigations. Tobias Feakin's paper, Cryptomarkets - illicit goods in the darknet, examines the emergence of the 'darknet', where trading in illicit goods and services in online black markets has become increasingly commonplace and exacerbates the problems that law enforcement already faces - tracing and prosecuting illegal activities online. Details: Barton, ACT: AUS: Australian Strategic Policy Institute, International Cyber Policy Centre, 2015. 16p. Source: Internet Resource: Special Report: Accessed May 4, 2015 at: https://www.aspi.org.au/publications/underground-web-the-cybercrime-challenge/SR77_Underground_web_cybercrime.pdf Year: 2015 Country: International URL: https://www.aspi.org.au/publications/underground-web-the-cybercrime-challenge/SR77_Underground_web_cybercrime.pdf Shelf Number: 135504 Keywords: Black MarketsCyber SecurityCybercrimeIllegal TradingIllicit GoodsInternet Crimes |
Author: Fleenor, Patrick Title: California Schemin': Cigarette Tax Evasion and Crime in the Golden State Summary: Earlier this year federal agents closed down a ring that allegedly smuggled millions of packs of cigarettes from North Carolina to California, affixed counterfeit stamps to them, and sold them to the general public. This illicit enterprise reportedly cost the state government some $4.3 million in lost revenue. On the morning of December 15, 2002, a band of robbers burst into a Merced distribution center and rounded its employees up at gunpoint. After tying up the workers the thieves used forklifts to load pallets of cigarettes into a truck. The robbers then grabbed rolls of California cigarette tax stamps and fled. Police estimated that the group made off with more than $1 million in loot. The 2002 heist was not the first time that the distribution center or its employees has been victimized. Two years earlier one of its trucks was hijacked by two men. Its driver was forced into a nearby orchard where he was bound and gagged. The bandits then made off with $40,000 worth of cigarettes. The thieves were later apprehended by police. These are just a few examples from the wave of tobacco-related crime that has swept California during the last eight or so years. At first glance these crimes appear bizarre. After all, each describes serious criminal activity involving a product not much different from the others that fill the shelves of convenience stores and gas stations. There is one major difference, however, and that is taxes. Since 1998 tax hikes have helped raise the price of cigarettes in California to approximately $4.00 per pack, well above the price in other states or elsewhere in the world. The first two tax hikes occurred in November of 1998 when voters narrowly approved Proposition 10 and California joined 45 other states in the Master Settlement Agreement (MSA) with the four largest tobacco manufacturers. Proposition 10 raised the state's cigarette tax from 37 to 87 cents per pack,4 and the MSA raised nationwide taxes on cigarettes by nearly $250 billion over the next 25 years.5 Two smaller tax hikes soon arrived from Washington, as the federal government raised its tax from 24 to 34 cents per pack in January 2000 and then to 39 cents at the beginning of 2003. On November 7 voters in California will decide whether to raise the state tax on cigarettes even higher, by an amount much larger than any state has ever considered. Proposition 86 would increase the state cigarette excise by $2.60, from its current rate of 87 cents to $3.47 per pack. Approval would give California the highest cigarette tax in the nation and push the price of a typical pack of cigarettes to around $6.50. Details: Washington, DC: Tax Foundation, 2015. 12p. Source: Internet Resource: Special Report No. 145: Accessed June 4, 2015 at: http://taxfoundation.org/sites/taxfoundation.org/files/docs/sr145.pdf Year: 2006 Country: United States URL: http://taxfoundation.org/sites/taxfoundation.org/files/docs/sr145.pdf Shelf Number: 135888 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal TobaccoRobberyTax Evasion |
Author: Fleenor, Patrick Title: Cigarette Taxes, Black Markets, and Crime: Lessons from New York's 50-Year Losing Battle Summary: As large state government budget gaps have opened in the past year, lawmakers across the country are turning to cigarette taxes for added revenue. Twenty states raised cigarette tax rates in 2002, and more hikes may be on the agenda during state legislative sessions in 2003. Proponents of high cigarette taxes portray them as innocuous levies that improve public health. Yet those taxes have long been known to have a dark side. Since the first state cigarette taxes were imposed in the 1920s, black markets and related criminal activity have plagued high-tax jurisdictions. Such activity has proven to be resistant to law enforcement curtailment efforts. Thanks to recent city- and state-level tax hikes, New York City now has the highest cigarette taxes in the country-a combined state and local tax rate of $3.00 per pack. Consumers have responded by turning to the city's bustling black market and other low-tax sources of cigarettes. During the four months following the recent tax hikes, sales of taxed cigarettes in the city fell by more than 50 percent compared to the same period the prior year. New York has a long history of cigarette tax evasion. Former governor Malcolm Wilson dubbed the city the "promised land for cigarette bootleggers." Over the decades, a series of studies by federal, state, and city officials has found that high taxes have created a thriving illegal market for cigarettes in the city. That market has diverted billions of dollars from legitimate businesses and governments to criminals. Perhaps worse than the diversion of money has been the crime associated with the city's illegal cigarette market. Smalltime crooks and organized crime have engaged in murder, kidnapping, and armed robbery to earn and protect their illicit profits. Such crime has exposed average citizens, such as truck drivers and retail store clerks, to violence. The failure of New York policymakers to consider the broader effects of high cigarette taxes has been a mistake repeated across the country in the stampede to maximize tax revenue from this demonized product. Too often, policymakers do not consider these effects in the erroneous belief that people do not respond to government-created economic incentives. The negative effects of high cigarette taxes in New York provide a cautionary tale that excessive tax rates have serious consequences-even for such a politically unpopular product as cigarettes. Details: Washington, DC: Cato Institute, 2003. 20p. Source: Internet Resource: Policy Analysis no. 468: Accessed June 4, 2015 at: http://object.cato.org/sites/cato.org/files/pubs/pdf/pa468.pdf Year: 2003 Country: United States URL: http://object.cato.org/sites/cato.org/files/pubs/pdf/pa468.pdf Shelf Number: 108191 Keywords: Black MarketsCigarettesContraband TobaccoIllegal MarketsTax EvasionTobacco Control |
Author: European Commission. Directorate-General for Home Affairs Title: Study on Preventing and Fighting Illicit Trafficking in Cultural Goods in the European Union Summary: The trafficking in cultural goods is among the biggest criminal trades, estimated by some to be the third or fourth largest, despite the fact that, as INTERPOL notes, there are hardly any instruments for measuring this trade or any data on illicit commerce. The information dossier that UNESCO produced for the 40th anniversary of the 1970 Convention observes that, together with the drugs and armaments trades, the black market in antiquities and culture constitutes one of the most firmly rooted illicit trades in the world. Despite the difficulty of obtaining statistics, the scale of this phenomenon calls for concentrated and convergent efforts on the part of States and at the European and international levels. At stake is the safeguarding of the heritage of States. The European Union can today take a more active approach to preventing and combating the trafficking in cultural goods. As the Council of the European Union recalls, "one of the objectives of the European Union is to protect Europe's public and private cultural heritage by combating trafficking in cultural goods", and it further emphasizes that "in view of the economic and commercial dealings which characterise it and the artistic and cultural heritage which it contains, the territory of the European Union is a favoured target for criminal organizations". Hence the need to launch a specific reflection on developing more effective means within Europe, in close relation with the instruments developed at international level. It was with this in mind that the process of reflection in the context of this study, entrusted by the Commission to CECOJI, was undertaken. Details: Brussels: The European Commission, 2011. 192p. Source: Internet Resource: Accessed August 24, 2015 at: http://ec.europa.eu/home-affairs/doc_centre/crime/docs/Report%20Trafficking%20in%20cultural%20goods%20EN.pdf Year: 2011 Country: Europe URL: http://ec.europa.eu/home-affairs/doc_centre/crime/docs/Report%20Trafficking%20in%20cultural%20goods%20EN.pdf Shelf Number: 136560 Keywords: AntiquitiesBlack MarketsCultural HeritageIllicit TradingOrganized CrimeTrafficking in Cultural Goods |
Author: KPMG Title: Project Star: 2012 Results Summary: KPMG has conducted a study on the illicit cigarette consumption in the European Union, every year since 2006, as part of the Cooperation Agreement between Philip Morris International, the European Union and the EU Member States. For the first time in 2013, the study was commissioned by all four major tobacco manufacturers - British American Tobacco plc (BAT), Imperial Tobacco plc (Imperial), Japan Tobacco International (JTI) and Philip Morris International Inc. (PMI). In the first years of the study, "illicit whites" did not have a significant presence in the EU and therefore were not analyzed in detail. In the years that followed and as these products became increasingly present in the illicit cigarette market, KPMG has analyzed past data and has estimated that "illicit whites" represented 0.1 billion cigarettes in 2006 and 2.6 billion cigarettes in 2007 Details: London: KPMG, 2013. 234p. Source: Internet Resource: Accessed January 14, 2016 at: http://www.pmi.com/eng/media_center/media_kit/Documents/Project_Star_2012_Final_Report.pdf Year: 2013 Country: Europe URL: http://www.pmi.com/eng/media_center/media_kit/Documents/Project_Star_2012_Final_Report.pdf Shelf Number: 137577 Keywords: Black Markets Contraband Cigarettes Contraband Tobacco Illegal Cigarettes (Europe) Illegal Tobacco Illegal Trade |
Author: SKIM Consumer Research Title: The impact of a ban on slim cigarettes on illicit trade in Romania Summary: Aim of the study •Evaluate the impact of removing slim and super slim cigarettes from the Romanian legal market •Assess the willingness of consumers to purchase cigarettes from the black market in a scenario where no slim or super slim cigarettes are available in the legal market in Romania Conclusion When slim and super slim cigarettes were removed from the legal market, the preference for slim and super slim cigarettes sold through the black market increased significantly Details: Hoboken, NJ: SKIM Consumer Research, 2013. 108p. Source: Internet Resource: Accessed November 12, 2016 at: Year: 2013 Country: Romania URL: Shelf Number: 141112 Keywords: Black MarketsCigarettes Illegal Cigarettes Illegal Trade Tobacco Industry |
Author: Bodenhorn, Howard Title: Blind Tigers and Red-Tape Cocktails: Liquor Control and Homicide in Late-Nineteenth-Century South Carolina Summary: In 1893 South Carolina prohibited the private manufacture, transportation, and sale of alcohol and established a state monopoly in wholesale and retail alcohol distribution. The combination of a market decline in the availability of alcohol, reduced variety, and monopoly pricing at state-operated outlets encouraged black markets in alcohol. Because black market participants tend to resort to extra-legal mechanisms for dispute resolution, including violence, one result of South Carolina's alcohol restriction was an increase in homicide. A continuous-treatment difference-in-difference approach reveals that homicide rates increased by about 30 to 60 percent in counties that more vigorously enforced the law. Details: Cambridge, MA: National Bureau of Economic Research, 2016. 44p. Source: Internet Resource: NBER Working Paper Series: Working paper 22980: Accessed January 25, 2017 at: http://www.nber.org/papers/w22980.pdf Year: 2016 Country: United States URL: http://www.nber.org/papers/w22980.pdf Shelf Number: 140665 Keywords: Alcohol Law Enforcement Alcohol Related Crime, Disorder Black MarketsHomicides |
Author: KPMG Title: Project Sun: A study of the illicit cigarette market in the European Union, Norway and Switzerland. 2015 Results Summary: Key findings • Counterfeit and Contraband (C&C) as a proportion of total consumption declined marginally from 10.4% in 2014 to 9.8% in 2015 • The total volume of C&C consumed in the EU was 53.0 billion cigarettes with France and Poland experiencing the highest volumes • If the C&C volume in the EU had been consumed legally, an additional tax revenue of €11.3 billion would have been raised • By 2010 all four participants had signed agreements with OLAF committing to additional supply chain controls. C&C from lower priced countries within the EU has since declined from 22.2 billion to 6.5 billion cigarettes • Legal domestic consumption remained stable against a backdrop of improved economic conditions in many countries, whilst non-domestic legal (ND(L)) increased, supported by travel trends • Increased anti-illicit trade activity and border security reflected by a doubling in the volume of OLAF supported seizures, contributed to this overall decline of C&C • Illicit Whites brand flows, with limited or no legal distribution in the EU, again accounted for over one third of C&C, of which 5.3 billion cigarettes had Belarusian labelling • Counterfeit identified by the four participating tobacco manufacturers increased by 28% but remains less than 9% of illicit cigarette consumption in Europe • The changing mix of source countries and the increasing number of Illicit Whites brands demonstrates the flexibility of illicit cigarette flows Counterfeit and Contraband (C&C) declined by 6% against a backdrop of improved economic conditions and increased anti-illicit trade activities • Personal Disposable Income (PDI) increased by an average of 2.6%(2) across all EU member states, which may have contributed to a stabilisation of Legal Domestic Sales, reversing a five year trend • Many countries, especially in the Eastern EU, experienced more stable prices compared with 2014 when tobacco taxes increased to meet minimum EU excise requirements • Increased anti-illicit trade activity, as evidenced by a rise in the number of seizures made across Europe, may also have contributed to the C&C decline C&C remained at around 10% of total consumption, with Illicit Whites and counterfeit representing a greater share of illicit consumption Sources: (1) EU Flows Model 2009 – 2015 Share of consumption (%) 0 2 4 6 8 10 12 14 16 18 2009 2010 2011 2012 2013 2014 2015 3.7% 3.7% 3.7% 8.9% 9.9% 4.2% 5.0% 10.4% 12.6% 5.4% 14.1% 13.5% 15.2% 15.5% 15.8% 11.1% 10.5% 10.4% 5.9% 15.7% 9.8% Counterfeit and Contraband (C&C) Non-domestic legal (ND(L)) • Flows of C&C from outside of the EU were the largest component of C&C identified in the study • The overall proportion of Illicit Whites brand flows and counterfeit has grown to 44.3% in 2015 • The increased volume of seizures in Europe mainly identified counterfeit and Illicit Whites brand flows. Seizures of Duty Paid product from both within and outside the EU were limited C&C as a percentage of consumption was often highest in EU countries bordering lower priced non-EU countries • Eastern EU countries with high levels of C&C mainly bordered non-EU countries where average prices were 4 times lower • C&C as a percentage of consumption was also high in Greece, Norway, UK and Ireland, which also have the highest prices within Europe • Whilst not having the highest level of C&C as a proportion of consumption, the highest volume of C&C was identified in France Non-domestic legal (ND(L)) continued to increase against a backdrop of travel trends and price incentives Non-EU source products and counterfeit contributed an increasingly greater proportion of C&C The largest C&C source countries were those with the lowest prices on the Eastern EU border Illicit Whites brand flows continued to represent over one third of C&C in the EU, equating to 3.5% of total cigarette consumption Counterfeit experienced a 28% increase in volume, representing 9% of C&C consumption Details: London: KPMG, 2016. 208p. Source: Internet Resource: Accessed March 8, 2017 at: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/project-sun-report.pdf Year: 2016 Country: Europe URL: https://assets.kpmg.com/content/dam/kpmg/pdf/2016/06/project-sun-report.pdf Shelf Number: 141381 Keywords: Black Markets Contraband Cigarettes Contraband Tobacco Counterfeit ProductsIllegal Cigarettes (Europe) Illegal Tobacco Illegal Trade |
Author: Jenzen-Jones, N.R. Title: Web Trafficking: Analysing the Online Trade of Small Arms and Light Weapons in Libya Summary: The Libyan revolution deposed the Qaddafi regime in 2011, bringing to an end the tight regulation of the domestic arms trade. Military stockpiles were raided, and small arms and light weapons made their way into the hands of non-state armed groups and private sellers. The subsequent conflicts after the fall of the Qaddafi regime have resulted in more weapons flowing into the country. From a virtually non-existent domestic market, the revolution and its aftermath paved the way for a large illicit arms trade. Like their counterparts in many nations, some of the players in this new market now sell their wares via the Internet. Online sales via social media platforms are one of the tools currently being used for this purpose. ARES is delighted to announce that a new Working Paper, authored by ARES Director N.R. Jenzen-Jones & ARES Researcher Ian McCollum, and commissioned by the Geneva-based Small Arms Survey, has been released today. Working Paper 26 Web Trafficking: Analysing the Online Trade of Small Arms and Light Weapons in Libya provides an in-depth analysis of the trade in SALW in the online marketplaces of Libya. The Working Paper ties together interviews with marketplace participants with detailed analysis of a dataset derived from long-term monitoring of some of the closed social media-based groups listing small arms and light weapons for sale. It explores the types of weapons offered and their likely routes into the Libyan online markets. It concludes with a policy-relevant analysis of the current state of Libya's online markets and discusses the caveats and utility of such online monitoring for supplementing field-based research. The report indicates there is a "booming online black market" for arms and munitions, according to Director Jenzen-Jones. "It is reasonable to conclude that the online illicit weapons marketplace is growing in terms of both demand and supply," he said. Speaking with the Washington Post, Director Jenzen-Jones noted that "Whilst online trades appear to account for only a small portion of the illicit arms trade in Libya, this method's relative anonymity, low barrier to entry, and distributed nature means it is likely to pose unique challenges to law enforcement and embargo monitoring operations." Whilst companies responsible for some of the social media platforms which have been used for illicit arms trading have taken limited steps to curb the practice, the majority rely on users to report violations. ARES has documented several groups which have been shut down, only to reopen days or even hours later, with a core 'nucleus' of the same members. "It is difficult," Director Jenzen-Jones told the Christian Science Monitor, "to moderate these sellers effectively, due to the fluid nature of the trade." Numerous groups remain active in Libya and elsewhere. Details: Geneva, SWIT: Small Arms Survey, 2017. 112p. Source: Internet Resource: Accessed Mary 4, 2017 at: http://www.smallarmssurvey.org/fileadmin/docs/F-Working-papers/SAS-SANA-WP26-Libya-web-trafficking.pdf Year: 2017 Country: Libya URL: http://www.smallarmssurvey.org/fileadmin/docs/F-Working-papers/SAS-SANA-WP26-Libya-web-trafficking.pdf Shelf Number: 145313 Keywords: Black MarketsIllegal MarketsIllicit tradeOnline TradeSmall Arms SurveyTrafficking in Weapons |
Author: KPMG Title: Project Sun: study of the illicit cigarette market in the European Union, Norway and Switzerland Summary: Project SUN is KPMG's annual study that estimates the scale and development of the illicit cigarette market in the EU, Norway and Switzerland, commissioned by the Royal United Services Institute for Defence and Security Services. Key findings: Counterfeit and contraband (C&C) declined by 8.8%, to 48.3 billion cigarettes in 2016, but still accounted for over 9% of total consumption C&C continued to account over 9% of total consumption, representing a tax loss of up to L10.2 billion, making illicit trade one of the largest major competitors within the cigarette market In many cases illicit trade hotspots remained while the brands and countries of origin changed, demonstrating how local demand for illicit cigarettes continued despite the changing routes and sources used by cigarette smugglers Organised crime groups engaged in the illicit cigarette trade are increasingly diverse in the routes and methods they employ and in the products they manufacture, transport and sell. Details: London: KPMG, 2017. 234p. Source: Internet Resource: Accessed August 4, 2017 at: https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2017/07/project-sun-2017-report.pdf Year: 2017 Country: Europe URL: https://assets.kpmg.com/content/dam/kpmg/uk/pdf/2017/07/project-sun-2017-report.pdf Shelf Number: 146716 Keywords: Black MarketsContraband CigarettesContraband TobaccoIllegal Cigarettes (Europe)Illegal TobaccoIllegal TradeIllicit TradeOrganized Crime |
Author: Christin, Nicolas Title: An EU-focused analysis of drug supply on the AlphaBay marketplace Summary: Online anonymous marketplaces are a relatively recent technological development that enables sellers and buyers to transact online with far stronger anonymity guarantees than on traditional electronic commerce platforms. This has led certain individuals to engage in transactions of illicit or illegal goods. The AlphaBay marketplace, which was in operation between December 2014 and July 2017, reportedly became the leading marketplace during that time. In this report, we present an analysis of sales on AlphaBay, with a focus on drug supply coming from the European Union. Keeping in mind the limitations inherent to such data collection, we found that, for the period and the marketplaces considered: - AlphaBay did become a very large marketplace, with daily sales overall exceeding 600,000 euros at its peak in early 2017. By itself, it grossed at least as much revenue over 2014-2017 as all other marketplaces combined between 2011-2015. - EU-based suppliers represent approximately a quarter of all drug sales; this is down from 46% for marketplaces previously studied in the 2011-2015 interval. - EU-originating drugs primarily came from Germany, the Netherlands, and the United Kingdom. - Cannabis, cocaine and other stimulants altogether represented a majority of all EU-based drug sales. - Supply of New Psychoactive Substances (NPS) remained very modest with revenues below EUR 2,500 per day at market peak. - Marketplace vendors primarily catered in the retail space, but there was evidence of larger (bulk-level) sales. Volume-based discounting tended to occur, albeit at relatively modest levels. - Half of the vendors specialized in one type of drug; and half of the drug sellers tended to stick to a given weight echelon. - Save for the decreasing share of European sales, most of the trends observed in this report confirm what we had previously found for other marketplaces in the 2011-2015 interval. In other words, the ecosystem, as a whole, appears relatively stable over time. Details: Lisbon: European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), 2017. 34p. Source: Internet Resource: Accessed April 16, 2018 at: http://www.emcdda.europa.eu/system/files/attachments/6622/AlphaBay-final-paper.pdf Year: 2017 Country: Europe URL: http://www.emcdda.europa.eu/system/files/attachments/6622/AlphaBay-final-paper.pdf Shelf Number: 149803 Keywords: Black Markets Computer Crime CybercrimeDarknetDrug MarketsElectronic Commerce Online Transactions |
Author: Christin, Nicolas Title: An EU-focused analysis of drug supply on the online anonymous marketplace ecosystem Summary: Online anonymous marketplaces are a relatively recent technological development that enables sellers and buyers to transact online with far stronger anonymity guarantees than on traditional electronic commerce platforms. This has led certain individuals to engage in transactions of illicit or illegal goods. This reports presents an analysis of the online anonymous marketplace data collected by Soska and Christin [13] over late 2011-early 2015. In this report, we focus on drug supply coming from the European Union. Keeping in mind the limitations inherent to such data collection, we found that, for the period and the marketplaces considered: EU-based suppliers represented a significant share of all drug revenue-approximately 46% of all drug sales. EU-originating drugs primarily came from Germany, the Netherlands, and the United Kingdom. Cocaine and other stimulants altogether represented a majority of all EU-based drug sales. Supply of New Psychoactive Substances (NPS) was heavily concentrated in the United Kingdom, and remained very modest with revenues in the order of EUR 3,000 per day at market peak. Marketplace vendors primarily catered in the retail space, but there was evidence of larger (bulk-level) sales. Volume-based discounting tended to occur, albeit at relatively modest levels. Half of the vendors specialized in one type of drug; and half of the drug sellers tended to stick to a given weight echelon. Details: Lisbon: European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), 2017. 25p. Source: Internet Resource: Accessed April 16, 2018 at: http://www.emcdda.europa.eu/system/files/attachments/6624/EU-focused-analysis-of-drug-supply-on-the-anomymous-online-marketplace.pdf Year: 2017 Country: Europe URL: http://www.emcdda.europa.eu/system/files/attachments/6624/EU-focused-analysis-of-drug-supply-on-the-anomymous-online-marketplace.pdf Shelf Number: 149804 Keywords: Black Markets Computer Crime Cybercrime Darknet Drug Markets Electronic Commerce Online Transactions |
Author: Finlay, Brian D. Title: Public Threats, Private Solutions: Meeting Nonproliferation Challenges with the Force of the Market Summary: The rapid pace and geographic breadth of technology innovation; the rapidity and volume of international trade; globalized business practices from outsourcing to offshoring and supply-chaining; the atomization of government interests and bureaucratic organization; and the inherent inability of governments to act at the speed of 21st-century commerce: these are but a few factors negatively influencing our ability to manage the lengthening global proliferation supply chain. The net result has been the global diffusion of the "means of production" of weapons of mass destruction (WMD) at the very moment that the traditional instruments of control are being challenged by downward budgetary pressures in government, complex cost-benefit calculations by political leaders, and a rapid evolution of the nature and modalities of the proliferation threat. These realities necessitate the advent of new approaches that better match and ultimately defeat emerging avenues for proliferation threats. Governments can no longer be solitary nonproliferation activists. The end of the last millennium brought with it a host of challenges that transcend national borders and institutional and conceptual boundaries: 9/11 and the rise of non-state actors, global disease pandemics, economic crises, and climate change. Globalization has clearly yielded a more uncertain and potentially dangerous world. A rapid increase in the movement of goods and people around the world has fueled a concomitant rise in illicit trade and a surge in profits to global gray and black markets. In 2012 the United Nations (UN) Secretary General's report noted that while over 500 million maritime containers move around the world every year, accounting for 90 percent of international trade, only 2 percent of these containers are physically inspected for contraband on an annual basis. In 2009, the UN Office on Drugs and Crime (UNODC) estimated that transnational organized crime generates $870 billion a year, an amount equal to 1.5 percent of the global gross domestic product and six times the amount of official development assistance. More recent estimates put this number even higher, at closer to $3 trillion annually. Cybercrime, for which private industry bears most of the cost, is also surging. Cyber activities have increased by 26 percent since 2012, and reportedly now cost victims $11.56 million per year. And successive reports by the UN Sanctions Committees on North Korea and Iran demonstrate the widespread exploitation of private industry as both a witting and unwitting facilitator of proliferation. For security analysts, the conclusion is clear: globalization has made the world a far less safe and predicable place. Yet these grand challenges resulting from globalization have also yielded heretofore unimagined technological, economic, and development opportunities in virtually every corner of the globe. For instance, thanks in large measure to globalization, extreme poverty has declined significantly over the last two decades. In 1990, nearly half of the population in the developing world lived on less than $1.25 a day. Today, that proportion has dropped to just 14 percent - the largest mass migration from poverty in human history. For most of the planet's population, globalization and technology diffusion are rightly celebrated as truly life-changing - and in many cases life-saving - phenomena. Details: Washington, DC: Stimson Center, 2016. 40p. Source: Internet Resource: Accessed May 10, 2018 at: https://www.stimson.org/sites/default/files/file-attachments/public-threats-private-solutions.pdf Year: 2016 Country: International URL: https://www.stimson.org/sites/default/files/file-attachments/public-threats-private-solutions.pdf Shelf Number: 150134 Keywords: Black MarketsCybercrimeCybersecurityIllicit TradeOrganized CrimeSecuritySupply Chains |