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Date: November 22, 2024 Fri

Time: 12:03 pm

Results for illicit trade

104 results found

Author: Global Witness

Title: Loupe Holes: Illicit Diamonds in the Kimberley Process

Summary: The illicit trade in rough diamonds is one of the greatest threats facing the Kimberley Process (KP) certification scheme. The KP was created to halt and prevent the trade in conflict diamonds that cost so many lives during the last two decades. This paper reviews the issues around illicit flows of rough diamonds, particularly in countries facing serious challenges in controlling the artisanal mining sector. It presents the results of a survey assessing how participant countries are enforcing KP controls and monitoring the dismond industry, and puts forward specific reommendations for changing the way the KP is managed and implemented.

Details: Washington, DC: Global Witness Publishing; Ottawa, ONT: Partnership Africa Canada, 2008. 6p.

Source: Internet Resource

Year: 2008

Country: Africa

URL:

Shelf Number: 118576

Keywords:
Conflict Diamonds
Illicit Diamonds
Illicit Trade

Author: Ramos, Alejandro

Title: Illegal Trade in Tobacco in MERCOSUR Countries

Summary: This study examines the background to the illicit trade in tobacco in each of the four MERCOSUR countries (Argentina, Brazil, Paraguay and Uruguay) based on primary sources, such as interviews with law enforcement agents and customs agencies and, where possible, with participants and former participants in the illicit trade, and through secondary sources of information including journalistic, legal and institutional report.

Details: Montevideo, Uruguay: ciet Uruguay (Centro de Investigacion de la epidemia de tabaquismo), 2009. 73p.

Source: Internet Resource; Working Paper

Year: 2009

Country: South America

URL:

Shelf Number: 118540

Keywords:
Illegal Tobacco
Illicit Trade

Author: Ferrier, Peyton

Title: The Economics of Agricultural and Wildlife Smuggling

Summary: The United States bans imports of certain agricultural and wildlife goods that can carry pathogens or diseases or whose harvest can threaten wildlife stocks or endanger species. Despite these bans, contraband is regularly uncovered in inspections of cargo containers and in domestic markets. This study characterizes the economic factors affecting agricultural and wildlife smuggling by drawing on inspection and interdiction data from USDA and the U.S. Fish and Wildlife Service and existing economic literature. Findings reveal that agricultural and wildlife smuggling primarily include luxury goods, ethnic foods, and specialty goods, such as traditional medicines. Incidents of detected smuggling are disproportionately higher for agricultural goods originating in China and for wildlife goods originating in Mexico. Fragmentary data show that approximately 1 percent of all commercial wildlife shipments to the United States and 0.40 percent of all U.S. wildlife imports by value are refused entry and suspected of being smuggled.

Details: Washington, DC: U.S. Department of Agriculture, Economic Research Services, 2009. 35p.

Source: Internet Resource; Economic Research Report No. 81. Accessed August 16, 2010 at: http://www.ers.usda.gov/publications/err81/err81.pdf

Year: 2009

Country: United States

URL: http://www.ers.usda.gov/publications/err81/err81.pdf

Shelf Number: 116551

Keywords:
Agricultural Crime
Illicit Trade
Offenses Against the Environment
Smuggling
Wildlife Crime

Author: Hartelius, Jonas

Title: A Draft Convention on Illicit Trade in Precious Metals and Precious Gems

Summary: Unregulated or illegal production and trade in precious metals, such as platinum, and precious gems, such as diamonds, have become a source of funding for conflicts. Efforts to curb and control the illegal handling of such metals and gems have had only limited success to date. An over-arching legal framework has been lacking. Considering the need for an international framework, the EastWest Institute and the Swedish Carnegie Institute have commissioned Jonas Hartelius, Senior Fellow at EWI and Scientific Adviser to the SCI, to draft a proposed convention for the United Nations. Such a convention would provide a legal framework for efforts by all parties involved to create a transparent and responsible trade in such metals and gems. The publishers hope this draft for a convention will initiate further discussions.

Details: New York: EastWest Institute and Swedish Carnegie Institute, 2009. 46p.

Source: Internet Resource: Accessed October 9, 2010 at: http://www.ewi.info/draft-convention-illicit-trade-precious-metals-and-precious-gems

Year: 2009

Country: International

URL: http://www.ewi.info/draft-convention-illicit-trade-precious-metals-and-precious-gems

Shelf Number: 119904

Keywords:
Illicit Trade
Metal Theft
Precious Metals

Author: Aguiar, Jose Carlos

Title: Stretching the Border: Smuggling Practices and the Control of Illegality in South America

Summary: The Tri-Border Region in South America spreads across the frontiers of Paraguay, Brazil and Argentina. It encompasses a trans-border urban conglomerate of about 600 thousands inhabitants in the three countries. Through the years, it has been a frontera porosa (porous border) where trafficking boomed after Paraguayan dictator Alfredo Stroessner declared Ciudad del Este a free-trade zone in the 1960s. The city soon became a shopping paradise for counterfeit cigarettes and spirits. Yet, since the 2000s there are signs of some reordering in the region. In the aftermath of the attacks of September 11, 2001, the United States government encouraged national states to control the flows of people and goods at the region. Allegedly, illegal activities are headed by international networks, which would finance religious extremism around the globe. The governments have accordingly launched a number of plans to improve surveillance, such as the Integrated System of Migration Registration (SICaM in Spanish) in Argentina in 2005 and the 'sacoleiro law' in 2009, an attempt to regulate smuggling in Brazil. Paraguay has also embarked in 2009 in the renewal of the customs office at the international bridge. These policies reveal programmes of increasing state intervention to halt trafficking in electronics, drugs, weapons and humans, and any kind of undocumented border crossing. This article poses the concept border synergy to capture the mobility of goods and values across boundaries, which entails a double connotation, that of the border as the national limit between countries, but also the one defining legal and illegal domains. This argument is based on ethnographic material gathered at the Tri-Border Region during a period of three years. Participant observations, interviews and visual recording were among the research techniques applied. The informants include local entrepreneurs and sellers, social workers, religious leaders, municipal and federal authorities, and smugglers. Polyphony guarantees here a dense ethnographic description. The results presented give evidence from an anthropological perspective on the trans-border smuggling across the national frontiers of Argentina, Brazil and Paraguay, and the extent economic agents manipulate borders in region. The policies implemented to 'regulate' smuggling and halt illegal practices at the Tri-Border Region raise relevant questions regarding the study of border cities, transnational trade and illegality.

Details: Santiago, Chile: Global Consortium on Security Transformation, 2010. 25p.

Source: Internet Resource: New Voices Series, No. 6: Accessed November 2, 2010 at: http://www.securitytransformation.org/images/publicaciones/181_New_Voices_Series_6_-_Stretching_the_Border_-_Smuggling_Practices_and_the_Control_of_Illegality_in_South_America.pdf

Year: 2010

Country: South America

URL: http://www.securitytransformation.org/images/publicaciones/181_New_Voices_Series_6_-_Stretching_the_Border_-_Smuggling_Practices_and_the_Control_of_Illegality_in_South_America.pdf

Shelf Number: 120164

Keywords:
Border Security
Drug Trafficking
Illicit Trade
Smuggling

Author: Haken, Jeremy

Title: Transnational Crime In The Developing World

Summary: This report analyzes the scale, flow, profit distribution, and impact of 12 different types of illicit trade: drugs, humans, wildlife, counterfeit goods and currency, human organs, small arms, diamonds and colored gemstones, oil, timber, fish, art and cultural property, and gold. Though the specific characteristics of each market vary, in general it can be said that these profitable and complex criminal operations originate primarily in developing countries, thrive in the space created by poverty, inequality, and state weakness, and contribute to forestalling economic prosperity for billions of people in countries across the world.

Details: Washington, DC: Global Financial Integrity, 2011. 68p.

Source: Internet Resource: Accessed February 8, 2011 at: http://www.gfip.org/storage/gfip/documents/reports/transcrime/gfi_transnational_crime_high-res.pdf

Year: 2011

Country: International

URL: http://www.gfip.org/storage/gfip/documents/reports/transcrime/gfi_transnational_crime_high-res.pdf

Shelf Number: 120716

Keywords:
Art Crime
Counterfeiting
Drug Trafficking
Financial Crimes
Human Trafficking
Illicit Trade
Offenses Against the Environment
Transnational Crime
Wildlife Crime

Author: 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 Markets
Counterfeit Products
Illegal Tobacco
Illicit Trade
Smuggling
Terrorism

Author: Snyder, Neil N.

Title: Disrupting Illicit Small Arms Trafficking in the Middle East

Summary: "The illicit trade in small arms and light weapons delivers a global supply of weapons and ammunition to the demand of rogue state and non-state actors. While arms do not create conflict, they increase the intensity of violent conflict. The illicit trafficking of small arms contributes to irregular conflicts in the Middle East, a region of persistent conflict and instability. The international community has attempted to regulate the global supply of small arms through non-binding agreement and embargoes, but these efforts have been ineffective in achieving the goal of preventing the flow of weapons to criminal organizations, terrorists, and other de-stabilizing non-state actors. This thesis systematically examines the illicit small arms trade to identify points of vulnerability. This study identifies a strategy to disrupt the flow of arms to specific groups or states by countering arms brokers and the networks of actors that brokers coordinate."

Details: Monterey, CA: Naval Postgraduate School, 2008. 87p.

Source: Internet Resource: Thesis: Accessed February 17, 2011 at: https://www.hsdl.org/?view&doc=107048&coll=limited

Year: 2008

Country: International

URL: https://www.hsdl.org/?view&doc=107048&coll=limited

Shelf Number: 120811

Keywords:
Arms Trafficking (Middle East)
Illicit Trade
Organized Crime
Terrorists

Author: Chonaill, Siobhan Ni

Title: Assessing the Illegal Trade in Cultural Property from a Public Policy Perspective

Summary: The aim of this research is to explore new ways of curtailing the illegal trade in cultural property. Despite a range of legislative and policy interventions, the trade in illicit art and antiquities continues to flourish, resulting in damage to the arts, scholarship and heritage. Through an exploration of existing intervention tools, two case studies and a set of key informant interviews, this study demonstrates the existing difficulties in curtailing the market in cultural property and explores the potential for new policy interventions. More specifically, we map the supply chain for the illegal trade in cultural property and explore the failures of current policy interventions through two case studies, the Medici trading cartel and the Beit collection robberies. We conclude with a number of research and policy conclusions.

Details: Santa Monica, CA: RAND, 2011. 36p.

Source: Internet Resource: Accessed April 28, 2011 at: http://www.rand.org/pubs/documented_briefings/DB602.html

Year: 2011

Country: International

URL: http://www.rand.org/pubs/documented_briefings/DB602.html

Shelf Number: 121572

Keywords:
Cultural Property
Illegal Trade
Illicit Trade
Visual Arts

Author: Allen, Elizabeth

Title: The Illicit Trade in Tobacco Products and How to Tackle It

Summary: This publication aims to raise awareness of the growing and evolving illicit trade in tobacco products. It is a compilation of facts and views from a wide range of sources including respected academics, private sector consultants, journalists, international enforcement organizations, government revenue authorities and industry. It defines the different aspects of illicit trade and provides information on ways of measuring its size. It analyzes the nature of the problem, its causes and consequences, and offers authorities best practice guidance on implementing anti-illicit trade strategies. Case studies are used to provide evidence of good practice and global efforts to tackle this serious problem.

Details: Brussels: International Tax and Investment Center, 2011. 36p.

Source: Internet Resource: Accessed May 11, 2011 at: http://www.iticnet.org/Public/PublicDocLanding.aspx?id=41&type=Brussels

Year: 2011

Country: International

URL: http://www.iticnet.org/Public/PublicDocLanding.aspx?id=41&type=Brussels

Shelf Number: 121692

Keywords:
Illegal Cigarettes
Illegal Trade
Illicit Trade
Smuggling
Tobacco

Author: International Tax

Title: The Relationship Between Taxation, Consumption and Smuggling of Tobacco

Summary: In this paper, we review analysis published recently by the World Bank and others looking at the impact of cigarette taxation on tobacco consumption and smuggling, focusing on four key issues: • The effect of increases in taxation on overall tobacco consumption, smuggling and government revenues — The World Bank (1999) argues that higher taxation will lead to a significant reduction in cigarette consumption, especially in middleand low-income economies, while at the same time increasing government tax revenues. But our analysis demonstrates that, although higher taxes may have a significant impact on legitimate (ie tax-paid) tobacco sales, its impact on overall consumption is likely to be mitigated by a marked rise in purchases of smuggled cigarettes. As well as limiting the impact of higher taxation on overall tobacco consumption, smuggling also undermines the tax base, reducing government revenues. Moreover, high taxes — particularly under an ad valorem regime — encourage consumers to trade down to cheaper cigarettes, which also reduces government revenues. • Tobacco smuggling: the role of tax differentials and its wider impact on society — Merriman et al (2000) argue that it is the ease of tax evasion rather than price differentials that are most important in determining the level of tobacco smuggling in a country. But while we would accept that there is sometimes a relationship between the general level of corruption in a country and the extent of cigarette smuggling, we would challenge the claim that corruption is more important in influencing smuggling than cigarette taxes and prices. Experience in the UK and US, for example, demonstrates that high excise taxes can generate a serious problem with smuggling even in countries with very effective law enforcement and administration. Moreover, it is important to recognise the other costs associated with measures that encourage tobacco smuggling, such as increased criminality and the creation of infrastructures that allow smuggling of other products as well. • The role of governments: law enforcement and administration — The World Bank (1999) claims that increasing the certainty and severity of law enforcement and prosecution is the most straightforward and sometimes the most effective way of discouraging smuggling. But while sensible regulatory and administrative policies have an important part to play in countering smuggling, experience in the UK, for example, shows that Customs enforcement measures have only a limited impact while large tax differentials persist, and are also very expensive to implement. • The effect of benchmark tax rates for cigarettes and their relationship with purchasing power — The World Bank (1999) suggests that cigarette taxation should be set at two-thirds to four-fifths of the total retail price of cigarettes. This is far too simplistic a prescription. It makes no allowance for local conditions, such as the level of income, efficiency of Customs enforcement, tax rates in neighbouring economies, etc. Measured relative to purchasing power, cigarette taxes in many developing economies are already significantly higher than in developed countries. Raising excise taxes in such circumstances would encourage increased smuggling and criminality, and undermine the government tax base.

Details: Washington, DC: ITIC, 2003. 12p.

Source: Internet Resource: Accessed May 11, 2011 at: http://www.iticnet.org/Public/other_publications.aspx#divYear2003

Year: 2003

Country: International

URL: http://www.iticnet.org/Public/other_publications.aspx#divYear2003

Shelf Number: 121716

Keywords:
Illicit Trade
Taxation
Tobacco Smuggling

Author: Kar, Dev

Title: Illicit Financial Flows from the Least Developed Countries: 1990–2008

Summary: This paper explores the scale and composition of illicit financial flows from the 48 Least Developed Countries (LDCs). Illicit financial flows involve the cross-border transfer of the proceeds of corruption, trade in contraband goods, criminal activities and tax evasion. In recent years, considerable interest has arisen over the extent to which such flows may have a detrimental impact on development and governance in both developed and developing countries alike. This issue has been recognised by the UN as important for development and achievement of the Millennium Development Goals (MDGs). Illicit capital flight, where it occurs, is a major hindrance to the mobilisation of domestic resources for development. In many cases, it significantly reduces the volume of resources available for investment in the MDGs and productive capacities. Through the United Nations, the international community has committed to strengthen national and multilateral efforts to address it. As the deadline for achievement of the MDGs draws closer, it is vital understand more about the nature of this problem and to explore possible policy solutions, especially for those countries furthest off-track towards the MDGs. The study’s indicative results find that illicit financial flows from the LDCs have increased from US$9.7 billion in 1990 to US$26.3 billion in 2008 implying an inflation-adjusted rate of increase of 6.2 percent per annum. Conservative (lower-bound) estimates indicate that illicit flows have increased from US$7.9 billion in 1990 to US$20.2 billion in 2008. The top ten exporters of illicit capital account for 63 percent of total outflows from the LDCs while the top 20 account for nearly 83 percent. Trade mispricing accounts for the bulk (65-70 percent) of illicit outflows from the LDCs, and the propensity for mispricing has increased along with increasing external trade. Empirical research on illicit flows indicates that there are three types of factors driving illicit flows—macroeconomic, structural, and governance-related. The ratio of illicit outflows to Gross Domestic Product (GDP) averages about 4.8 percent but there is wide variation among LDCs. Of the top 10 countries with the highest illicit flows to GDP ratio, four are small island countries, two are landlocked, and four are neither. In some LDCs, losses through illicit capital flows outpace monies received in official development assistance (ODA). Estimating illicit flows from some LDCs is problematic because the underlying macroeconomic or partner-country trade data are either non-existent or spotty due to widespread on-going or recent conflict and/or weak statistical capacity. Complete macroeconomic and partner-country trade data were available for 34 LDCs, while 11 report partial data to the IMF and 3 are nonreporters. The report thus presents an estimate of illicit flows from some of the non-reporting and partially reporting countries based on the assumption that illicit flows from these countries are in the same proportion to GDP as are outflows from other reporting LDCs with complete data. The results of this study are indicative but demonstrate a clear need for further research in this area given the scale of the development challenges which currently face the Least Developed Countries and the need to ‘think outside the box’ and find innovative development solutions. The paper presents a number of useful measures LDCs may wish to consider to curtail the generation and transmission of illicit financial flows. The international community must also play its part. However, even where policy measures are well designed and targeted, lasting improvements in this area can only be achieved when there is the sufficient political will and leadership to tackle corruption and some of the root causes of illicit financial flows. For the Least Developed Countries, policy recommendations include measures to address trade mispricing through for instance systematic customs reform and the adoption of transfer pricing regulations with commensurate increase in enforcement capacity. The implementation of specialised software which helps governments to identify possible incidences of transfer pricing may also be useful to some governments. Measures to reform the tax base through the progressive strengthening and widening of the tax base in order to reduce dependence on indirect taxes which are more difficult to manage and have built-in incentives for tax evasion may also be beneficial. Ultimately tax is the most sustainable source of finance for development and the long-term goal of poor countries must be to replace foreign aid dependency with tax self-sufficiency. However taxation reform must be seen as equitable and fair and must not unduly burden the poorest. The international community must also support LDCs’ efforts to curtail the illicit outflow of capital. This includes specific measures to support LDCs to improve the systematic exchange of tax information between governments on non-resident individuals and corporations while the adoption of globally consistent regulations for transfer pricing could encourage multinational companies to modify their behaviour towards more transparency and accountability. The UN’s Model Income Tax Treaty refers to the importance of automatic exchange of information between national tax authorities in different jurisdictions. In order to stem tax avoidance by multinational corporations, the international community could support the development of an international accounting standard requiring that all multi-national corporations report sales, profits, and taxes paid in all jurisdictions in their audited annual reports and tax returns.

Details: New York: United Nations Development Programme, 2011. 68p.

Source: Internet Resource: Accessed May 19, 2011 at: http://www.gfip.org/

Year: 2011

Country: International

URL: http://www.gfip.org/

Shelf Number: 121767

Keywords:
Corruption
Financial Crimes
Illicit Trade
Money Laundering
Tax Evasion

Author: ETH Zurick

Title: Problem-Analysis Report on Counterfeiting and Illicit Trade

Summary: Counterfeiting and product piracy constitute a serious and ever growing problem against legally run businesses and owners of intellectual property rights. Counterfeiting is not specific to any industry but it affects a large number of sectors such as the music, software, and luxury goods industries, and also pharmaceutical industry, automobile industry, fast moving consumer goods industry, and toys. According to the International Chamber of Commerce, “[c]ounterfeiting and piracy are growing exponentially in terms of volume, sophistication, range of goods, and countries affected - this has significant negative economic and social impact for governments, consumers and businesses [...].” Product counterfeiting has many victims: Different kinds of counterfeit products threaten the health and safety of end-users and consumers, sometimes with the most serious consequences. Legally run businesses and governments are affected by a number of direct and indirect economic losses which decreases the welfare of affected societies. By understanding and continuously surveying the problem and available countermeasures, however, companies can protect their products and mitigate the negative impacts and ensure the safety of consumers. In addition, alongside with the development of technologies that enable counterfeiting on an industry scale, technology also allows for novel countermeasures. Most importantly, mass-serialization is changing the way product information is managed by giving unique identities to individual items. One implication of this higher level of information granularity is that the physical security of products can be improved in terms of novel anti-counterfeiting techniques, as well as with the detection of illicit trade activities. The potential of RFID and the EPCnetwork in enabling these novel anti-counterfeiting and anti-fraud techniques is well recognized. Even though it seems that there will never be one silver bullet solution against illicit trade, industries and academia see mass-serialization among the most promising single countermeasures. There are two major reasons for using EPCnetwork technology in anti-counterfeiting: First, RFID allows for new, automated and secure ways to efficiently authenticate physical items. Secondly, as many companies invest in networked RFID technology for varying supply chain applications, the item-level data will be gathered in any case – so why not using it to find counterfeit products? This report will provide a problem analysis of product counterfeiting and illicit trade as a first step towards making use of the potential of networked RFID technology to counter the problem of illicit trade.

Details: Paris(?): BRIDGE (Building Radio Frequency IDentification for the Global Environment), 2007. 55p.

Source: Internet Resource: Accessed October 3, 2011 at: http://www.bridge-project.eu/data/File/BRIDGE%20WP05%20%20Anti-Counterfeiting%20Problem%20Analysis.pdf

Year: 2007

Country: International

URL: http://www.bridge-project.eu/data/File/BRIDGE%20WP05%20%20Anti-Counterfeiting%20Problem%20Analysis.pdf

Shelf Number: 122969

Keywords:
Consumer Fraud
Crime Prevention
Illicit Trade
Intellectual Property Rights
Product Counterfeiting

Author: Farah, Douglas

Title: Fixers, Super Fixers and Shadow Facilitators: How Networks Connect

Summary: The multi-billon dollar illicit trade of commodities (from cocaine to blood diamonds, weapons and human beings) has many complexities, from creating or extracting the product to moving the product to international markets to delivering payments. The return cycle is equally complex, including the types of payments used to acquire the commodities, from cash to weapons and other goods the seller may need. This cycle relies on a specific group of individuals who act as facilitators in connecting different facets of the criminal and/or terrorist networks of state and non-state actors. This chapter addresses this crucial role of a cohort of actors -- “fixers,” “super fixers” and “shadow facilitators” -- in empowering social networks that operate within illicit commodity chains.

Details: Alexandria, VA: International Assessment and Strategy Center, 2012. 26p.

Source: Internet Resource: Accessed May 13, 2012 at http://www.strategycenter.net/docLib/20120423_Farah_FixersSuperFixersShadow.pdf

Year: 2012

Country: United States

URL: http://www.strategycenter.net/docLib/20120423_Farah_FixersSuperFixersShadow.pdf

Shelf Number: 125252

Keywords:
Criminal Networks
Illicit Trade
Transnational Crime

Author: Mell, Andrew

Title: Are "Gangstas" Peacocks? The Handicap Principle and Illicit Markets

Summary: Criminals who wear gang colors are acting in a surprisingly brazen way which must increase the probability of being caught and punished by the police. In our model this brazen behavior is a solution to an enforcement problem. The central idea is that less able criminals see lower gains from continued participation in crime because they will be caught and punished more often. Lower future gains imply that reputational concerns will be less effective at enforcing honesty. Only dealing with brazen criminals will become a good way to avoid dealing with incompetent criminals, because they cannot afford to mimic the brazen behavior. The principle is similar to the selection for a handicap in evolutionary biology.

Details: Oxford, UK: University of Oxford, Department of Economics, 2011. 32p.

Source: Internet Resource: Discussion Paper Series No. 558: Accessed July 24, 2012 at: http://www.economics.ox.ac.uk/index.php/papers/details/department_wp_558/

Year: 2011

Country: International

URL: http://www.economics.ox.ac.uk/index.php/papers/details/department_wp_558/

Shelf Number: 125755

Keywords:
Criminal Behavior
Gang Colors
Illegal Markets
Illicit Trade

Author: TRANSCRIME

Title: Analysis of the Draft Protocol to Eliminate Illicit Trade in Tobacco Products

Summary: This report analyses the Draft Protocol to Eliminate Illicit Trade in Tobacco Products, currently under negotiation by the Intergovernmental Negotiating Body established by the Conference of the Parties to the World Health Organisation's Framework Convention on Tobacco Control. This study assesses the impact of the Draft Protocol on the illicit trade in tobacco products, identifying strong and weak points and possible improvements. This report also surveys the existing measures falling within the scope of the Draft Protocol in four countries in different continents (Canada, Italy, Singapore and South Africa), highlighting the differences and the incoherence among the surveyed countries.

Details: Trento, Italy: Transcrime, 2012. 73p.

Source: Internet Resource: Accessed September 18, 2012 at: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Analysis_of_the_Draft_Protocol_to_eliminate_ITTP.pdf

Year: 2012

Country: International

URL: http://transcrime.cs.unitn.it/tc/fso/pubblicazioni/AP/Transcrime-Analysis_of_the_Draft_Protocol_to_eliminate_ITTP.pdf

Shelf Number: 126366

Keywords:
Illegal Tobacco
Illicit Trade

Author: Financial Action Task Force

Title: Illicit Tobacco Trade

Summary: The Financial Action Task Force (FATF) Plenary met in Mexico City, during June 2011. It was at said Plenary where a proposal to conduct typology research work into money laundering and terror financing to be associated with the Illicit Trade in Tobacco (ITT) was accepted. March of 2011 also saw the OECD launch the “Oslo Dialogue” with the aim of promoting a whole of government approach to the tackling of financial crimes and illicit flows. This has been augmented by the G20 calling for strengthened inter-agency cooperation to fight illicit activities as well as the FATF adding tax crimes to the list of predicate offences. The proponents of the typology stated that the illicit tobacco trade was prone to money laundering. Trade was considered to be cash intensive and profitable whilst being accompanied by low levels of risk posed to the criminal groupings (in terms of detection, seizures, penalties, criminal procedure) contributing towards the manifestation of the related illicit activities. Key areas of concern included: a) Loss of revenue to the fiscal authorities. b) The use of the illicitly generated proceeds (i.e., to fund other crimes or the financing of terror). c) The ability to distinguish between illicit activities as undertaken by licit and illicit players in the tobacco sector. d) To identify the extent that governments enforcement agencies prioritise the addressing of illicit trade in tobacco when compared to other crimes. It was furthermore mentioned that the project was to augment work already conducted by the FATF, which included Trade Based Money Laundering (June 2006), Laundering the Proceeds of VAT Carousel Fraud (February 2007), ML Vulnerabilities in Free Trade Zones (February 2010) as well as the then recently published Global ML/TF Threat Assessment (June 2010). The identified key objectives were: a) To determine the extent of the Money Laundering and Terror Financing (ML/TF) vulnerabilities associated with illicit trade in tobacco at a global, regional and domestic level. b) To identify relevant case studies and determine trends and patterns from a global, regional and domestic perspective. c) To identify possible indicators which may assist financial and non financial institutions in developing mechanisms to identify, report and counter smuggling activities and the misuse of trade practices. d) To assist jurisdictions and FATF-Style Regional Bodies (FSRBs) in knowledge building and the identification of harms, drivers and measures associated with the illicit trade in tobacco. e) To enhance the efforts aimed at curbing ML and TF associated with the illicit trade in tobacco. This document provides a synopsis of the nature and extent of the ML/TF risks currently associated with the illicit trade in tobacco. It contains an overview of the problem statement and the data provided, as well as an analysis of the predicate offences, extent of associated money laundering and terror financing activities coupled lastly to the various jurisdictional enforcement responses to the curbing of this specific phenomenon.

Details: Paris: FATF, 2012. 80p.

Source: Internet Resource: Accessed october 4, 2012 at: http://www.fatf-gafi.org/media/fatf/documents/reports/Illicit%20Tobacco%20Trade.pdf

Year: 2012

Country: International

URL: http://www.fatf-gafi.org/media/fatf/documents/reports/Illicit%20Tobacco%20Trade.pdf

Shelf Number: 126552

Keywords:
Financial Crimes
Illicit Trade
Money Laundering
Terrorist Financing
Tobacco

Author: Stiles, Daniel

Title: Stolen Apes - The Illicit Trade in Chimpanzees, Gorillas, Bonobos and Orangutans. A Rapid Response Assessment

Summary: The illegal trade in wildlife makes up one part of the multi-billion dollar business that is environmental crime and is increasingly being perpetrated at the cost of the poor and vulnerable. These criminal networks, operating through sophisticated chains of intermediaries, steal the heritage and the natural resources of countries and communities working towards sustainable development, jeopardizing existing successes in the achievement of the Millennium Development Goals and undermining the transition towards resource-efficient Green Economies. UNEP, working with partners such as INTERPOL and operating under agreements like the UNEP-hosted Convention on the International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the UNEP/UNESCO Great Apes Survival Partnership (GRASP), is attempting to bring attention to the issue, build awareness at the political and public levels and catalyze a response. This report focuses on the trade of great apes – bonobos, chimpanzees, gorillas and orangutans. The trafficking of these animals adds additional and unwelcome pressures on the already endangered species, which in many of their range States, attract tourism and thus contribute to the local economy. The trafficking of great apes is not new – it has gone on for well over a century. But the current scale of trafficking outlined in this report underlines how important it is that the international community and the organizations responsible for conserving endangered species remain vigilant, keeping a step ahead of those seeking to profit from illegal activities. The illegal trade in great apes mirrors the recent spike in elephant and rhino poaching, as well as the rise in illegal logging. UNEP and INTERPOL recently launched a report showing that between 50 and 90 per cent of the logging taking place in key tropical countries of the Amazon Basin, Central Africa and Southeast Asia is being carried out by organized crime, threatening not only local species – including many great apes where they occur – but also jeopardizing efforts to combat climate change through initiatives such as the United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (UN-REDD) In a world where natural resources are increasingly scarce, addressing illegal activities on the ground and across supply chains is increasingly challenging. However, such action should be also an opportunity to improve cooperation between nations and ensure a more sustainable planet.

Details: Arendal, Norway: United Nations Environment Programme, GRID-Arendal, 2013. 56p.

Source: Internet Resource: Accessed March 12, 2013 at: http://www.grida.no/publications/rr/apes/

Year: 2013

Country: International

URL: http://www.grida.no/publications/rr/apes/

Shelf Number: 127927

Keywords:
Animal Poaching
Champanzees, Gorillas, Bonobos, Orangutans
Illicit Trade
Wild Animal Trace
Wildlife Crime

Author: Great Britain HM Revenue and Customs

Title: Tackling Tobacco Smuggling–building on our success

Summary: The Government believes that tobacco smuggling must be tackled head on. Tobacco fraud costs taxpayers over £2 billion a year, depriving the general public of revenue to fund vital public services that support us all. The availability of illegal tobacco products undermines public health objectives and impacts on the health of both individuals and wider communities; circumventing health labelling requirements and age of sale restrictions. Since Her Majesty’s Revenue and Customs’ (HMRC) “Tackling Tobacco Smuggling” Strategy was first introduced in 2000 the size of the illicit cigarette market has been cut by almost half with more than 20 billion cigarettes and over 2,700 tonnes of hand-rolling tobacco seized. There have been more than 3300 criminal prosecutions for tobacco offences following action by our officers. The smuggling of cigarettes and hand-rolling tobacco is also a key business for organised criminal gangs who use the proceeds of this crime to fund the smuggling of drugs, weapons and also human beings. It harms the overwhelming majority of law-abiding businesses who sell tobacco products legally, diverting revenues from retailers all over the country. This Government is committed to stepping up action to deal with this problem and “Tackling Tobacco Smuggling –building on our success” shows how HMRC with the support of UK Border Agency will work together to ensure that those who think that this is a quick, easy and above all profitable crime are targeted, tackled and punished.

Details: London: HM Revenue & Customs and the UK Border Agency, 2011. 18p.

Source: Internet Resource: Accessed June 18, 2013 at: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_MiscellaneousReports&propertyType=document&columns=1&id=HMCE_PROD1_031246

Year: 2011

Country: United Kingdom

URL: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_MiscellaneousReports&propertyType=document&columns=1&id=HMCE_PROD1_031246

Shelf Number: 129011

Keywords:
Border Security
Cigarettes
Illicit Trade
Organized Crime
Tobacco Smuggling (U.K.)

Author: Reed, Howard

Title: Tobacco Taxation, Smuggling & Smoking in Ireland

Summary: In 2011, the Irish Heart Foundation commissoned Landman Economics to assess the future impact of tax increases on smoking rates and the illicit trade in tobacco. The study shows that a €1 tax increase on a packet of 20 cigarettes would bring in €68 million in extra receipts and a further €28 million in indirect public finance benefits. Such an increase would also result in some 30,000 people quitting smoking in Ireland. Given that roughly one in two smokers ultimately die from the habit, this single action would help up to 15,000 people countrywide to live longer. In addition to a price increase, the report recommends: A Government commitment to a price escalator whereby tobacco taxes rise by a certain amount each year in future budgets (for example, 5 percent per year above inflation). Expenditure on anti-smuggling operations such as enforcement and supply chain control should be increased by around €8 million per year. This would match per capita spending in the UK where smuggling has been reduced from 21% to 12% despite regular tax increases above inflation. A similar reduction here would bring in around €130 million of extra revenue to the Exchequer per year.

Details: Dublin: Irish Heart Foundation, 2011. 89p.

Source: Internet Resource: Accessed July 23, 2013 at: http://www.irishheart.ie/media/pub/advocacy/Tobaccotaxationsmugglingandsmoking.pdf

Year: 2011

Country: Ireland

URL: http://www.irishheart.ie/media/pub/advocacy/Tobaccotaxationsmugglingandsmoking.pdf

Shelf Number: 129488

Keywords:
Cigarette Smuggling (Ireland)
Illegal Trade
Illicit Tobacco
Illicit Trade
Tax Revenues

Author: Woodiwiss, Michael

Title: Moralism, Mafias and Markets: The evoluation of popular and governmental understanding of organized crime

Summary: By June 2012, 147 nations had signed the United Nations (UN) Convention against Transnational Organized Crime (UNTOC). Most governments, therefore, broadly share a common understanding of the problem and ways to combat it. From the background literature to the Convention it is also clear that it followed on from the 1988 UN Convention against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances and was thus part of an effort to strengthen the global drug prohibition regime as well as to bring some order to a world where illicit trading flows seem to be out of governmental control. By signing the Convention governments agreed to put in place organized crime control methods mainly pioneered in the United States or recommended by the United States as transnational policing has evolved to combat what is now commonly perceived as an international security threat. These methods include anti-money laundering measures, the confiscation of criminal assets, the ending of bank secrecy, the protection of witnesses, the carrying out of international joint police investigations, the exchange of information, and the provision of mutual legal assistance. In 2010 the United Nations Office on Drugs and Crime (UNODC) launched a publication entitled, The Globalization of Crime; A Transnational Organized Crime Threat Assessment. This represents the international community's current understanding and approach to organized crime and is already influencing the way individual states present the problem to their peoples. The report featured a large number of maps and charts to illustrate illicit trading flows and their markets. It found that, 'Drugs remain the highest value illicit commodities trafficked internationally, by quite a wide margin' and added that the 'flows coming closest are actually those best integrated into licit markets - counterfeit goods and illicit timber - as well as those involving illicit human movements'. The hope was that an effective review mechanism to measure progress and identify needs would emerge from the UNODC's research efforts. This paper tracks the evolution of the understanding of organized crime from its American origins to the analysis outlined in the UNODC report. It begins by describing the construction of narratives that convinced people first in the U.S. and then internationally of the need for drastic and co-ordinated action against organized crime, and the evolution of widely-accepted but inadequate national and international responses to organized and transnational organized crime. Although there are methodological flaws and false assumptions in the UNODC's analysis, as pointed out by Peter Andreas, this paper finds much that is positive in it, particularly in the move away from conspiracy interpretations towards the need for a better and more insightful understanding of criminal markets. At the same time, the analysis warns that a radical departure from the current prohibitive approach to the many and varied kinds of drugs now available in the global marketplace is required in order to limit the undoubtedly destructive impact of organized criminal activity to any significant extent.

Details: Bristol, UK: University of the West of New England, 2013. 18p.

Source: Internet Resource: Working Paper: Accessed July 2, 2014 at: http://eprints.uwe.ac.uk/22126/2/MoralismFinalVersion.pdf

Year: 2013

Country: International

URL: http://eprints.uwe.ac.uk/22126/2/MoralismFinalVersion.pdf

Shelf Number: 132607

Keywords:
Illegal Trade
Illicit Trade
Organized Crime

Author: Caneppele, Stefano

Title: Crime Proofing of the New Tobacco Products Directive

Summary: This study concerns the crime proofing of the Proposal for the Revision of the Tobacco Products Directive presented in December 2012, and it is an update of a study on the crime proofing of the policy options under consideration of the revision of Directive 2001/37/EC. The crime proofing of legislation is a scientific approach developed by Transcrime in 2006 (Savona, 2006a; Savona, 2006b; Savona, Calderoni et al., 2006; Savona, Maggioni, et al., 2006; Morgan and Clarke, 2006; Albrecht and Kilchling, 2002). The core idea is that legislation may produce unintended opportunities for crime, thereby having potential criminogenic effects. When these opportunities and where they may occur is known, the legislation may be "proofed" against crime. This study is concerned with the impact of the new Tobacco Products Directive (TPD) on crime, and all the more so on the Illicit Trade in Tobacco Products (henceforth ITTP), an area that has not been considered by any of the impact assessment studies carried out by the EU Commission in preparation of the new Directive. Consequently, no knowledge is officially available on the impact of the new regulation upon the ITTP. This report aims at filling this gap by using the available data and making estimates. In January 2012, Transcrime presented a study which proofed the policy options under consideration for the revision of EU Directive 2001/37/EC against the risks of unintended criminal opportunities for the illicit trade in tobacco products (Calderoni, Savona, & Solmi, 2012). The study highlighted that "DG SANCO paid almost no attention to the impact on the ITTP" and that "certain measures considered for the revision of the TPD may have serious consequences" regarding possible risks of increased ITTP (Calderoni et al. 2012, p.42). The impact assessment (IA) released on December 2012 denies the risks of the ITTP. The EU Commission declared "that the preferred policy options do not [ in the assessment of the Commission - lead to increased illicit trade" (European Commission, 2012a, p. 6). More than being the result of an IA of the policy options and their trade-off on ITTP, this statement is an a priori assumption that excludes the area of crime from the IA carried out by the EU Commission. This is a serious flaw that may compromise the validity of the results of the impact assessment itself, and which does not comply with the EU's official impact assessment guidelines (European Commission, 2009).

Details: Trento, IT: Transcrime, 2013. 88p.

Source: Internet Resource: Accessed July 28, 2014 at: http://www.transcrime.it/wp-content/uploads/2013/11/Crime-Proofing-of-the-NEW-TPD_6.pdf

Year: 2013

Country: Europe

URL: http://www.transcrime.it/wp-content/uploads/2013/11/Crime-Proofing-of-the-NEW-TPD_6.pdf

Shelf Number: 132805

Keywords:
Cigarette Smuggling (Europe)
Counterfeiting
Illegal Tobacco
Illicit Trade
Tobacco Smuggling
Underground Economy

Author: Lallerstedt, Karl

Title: Illicit Trade Flows: How to deal with the neglected economic and security threat

Summary: Illicit trade flows generate massive costs for the EU, yet the countermeasures have been inadequate. A shortage of data, the tendency to look at different forms of illicit trade as separate phenomena, and the complexity of the problem have led to an under-prioritisation of illicit trade among policymakers. Globally, the illicit trade in products that replace those that are generally licit (such as counterfeit goods and contraband excise goods) represents the biggest monetary turnover and hurts government and corporate revenues directly. Still, it is particularly under-prioritised. Synergistic effects for smuggling different items relate to the fact that there are over one thousand international poly-crime groups operating in the EU, the same smuggling routes can be used for different commodities, and the same corrupt officials or purveyors of false documentation can deliver their services to multiple "operators". Illicit trade also makes the EU more vulnerable to terrorist attacks. It finances terrorist organisations, and well-established smuggling routes make the borders more porous. To address the problem, better data need to be generated showing its extent and impact. Taking a holistic view of the various aspects of illicit trade is important to facilitate coordination among the relevant authorities. The costs of this work represent investments which - beyond enhancing security - will generate income by boosting tax revenues, reducing crime, creating jobs and driving economic growth.

Details: Helsinki: Finnish Institute of International Affairs, 2014. 10p.

Source: Internet Resource: FIIA Briefing Paper 151: Accessed August 11, 2014 at: http://www.fiia.fi/en/publication/405/illicit_trade_flows/

Year: 2014

Country: Europe

URL: http://www.fiia.fi/en/publication/405/illicit_trade_flows/

Shelf Number: 132970

Keywords:
Economic Crime
Illegal Trade (Europe)
Illicit Trade
Smuggling

Author: Segura, Renata

Title: The Global Drug Policy Debate. Experiences from the Americas and Europe

Summary: The cultivation, trafficking and consumption of illegal drugs have historically posed a multilayered series of challenges to the state: from how to minimize health risks and provide treatment and support to those who use drugs, to the security and governance threats posed by trafficking groups and networks. While global in nature, the challenges presented by the illicit drug trade are also contextual. Lack of progress in addressing the manifold challenges posed by the illicit drug trade has led to a growing acknowledgement of the need for a serious rethink of global drugs policy. The authors underscore the importance of, and encourage the creation of national and regional commissions that are tasked with reviewing current drug policies and recommending changes. It also examines current calls in Latin American for a review of the so-called 'war on drugs', highlighting the role that outspoken leaders are playing in shaping the debate on drug policy, as well as current shifts from a policing-focused approach to one that accounts for the safety and health of drug users. The paper looks in particular detail at the experiences of Mexico, Central America and the Caribbean, arguing that other transit regions such as West Africa should consider implementing multi-faceted strategies to respond to drug trafficking and the growing incidence of drug consumption. In this regard, it highlights examples of how exclusive reliance on repressive strategies known as mano dura can often backfire, resulting in the displacement of trafficking routes, an increase in violence, prison overcrowding and further marginalization of vulnerable populations. Finally, it highlights some actions the West Africa Commission on Drugs might adopt for its own advocacy strategy including strategic diplomacy, the development and dissemination of empirically-grounded papers on the impact of drug trafficking, drug consumption and treatment in the West Africa sub-region, and discussions and debates with relevant stakeholders on the findings of such reports; engagement of civil society; and raising of public awareness. The West Africa Commission on Drugs is faced with the difficult task of advocating for policies aimed at preventing or mitigating problems of drug use, criminality, violence, and threats to governability that have been experienced by other countries, without having complete certainty on how -or even if- the same challenges will arise in Africa. Carrier and Klantsching, in their book "Africa and the War on Drugs" argue that historical analysis would indicate that Africa might be spared from the destiny of the Andean countries, and that more harm can be done by implementing a prohibitionist regime that assumes an identical path will be followed. This warning should not fall on deaf ears. However, critics of their argument have underscored the dangers of understating the "growing power of drug money in African electoral politics, local and traditional governance, and security" (Gberie, 2012; Cockayne, 2012). They have also pointed out that having a critical perspective on the existing drug control regime must not mean turning a blind eye to the threats that come with drug trafficking and consumption, such as corruption and the emergence of criminalized states (Kavanagh et al, 2013). Similarly, while drug consumption rates currently remain relatively low in Africa, the situation can change rapidly, as happened in some Latin American countries. As noted by UNODC (2013), there are already strong indications that drug use is on the rise in West Africa. It is naturally easier to achieve the political support needed to implement policies that respond to serious problems, such as a health epidemic or extended violence, than to embrace innovative and data-based policies in order to prevent or mitigate these problems. Explaining to both elites and the population why it is indispensable that West Africa act assertively to pre-empt a situation that may emerge will be a central challenge for the WACD. This paper examines such efforts in the Americas and Europe, drawing lessons for West Africa. It argues that the current drug control regime does provide some leeway for implementing policy reforms that move away from the prohibitionist regime, and provides examples of alternative policies that have been introduced by national and local authorities in different countries. The paper provides examples from Europe to underscore the importance of using empirical research and sound data to design drug policies, highlighting successful examples of harm reduction programs, and examining ways in which governments have moved away from legal frameworks that rely on the criminalization of drug use.

Details: Geneva, SWIT: Kofi Annan Foundation and the West Africa Commission on Drugs, 2013. 42p.

Source: Internet Resource: WACD Background Paper No. 7: Accessed August 12, 2014 at: http://www.wacommissionondrugs.org/wp-content/uploads/2013/12/Global-Drug-Policy-Debate-Experiences-2013-11-28.pdf

Year: 2013

Country: International

URL: http://www.wacommissionondrugs.org/wp-content/uploads/2013/12/Global-Drug-Policy-Debate-Experiences-2013-11-28.pdf

Shelf Number: 133013

Keywords:
Drug Enforcement
Drug Policy
Drug Reform
Drug Trafficking
Illegal Drugs
Illicit Trade
War on Drugs

Author: Grant Thornton

Title: Illicit Trade in Ireland: Uncovering the cost to the Irish economy

Summary: Although frequently thought of as a victimless crime, illicit trade has a significant impact on the Irish economy. The objective of this report is to provide a detailed assessment of illicit trade in Ireland across a select number of sectors, namely fuel, tobacco, digital media and pharmaceuticals. With regard to each of these sectors, the report seeks to understand the impacts, identify key drivers behind these illicit trades, and where possible, quantifies the losses to the economy. Ultimately this report proposes an integrated approach to tackling the problem of illicit trade in Ireland. What is illicit trade? The most common definition of illicit trade is that used by the World Health Organisation (WHO) which covers many different areas that go beyond the scope of this report. These include money laundering, cash transaction, human trafficking and the trade in illegal drugs. Within the context of this report, the term "illicit trade" is more narrowly defined as: - Intellectual Property Crime (IPC); - Contraband; and - Illegal manufacturing. Importance of intellectual property It is widely accepted that the recognition of Intellectual Property ("IP") plays a vital role in promoting innovation and stimulating the economy in order to foster growth. Therefore, it is vital that appropriate legal recognition, public policies and enforcement is in place to ensure that IP and brands are protected. Illicit Trade in Ireland Despite the importance of IP rights and an increased emphasis on IP protection, significant levels of illicit trade remain in operation throughout the Irish economy. Illicit Trade in Ireland is not confined to a single industry but is present in a broad spectrum of activity across the Irish economy. The scale and scope of illicit trade in Ireland has resulted in significant losses to the Irish economy. The losses suffered include a number of important stakeholders such as right holders, retailers, consumers, the Government and the wider economy. Whilst almost every area of the general economy is subject to losses as a result of illicit trade, this report has narrowed its focus to a number of core areas which are having the most detrimental effect on the Irish economy. To address any problem, the first step should be to understand the problem and in this report we have attempted to do just this. The estimates that we have provided in this report show that illicit trade could be costing right holders as much as L547m per annum and the Irish Exchequer as much as L937m per annum.

Details: Dublin: Retail Ireland, 2013. 73p.

Source: Internet Resource: Accessed August 14, 2014 at: http://www.oireachtas.ie/parliament/media/committees/jobsenterpriseandinnovation/Illicit-Trade-in-Ireland-report.pdf

Year: 2013

Country: Ireland

URL: http://www.oireachtas.ie/parliament/media/committees/jobsenterpriseandinnovation/Illicit-Trade-in-Ireland-report.pdf

Shelf Number: 133069

Keywords:
Contraband
Costs of Crime
Crime Against Businesses
Financial Crimes
Illegal Manufacturing
Illicit Trade
Intellectual Property Theft
Money Laundering
Organized Crime (Ireland)
Retail Crime

Author: Paudel, Lekh Nath

Title: The Highway Routes: Small Arms Smuggling in Eastern Nepal

Summary: The Highway Routes: Small Arms Smuggling in Eastern Nepal, a new Issue Brief from the Small Arms Survey's Nepal Armed Violence Assessment project, examines various dimensions of the illicit trade in small arms in eastern Nepal, based on fieldwork conducted between December 2013 and April 2014, including over 100 interviews with representatives of law enforcement and the underworld. The Issue Brief analyses the sources of illicit small arms, the methods of smuggling and routes used, illicit trade and related activities, and the consumers and other actors involved, as well as relevant government policies. Its major findings include: ##Most firearms circulating in eastern Nepal are trafficked via the open border with India rather than the more heavily regulated frontier with China. They transit through towns and cities in the border areas to the main destinations of Kathmandu, Dharan, and Chitwan. - The trafficking of small arms in Nepal is predominantly an 'ant trade', carried out by individuals or loosely organized groups. ##Criminal elements increasingly prefer to rent rather than own illicit firearms because it reduces the likelihood of arrest. - The illicit traffic in small firearms is dominated by craft (country-made) and counterfeit guns. ##Government and police efforts to curb the trafficking of small arms and ammunition have included a range of legal and policy responses, with mixed results. 'Buy-and-bust' sting operations have succeeded in arresting and disbanding a number of smuggling rings, although some maintain that it is generally the carriers who are arrested rather than the main organizers.

Details: Geneva, SWIT: Small Arms Survey, 2014. 16p.

Source: Internet Resource: Accessed November 20, 2014 at: http://www.smallarmssurvey.org/fileadmin/docs/G-Issue-briefs/NAVA-IB4-Highway-Routes.pdf

Year: 2014

Country: Nepal

URL: http://www.smallarmssurvey.org/fileadmin/docs/G-Issue-briefs/NAVA-IB4-Highway-Routes.pdf

Shelf Number: 134165

Keywords:
Illicit Trade
Illicit Trafficking (Nepal)
Organized Crime
Smuggling
Trafficking in Weapons

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 Markets
Illegal Trade (Nepal)
Illicit Trade
Political Corruption
Terrorist Financinc

Author: TRANSCRIME

Title: European Outlook on the Illicit Trade in Tobacco Products

Summary: This study calls for a new direction to be taken in the analysis of, and the fight against, the illicit trade in tobacco products (ITTP) in the European Union (EU). It suggests that the focus should be trained more closely on the reduction of criminal opportunities than on crime control policies. This requires a change of mindset: from the conviction of criminals, hoping that this will eventually reduce crime, to the actual reduction of crime through specific prevention strategies. The study adopts two approaches. The first part (Framing the scene: the ITTP in the European Union) takes a "horizontal approach" and analyses selected components of the illicit cigarette market in the EU. The second part (Zooming the scene: the ITTP in the EU Member States and beyond) adopts "a vertical approach" and examines in detail the illicit markets within each EU Member State, as well as the role of selected non-EU European countries in the EU illicit market. Both the horizontal and the vertical approaches underscore the regulatory and law enforcement dimensions that influence the size and type of the ITTP in Europe and beyond. If the illicit cigarette trade is to be reduced, it is necessary to understand the trade-off between regulation of the legal market and the risk of creating criminal opportunities in the illicit market. Currently, policymakers regulate the legal market while leaving the fight against the illicit market to law enforcement. The reduction of criminal opportunities may reduce this trade-off, thus maximizing health and minimizing crime with lower costs.

Details: Trento: Transcrime - Universita degli Studi di Trento, 2015. 302p.

Source: Internet Resource: Accessed March 16, 2015 at: http://www.transcrime.it/wp-content/uploads/2015/01/European-Outlook-on-the-ITTP.pdf

Year: 2015

Country: Europe

URL: http://www.transcrime.it/wp-content/uploads/2015/01/European-Outlook-on-the-ITTP.pdf

Shelf Number: 134933

Keywords:
Cigarette Smuggling
Cigarettes (Europe)
Illicit Trade
Organized Crimes
Tobacco

Author: Transform Drug Policy Foundation

Title: Ending the War on Drugs: How to win the global drug policy debate

Summary: This is a guide to making the case for drug policy and law reform from a position of confidence and authority, with a particular focus on the issue of legal regulation of currently illegal drug markets - an issue that is now core to the drugs debate. It is for every policymaker, media commentator, and campaigner who not only recognises that the 'war on drugs' is a counterproductive failure that is creating catastrophic unintended consequences, but who also wants to convince others to back reform. It will equip you with the constructive arguments, different approaches and nuanced messaging needed to address the concerns and interests of diverse audiences. This will enable you to not just win the argument, but make the new allies needed to turn the current unparalleled momentum for reform into concrete policy change nationally and internationally.

Details: London: Transform Drug Policy Foundation, 2015. 176p.

Source: Internet Resource: Accessed March 18, 2015 at: http://www.tdpf.org.uk/resources/publications/ending-war-drugs-how-win-global-drug-policy-debate

Year: 2015

Country: International

URL: http://www.tdpf.org.uk/resources/publications/ending-war-drugs-how-win-global-drug-policy-debate

Shelf Number: 134951

Keywords:
Drug Enforcement
Drug Policy
Drug Reform
Drug Trafficking
Illegal Drugs
Illicit Trade
War on Drugs

Author: Hallaj, Omar Abdulaziz

Title: The balance-sheet of conflict: criminal revenues and warlords in Syria

Summary: The conflict in Syria is forging new forms of territorial control, and a political economy that is not unlike the patronage system that was previously fostered by the ruling Ba'ath party. As a result of the extended war efforts and the need for revenues to fund them, the national economy is now deeply affected by illicit activities such as trade in antiquities, oil and drugs, as well as smuggling, kidnapping, looting and extrajudicial land expropriations. Warlords and armed groups such as the Islamic State of Iraq and al-Sham (ISIS) and Jabhat al-Nusra (or the al-Nusra Front) must fund their military campaigns. However, at the same time, they have to balance the extraction of local revenues with the loyalty of the civilian populations they control. At stake are their reputations and their abilities to raise money from foreign donors and to perpetuate their coercive governance. This paper proposes a rough estimate of the size of the funding streams used by loyalist and rebel militias. The paper also argues that the creeds and beliefs that initiated the conflict are no longer the sole motors of violence; indeed, greed is increasingly shaping the nature of hostilities and the strategies adopted by armed groups. As a result, the framework proposed in the Geneva Communique for achieving peace in Syria is not likely to succeed alone in solving the conflict. Recent experiences in other countries suggest that transitional political arrangements for the transfer of power are failing to dislodge war profiteering. Additional approaches to enable a progressive recovery of livelihoods and the provision of local services should be considered a key part of the peacebuilding process. It is also vital to consider other factors sustaining the war economy, including international sanctions and external funding.

Details: Oslo: Norwegian Peacebuilding Resource Centre, 2015. 14p.

Source: Internet Resource: Accessed June 2, 2015 at: http://www.clingendael.nl/sites/default/files/Hallaj_NOREF_Clingendael_The%20balance-sheet%20of%20conflict_criminal%20revenues%20and%20warlords%20in%20Syria_Apr%202015_FINAL.pdf

Year: 2015

Country: Syria

URL: http://www.clingendael.nl/sites/default/files/Hallaj_NOREF_Clingendael_The%20balance-sheet%20of%20conflict_criminal%20revenues%20and%20warlords%20in%20Syria_Apr%202015_FINAL.pdf

Shelf Number: 135841

Keywords:
Illicit Trade
Looting
Smuggling
Terrorism Organizations
Terrorist Financing

Author: Gramizzi, Claudio

Title: Tackling illicit small arms and light weapons and ammunition in the Great Lakes and the Horn of Africa

Summary: Following a decision of the Council of the European Union on 27 February 2012, a two-year project on 'Supporting EU-China-Africa dialogue on conventional arms control' was launched on 5 June 2012. Implemented by Saferworld, together with the China Arms Control and Disarmament Association and the Africa Peace Forum the project was aimed at enhancing dialogue between the African, the Chinese and the European civil society and research communities on conventional arms control and the struggle against illicit proliferation and circulation of small arms and light weapons (SALW) through the creation of an 'Africa-China-EU Expert Working Group on conventional arms' (EWG) and its activities. During the project, the EWG, made up of nine high-profile arms control and non-proliferation experts from Africa, China and Europe, acted as a driving force to facilitate dialogue, dissemination of information and research, and to share ideas and expertise among its members and relevant partners on issues related to the illicit proliferation and circulation of SALW and conventional military equipment in Africa, with a specific focus on the Great Lakes and Horn of Africa region of the continent. The main objective of this working paper is to provide an assessment of the threats posed by the proliferation and illicit circulation of SALW and their impact on security and social-economic development in the countries of the Great Lakes and Horn of Africa; to illustrate the outcomes of the EWG activities and experiences; to highlight lessons learnt during the meetings and consultations held within the EWG and with relevant partners in Africa, China and the EU; and formulate recommendations regarding ways to maximise the results obtained over the two-year period of the project, and how this might be used to inform future work through Africa-China-EU tripartite cooperation in the area of SALW and arms control.

Details: London: Africa Peace Forum, China Arms Control and Disarmament Association, Saferworld, 2014. 34p.

Source: Internet Resource: Accessed July 30, 2015 at: http://www.saferworld.org.uk/resources/view-resource/838-tackling-illicit-small-arms-and-light-weapons-and-ammunition-in-the-great-lakes-and-the-horn-of-africa

Year: 2014

Country: Africa

URL: http://www.saferworld.org.uk/resources/view-resource/838-tackling-illicit-small-arms-and-light-weapons-and-ammunition-in-the-great-lakes-and-the-horn-of-africa

Shelf Number: 136279

Keywords:
Arms Trafficking
Illicit Trade
Organized Crime
Terrorists

Author: Iringe-Koko, Ibiere Belinda

Title: Illicit Tobacco: Policy Responses, Consumption and Attitudes

Summary: The existence of the illicit tobacco trade has serious implications for tobacco control efforts as it encourages smoking by providing tobacco products at a cheaper price. Although this illicit trade has serious ramifications for public health in England, there is very limited data on its nature, the extent of its use and smokers' views on illicit tobacco. This thesis aimed to address this by utilising a mixed methodology approach which consisted of population based surveys of English smokers and in-depth face-to-face interviews with smokers. Prevalence of illicit tobacco use appeared to decrease between 2007-8 and 2012, but there was an increase from 2010-11 to 2012. 'Under the counter' tobacco purchases in retail shops emerged as a prominent source of illicit tobacco, although smokers were able to access a number of illicit sources. Smokers who exclusively purchased illicit tobacco paid much less for their tobacco products compared with those who reported exclusive duty-paid tobacco purchases. Report of illicit tobacco use was more likely in younger smokers, males, smokers in low socio-economic groups, smokers of 'roll your own' tobacco and those with high tobacco dependence in 2012. However, this changed with each survey, as illicit tobacco use appeared to become more widespread across socio-demographic sub-groups. Illicit tobacco users reported lower levels of motivated to quit smoking. However, smokers in the interview study reported that loss of access to illicit tobacco would drive them to think about quitting or cutting down on their smoking. The interview study revealed that smokers were able to easily access illicit tobacco in their communities and social circles. In addition, smokers viewed the illicit tobacco market and illicit traders approvingly as providing a means of accessing affordable tobacco products. Furthermore, they were unperturbed by the illegality and associated criminality of illicit tobacco trade. Due to the nature of this illegal activity, further research should investigate how the illicit tobacco market evolves in response to policy efforts.

Details: London: University College London, 2013. 465p.

Source: Internet Resource: Dissertation: Accessed August 5, 2015 at: http://discovery.ucl.ac.uk/1463373/1/Belinda%20Iringe-Koko%20PhD%20THESIS%20%5BFINAL%5D.pdf

Year: 2013

Country: United Kingdom

URL: http://discovery.ucl.ac.uk/1463373/1/Belinda%20Iringe-Koko%20PhD%20THESIS%20%5BFINAL%5D.pdf

Shelf Number: 136326

Keywords:
Cigarettes
Illegal Tobacco
Illicit Tobacco
Illicit Trade

Author: Edwards, Charlie

Title: On Tap: Organised Crime and the Illicit Trade in Tobacco, Alcohol and Pharmaceuticals in the UK

Summary: The illicit trade in tobacco, alcohol and pharmaceuticals is often more attractive to organised criminals than, for example, drug trafficking, given that it is a low-risk and high-value activity. The high profit margins associated with illicit trade are used to fund other criminal activities - a fact not widely understood by the British public. The true scale of the illicit trade in the UK is hard to determine, but not impossible to measure. On Tap is the culmination of a twelve-month study on illicit trade conducted in three regions of the UK - the northwest, east and southwest of England. It provides the first in-depth investigation of the intersection of organised crime and illicit trade in tobacco, alcohol and pharmaceuticals, and suggests a number of steps the government and other actors should take to combat the problem.

Details: London: Royal United Services Institute for Defence and Security Studies, 2014. 79p.

Source: Internet Resource: Whitehall Report 3-14: Accessed August 5, 2015 at: https://www.rusi.org/publications/whitehallreports/ref:O54DB446798BA2/

Year: 2014

Country: United Kingdom

URL: https://www.rusi.org/publications/whitehallreports/ref:O54DB446798BA2/

Shelf Number: 136330

Keywords:
Illegal Products
Illegal Tobacco
Illicit Trade
Organized Crime

Author: Davis, Ian

Title: Organised crime, corruption and illicit arms trafficking in an enlarged EU: Challenges and perspectives

Summary: Although the end of the Cold War has significantly reduced the threat of nuclear war, it has also resulted in an increase in the number of local wars and civil conflicts throughout the world fought primarily with small arms and light weapons. Large quantities of small arms are in circulation today moving from one armed conflict to another, a process abetted by brokers, local arms dealers and certain producer governments. Weapons are being transferred regularly to regions of conflict in Africa, Asia and the Middle East, from areas with weak export controls and large surplus stocks, such as the former Soviet Union and Eastern Europe. However, more recently, traditionally safer areas such as Western Europe have also been adversely affected by the spread of small arms. Although the influx of weapons into the European Union (EU) is not overwhelming, there is a regular trickle of small arms primarily from the Balkan region, as well as from Eastern Europe, which could increase as the EU and the Schengen Rim both expand to the east and south-east. The collapse of the Soviet Union, the end of the Warsaw Pact and the wars in former Yugoslavia have resulted in a relaxation of border controls and an excess supply of light weapons, some of which have found their way into Europe. Small arms and light weapons (SALW) have fed the local criminal underworld as well as European terrorist groups, such as the Real IRA, thus contributing to the undermining of West European public safety. The EU looks set for significant expansion, which will compound the difficulties facing the control of illegal weapons proliferation, especially given that in some of the potential candidate countries, e.g. Cyprus, the components of former Yugoslavia, and to a lesser extent Hungary, organised crime is particularly strong. Moreover, as the EU expands, its outer rim will be policed and protected by state security forces and customs officials that may be less well-trained and capable overall than their current counterparts. Before too long, the EU might border unstable regions in former Yugoslavia and Albania. Although military conflict has been brought to an end in Kosovo and Bosnia, and former Yugoslav President Slobodan Milosevic has been ousted from power in Belgrade, the political situation in the region remains highly unstable. A renewal of violence and new demand for light weapons cannot be ruled out. Furthermore, the end of the wars in former Yugoslavia has resulted in widespread availability of cheap but powerful light weapons, many of which have ended up in the hands of local organised crime groups. These groups are now becoming increasingly powerful, as they forge links with well-established groups on the other side of the Adriatic. The spread of crime and instability, especially to the southern regions of Europe, could lead to further proliferation of light weapons in the region and eventually into the EU. The potential for a future light weapons proliferation crisis within the EU which is normally considered a secure area, therefore needs to be assessed.

Details: London: Saferworld, 2001. 70p.

Source: Internet Resource: Saferworld Arms & Security Programme: Accessed August 20, 2015 at: http://www.saferworld.org.uk/resources/view-resource/76-organised-crime-corruption-and-illicit-arms-trafficking-in-an-enlarged-eu

Year: 2001

Country: Europe

URL: http://www.saferworld.org.uk/resources/view-resource/76-organised-crime-corruption-and-illicit-arms-trafficking-in-an-enlarged-eu

Shelf Number: 136496

Keywords:
Corruption
Illicit Trade
Organized Crime
Trafficking in Weapons

Author: Environmental Investigation Agency

Title: Organised Chaos: The illicit overland timber trade between Myanmar and China

Summary: The conviction and subsequent pardon of 155 Chinese nationals in July for illegal logging in Myanmar threw a spotlight on how massive volumes of timber stolen from the county's precious frontier forests have been flowing unhindered into China for decades. The murky trade is worth hundreds of millions of dollars every year, making it one of the single largest bilateral overland flows of illegal timber in the world. The Environmental Investigation Agency (EIA) today releases a new report following extensive undercover investigations into the trade in China and Myanmar, exposing the key actors and systemic corruption which drive and facilitate it. Organised Chaos: The illicit overland timber trade between Myanmar and China documents how in Kachin State all parties profit, from shady Chinese businesses paying in gold bars for the rights to log entire mountains to the official corruption which allows the timber to pass through various checkpoints. Kachin and Yunnan Province in China are at the heart of trade but stolen timber is increasingly being sourced from deeper within Myanmar to feed factories in south and east China. The bulk of the timber moving across the border is now high value species of rosewood and teak. Talks between Myanmar and China are due to take place in Nay Pyi Taw, Myanmar, on September 24 and EIA calls on both countries to take urgent effective action against the massive illicit timber trade. Faith Doherty, EIA Forest Campaign Team Leader, said: "At first glance, this cross-border trade looks to be both chaotic and complex, with most of the stolen timber trafficked through Myanmar's conflict-torn Kachin State, but the reality beneath the apparent anarchy is an intricate and structured supply chain within which different players have defined functions and collude to ensure the logs keep flowing." The trade appeared to have peaked in 2005 when one million cubic metres of logs crossed the border but, following a brief hiatus when Chinese authorities clamped down, the scale is once again nearing peak levels. This trade contravenes Myanmar regulations prohibiting overland export of wood and the country's log export ban introduced in April 2014. At stake are some of the most ecologically important remaining forests in South-East Asia. EIA's evidence shows that as intensive logging exhausts forests in the border area, Chinese-run operations are encroaching deeper into Myanmar. Doherty added: "Both Myanmar and China need to take urgent and effective action to stem the torrent of illicit timber flowing across their joint border or watch conflict, violence and forest destruction continue to escalate."

Details: London: EIA, 2015. 24p.

Source: Internet Resource: Accessed September 18, 2015 at: https://drive.google.com/viewerng/viewer?url=https://eia-international.org/wp-content/uploads/EIA-Organised-Chaos-FINAL-lr1.pdf

Year: 2015

Country: Asia

URL: https://drive.google.com/viewerng/viewer?url=https://eia-international.org/wp-content/uploads/EIA-Organised-Chaos-FINAL-lr1.pdf

Shelf Number: 136814

Keywords:
Forests
Illegal Logging
Illicit Trade
Offenses Against the Environment
Timber

Author: Chaudhry, Peggy

Title: The Impact of Plain Packaging on the Illicit Trade in Tobacco Products

Summary: The illicit trade in consumer products is a dynamic problem with a global reach. Measuring the scale of this trade and the worldwide value of illicitly-traded products is inherently difficult given the illegal nature of this activity, but most accept that it has grown significantly over the last few decades. While the loss of tax revenue is the most measurable impact of illicit trade, other negative consequences center on: harm to consumers; damage suffered by intellectual property owners and legitimate supply chain members; and profits to organized criminal groups. Packaging is a critical deterrent to the counterfeiting of consumer products. Reflecting the challenges of measuring the scale of all global illicit trade, there are no reliable statistics for calculating precisely the size of the worldwide illicit tobacco problem. Some estimates suggest that around 10 to 11% of the global cigarette market is illicit, representing over 600 billion cigarettes a year. Cigarettes can be thought of as the 'ideal smuggled product' since the product is light, extremely valuable for its size and weight, and easy to transport and conceal in shipments of other products. There are various types of illicit tobacco products and the nature of this trade varies between markets. Some markets are mainly a source of illicit products, others are transit routes, and still others are destination markets for consumption. In this report, the serious illicit trade issues affecting the UK are used as a case study. Factors spurring the growth of illicit tobacco trade include: affordability of unlawful cigarettes compared to lawful ones; huge profit incentives for illicit traders; low criminal penalties disproportionate to these profit incentives; and widespread consumer complicity. This trade is assisted by the geographic characteristics of some markets (e.g., destination countries with borders more conducive to receiving illicit product). Currently packaging that is complex or innovative acts as a deterrent to counterfeiters of tobacco products since keeping up with the evolving packaging of genuine product is an expensive and time-consuming process. Packaging is also one of the few ways smokers and law enforcement agencies can use to assess whether a product is genuine or counterfeit. Illicit traders are often nimble, adapting to changing consumer demands and the regulatory environment. They enjoy the business benefits of product diversification without the regulatory constraints faced by manufacturers of legitimate product. The organized criminal gangs often behind the illicit tobacco trade also have the ability to exploit global networks of contacts and to work closely with other criminal enterprises. Tackling the illicit trade in tobacco products requires a multi-level response including national and international collaboration between regulators, enforcement agencies, and those who operate within the legitimate product supply chain. A careful review of the relationship between plain packaging for tobacco products and illicit tobacco trade is required given the pre-existing, serious societal impacts of this illegitimate trade. In our expert opinion, plain packaging for tobacco products will worsen the illicit trade in tobacco products as it would open a number of new opportunities for illicit traders. Notably, plain packaging will allow the illicit traders to provide counterfeit cigarettes using the mandated plain packaging specified by national legislation. The advent of plain packaging may also encourage new entrants to the lucrative business of counterfeiting cigarette packs since the costs and barriers of getting into this business will be reduced; reductions in start-up costs may encourage those without the resources to manufacture an authentic-looking copy of currently available sophisticated pack designs to begin counterfeiting plain packs. The recent Australian plain packaging legislation shows why this is the case: - Plain packs will be easier to counterfeit. In Australia, each cigarette pack can be covered only in a shade of "drab brown" specified by the regulator. In addition, the law forces the use of the most commonly counterfeited pack shape - a flip top box. - Illicit traders are effectively given a blueprint of 'how to make the pack.' Pack specifications will be made available online in contrast to the current practice where design specifications and colors are deliberately kept confidential in order to deter counterfeiters. - Static packaging reduces future cost burdens for illicit traders. A uniform pack design, like the one mandated in Australia, removes the need to keep up with the manufacturers' evolving pack innovations and developments, therefore, reducing the cost burden on counterfeiters since there will be no additional investment necessary until there is a further change in the law. - Plain packaging creates economies of scale in production. Once one plain pack brand is faked, the counterfeiter can reproduce packaging of each brand on the market with minimum effort since the only difference on each pack is the 'brand and variant names' that appear only in a specified font/size. Ironically, while plain packaging makes life easier and cheaper for counterfeiters, it may make life more difficult for consumers, retailers, and law enforcement agencies to differentiate between genuine and fake packs. Those who conduct forensic investigative analysis of packs may have to resort to more resource-intensive and time-consuming tools of verification in a plain packaging environment. Complex health warnings, tax stamps, or holograms will not be an effective deterrent to counterfeiting these much simpler packs. Such 'anti-counterfeiting' markings are already easily faked and counterfeiters generally only replicate enough to 'fool the consumer.' Track and trace requirements are also not the answer as these apply only to manufacturers of genuine product (and, even then, not all of them). In addition, these requirements cannot provide the information smokers need to tell if they have bought a fake pack. Plain packaging would also provide illicit traders with new opportunities to: - Offer counterfeit branded packaging that predates the introduction of the plain packaging measure. While brand owners will be prevented from using their iconic branding, criminals will not. Smokers who want to use familiar branded packs may continue to - wrongly - assume that the branded illicit product being offered is genuine but produced in another market when it is, in fact, fake. - Maintain or increase sales other types of branded packs: 'illicit whites' and contraband genuine product. In our expert opinion, plain packaging is highly likely to aggravate the existing negative impacts of the already serious and socially damaging trade in illicit tobacco. Since illicit products are often more accessible to those underage and those from low-income groups, plain pack laws risk undermining a key objective of plain packaging: to reduce smoking by these groups. We foresee that creating a plain packaging environment will also intensify the following serious societal impacts of the illegitimate trade: - Negative impacts on governments and taxpayers. The loss of tax revenues as more smokers shift from licit to illicit product has a multiplier effect since governments have less funding for healthcare, education, and other public services. 'Cross border shopping' is also likely to increase with the search for familiar branded packs providing an added incentive to the price benefits of buying packs abroad, further reducing government tax revenue in the smoker's 'home market.' - Detrimental influences on communities and society. An array of problems arises from illicit trade that range from cultivating consumers of illicit product who disrespect the law to fostering organized crime groups. These groups often penetrate low-income communities with their cheap products and enlist vulnerable people to perform perceived 'soft crimes,' such as 'ant smuggling.' In the long run, this illicit trade may 'normalize' criminal behavior and lead the individuals involved towards other acts of criminality. - Costs to legitimate manufacturers and retailers. Increased sales of fake products shift revenues from legitimate manufacturers and jobs from the highly-skilled legitimate workforce employed at all levels of the supply chain. Legitimate retailers already lose business to those involved in illicit tobacco trade. - Additional harmful effects to smokers. Regulators and public health officials have repeatedly expressed the concern that smokers are exposed to greater health risks by consuming illicit product. - Profits made by serious criminal organizations. The profits stemming from illicit tobacco trade are often used to finance other serious criminal or terrorist activity including prostitution, human trafficking, and trading of lethal weapons. In summary, we recommend a careful appraisal be given to these unintended negative consequences before plain packaging regulations are developed. Policy makers should be aware that plain packaging will, in our expert opinion, make the illicit trade in tobacco worse and these policy makers should therefore be exceptionally careful to ensure that such regulations do not inadvertently undermine anti-illicit trade programs and initiatives.

Details: Villanova, PA: The Authors, 2012. 187p.

Source: Internet Resource: Accessed September 30, 2015 at: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf

Year: 2012

Country: International

URL: http://www.peggychaudhry.com/publications/Impact_on_illicit_trade.pdf

Shelf Number: 136921

Keywords:
Cigarettes
Counterfeit Goods
Design Against Crime
Illegal Tobacco
Illicit Trade
Organized Crime

Author: Fanusie, Yaya J.

Title: Monumental Fight: Countering the Islamic State's Antiquities Trafficking

Summary: As the nation's largest professional organization of archaeologists on the Middle East holds its annual meeting this week in Atlanta, the Foundation for Defense of Democracies (FDD) has released a new report analyzing the strategic role of antiquities trafficking in funding the terrorist group known as Islamic State (IS). The report, "Monumental Fight: Combatting Islamic State's Antiquities Trafficking," provides the most comprehensive look to date at IS's involvement in the illicit trade. The report is co-authored by former CIA intelligence analyst Yaya J. Fanusie, now director of analysis at FDD's Center on Sanctions and Illicit Finance (CSIF), and Alex Joffe, an archaeologist and historian specializing in the Middle East and contemporary international affairs. The report explains how antiquities looting evolved in the region, analyzes how it fits within IS's overall system of territorial control and governance, and identifies strategies to stem the illegal trade. Fanusie and Joffe explain that although antiquities trafficking may not provide IS as much money as other revenue streams like oil smuggling, "the importance of the antiquities trade for IS lies ... in the market's strategic and operational benefits." Excavation sites are unlikely to be targeted by coalition military strikes. Moreover, they note, looting antiquities does not alienate the local population like IS's other common practices of extortion and theft. To capitalize on this strategic resource, IS completely dominates the antiquities trade in the areas under its control, forcing civilians to be licensed by IS before they can dig for artifacts, and takes 20 percent or more of the revenue from any items sold to smugglers, the report finds. The authors note that IS also leverages its plundering for its global propaganda. The group video records choreographed destruction of pre-Islamic heritage sites in Iraq and Syria to portray itself as a defender of religious purity. The authors point out the irony of IS's antiquities trade; the group makes money through end-buyers who mainly come from the U.S. and Europe--representatives of the very societies IS has pledged to destroy. The authors explain that although the precise smuggling routes, middlemen, and buyers are difficult to uncover because of the market's opacity, a review of official trade data shows an uptick in antiques exiting the Levant since the Syrian civil war began. They argue it is likely that much of this increase comes from looted items masqueraded as legally owned artifacts.

Details: Washington, DC: Foundation for Defense of Democracies, Center on Sanctions and Illicit Finance, 2015. 22p.

Source: Internet Resource: Accessed February 2, 2016 at: http://www.defenddemocracy.org/media-hit/new-report-outlines-ways-to-combat-islamic-states-antiquities-trafficking/

Year: 2015

Country: International

URL: http://www.defenddemocracy.org/media-hit/new-report-outlines-ways-to-combat-islamic-states-antiquities-trafficking/

Shelf Number: 137732

Keywords:
Antiquities
Art Theft
Illicit Trade
Islamic State
Looting
Terrorist Financing

Author: United Nations Office on Drugs and Crime (UNODC)

Title: Drug Money: the illicit proceeds of opiates trafficked on the Balkan route,

Summary: A new report launched today by the United Nations Office on Drugs and Crime (UNODC) shows that the total value of illicit heroin and opium trafficked from Afghanistan to Western Europe through the Balkans amounts to some $28 billion every year. Sixty-five per cent of this total ($18 billion) is generated in Western and Central Europe. The four largest European markets for heroin - France, the United Kingdom, Germany, and Italy - account for nearly half of the gross profits, as the major heroin benefits are made by traffickers on the retail markets. The report, entitled Drug Money: the illicit proceeds of opiates trafficked on the Balkan route, shows that the total value generated by Afghan heroin and opium trafficked in Europe and through the Balkan route is one third bigger than the entire GDP of Afghanistan itself, which, in 2014, amounted to some $21 billion. Other findings indicate that the negative economic impact of heroin and opium are actually greater in Europe and the Balkan route countries than in Afghanistan itself. The report also shows the Islamic Republic of Iran and Turkey as the two countries which interject the greater percentage of heroin and opium destined for Europe. Iran seizes about 30 per cent of the 155 tons of heroin and opium entering its territory every year, while Turkey seizes 17 per cent. All other countries in Europe interject an average of 6 per cent of heroin in their territory. Data show that the impact of illicit profits in the national licit economy across countries is significant, with heroin and opium traffickers gaining between 0.2 to 2 per cent of their country's GDP. For some countries this share is bigger than the public expenditures dedicated to drug policies - if all drugs, and not only heroin and opium, are considered. The large amounts of money generated through this illicit activity can distort the licit national economies in the region.

Details: Vienna: UNODC, 2015. 92p.

Source: Internet Resource: Accessed February 8, 2016 at: https://www.unodc.org/documents/data-and-analysis/Studies/IFF_report_2015_final_web.pdf

Year: 2015

Country: Europe

URL: https://www.unodc.org/documents/data-and-analysis/Studies/IFF_report_2015_final_web.pdf

Shelf Number: 137782

Keywords:
Drug Trafficking
Financial crime
Heroin
Illicit Trade
Opium

Author: INTERPOL. Office of Legal Affairs

Title: Countering Illicit Trade in Goods: A Guide for Policy-Makers

Summary: Illicit trade in goods is of growing concern internationally, and one of the greatest law enforcement challenges to date. It has various manifestations, involves many different actors and affects several interests at the same time. It is a high profit activity, the reason for its allure. While illicit trade has specific features, depending on the goods and the methods employed, calling for the adoption of targeted legal measures by States, one common denominator is the involvement of criminal organizations. These are often highly sophisticated, flexible structures, able to quickly adapt to market changes and grab new criminal opportunities. They resort to corruption and money laundering as the chief means of conducting their illicit trade business and re-introducing proceeds into the legal economy. They act transnationally by exploiting a global environment which encourages the free circulation of goods. This handbook presented by the INTERPOL Office of Legal Affairs is the first publication in its Legal Handbook Series. The aim of these publications is to provide a solid and thorough overview of illicit trade thereby guiding the reader through the applicable international legal frameworks and offering pioneering legal solutions. The Legal Handbook Series was developed to assist policy-makers in INTERPOL's member countries to design effective national strategies against illicit trade. Given the complexity of the problem, solutions are not easily arrived at in isolation. Working with other specialized agencies and optimizing the use of available expertise and resources has been a priority, ensuring the accuracy and relevance of the analysis. Hence this handbook is the result of close collaboration with various international organizations that have significantly contributed to it by providing their perspectives.

Details: Paris: INTERPOL, 2014. 260p.

Source: Internet Resource: Legal Handbook Series: Accessed February 25, 2016 at: www.interpol.int

Year: 2014

Country: International

URL: www.Interpol.int

Shelf Number: 137978

Keywords:
Illegal Trade
Illicit Goods
Illicit Trade
Organized crime

Author: INTERPOL. Office of Legal Affairs

Title: Countering Illicit Trade in Tobacco Products: A Guide for Policy-Makers

Summary: Illicit trade in tobacco products (ITTP) is a global occurrence, affecting all regions and countries. It holds an allure for criminals to engage in it as tobacco products are light, small, easy to transport and to conceal. Tobacco is one of the most smuggled commodities in the world, allowing offenders to amass huge profits. Further, penalties are often not sufficient to act as a deterrent. Illicit trade in tobacco products has negative and harmful consequences for countries at many levels. It affects consumers' health, reduces States' budgets, creates unfair competition for legitimate businesses, and feeds organized criminal groups who channel the profits obtained into other illegal activities. This handbook aims to offer the first comprehensive legal analysis of the international legal framework against the ITTP. It provides guidance to policy-makers and law enforcement authorities on the implementation of key international instruments in the field, with an emphasis on the new Protocol to Eliminate Illicit Trade in Tobacco Products. The ITTP holds many challenges for governments. One of the biggest is the involvement of organized criminal networks which employ increasingly sophisticated and varied methods to counterfeit and smuggle products. INTERPOL recognizes this as a growing issue threatening the security of States. A joint and coordinated effort is needed to find and implement lasting solutions to this multi-faceted problem.

Details: Lyon, France: INTERPOL Office of Legal Affairs, 2014. 290p.

Source: Internet Resource: Legal handbook Series: Accessed February 26, 2016 at: http://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-counterfeiting/Legal-assistance/Legal-publications

Year: 2014

Country: International

URL: http://www.interpol.int/Crime-areas/Trafficking-in-illicit-goods-and-counterfeiting/Legal-assistance/Legal-publications

Shelf Number: 137982

Keywords:
Counterfeit Goods
Illicit Goods
Illicit Trade
Organized Crime
Smuggled Goods
Tobacco
Tobacco Smuggling

Author: Organization for Economic Co-operation and Development (OECD)

Title: Illicit Trade: Converging Criminal Networks

Summary: Illicit trade is a worldwide phenomenon. Globalisation has provided opportunities for criminal networks to expand the scope and scale of their operations, with serious negative consequences for the economy, the environment and society. Illicit trade also undermines good governance, the rule of law and citizens' trust in government, and can ultimately threaten political stability. This report provides analysis of some of the main areas of illicit trade, including trafficking in persons, wildlife, counterfeit medicines, narcotics, tobacco, alcohol and sports betting. It looks at what drives and facilitates such activity, estimates the volume of trade and amount of revenue it generates, maps the pathways of illicit goods from production to consumer, describes the shortcomings of current policies for reducing or deterring illicit trade, and suggests avenues for improvement. Understanding illicit trade It is important to clearly define and measure illicit trade, and understand the context that allows it to flourish. However, countries - and sometimes regions within countries - do not always agree on what goods can be legally traded, and there is even greater variance in the application of quality standards and the protection of intellectual property rights. These differences can make cross-country measurement of illicit trade as a whole very difficult, which is why this report takes a sectoral approach. Our increasingly interconnected economies and societies have allowed organized crime to expand alongside the exponential growth in legitimate international trade. Criminal networks exploit differences in regulatory and tax regimes to move goods and services across borders. While exact measurements can be difficult given the clandestine nature of illicit transactions, one estimate puts the profits of international organised crime as high as USD 870 billion, or 1.5% of global GDP. Calculating and tracking the money made from these activities is important as it can provide crucial information to law enforcement. More data and information sharing is needed to develop a clearer understanding of illicit trade and how to combat it. A more holistic view of the cost of illicit trade also takes into account its harmful impacts on consumers, the environment, tax revenues and jobs. Traffic in humans and narcotics, for example, also exact a very heavy social toll. Illicit trade can also be closely linked to criminal violence and terrorism. Costs in terms of law enforcement, incarceration and rehabilitation should also be taken into account. Finally, illicit trade can cause longer-term damage to the rule of law, public trust, human capital and public health, as well as deter foreign investment. Trafficking in persons According to estimates by the International Labour Organisation (ILO), 20.9 million people are forced into slavery worldwide causing immense, long-term damage to individuals, communities, and nations. Trafficked persons tend to flow from poorer regions to richer regions and from conflict regions to more stable regions. Governments need to give priority to implementing laws for preventing trafficking, protecting victims and prosecuting both traffickers and the corrupt public officials who assist them. Illicit trade in wildlife Demand for elephant ivory and rhino horn has driven dramatic growth in illegal wildlife markets in recent years due primarily to a growing consumer base in East Asia. Taken together, all forms of wildlife trafficking constitutes one of the most lucrative forms of illicit trade, and the sector has more than doubled since 2007. Monitoring and enforcement in source countries can be effective means to reduce poaching, but training and information systems are needed to build adequate capacity. Counterfeit medicines The trade in counterfeit medicine is a huge industry, generating as much as USD 200 billion a year in tangible goods alone according to OECD's study of 2005 data, which is soon to be updated. It has a direct negative impact on health, depriving users of appropriate treatment and contributing to global microbial resistance. Pharmaceutical companies also suffer a loss in revenue and reputation, and increased costs for security. Successfully combatting counterfeiting will require more extensive information sharing across agencies and nations. Finally, the development and adoption of an international public health treaty would be a significant step toward protecting patients and public health globally. Tobacco products The illicit trade in tobacco is perhaps the most widespread and most documented sector in the shadow economy. It has been estimated that 570 billion illicit cigarettes were consumed worldwide in 2011. Illicit tobacco is an important source of revenue for criminal networks, and deprives government services of excise tax revenues at the same time. To counter the illicit trade in tobacco products, governments developing a multifaceted approach, including: building partnerships, increasing data validity and reliability, launching educational and public awareness campaigns, increasing capacity-building efforts, and prioritising countering illicit tobacco products and its associated crimes. Narcotics The global narcotics trade is thought to be the single largest black market in the world, and is a source of revenue for international criminal organization. In addition to the negative impact on human health and well-being caused by the narcotics themselves, the criminal violence that accompanies all aspects of drug trafficking erodes state institutions and is often difficult to reverse. Tackling the narcotics trade effectively will require not only punitive approaches and sanctions but also state building, economic development and good governance practices. Alcohol It is estimated that billions of dollars from trafficking and illegal trade in alcoholic beverages flow through the global economy each year, distorting local economies, diminishing government and legitimate business revenues, and in some cases posing a serious health risk to consumers. It is estimated that illicit sources account for 25% of total worldwide adult alcoholic consumption. Contributing factors include the higher cost of legal products from taxes, weak laws, lack of enforcement and social acceptance of contraband in some countries. Sports manipulation The globalisation of sports has led to an increase in unregulated sports betting, which is increasingly used for money laundering and has been connected to corruption in sports (match-rigging). An internationally co-ordinated, pro-active response is needed, including initiatives targeting bettors and offenders, police action and co-operation with financial institutions. It is also important to communicate on the subject of sports integrity to all stakeholders, including the public and the media.

Details: Paris: OECD, 2015. 259p.

Source: Internet Resource: Accessed March 5, 2016 at: http://www.oecd.org/gov/risk/illicit-trade-converging-criminal-networks.pdf

Year: 2014

Country: International

URL: http://www.oecd.org/gov/risk/illicit-trade-converging-criminal-networks.pdf

Shelf Number: 138115

Keywords:
Counterfeit Medicines
Criminal Networks
Drug Trafficking
Human Trafficking
Illegal Trade
Illicit Tobacco
Illicit Trade
Organized Crime
Sports Betting
Wildlife Crime

Author: Miklaucic, Michael

Title: Convergence: Illicit Networks and National Security in the Age of Globalization

Summary: Acceleration. Magnification. Diffusion. Entropy. Empowerment. The global environment and the international system are evolving at hypervelocity. A consensus is emerging among policymakers, scholars, and practitioners that recent sweeping developments in information technology, communication, transportation, demographics, and conflict are making global governance more challenging. Some argue these developments have transformed our international system, making it more vulnerable than ever to the predations of terrorists and This view continues to dominate mindsets within the U.S. national security community. It fails to fully appreciate the growing power of nonstate actors and adversaries, or the magnitude of the threat they pose and the harm they impose on the international system itself. It underappreciates the possibility - indeed likelihood - of the convergence, whether for convenience or growing ambition, of criminal, terrorist, and even insurgent networks. More important even than insufficient recognition of the efficacy of these adversaries is the absence of a plan to counter the threat they pose to both national security and the international state system. In short, this view does not see the big picture - the long view of the declining robustness and resilience of the global system of nation-states that has been dominant for centuries, and the unprecedented attacks on that system. The failure of that system - in which we and so many have prospered beyond belief or precedent in history - would be a catastrophic and existential loss. Global trends and developments - including dramatically increased trade volumes and velocity, the growth of cyberspace, and population growth, among others - have facilitated the growth of violent nonstate actors, the strengthening of organized crime, and the emergence of a new set of transcontinental supply chains as well as the expansion of existing illicit markets. The resourcefulness, adaptability, innovativeness, and ability of illicit networks to circumvent countermeasures make them formidable foes for national governments and international organizations alike. Their increasing convergence gives them ever-improved ability to evade official countermeasures and overcome logistical challenges as well as ever better tools for exploiting weaknesses and opportunities within the state system, and attacking that system. Since illicit actors have expanded their activities throughout the global commons, in the land, sea, air, and cyber domains, nations must devise comprehensive and multidimensional strategies and policies to combat the complex transnational threats posed by these illicit networks. This book is an attempt to map the terrain of this emerging battlespace; it describes the scope of the security threat confronting the United States and the international community from transnational criminal organizations and what is being done to combat that threat - from the strategic level with the release, in July 2011, of the U.S. Government's Strategy to Combat Transnational Organized Crime: Addressing Converging Threats to National Security and, in April 2011, of the Department of Defense (DOD) Counternarcotics and Global Threats Strategy - to the operational level with increased regional partnerships and dialogues. criminals. Others argue that despite this significant evolution, organized crime, transnational terrorism, and nonstate networks have been endemic if unpleasant features of human society throughout history, that they represent nothing new, and that our traditional means of countering them - primarily conventional law enforcement - are adequate. Even among those who perceive substantial differences in the contemporary manifestations of these persistent maladies, they are viewed as major nuisances not adding up to a significant national or international security threat, much less an existential threat.

Details: Washington, DC: National Defense University Press, 2013. 304p.

Source: Internet Resource: Accessed March 5, 2016 at: http://ndupress.ndu.edu/Portals/68/Documents/Books/convergence.pdf

Year: 2013

Country: International

URL: http://ndupress.ndu.edu/Portals/68/Documents/Books/convergence.pdf

Shelf Number: 131162

Keywords:
Criminal Networks
Illegal Trade
Illicit Markets
Illicit Trade
National Security
Organized Crime
Terrorism

Author: Schroeder, Matt

Title: Dribs and Drabs: The Mechanics of Small Arms Trafficking

Summary: There are over 550 million firearms in worldwide circulation. That's one firearm for every 12 people on the planet. The only question is: How do we arm the other 11? (Lord of War, 2005) This iconic line from the 2005 film Lord of War conveys widely held assumptions about international arms traffickers: that they are ambitious, well-connected, globe-trotting entrepreneurs who single-handedly arm criminals and militias throughout the world. The film's fictional protagonist, Yuri Orlov, is based on five actual arms dealers, including Russian businessman Viktor Bout, whose vast global network of shell companies and unsavoury clients earned him the moniker 'the Merchant of Death' (Gilchrist, 2005). The composite image of Bout and his peers has become the archetypal arms trafficker, the image that comes to mind whenever the illicit arms trade is discussed. Yet most arms traffickers bear little resemblance to that image. The 'merchants of death' do indeed fuel conflicts and stock the arsenals of dictators, but there is little evidence to suggest that they dominate the illicit arms trade. Most arms trafficking is less flashy, less centralized, and even more difficult to stop. The following Issue Brief analyses this side of the illicit small arms trade, which receives far less attention than the multi-ton shipments arranged by rogue brokers.

Details: Geneva, SWIT: Small Arms Survey, 2016. 16p.

Source: Internet Resource: Issue Brief: Accessed March 16, 2016 at: http://www.smallarmssurvey.org/fileadmin/docs/G-Issue-briefs/SAS-IB17-Mechanics-of-trafficking.pdf

Year: 2016

Country: International

URL: http://www.smallarmssurvey.org/fileadmin/docs/G-Issue-briefs/SAS-IB17-Mechanics-of-trafficking.pdf

Shelf Number: 138305

Keywords:
Firearms Trafficking
Illegal trade
Illicit Trade
Smuggling of Weapons
Trafficking in Weapons

Author: U.S. Senate. Committee on Foreign Relations

Title: Ivory and Insecurity: The Global Implications of Poaching in Africa

Summary: Ivory poaching, like all forms of illegal wildlife trade, is a profitable business. Indeed, the U.S. State Department estimates the market price of poached ivory at $400 per pound. Global Financial Integrity recently estimated the global value of the illicit trade in all forms of wildlife, excluding fishing, at between $7.8 and $10 billion. In recent years, organized crime syndicates, militias, and even terrorist elements have taken notice of the profits that can be made in the illegal trafficking of wildlife, generating an alarming up-tick in the scale of the industry and posing serious national security concerns for the United States and our partners.

Details: Washington, DC: GPO, 2012. 68p.

Source: Internet Resource: S Hrg. 112-602: Accessed march 30, 2016 at: https://www.gpo.gov/fdsys/pkg/CHRG-112shrg76689/pdf/CHRG-112shrg76689.pdf

Year: 2012

Country: Africa

URL: https://www.gpo.gov/fdsys/pkg/CHRG-112shrg76689/pdf/CHRG-112shrg76689.pdf

Shelf Number: 138494

Keywords:
Animal Poaching
Elephants
Illicit Trade
Ivory
Organized Crime
Terrorist Financing
Wildlife Crime

Author: Bybee, Ashley Neese

Title: Narco State or Failed State? Narcotics and Politics in Guinea-Bissau

Summary: Drug-funded insurgencies in Latin America and more recently in Afghanistan have prompted the use of the term "Narco-State" to describe those countries that have fallen victim to drug cultivation, narco-corruption, trafficking and related activities. In around 2005, West Africa emerged as a major transit hub for Latin American Drug Trafficking Organizations transporting cocaine to Western Europe, prompting many observers to label several countries in the region as the world's newest "Narco-States." The absence of a standard definition for a "Narco-State," however, has compelled many to question the purpose of this designation, asking not only "what is a Narco-State" but "so what?" Moreover, the vulnerability of Transit States - i.e. states through which drugs are transported - to these pressures adds another interesting dimension, begging the question "can Transit States also succumb to the pressures of an illicit drug trade without cultivating drugs within their borders?" and "to what extent?" Lastly, the latest trend of drug traffickers to exploit weak and failed states, such as Guinea-Bissau and its neighbors in West Africa, adds yet another layer of unanswered questions such as "how do the impacts of drug trafficking differ in states with various degrees of institutional strength and capacity?" Using Guinea-Bissau as the primary case study and comparing it with the experiences of four other geographically, economically, and institutionally diverse Transit States, this research seeks to clarify the impacts that the drug trade has on weak and failing states, and how - if at all - those states can become destabilized by this phenomenon.

Details: Washington, DC: George Mason University, 2011. 450p.

Source: Internet Resource: Dissertation: Accessed April, 2, 2016 at: http://digilib.gmu.edu/xmlui/bitstream/handle/1920/6618/BYBEE%20Signed%20Dissertation%20Failed%20State%20or%20Narco%20State%20Politics%20and%20Narcotics%20in%20Guinea%20Bissau.pdf?sequence=1&isAllowed=y

Year: 2011

Country: Guinea-Bissau

URL: http://digilib.gmu.edu/xmlui/bitstream/handle/1920/6618/BYBEE%20Signed%20Dissertation%20Failed%20State%20or%20Narco%20State%20Politics%20and%20Narcotics%20in%20Guinea%20Bissau.pdf?sequence=1&isAllowed=y

Shelf Number: 138529

Keywords:
Corruption
Drug Trafficking
Drug Trafficking Control
Illicit Trade

Author: Interpol

Title: Against Organized Crime: Interpol Trafficking and Counterfeiting Casebook 2014

Summary: INTERPOL has launched a casebook outlining the links between illicit trade, counterfeiting and organized crime. 'Against Organized Crime: INTERPOL Trafficking and Counterfeiting Casebook 2014' is a compilation of cases from law enforcement worldwide involved in the fight against trafficking in illicit goods and counterfeiting. Through these real-life examples divided into chapters, the reference book details the strong connections between illicit trade and other crimes such as counterfeiting and smuggling, fake medicines, arms smuggling, trafficking in human beings and organs, drug trafficking, financial crimes, terrorism, environmental crime and cybercrime. "The criminal networks behind trafficking in illicit goods and counterfeiting are complex and pervasive, reaching far beyond national borders. The INTERPOL Trafficking and Counterfeiting casebook is the first publicly released study to provide comprehensive evidence of the clear connection between illicit trade and other types of organized crime," said INTERPOL Secretary General Ronald K. Noble. The casebook discusses the organized criminal networks which are often behind illicit trade, using the profits to fund other criminal endeavours. It also highlights the role INTERPOL is playing to assist law enforcement around the globe in combating these crimes through its Trafficking in Illicit Goods and Counterfeiting programme, by coordinating regional operations, bringing police together, organizing capacity building and training sessions, and awareness raising.

Details: Lyon, France: Interpol, 2014. 132p.

Source: Internet Resource: Accessed May 4, 2016 at: http://www.interpol.int/News-and-media/News/2014/N2014-057

Year: 2014

Country: International

URL: http://www.interpol.int/News-and-media/News/2014/N2014-057

Shelf Number: 138918

Keywords:
Counterfeiting
Illicit Goods
Illicit Networks
Illicit Trade
Organized Crime

Author: Global Initiative Against Transnational Organized Crime

Title: Understanding Illicit Trade: Impact of Human Trafficking and Smuggling on the Private Sector

Summary: Around the globe, an estimated 20.9 million people are in situations of so-called modern day slavery, or forced labour, at any point of time. Many of these victims are trafficked within their country or across borders. Considering this number, there is an urgent need to improve our understanding of criminal activities in the area of human trafficking and exploitation, the difficulties to track perpetrators and protect victims. The individual criminals and complex networks behind different forms of trafficking and exploitation as well as the high level of profits connected to their illicit activities stress the need to consider human trafficking and exploitation in terms of transnational organised crime. Drawn from a series of webinars hosted by the Global Initiative and Babson College in 2014-15, this report highlights emerging human trafficking challenges and identifies promising anti-trafficking initiatives from the private sector. Each chapter of the report covers one of five key areas of human trafficking: - Migrant workers in the USA and their vulnerability to labour exploitation - Online sexual exploitation of children and recent technological developments in detecting this form of crime - Human trafficking in football, particularly in the area of recruitment of young athletes - Labour exploitation and the construction industry, using the example of the kafala system in the Gulf countries to highlight flawed national regulation putting migrant works at risk of being trafficked and exploited - Responding to the global black market in illicit organs and the intrinsic role the private sector has played in enabling this illicit business Whilst each chapter clearly shows the organised criminal networks behind the different forms of trafficking and exploitation, there are significant differences in the types of crimes and their individual complexities. It is, therefore, crucial to deepen the research into each of the areas and to develop individual responses and strategies private sectors can apply to counter criminal networks across the globe. The report finds that the private sector needs to play a stronger role in ensuring ethical and fair practices, and to contribute its unique knowledge and expertise to help in the fight against human trafficking. Overall, he private sector is an increasingly important actor in enabling as well as in combating the different aspects of human trafficking.

Details: Geneva, SWIT: The Initiative, 2016. 52p.

Source: Internet Resource: Accessed May 18, 2016 at: http://www.globalinitiative.net/download/global-initiative/Understanding%20Illicit%20Trade_06.05.16(1).pdf

Year: 2016

Country: International

URL: http://www.globalinitiative.net/download/global-initiative/Understanding%20Illicit%20Trade_06.05.16(1).pdf

Shelf Number: 139069

Keywords:
Forced labor
Human Smuggling
Human Trafficking
Illicit Trade
Organized Crime
Trafficking in Organs

Author: Bafilemba, Fidel

Title: Congo's Conflict Gold Rush: Bringing Gold into the Legal Trade in the Democratic Republic of the Congo

Summary: A trade in illegally mined and smuggled "conflict gold" is fueling both high-level military corruption and violent rebel groups in eastern Democratic Republic of the Congo (DRC), according to a new report by the Enough Project. "Congo's Conflict Gold Rush: Bringing gold into the legal trade in the Democratic Republic of Congo," by the Enough Project's Fidel Bafilemba and Sasha Lezhnev, offers an in-depth portrait of the conflict gold supply chain, from muddy artisanal mines where gold is dug out with shovels and pick-axes, through illicit transport routes in Uganda, Burundi, and Dubai. Based on seven months of field research at mines and in regional capitals, the report provides an in-depth discussion of solutions to the conflict gold supply chain.

Details: Washington, DC: Enough Project, 2015. 36p.

Source: Internet Resource: Accessed June 7, 2016 at: http://www.enoughproject.org/files/April%2029%202015%20Congo%20Conflict%20Gold%20Rush%20reduced.pdf

Year: 2015

Country: Congo, Democratic Republic

URL: http://www.enoughproject.org/files/April%2029%202015%20Congo%20Conflict%20Gold%20Rush%20reduced.pdf

Shelf Number: 139291

Keywords:
Gold
Illegal Trade
Illicit Trade
Natural Resources
Smuggling

Author: Agger, Kasper

Title: Warlord Business: CAR's Violent Armed Groups and their Criminal Operations for Profit and Power

Summary: The two main armed groups in the Central African Republic (CAR) - the ex-Seleka and the Anti-Balaka, along with their multiple factions - make millions of dollars in profits from illicit activities, which support their operations and create wealth for ruthless warlords and business owners. Killings, extortion, and other forms of violence are used to control areas with gold and diamonds throughout CAR, and the groups are deeply involved in this high-value trade in several ways. The two groups also generate income through illicit taxes and "protection money" from civilians, road travelers, businesses, local organizations, and state institutions. Ex-Seleka and Anti-Balaka groups profit from a large illicit minerals trade. They do this directly by the mining and theft of diamonds and gold that they then sell to middlemen. They also profit indirectly by looting, extortion, and predatory taxation of miners and traders. Research presented in this report estimates the total current value of the illicit diamond trade and taxation by armed groups in CAR to be between $3.87 and $5.8 million dollars annually, a sufficient amount in CAR to fund widespread military operations. The majority of the diamonds and the gold are smuggled out of CAR to neighboring countries - mainly Cameroon, the Democratic Republic of the Congo, and Sudan - and then on to international markets; a lesser amount is sold on the local market within CAR. Some of the diamonds sold locally are purchased by three Central African diamond buying houses that currently have a total stock of diamonds worth close to $8 million. This domestic diamond trade is not prohibited by the Kimberley Process (KP) suspension of CAR's membership and the decision by KP members to refrain from sending or receiving diamond shipments from CAR that has been in effect since May 2013 and only restricts exports of rough Central African diamonds. Deliberations are, however, underway concerning the possibility of a partial lifting of the KP restrictions. There are concerns that the combination of an inadequate diamond tracing system in CAR and control by armed groups of diamond mines could result in conflict diamonds, which have provided financing for armed groups, entering the KP-approved diamond trade. To counter this danger, any lifting of CAR's KP diamond restrictions should be conditioned on the removal of all armed groups from mining sites, full control of diamond trading markets by U.N. peacekeepers or local gendarmes, and a credible tracing and due diligence system for diamonds bought and sold by Central African diamond companies, including those for export. In addition to natural resource exploitation, ex-Seleka factions in particular have set up efficient tax collection practices. Conservative assessments estimate that different factions within the group collect $1.5 to $2 million annually from illicit road taxation throughout the areas they control in central and eastern CAR. They gain an additional estimated $210,000 to $420,000 in taxation of cattle traders and $200,000 to $240,000 from taxation of coffee traders. Meanwhile, Anti-Balaka groups that roam western CAR collect illicit road taxes, extort money from rural villages, and demand sums that range from $600 to $1,000 as a one-time payment for "protection." Additional research is needed to estimate the total annual profits collected by Anti-Balaka groups through road taxation, looting, and other abusive activities.

Details: Washington, DC: Enough Project, 2015. 32p.

Source: Internet Resource: The Political Economy of African Wars: No. 2: Accessed June 7, 2016 at: http://www.enoughproject.org/files/Warlord%20Business%20061615.pdf

Year: 2015

Country: Central African Republic

URL: http://www.enoughproject.org/files/Warlord%20Business%20061615.pdf

Shelf Number: 139294

Keywords:
Diamonds
Exploitation of Natural Resources
Extortion
Illicit Trade
Looting
Natural Resources
Violence

Author: ADM Capital Foundation

Title: Wildlilfe crime: Is Hong Kong Doing Enough?

Summary: The global demand for wildlife products is highest in Asia, where growing affluence has fueled an unprecedented rise in the trafficking of threatened species. The harvesting, transportation and delivery of threatened fauna and flora into legal through laundering and clandestine markets is now recognized to involve considerable levels of criminality. Transnational organized crime networks are increasingly engaged in such activities, not only because of the high profits which can be made, but also because they have the set up the trade routes and personnel required to conduct and control such operations. 'Black market' prices for several forms of wildlife exceed, sometimes vastly, the monies paid for cocaine, diamonds, gold or heroin. These same organized crime groups have brought to what, historically, might have been viewed as illicit trade, degrees of violence, intimidation, corruption and fraud that are more commonly associated with the trafficking of narcotics, firearms and human trafficking. Trafficking in wildlife involves money-laundering, counterfeiting of permits and licenses, avoidance of currency controls, taxes and import/exit duties or the acquisition of necessary documents through extortion, coercion and bribery. The monetary value of all transnational organized environmental crime is estimated at between USD70-213 billion annually. Several components of this trade represent signficant sums: the illegal trade in flora and fauna is valued at USD7-23 billion, illegal fisheries at USD11-30 billion and illegal logging and forest timber crime at USD30-100 billion. Hotspots where wildlife trafficking is rife include the Chinese borders, particularly China's border with Hong Kong, which is also the busiest cargo airport, third-largest passenger airport and the fourth-largest deep-water port in the world. It further aims to be a hub and super-connector as part of mainland China's ambitious "One Belt One Road" initiative looking forward. Utilizing Hong Kong's free port status, the multi-billion dollar wildlife trade industry uses air and sea entry points to access the mainland. Annually, more CITES seizures are made at the international border between Hong Kong and China than at any other border in China.

Details: Hong Kong: ADM Capital Foundation, 2015. 52p.

Source: Internet Resource: Accessed June 8, 2016 at: http://www.admcf.org/wordpress/wp-content/uploads/2013/09/Wildlife-CrimeReport15_12_1910.pdf

Year: 2015

Country: Hong Kong

URL: http://www.admcf.org/wordpress/wp-content/uploads/2013/09/Wildlife-CrimeReport15_12_1910.pdf

Shelf Number: 139311

Keywords:
Endangered Species
Illicit Trade
Organized Crime
Trafficking in Wildlife
Wildlife Crime
Wildlife Trafficking

Author: Calderoni, Francesco

Title: France: the factbook on the illicit trade in tobacco products

Summary: This report provides the French country profile of the project The Factbook on the Illicit Trade in Tobacco Products . In France, the illicit trade in tobacco products is a key issue due to its high penetration in the French tobacco market, reaching 14.7% of total consumption in 2014 (KPMG 2015). Tobacco control policies are at the top of the French policy agenda, and a national action plans against the ITTP was launched in 2011. Moreover, the recent ratification of the Protocol Against Illicit Trade in Tobacco Products (WHO FCTC), in November 2015, demonstrates France's commitment to tackling the illicit trade. The growing attention of the French Customs to tobacco smuggling is evidenced by the increasing number of seizures. WHAT CAN BE FOUND IN THIS REPORT? This report is updated at December 2015. It is organised into three chapters: -- Chapter one deals with the five drivers of the ITTP: society and economy, the legal market, regulation, the crime environment and enforcement. The drivers are important areas whose structures may positively or negatively impact on the ITTP. To enable comparison with other country profiles, five key indicators have been selected for each driver. The data for the driver indicators come from comparable sources (latest available years). When possible, the report provides the most up-to-date data from national sources. -- Chapter two focuses on the four components of the ITTP: demand, products, supply, modus operandi and geographical distribution. -- Chapter three identifies the key factors of the ITTP in France and frames the drivers in the components, analysing how different elements of the drivers influence the components of the ITTP.

Details: Milan: Transcrime, 2016. 100p.

Source: Internet Resource: The Factbook on the Illicit Trade in Tobacco Products 8: Accessed July 12, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/06/The-Factbook-on-the-ITTP-France_EN.pdf

Year: 2016

Country: France

URL: http://www.transcrime.it/wp-content/uploads/2016/06/The-Factbook-on-the-ITTP-France_EN.pdf

Shelf Number: 139618

Keywords:
Cigarette Smuggling
Cigarettes
Illicit Trade
Organized Crime
Tobacco

Author: Calderoni, Francesco

Title: The Belarusian Hub for Illicit Tobacco

Summary: Key hubs are crucial sets of countries on the regional, continental or global map of the illicit trade in tobacco products (ITTP). The analysis of key hubs instead of single countries enables a more comprehensive understanding of the factors determining transnational illicit flows and a more effective identification of the strategies needed to fight and prevent the ITTP. The following elements often characterise key hubs: - medium to high levels of the ITTP in the hub, - significant price differentials of tobacco products across the hub, - extensive engagement of local manufacturers in the ITTP and - substantial flows of illicit tobacco to, within or from the hub to other countries. This report focuses on the Belarusian hub for illicit cigarettes. Belarus is the center of the hub because it is a source for illegal tobacco products destined to the EU. The surrounding countries are included for different reasons. Russia and Ukraine used to play a significant role in the ITTP flows and still remain important sources of illicit products. Other countries within the hub, such as Lithuania, Poland, Latvia, are both destination and transit countries of the Belarusian illicit tobacco flows. The report takes the name of the center of the hub.

Details: Milan: Transcrime, 2013. 54p.

Source: Internet Resource: Accessed July 12, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/06/The-Belarusian-Hub-for-Illicit-Tobacco.pdf

Year: 2016

Country: Belarus

URL: http://www.transcrime.it/wp-content/uploads/2016/06/The-Belarusian-Hub-for-Illicit-Tobacco.pdf

Shelf Number: 139622

Keywords:
Cigarette Smuggling
Cigarettes
Illicit Trade
Organized Crime
Tobacco

Author: World Economic Forum

Title: State of the Illicit Economy: Briefing Papers

Summary: While the state of the global economy continues to fluctuate, its illegitimate counterpart, the illicit economy, has seen unprecedented growth. As such, it has etched its way into all aspects of society, and is cause for serious global concern. From healthcare to infrastructure to the arts, the illicit economy does not affect just one aspect of society, but all of them: business, government, civil society and individuals. It is a disruptor of social order to the greatest extent. A call to action must be made. The illicit economy is formed from the proceeds of illicit trade which is, in turn, largely rooted in organized crime. Whether it is human trafficking, arms trafficking, the illegal wildlife trade, counterfeiting or money laundering, these activities are incredibly lucrative and fuel the magnitude of the illicit economy. Our Global Agenda Council on Illicit Trade 2012-2014 estimated the shadow economy to be worth $650 billion. More current research projects that the cost to the global economy of counterfeiting alone could reach USD 1.77 Trillion in 2015. With technological advancements and the international nature of trade in the world today, this value is expected to continue to rise. Illicit trade operates on a vast scale and unprecedented pace, making it increasingly challenging to tackle. There are multiple initiatives and organizations, as well as public and private initiatives, dedicated to combating one or several aspects of illicit trade, but this is not a fight that can be won unilaterally. To achieve success, a global and multidisciplinary approach is needed in which the knowledge, expertise and experiences of various actors can be tapped into and shared. As an international institute for public-private partnership, the World Economic Forum provides a neutral platform for parties to come together and discuss the issue of illicit trade. The aim is to foster structured dialogue between business, civil society and government so that common methods and solutions of tackling this trade can be found. Through multidisciplinary cooperation and joint action, results can be achieved. We can disrupt the proliferation of illicit trade, whether it is by simply raising awareness of the problem within affected communities, or by finding ways of detecting and preventing crimes that contribute to ruining the economy. The World Economic Forum's Meta-Council on the Illicit Economy aims to take this principle of public-private cooperation forward. By engaging leading experts in the field, the Meta-Council will try to find viable multi-stakeholder solutions to limiting this criminal activity. This paper on the State of the Illicit Economy is the first step in the process. It sets out the parameters within which illicit trade operates, the contributing factors to illicit trade, the role that various societal sectors can play in the fight against it, and the types of solutions needed to combat it.

Details: Geneva, SWIT: World Economic Forum, 2015. 20p.

Source: Internet Resource: Accessed September 8, 2016 at: http://www3.weforum.org/docs/WEF_State_of_the_Illicit_Economy_2015_2.pdf

Year: 2015

Country: International

URL: http://www3.weforum.org/docs/WEF_State_of_the_Illicit_Economy_2015_2.pdf

Shelf Number: 140237

Keywords:
Counterfeiting
Human Trafficking
Illegal Trade
Illicit Mining
Illicit Trade
Organized Crime

Author: Ross, Hana

Title: Controlling Illicit Tobacco Trade: International Experience

Summary: This report presents a series of case studies on the efforts of various governments to address illicit trade in tobacco. The countries for the case studies were selected based on meeting the following set of criteria: an explicit, and in many cases a comprehensive, effort to deal with tobacco tax evasion and tax avoidance; the size of the tobacco market (both licit and illicit); the availability of data The case studies illustrate a variety of approaches implemented over time, demonstrate their varying degree of effectiveness, and consider factors modifying the success rate. Each case study begins with an initial assessment of the degree of the problem and then follows the chronological path each government took to deal with the problem. To the extent that the data is available, the case studies demonstrate the impact of each distinct set of policies on a set of outcomes, including the degree of penetration of illicit products and tobacco use prevalence. In many cases, these illicit tobacco trade measures were not adopted in isolation, but were part of a comprehensive set of strategies to reduce tobacco use. Thus, it is often not possible to separate the impact of policies addressing illicit tobacco trade from other public health measures such as increases in tobacco taxes and/or changes in tobacco tax structure. The summary table at the end of the report provides a quick overview of measures to reduce illicit tobacco trade adopted by the countries included in the case studies. Even though the list of measures included in the summary table is not comprehensive, it captures the most common interventions adopted or considered by many governments. The last section summarizes the lessons learned and proposes the most effective approach to reducing illicit tobacco trade.

Details: Cape Town, South Africa: Economics of Tobacco Control Project, University of Cape Town, 2015. 49p.

Source: Internet Resource: Draft: Accessed September 8, 2016 at: http://tobacconomics.org/wp-content/uploads/2016/01/Ross_International_Experience_8-06-15.pdf

Year: 2015

Country: International

URL: http://tobacconomics.org/wp-content/uploads/2016/01/Ross_International_Experience_8-06-15.pdf

Shelf Number: 140244

Keywords:
Illegal Tobacco Trade
Illicit Tobacco
Illicit Trade
Tobacco Industry

Author: de Koning, Ruben

Title: Striking Gold: How M23 and its Allies are Infiltrating Congo's Gold Trade

Summary: The M23 rebel group has taken over a profitable part of the conflict gold trade in the east of the Democratic Republic of the Congo, or DRC. It is using revenues from the illicit trade to benefit its leaders and supporters and fund its military campaign by building military alliances and networks with other armed groups that control territory around gold mines and by smuggling gold through Uganda and Burundi. M23 commander Sultani Makenga, who is also allegedly one of the rebels' main recruiters of child soldiers according to the U.N. Group of Experts on Congo, is at the center of the conflict gold efforts. This report documents how Makenga and his former co-commander Bosco Ntaganda have led the M23 rebels to work with local armed groups in gold-rich territories to smuggle gold to Uganda via an M23-controlled border crossing, as well as to Burundi, where it is sold internationally. Much of this conflict gold then reaches markets in the United Arab Emirates, or UAE, before going on to banks and jewelers, which together make up 80 percent of global gold demand. Gold is now the most important conflict mineral in eastern Congo, with at least 12 tons worth roughly $500 million smuggled out of the east every year. The other main sources of revenue for armed groups - the "3T minerals" of tin, tungsten, and tantalum - have been steadily reduced due to global conflict-minerals reforms spurred by the U.S. Dodd-Frank financial regulation law, but it is still relatively easy to smuggle gold. Limiting gold smuggling from eastern Congo must therefore become a priority for the international community. M23 commander Makenga is taking over a gold-smuggling network that former cocommander Bosco Ntaganda built over several years. As military leader of the rebel National Congress for the Defense of the People, or CNDP, a forerunner of M23, Ntaganda in 2011 reportedly brokered several multimillion-dollar gold deals in Goma, DRC; Kampala, Uganda; and Nairobi, Kenya, between Congolese traders and overseas buyers. In 2012, Ntaganda led the newly created M23 as it broke away from the Congolese army, in which its troops had been integrated as part of a peace deal. During his time with M23 and in the shadow of the peace talks in Kampala between Congo's government and the M23, Ntaganda facilitated the transfer of an estimated 325 kilos of gold worth $15 million to Kampala for sale, according to the U.N. experts. Ntaganda admitted to the U.N. experts that he played a role in one deal in 2011 in Goma, but he never commented on his role in other deals he allegedly brokered. In March 2013, Ntaganda surrendered to the U.S. Embassy in Rwanda, where he requested to transfer to the International Criminal Court, or ICC, to face charges of war crimes. Since then, Enough Project's investigations with gold-trade insiders, Congolese civil and military authorities, and members of the Congolese diaspora communities in Kampala and Bujumbura show that Makenga is taking over Ntaganda's relationships with smugglers in Uganda. Makenga has also mobilized several other military and business players loyal to former CNDP leader Laurent Nkunda to create a business network entirely separate from Ntaganda, according to Enough Project investigations. To capture a greater share of the gold trade, M23 has built alliances with individuals and armed groups that control large mines in eastern Congo. These include Sheka Ntabo Ntaberi of the Nduma Defence of Congo, or NDC, armed group in Walikale territory of eastern Congo - the alleged mastermind of the mass rape of more than 300 women, children, and men at Luvungi in 2010. M23 has built ties with Justin Banaloki - whose alias is "Cobra Matata" - the armed leader who is based in Ituri District and was highlighted in the October 2013 National Geographic. M23 is also associated with Congolese army defector and militia leader Maj. Hilaire Kombi in Beni and Lubero territories, according to U.N. experts and Enough Project research. Traversing otherwise hostile ethnic and political divisions, these alliances are based partially on economic gain. Many of those who reap the greatest profits are also those most directly implicated in atrocities and crimes against humanity. On the basis of recent Enough Project investigations and past research by the U.N. Group of Experts, this report identifies three main gold exporters that the Enough Project believes are enabling M23 and associated armed groups to profit from the gold trade by either running or using official gold export companies in Uganda and Burund - all of which is in violation of the U.N. arms embargo: - Rajendra "Raju" Kumar, who currently trades through Mineral Impex Uganda and formerly ran Machanga, Ltd. - Mutoka Ruganyira, who currently operates through Ntahangwa Mining in Burundi and formerly ran Berkenrode - Madadali Sultanali Pirani, who currently runs Silver Minerals in Uganda Additionally, a major Congolese exporter has reportedly been trading gold from mines controlled by the Democratic Forces for the Liberation of Rwanda, or FDLR, and other armed groups for several years, according to several U.N. Groups of Experts: - Evariste Shamamba, who currently runs Etablissement Namukaya and New CongoCom Airlines16 The international community has done very little to combat the sale of conflict gold effectively. None of the above-mentioned individuals, or the companies they currently run, face U.N., U.S., or E.U. sanctions. The only international sanctions against conflict gold companies were enacted in 2007, but the owners of the sanctioned companies immediately set up new gold-exporting businesses under different corporate names. Sanctions against the four exporters would make an important dent in the conflict gold trade, since they control a significant portion of the illicit trade. Gold exporters generally claim to purchase their gold either domestically or in countries that are not under a U.N. arms embargo. The fact that a significant part of conflict gold trade enters the formal worldwide gold trade shows an urgent need to levy targeted international sanctions on the individual exporters - the beneficial owners of these businesses - who are complicit. In order to conduct and facilitate due diligence following guidelines established by the United Nations and the Organisation for Economic Cooperation and Development, or OECD, the international community should intensify pressure on companies, company owners, and their host governments that are importing and refining gold from the region. While such sanctions are important to bring the illicit gold trade under control and further reduce sources of revenue for armed groups, the agony of eastern Congo will ultimately end when the key parties - Congo, Rwanda, and Uganda - reach a just, comprehensive peace agreement. The best hope for that is the process led by U.N. Special Envoy Mary Robinson, following the Peace, Security, and Cooperation Framework signed earlier this year.

Details: Enough Project, 2013. 21p.

Source: Internet Resource: Accessed September 19, 2016 at: http://www.enoughproject.org/files/StrikingGold-M23-and-Allies-Infiltrating-Congo-Gold-Trade.pdf

Year: 2013

Country: Congo, Democratic Republic

URL: http://www.enoughproject.org/files/StrikingGold-M23-and-Allies-Infiltrating-Congo-Gold-Trade.pdf

Shelf Number: 140353

Keywords:
Conflict Minerals
Gold Mining
Gold Smuggling
Illegal Trade
Illicit Trade
Natural Resources
Smuggling

Author: Southern Africa Resource Watch

Title: Congo's Golden Web: The People, Companies and Countries that Profit from the Illegal Trade in Congolese Gold

Summary: In 2011, the Southern Africa Resource Watch (SARW) launched a regional monitoring and research project to assess the physical, social and economic security risks - as well as the socio-economic, humanitarian and commercial conditions - faced by gold mining communities in the provinces of North and South Kivu, Maniema and Orientale in the Democratic Republic of Congo (DRC). Two previous reports - From Conflict Gold to Criminal Gold (2012) and The High Cost of Congo's Gold (2013) - included detailed research and analysis on the changing nature of the gold industry in eastern Congo and its negative impact on miners, their families and communities. This report completes the ground breaking series by describing all aspects of the commercialization of Congolese gold - including gold that is produced by industrial, semi-industrial and artisanal mining operations, and gold that is traded and refined by small merchants, well-capitalised trading groups and powerful refineries. SARW initiated this research project at a time when Congo's mining environment was improving, propelled by a number of exceptional conditions, including a gold super cycle, which saw prices on world markets rise to over US$1950 per ounce in 2011 and 2012; the establishment of peace in most major gold mining regions in eastern Congo; and the restructuring of government agencies mandated to support gold mining and trading. However, in April 2013, while this report was being drafted, the gold price declined precipitously, eroding profit margins for all gold mining activities and disrupting the global gold production industry. The challenge faced by the DRC government to maximize benefits from the nation's gold resources has now become harder. Nevertheless, progress is visible with the inauguration of industrial gold production at Banro's Twangiza mine and at the Kibali project managed by Randgold Resources. Despite these positive developments, international investors in gold projects in Congo remain cautious due to its problematic political risk profile. This SARW report highlights issues that are most detrimental to the Congo's reputation and to the ability of the Congolese to benefit from their significant gold endowments, including: Widespread corruption at all levels of the Congolese government, which is a major enabler of activities that are either outrightly criminal or in violation of existing regulations governing industrial, small scale and artisanal gold extraction and trade; The illegal trade and exportation of gold, which accounts for most of the gold extracted by Congo's hundreds of semi industrial and hundred of thousands of artisanal miners - with traders not paying the appropriate fees and taxes, exporting gold without the required certification and payment of export duties, or only paying duties on a small portion of their total turn over by significantly underreporting the true scale of their gold trading; Routine contravention of their licences by semi industrial and industrial permit holders, which delay significant investments that they are contractually obliged to make so as to boost their stock market performance by inflating their gold reserve portfolio, which can be divested whenever the need arises; Aiding and abetting the smuggling and illegal trading of Congo's gold by neighbouring countries, specifically Burundi and Uganda, which continue to pretend that their actions have no impact on DRC's illegal gold trade, while their economies benefit; and The inadequacy of existing international and multilateral instruments, including UN sanctions, ICGLR protocols, OECD guidelines and other multi stakeholder initiatives, which have failed to encourage the necessary international collabouration to stop the criminal networks that are trading Congo's gold. Even where compelling evidence exists that trading and refining companies are implicated in the illegal trade of Congo's gold, no meaningful interventions or investigations occur - a grievous betrayal of various states' commitments under current UN sanctions and other international treaties.

Details: Rosebank, South Africa: Southern Africa Resource Watch, 2014. 88p.

Source: Internet Resource: Accessed September 19, 2016 at: http://www.sarwatch.org/sites/sarwatch.org/files/Publications_docs/congogold3web.pdf

Year: 2014

Country: Congo, Democratic Republic

URL: http://www.sarwatch.org/sites/sarwatch.org/files/Publications_docs/congogold3web.pdf

Shelf Number: 140359

Keywords:
Gold Mining
Illegal Trade
Illicit Trade
Natural Resources
Political Corruption

Author: Bromberg, Megan

Title: Mapping the Illicit Mineral Trade: Identifying the Illicit Supply Chain for Diamonds, Gold, and Tantalum Across Contexts

Summary: The illicit mineral trade is a global issue that affects all countries, as illicit or conflict minerals continue to unwittingly end up in our jewelry, phones, and laptops. Whether these minerals come from unregulated mines that use child labor and harm the environment, fund the insurgencies of armed groups, or are smuggled into neighboring countries by corrupt government officials, the illicit mineral trade is dependent on the exploitation of poverty and those who rely on the mining to survive.

Details: Washington, DC: American University, 2016. 100p.

Source: Internet Resource: Accessed September 20, 2016 at: http://www.american.edu/sis/practica/upload/Mapping-the-Illicit-Mineral-Trade.pdf

Year: 2016

Country: International

URL: http://www.american.edu/sis/practica/upload/Mapping-the-Illicit-Mineral-Trade.pdf

Shelf Number: 145610

Keywords:
Conflict Minerals
Diamonds
Gold
Illegal Mining
Illicit Minerals
Illicit Trade
Natural Resources

Author: Xu, Y.

Title: An Act to Save African Elephants: A Ban on Commercial Ivory Trade in China, A Feasibility Study Briefing

Summary: Africa's elephants are in crisis. The population of African elephants today are at a record low, with fewer than 500,000 individuals left in the wild, declining from 1.2 million individuals in 1981. The contemporary poaching crisis consolidated in 2010 and since then elephant poaching has escalated to unsustainable levels, leading to a year- on-year decline in many elephant populations - In some parts of Africa, localised extinctions of elephants are actually occurring. The illegal ivory trade is persistent and increasingly well-organised. Reports based on ivory seizures indicate that the volume of illegal ivory trade has tripled since 2007 - Meanwhile, the African elephant crisis has stirred the attention of the international community, which in turn has recognized that an historic opportunity to take actions to save Africa's most iconic species is at hand. This sense of commitment has resonated also in China. In May 2015, the head of China's State Forestry Administration announced that "we will strictly control ivory processing and trade until the commercial processing and sale of ivory and its products are eventually halted". In September 2015, during a State visit to the U.S., Chinese President Xi Jinping and US President Barrack Obama jointly committed to enact nearly complete bans on ivory import and export, including significant and timely restrictions on the import of ivory as hunting trophies, and to take significant and timely steps to halt the domestic commercial trade of ivory. - Following this momentum, the Chinese government issued a temporary ban on all ivory imports for commercial purposes in March 2016. China has one of the largest illegal ivory markets in the world - Since 2002, the reports of the Elephant Trade Information System to CITES have consistently identified China as the leading destination for ivory globally. China's actions, more than those of any other country, have the potential to reverse the rising trends of elephant poaching and illegal ivory trafficking and have a significant impact on the future survival of African elephants. Therefore, the aim of this current briefing is to provide independent advice and recommendations to the Chinese Government on a possible option that China can consider to address the global problem of illegal ivory trade - a ban on commercial ivory trade in the country. The country's existing ivory trade controls and law enforcement system are examined, in light of the current ivory market in China, as well as the likely impact an ivory trade ban could have. In producing this briefing, WWF and TRAFFIC believe that China can be a leading global example, and provide "best practices" for creating sound policy approaches and time-frames for implementation that will maximize impact on illegal trade and enhance the conservation of elephants. This briefing is a rapid evaluation based on existing knowledge derived from TRAFFIC's monitoring work of the Chinese ivory market. While this is not a comprehensive study, this briefing does outline issues to take into account when examining the need, feasibility and possible implementation challenges involved when considering a ban on commercial ivory trade in China, as well as some next steps needed towards that end. An effective ivory trade ban in the Chinese context will require careful consideration of the particular regulatory mechanisms and implementation structures and processes that will define and support the new domestic policy. WWF and TRAFFIC fully intend to augment this initial briefing document with further in depth studies.

Details: Beijing, China: WWF and TRAFFIC, 2016. 16p.

Source: Internet Resource: WWF Briefing: Accessed September 29, 2016 at: www.wwfchina.org

Year: 2016

Country: China

URL: www.wwfchina.org

Shelf Number: 140510

Keywords:
Animal Poaching
Elephants
Illegal Ivory Trade
Illicit Trade
Ivory Trade
Wildlife Crime

Author: Jaekel, Theo

Title: Far From Reality: How the EU falls short in preventing the illicit trade of conflict minerals

Summary: In recent years, international efforts have sought to address issues related to the illicit trade of conflict minerals fueling conflicts across the globe. One such initiative is reflected in Section 1502 of the U.S. Dodd-Frank Wall Street Reform and Consumer Act, passed in 2010, which targets companies listed on the U.S. stock exchange using conflict minerals in their products. The provision requires such companies to carry out supply chain due diligence and to annually report on this issue. The Dodd-Frank Act has led to an increased application of various other international guidelines and norms, as well as new national legislation in the Democratic Republic of Congo (DRC), one of the most mineral rich countries in the world. Important developments in the DRC in recent years include: 1) requirements on mining operations to be validated in order to legally trade minerals, and 2) a traceability system designed to increase transparency in the supply chain. There are however severe challenges in the implementation of the new regulations, and much work remains to be done in order to establish functional and trusted frameworks. Miners interviewed by Swedwatch during a field trip to the DRC tell of harsh and dangerous working environments and dire economic conditions. Government officials experience problems in regards to insufficient funding, and therefore lack the capacity to validate and monitor mining activities, and enforce the rule of law. Mining companies lose a substantial share of minerals to smugglers who circumvent the legal requirements. And NGO�s report widespread corruption among government authorities, compromising the traceability and validation systems, as well as lack of engagement and tax avoidance by large mining companies. Despite their differences, key stakeholders in the DRC agree that EU legislation is needed to tackle the systemic flaws within the mining industry. On 15 June 2016, after months of negotiations, the EU agreed an outline deal on a new regulation on conflict minerals due diligence. The agreement is a welcome step in the right direction, but the compromise fails to address key issues and this may undermine the purpose of the legislation itself. The main critical gap relates to the scope of the agreement only applying to upstream companies. The agreed scope covers only a fraction of minerals that end up in the EU - requiring only upstream companies, i.e. smelters/refiners, to conduct due diligence. Downstream companies, placing minerals on the EU market in the form of finished products, such as mobile phones, laptops and cars, are exempt. Already existing standards, such as the OECD Guidance, include clear provisions for both upstream and downstream companies to conduct on-going due diligence. Thus, the entire supply chain of minerals is covered and engages each actor in the chain. The EU agreement fails to live up to the existing standards. Legislation requiring all companies to conduct due diligence was an opportunity for the EU to address the severe and pressing human rights risks in global supply chains of conflict minerals. Instead, the negotiations reached only a partial solution.

Details: Stockholm: Swedwatch, 2016. 38p.

Source: Internet Resource: Accessed October 14, 2016 at: http://www.swedwatch.org/sites/default/files/tmp/80_kongo_enkelsidor.pdf

Year: 2016

Country: Europe

URL: http://www.swedwatch.org/sites/default/files/tmp/80_kongo_enkelsidor.pdf

Shelf Number: 144865

Keywords:
Conflict Minerals
Illegal Mining
Illegal Trade
Illicit Trade
Natural Resources

Author: Garat, Guillermo

Title: Paraguay: The cannabis breadbasket of the Southern Cone: A focus on the largest cannabis producer in South America

Summary: Key Points - Paraguay is the principal producer of cannabis in South America. Despite its importance as a supplier of cannabis in South America, there has been a surprising absence of serious studies of its impact on its own society, and on the play of offer and demand in neighbouring countries. - After 40 years of an intense "war on drugs", there are now eight departments involved in the business, with spiralling homicide rates, an absence of state policy intervention, drug traffickers infiltrated into local political structures, and millions of dollars which are shared out by terrorist organizations, a new chain of services connected to the illicit trade, and - to a much lesser extent - small farmers suffocated by repeated crises. - Contradictions in productive structures, the lack of agrarian policies, poverty and the absence of perspectives for the rural population led to a gradual, and progressively more blatant, adoption of cannabis cultivation by young. Over time, growing cannabis became one of the few viable economic prospects for large sectors of the population. - Intermediaries who manage contacts with the buyers on the border with Brazil, employ young people to grow, protect, harvest, dry, press, package and even transport the cannabis - not just within Paraguay, but even into nearby countries, using the limited means at their disposal, such as their shoulders, bicycles and motorbikes. - The use of cannabis is looked down on by the general population, particularly in rural areas, and even in the communities where it is grown, it is commonly referred to as the "demon weed" (hierba maldita). Lifetime use of cannabis in Paraguay is the second lowest in all Latin America, only 0.4% admitting to having tried it. - Some politicians, government officials, civil society organisations and farmers' organisations see the benefit of the regulation of the cannabis market in Paraguay, but the debate is still incipient.

Details: Bonn, Germany: Friedrich Ebert Stiftung, 2016. 29p.

Source: Internet Resource: Drug Policy Briefing, no. 46: Accessed November 2, 2016 at: https://www.tni.org/files/publication-downloads/drug_policy_briefing_46.pdf

Year: 2016

Country: Paraguay

URL: https://www.tni.org/files/publication-downloads/drug_policy_briefing_46.pdf

Shelf Number: 145004

Keywords:
Cannabis
Drug Markets
Drug Policy
Drug Trafficking
Illicit Trade
Marijuana
War on Drugs

Author: Clague, Chris

Title: The Illicit Trade Environment Index

Summary: The nature of illicit trade makes its size hard to determine. Enabled by varying combinations of corruption, incompetence and indifference, it defies all but the broadest estimates. Yet, there's sufficient anecdotal evidence to suggest that the volume of counterfeit and mis-declared goods, drugs, weapons and other types of illicit trade moving across borders has been increasing and will continue to do so. History has shown that illicit trade tends to follow the same routes as its licit counterpart. As the Asian region continues to integrate through agreements like the Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership, and the ASEAN Economic Community, there will be opportunities for more trade of both types. There is widespread agreement on the factors that together can create an environment where illicit trade flourishes. The Economist Intelligence Unit created the Illicit Trade Environment Index to score 17 economies in Asia on the extent to which they enable illicit trade. Economies with the best environment are those taking the most action on the issue while economies that do little score worst. Key findings from the research are: l Australia (85.2 out of 100) tops the overall rankings, with New Zealand (81.8) and Hong Kong (81.4) not far behind. l Although it scores well on customs environment, Singapore (69.8) does worse than might be expected overall, mainly due to low scores in the transparency and trade category. The bottom half of the rankings is comprised mainly of developing economies, with Myanmar (10.8), Laos (12.9), and Cambodia (23.9) performing the worst. China (61.6) scores better than its reputation would suggest on the strength of improving intellectual property protection and increasing transparency. While there have been encouraging signs that more is being done to combat illicit trade, many economies in the region - not all of them developing - clearly have more to do in this area. The Illicit Trade Environment Index and this paper are meant to stimulate discussion in these economies and elsewhere.

Details: London: The Economist, Intelligence Unit, 2016. 21p.

Source: Internet Resource: Accessed November 11, 2016 at: http://illicittradeindex.eiu.com/ECC%20Illicit%20trade%20paper%20V9_Oct12.pdf

Year: 2016

Country: International

URL: http://illicittradeindex.eiu.com/ECC%20Illicit%20trade%20paper%20V9_Oct12.pdf

Shelf Number: 146682

Keywords:
Illegal Trade
Illicit Trade
Smuggling of Goods

Author: Control Arms Campaign

Title: The AK-47: the world's favourite killing mahine

Summary: Kalashnikov assault rifles are the most widespread military weapons in the world. It is estimated that there are between 50 and 70 million of them spread across the world’s five continents. They are used daily by soldiers, fighters, and gang members to inflict untold suffering in many countries. The spread of these weapons continues largely unchecked by governments, threatening the lives and safety of millions as weapons fall into irresponsible hands. More than ever, the Kalashnikov rifle is the weapon of choice for many armies, militias, armed gangs, law enforcement officials, rebels, and other private actors who abuse fundamental human rights and operate beyond the international humanitarian law parameters laid down by the Geneva Conventions and other relevant international law. Although the United Nations and its member states have taken concrete action to limit the proliferation of nuclear, biological, and chemical weapons of mass destruction through international treaties and monitoring organisations, the number one tool used for killing and injuring civilians today is small arms, including the assault rifle, which is reaching more countries than ever before. On 26 June 2006, the UN Review Conference on the Illicit Trade in Small Arms and Light Weapons begins in New York. At this conference, governments have an opportunity to agree effective and comprehensive controls to prevent the proliferation and misuse of small arms and light weapons, including assault rifles like the AK-47. In October 2006, at the UN General Assembly, governments should agree to negotiate a new global Arms Trade Treaty (ATT) to regulate international transfers of all conventional arms, including military assault rifles.

Details: s.l.: Control Arms.org: 2006. 18p.

Source: Internet Resource: Control Arms Briefing Note: Accessed November 21, 2016 at: https://www.oxfamamerica.org/static/oa3/files/ak-47-worlds-favourite-killing-machine.pdf

Year: 2006

Country: International

URL: https://www.oxfamamerica.org/static/oa3/files/ak-47-worlds-favourite-killing-machine.pdf

Shelf Number: 147878

Keywords:
Arms Control
Assault Weapons
Firearms
Illegal Firearms
Illicit Trade
Trafficking in Weapons

Author: Obale, Offah

Title: From Conflict to Illicit: Mapping the Diamond Trade from Central African Republic to Cameroon

Summary: The Central African Republic (CAR) is the only source of traditionally defined conflict diamonds in the world today. Since May 2013, exports of its diamonds have been under international embargo by both the United Nations and the Kimberley Process (KP), the initiative that regulates the production and trade of rough diamonds. CAR was suspended from the KP after a March 2013 coup d'état that sparked widespread civil unrest in the country. The coup was the inevitable outcome of years of political instability forged by a coalition of rebel groups, known as Seleka, who attacked the government and incrementally seized territory, including the strategic diamond-mining town of Bria. On March 24, 2013 Séléka captured the capital city of Bangui and overthrew the government, initiating a bitter internal conflict that continues to fester to this day. The civil war and regime change forced the United Nations and the international community to impose economic sanctions on CAR. Not only were all diamond exports prohibited, the KP urged diamond-trading countries to exercise enhanced vigilance and ensure that diamonds produced in CAR were seized and not allowed to circulate in legitimate trade. While the ban on CAR’s exports was partially lifted in 2016 from regions deemed to be KP compliant, that has not stopped the flow of CAR's conflict diamonds to international markets—while it was under full embargo or regions still prevented from trading today. This report examines the smuggling of diamonds from the Central African Republic into Cameroon. Further, it focuses on the impact this illicit trade has on Cameroon’s internal controls as well as the broader integrity of the diamond supply chain. The report describes the methods used and the key actors involved in this illicit trade. It concludes that the KP and frontline countries like Cameroon need to do more to interrupt the illicit trade of conflict diamonds from CAR and support each other in taking action.

Details: Ottawa: Partnership Africa Canada, 2016. 36p.

Source: Internet Resource: Accessed December 2, 2016 at: http://pacweb.org/images/PUBLICATIONS/from-conflict-to-ilicit-eng-web.pdf

Year: 2016

Country: Africa

URL: http://pacweb.org/images/PUBLICATIONS/from-conflict-to-ilicit-eng-web.pdf

Shelf Number: 147323

Keywords:
Conflict Diamonds
Conflict Minerals
Diamonds
Illegal Trade
Illicit Trade
Smuggling

Author: Fay, Emily Victoria

Title: Trading in antiquities on eBay: the changing face of the illicit trade in antiquities

Summary: The sale of ancient objects on eBay is presented to buyers as legitimate and ethical. However the antiquities trade is a grey market, where both licit and illicit objects are sold (Bowman, 2008). An unknown percentage of illicit antiquities have entered the market as a consequence of archaeological looting. However, antiquities are fungible by nature, meaning that it is very difficult for buyers to differentiate the licit from the illicit. This thesis is based on the premise that the antiquities trade causes harm through the destruction of archaeological knowledge, and therefore there is a necessity to reduce the size of the market. Using Sutton's market reduction approach, the study sets out to collect empirical data on the market from eBay. The thesis considers three main research questions: First, is the current regulatory framework for the sale of antiquities adequate? Second, what is the scale and scope of the market on eBay for antiquities? Third, what are the routine features of the operation of this market? The thesis adopts routine activity theory to investigate the structural elements of the antiquities market, outlining the actors involved in the market, the reasons why antiquities make "suitable targets", and exploring the range of 'capable guardians' who may play a formal or informal role in the surveillance of this market. The data indicates eBay has expanded the size and reach of the antiquities trade, enabling amateurised actors to trade on a global scale. However, the online "frame" (Goffman, 1969) of eBay auctions creates additional challenges through the separation of goods and actors and the fluidity of identity in cyberspace. The thesis ends with an examination of the distal and proximal nodes of governance in online environments and the ideological, definitional, evidentiary, legislative and structural challenges to addressing the illicit antiquities trade at the market end.

Details: Keele, UK: Keele University, 2013. 436p.

Source: Internet Resource: Dissertation: Accessed December 5, 2016 at: http://eprints.keele.ac.uk/197/1/Fay%20PhD%202013.pdf

Year: 2013

Country: International

URL: http://eprints.keele.ac.uk/197/1/Fay%20PhD%202013.pdf

Shelf Number: 140279

Keywords:
Antiques
Antiquities
Illegal Markets
Illegal Trade
Illicit Trade

Author: Calderoni, Francesco

Title: The Eastern Balkan Hub for Illicit Tobacco

Summary: Key hubs are crucial sets of countries on the regional, continental or global map of the illicit trade in tobacco products. Analysis of key hubs instead of single countries enables a more comprehensive understanding of the factors determining the transnational illicit flows and a more effective identification of the strategies to fight and prevent the ITTP (Illicit Trade in Tobacco Products). The following elements often characterise key hubs: • medium to high levels of the ITTP in the hub, • significant price differentials of tobacco products across the hub, • extensive engagement of local manufacturers in the ITTP, • substantial flows of illicit tobacco to, within or from the hub to other countries. This report focuses on the Eastern Balkan hub for illicit cigarettes. Bulgaria is the most relevant country in the hub because it has significant inflows and outflows of illicit tobacco products. The sorrounding countries (Greece, Macedonia, Romania, Serbia and Turkey) are included because they enables and facilitate these flows. The report takes the name from the geographical area of the countries included.

Details: Milano: Transcrime – Università Cattolica del Sacro Cuore, 2016. 53p.

Source: Internet Resource: Accessed December 23, 2016 at: http://www.transcrime.it/wp-content/uploads/2016/08/TheEasternBalkanHubforIllicitTobacco.pdf

Year: 2016

Country: Europe

URL: http://www.transcrime.it/wp-content/uploads/2016/08/TheEasternBalkanHubforIllicitTobacco.pdf

Shelf Number: 147806

Keywords:
Cigarettes
Illegal Tobacco
Illegal Trace
Illicit Tobacco
Illicit Trade
Tobacco Smuggling

Author: Ellis, Clare

Title: On Tap Europe: Organised Crime and Illicit Trade in Spain: Country Report

Summary: The criminal networks behind Spain's illicit trade are sophisticated, agile and often active in other areas of criminality. In contrast to other countries studied, there does not appear to be a decisive shift away from the established high-risk activities of organised crime (such as trafficking narcotics) towards illicit trade, which is considered comparatively low-risk both in terms of detection and potential sanctions. Instead, the flexibility of organised crime groups in Spain includes both forms of activity, with groups moving between different illicit commodities and between crime types as opportunities arise. While Spain has long acted as a transit hub, a substantial domestic market for illicit goods has also developed. There appears to be limited infiltration of legal supply chains, with stringent regulatory systems largely preventing illicit goods from being sold through registered retailers. However, such goods remain readily available from a variety of sources, suggesting that measures have displaced rather than suppressed the sale of illicit products. Production of illicit goods within Spain is also an emerging trend, with illegal tobacco, alcohol and pharmaceutical factories uncovered in recent years. This paper identifies four specific drivers that underpin this complex and evolving role: the significant price differentials with nearby countries and territories; the impact of the global financial crisis on the Spanish economy; a social acceptance of illicit goods and the perception among the public that illicit trade is not a serious criminal issue; and the application of relatively lenient sanctions against those convicted of crimes related to illicit trade. It is the combination of these factors that has simultaneously created demand for illicit products, fuelled their supply, and offered limited deterrence for participation in this form of criminality.

Details: London: Royal United Services Institute for Defence and Security Studies, 2017. 53p.

Source: Internet Resource: Occasional Paper; On Tap Europe Series No. 2: Accessed January 30, 2017 at: https://rusi.org/sites/default/files/201701_op_on_tap_europe_spain_final.2.pdf

Year: 2017

Country: Spain

URL: https://rusi.org/sites/default/files/201701_op_on_tap_europe_spain_final.2.pdf

Shelf Number: 145542

Keywords:
Drug Trafficking
Illegal Tobacco
Illicit Goods
Illicit Trade
Organized Crime

Author: Thought Arbitrage Research Institute

Title: Need for Policy Reforms to Combat Illicit Markets: Case study on Tobacco Industry

Summary: India is the second largest tobacco producer and exporter in the world after China. Cigarette and other tobacco products provide a source of livelihood to nearly 45.7 million of Indians – farmers, farm labours, women and tribals – and contribute a good deal to the rural economy. The industry generates a significant share of the country's excise duty and state taxes, amounting to more than Rs 30,000 crore annually. Exports of leaf tobacco and tobacco products generate foreign exchange earnings of around Rs 6,000 crore. However, a growing consumption and trade of illicit cigarettes, which constitute a significant component of the tobacco industry, is a cause of grave economic and security concern for India. The illicit trade is defined as any practice or conduct prohibited by law and which relates to the production, shipment, receipt, possession, distribution, sale or purchase, including any practice or conduct intended to facilitate such activity. There are broadly three categories of illicit trade – smuggling, tax-evaded manufacturing and counterfeiting. In India, 1/5th of cigarette industry is illegal. Multi-agency studies involving Indian industry, government agencies and international entities such as USDA and Euromonitor International, show that consumption of illicit cigarettes have been growing steadily. FICCI-CASCADE studies have shown that the size of illicit markets in cigarettes and other tobacco products – which includes primarily cigarettes, chewing tobacco, bidi, khaini, cheroot, hookah tobacco, leaf tobacco, zarda, kimam, surti and snuff etc. – has grown from Rs 8,965 crore in 2012 to Rs 13,130 crore in 2014. This is a significant jump by 28.7%. Statistics show that the consumption of illicit cigarettes has been steadily going up in India – from 11.1 billion sticks in 2004 to 23.9 billion sticks in 2015. The following graph plots the steady rise in illicit consumption of cigarettes in these years.

Details: New Delhi: FICC Cascade, 2016. 88p.

Source: Internet Resource: Accessed January 30, 2017 at: http://ficci.in/spdocument/20805/final-CASCADECIG-report.pdf

Year: 2016

Country: India

URL: http://ficci.in/spdocument/20805/final-CASCADECIG-report.pdf

Shelf Number: 140765

Keywords:
Cigarettes
Counterfeit Tobacco
Illicit Cigarettes
Illicit Markets
Illicit Trade
Tax Evasion
Tobacco Industry

Author: Thought Arbitrage Research Institute

Title: Illicit Markets - A Threat to Our National Interests. The Alcoholic Beverages Industry

Summary: Illicit markets have broad economy-wide effects on trade, investment, employment, innovation, criminality, environment, and most importantly, on the health and safety of the consumers. Over and above, it also has a negative impact on the brand image and loss of revenue for industry and governments. In the alcoholic beverage industry, the industry faces a twin problem. Firstly, the production of alcohol under non-standard conditions which are much more harmful, life threatening and, secondly, the smuggling of these products which escape state taxes and duties applicable to this sector. As alcoholic beverages industry is a state subject, manufacturers have to conform to regulations legislated by each state which vary from state to state and sometimes loopholes in such differences in regulations can fuel illicit trade. Given the thrust on "Make in India"; technology, invention, and innovation will play a key role in India's current economic development. However, counterfeits and fakes will threaten India's growth strategy. Hence, a proactive strategy should be in place to fight this serious menace to public health and safety, and to the state exchequer. This report has estimated the size of the illicit market; its adverse impact on innovation and investment in the alcoholic beverage industry. I am certain that the findings from this report would increase consumer awareness, drive support from policy makers in tax related reforms and step up the industry for greater investment in R&D and encourage innovation.

Details: New Delhi: FICCI Cascade, 2016. 86p.

Source: Internet Resource: Accessed January 30, 2017 at: http://tari.co.in/wp-content/uploads/2015/07/Alcoholic-Beverages.pdf

Year: 2016

Country: India

URL: http://tari.co.in/wp-content/uploads/2015/07/Alcoholic-Beverages.pdf

Shelf Number: 144933

Keywords:
Alcohol Industry
Illicit Markets
Illicit Trade
Smuggling of Goods

Author: European Parliament. Directorate-General for Internal Policies. Policy Department D Budgetary Affairs

Title: Proceedings of the Workshop on Cigarette Smuggling

Summary: This report analyses the relationship between EU policy and the illicit trade in tobacco products. We consider three EU policies: (1) the EC Strategy and the Action Plan to tackle the illicit trade in tobacco products, (2) the revised Tobacco Products Directive, and (3) the Agreements between the European Community, individual Member States and the four major tobacco companies.

Details: Brussels: European Parliament, 2014. 132p.

Source: Internet Resource: Accessed February 11, 2017 at: http://www.europarl.europa.eu/RegData/etudes/workshop/join/2014/490681/IPOL-JOIN_AT(2014)490681_EN.pdf

Year: 2014

Country: Europe

URL: http://www.europarl.europa.eu/RegData/etudes/workshop/join/2014/490681/IPOL-JOIN_AT(2014)490681_EN.pdf

Shelf Number: 145019

Keywords:
Cigarette Smuggling
Illicit Trade
Illicit Trade in Tobacco
Tobacco Industry

Author: Farooghi, Mana

Title: Sustainable approaches to organised crime in Mali and the Sahil

Summary: Although the ongoing crisis in Mali had diverse local proximate causes and triggers, analysts and policy-makers agree on a core set of causes that exacerbated latent inter- and intracommunity tensions leading to open conflict: a failure of governance and functional democracy, corruption of the state, lack of development and service delivery both in the north and the south, unresolved issues of political and economic marginalisation and rebellion, lack of civilian trust in law enforcement forces, weak border security and the settling in the north of "extremist" groups, a free flow of weapons following the Libya crisis, and finally organised crime i.e. illicit trade and its alleged links to terrorism. While most of these causes are being addressed in the current peacebuilding and reconstruction efforts, the latter seems to fall through the cracks. Although organised crime is mentioned as a key factor of instability by Malian and international actors, alongside terrorist networks and usually in direct relation to them, in practice, only counter-terrorism programmes are being unfolded, and the issue of addressing criminal flows is a peripheral issue in negotiations around future governance agreements. It appears that development actors simply are not ready or equipped to tackle the impact of crime on peace and development. While some cooperation and development institutions consider the issue of crime outside of their mandate, others are increasingly aware of its socio-economic root causes and impact and are willing to adapt their programming, but simply don't have the experience and toolbox to do so, and thus, in many cases, caution outweighs impetus as state complicity and corruption seem to be core issues at stake. Nevertheless, rebuilding Mali without directly tackling this issue in collaboration with Malian state and non-state actors is precarious, and likely to ensure that the triggers for instability that prompted the previous round of the Mali conflict remain in place. Although efforts to negotiate with selected armed groups, restore security, deliver justice and reconciliation and improve service delivery are worthy, they will prove unable to prevent another crisis if they fail to address underlying structures, cultures and institutions that promote violent conflict. As many analysts and practitioners point out, no alternative livelihood project has so far been able to compete with the high-profit margins offered by trafficking, kidnapping or banditry. Failing to understand the contextual socio-economic dynamics at stake in a region where the informal and illicit economies are intricately woven in family, cultural and livelihood strategies, will not only undermine efforts towards a sustainable peace but potentially harm existing endogenous resilience mechanisms and further destabilise the region. Furthermore, as long as armed groups remain well-resourced by illicit funds, they will have little incentive to engage in efforts towards peacebuilding and central state consolidation. International Alert, in collaboration with the Global Initiative against Transnational Organised Crime, held a dialogue meeting in Bamako on 14-15 October, where Malian government and civil society representatives, multilateral organisations and bilateral institutions exchanged their analysis and definitions of organised crime in Mali and the Sahel and started exploring collaborative approaches to tackling organised crime in a sustainable way.

Details: Based on Highlights from roundtable discussion held at the Ecole de Maintien de la Paix Alioune Blondin Beye, on 14 and 15 October 2014. 9p.

Source: Internet Resource: Accessed February 13, 2017 at: http://reliefweb.int/sites/reliefweb.int/files/resources/Mali_SustainableApproachesOrganisedCrime_EN_2014.pdf

Year: 2014

Country: Mali

URL: http://reliefweb.int/sites/reliefweb.int/files/resources/Mali_SustainableApproachesOrganisedCrime_EN_2014.pdf

Shelf Number: 145016

Keywords:
Corruption
Illicit Trade
Organized Crime

Author: Jeffray, Calum

Title: On Tap Europe: Organised Crime and Illicit Trade in Greece: Country Report

Summary: Organised crime in Greece has historically been presented as an external threat, and the country’s vast coastline is indeed vulnerable to small-scale smuggling of various illicit goods from overseas, while its two major ports are frequently targeted by smugglers. As a result, Greece is widely cited as a key entry point for illicit goods into Europe, with the majority of illicit trade occurring in the regions where the two biggest cities and ports – Athens and Thessaloniki – are located. Illicit trade is not seen as an isolated problem in Greece, but as part of a broader category of economic crimes. It is closely linked to tax evasion, corruption and fraud. However, specific information on the scale and the scope of illicit trade in Greece is limited and tends to be largely anecdotal, reflecting a lack of publicly available information on organised crime more broadly. Authorities suggest that the way in which criminals in Greece organise themselves has evolved from strict, hierarchical structures to a more flexible ‘enterprise model’ in which a network of smaller OCGs is established for a particular operation. Groups that smuggle goods tend to deal across multiple commodities, moving between products based on the profit that can be made at any one time, regardless of the risk. Some illicit markets seem to be growing: data show that legitimate tobacco and alcohol sales are both decreasing, but there has not been a similar reduction in consumer demand. This paper makes various key findings. First, the debt crisis that has affected Greece since 2008 has undeniably had an impact on local illicit markets, making the black market more attractive to some consumers and affecting the resources available to law enforcement authorities. Second, during this period of economic uncertainty, authorities have focused on tackling crimes that they believe have the biggest impact on state revenues, such as tax evasion, excise evasion, fraud, and bribery and corruption. Third, Greece has become an attractive hub for smuggling activity for various reasons, including its combination of remote and porous land borders and its long coastline, the scale of operations at the port of Piraeus, which makes monitoring the content of incoming containers a challenge, and because the country is in the Schengen Area, which means that the circulation of goods into the rest of Europe is relatively straightforward. Fourth, there is only limited information available on the scale and scope of organised crime activity, and of illicit trade in particular. Finally, identifying 'little and often' smuggling operations, whether by sea or by land, requires an excellent intelligence picture, which Greece has struggled to achieve.

Details: London: Royal United Services Institute for Defence and Security Studies, 2017. 51p.

Source: Internet Resource: Occasional Paper; On Tap Europe Series No. 3: Accessed February 24, 2017 at: https://rusi.org/sites/default/files/201702_op_on_tap_europe3_greece.pdf

Year: 2017

Country: Greece

URL: https://rusi.org/sites/default/files/201702_op_on_tap_europe3_greece.pdf

Shelf Number: 141207

Keywords:
Corruption and Fraud
Drug Trafficking
Illegal Tobacco
Illicit Goods
Illicit Trade
Organized Crime
Smuggling
Tax Evasion

Author: Cooke, Jennifer G.

Title: Africa's Wildlife Poaching and Trafficking Crisis: The Need for Urgent Action

Summary: The illicit trade in wildlife products has undergone a dramatic escalation in the last decade, developing into a multibillion dollar global criminal enterprise that is increasingly militarized, sophisticated, and deadly. In Africa, poaching and trafficking in ivory and rhino horn have had a devastating impact on conservation efforts. Equally alarming is the growing danger trafficking networks pose for human security and development and the growing nexus of wildlife trafficking, armed militant groups, deepening insecurity, and government corruption. A CSIS Africa Program conference on the issue examined the drivers of the current crisis and highlighted ways that African governments and their partners are working to combat wildlife poaching and trafficking.

Details: Washington, DC: Center for Strategic and International Studies (CSIS), 2015. 24p.

Source: Internet Resource: Accessed March 8, 2017 at: https://csis-prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/151113_Cooke_AfricaWildlifePoaching_Web.pdf

Year: 2015

Country: Africa

URL: https://csis-prod.s3.amazonaws.com/s3fs-public/legacy_files/files/publication/151113_Cooke_AfricaWildlifePoaching_Web.pdf

Shelf Number: 141377

Keywords:
Animal Poaching
Illegal Trade
Illicit Trade
Trafficking in Wildlife
Wildlife Crime
Wildlife Trafficking

Author: D'Angelo, Elena

Title: Organized Crime and the Legal Economy: The Italian Case

Summary: Italy's economy is one of the largest, not only in Europe but also with reference to the global context. Its financial and industrial sectors are significant. In addition, domestic organized crime groups, especially the Camorra, the 'Ndrangheta, and the Cosa Nostra, operate across numerous economic sectors, both in Italy and abroad, and their illicit proceeds represent the main source of laundered funds. Illicit markets remain the main source of profit for organized crime groups in Italy, and more broadly in Europe. There have been various attempts to estimate the total revenue of organized crime in Italy. For example, the U.S. Department of State (2015) estimated Italy's black market to be to 12.4% of the country's GDP, approximately $250 billion. The Italian Parliament's Antimafia Commission estimated that the total turnover of endogenous organized crime in Italy valued at L150 billion in 2012. However, the border between illegal and legal activities of organized crime is hard to define. Financial as well as human resources are increasingly being circulated from one sector to the other, without interruption. While maintaining their interests in traditional fields of action related to illicit trade, organized crime groups have been expanding their presence and influence into the legal economy - creating threats to society on an array of levels. Research Questions Two main research questions (RQs) guide the present study: 1. How does organized crime infiltrate the legal economy? 2. What is the impact of organized crime infiltration in the legal economy? The qualitative section of the report answers the first RQ, further detailed in the following subquestions: 1. What are the main reasons behind the diversification of investments into the legal sector? 2. Which is organized crime's modus operandi? 3. How does organized crime exploit existing vulnerabilities and what are the facilitating factors?

Details: Torino, Italy: United Nations Interregional Crime and Justice Research Institute (UNICRI), 2016. 111p.

Source: Internet Resource: Accessed May 3, 2017 at: http://files.unicri.it/UNICRI_Organized_Crime_and_Legal_Economy_report.pdf

Year: 2016

Country: Italy

URL: http://files.unicri.it/UNICRI_Organized_Crime_and_Legal_Economy_report.pdf

Shelf Number: 145251

Keywords:
Illegal Markets
Illicit Trade
Money Laundering
Organized Crime
Proceeds of Crime

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 Markets
Illegal Markets
Illicit trade
Online Trade
Small Arms Survey
Trafficking in Weapons

Author: Reitano, Tuesday

Title: Libya: The Politics of Power, Protection, Identity and illicit Trade

Summary: Post-Revolution Libya has fractured into a volatile plethora of political ecosystems and protection economies, in which access to resources has become critical to survival. The struggle for control over illicit flows has shaped Libya's civil conflict and remains a decisive centrifugal force, actively preventing central state consolidation. Illicit flows exposed the deep fissures within Libyan society, divisions that the Gaddafi regime had controlled through a combination of force and the manipulation of economic interests in both the legitimate and illicit economy. The impact of illicit flows, however, has been different in different parts of the country: in a perverse resource triangle, coastal groups, while linked to the illicit economy (particularly through the control of ports and airports), have been paid by the state, while also relying on external financial support in a proxy war between competing interests centered in the Gulf. In the southern borderlands of the country, by contrast, control of trafficking, and the capture of the country's oil resources, have been key drivers in strengthening conflict protagonists. For some of the minority players in Libya's patchwork state, control over illicit resources became a way to bargain for attention in the transition. The gradual erosion of the legitimate economy following six years of protracted conflict and political stalemate has resulted in a status quo where the size and dynamism of illicit markets for fuel, human smuggling and subsidised goods far outweighs legitimate alternatives for several groups, thereby building the legitimacy of criminal actors over formal institutions. While the focus of much of the coverage of the external reporting of the Libyan conflict is on the divide between east and west, putting a spotlight on illicit trafficking also highlights the disparities between the coast and the interior. Unless the illicit economy, and the priorities of those who control it, are addressed holistically as part of the political transition, the possibilities for a peaceful settlement remain remote and the viability of the central state questionable. There are now no easy policy options.

Details: Tokyo: United Nations University Centre for Policy Research, 2017. 16p.

Source: Internet Resource: Crime-Conflict Nexus Series: No 3: Accessed June 16, 2017 at: https://i.unu.edu/media/cpr.unu.edu/attachment/2523/Libya-The-Politics-of-Power-Protection-Identity-and-Illicit-Trade-02.pdf

Year: 2017

Country: Libya

URL: https://i.unu.edu/media/cpr.unu.edu/attachment/2523/Libya-The-Politics-of-Power-Protection-Identity-and-Illicit-Trade-02.pdf

Shelf Number: 146193

Keywords:
Drug Trafficking
Illegal Trade
Illicit Markets
Illicit Trade
Organized Crime

Author: Shaw, Mark

Title: Global Illicit Flows and Local Conflict Dynamics: The Case for Pre-Emptive Analysis and Experimental Policy Options

Summary: INTRODUCTION This paper seeks to address three interconnected policy questions: - First how do global illicit flows impact on local conflict dynamics? Are there specific conceptual features that can be identified that may assist us to analyse this phenomenon across cases? - By understanding these, second, what can be done to limit the negative impact of organised crime on violent conflict? Are new ideas required or is it only a question of recalibrating existing policy alternatives? - Third, what are the implications for international involvement in conflict affected states? Given the potential complexities of engaging in conflict spaces on what are often hidden or little understood criminal resource flows, are these even viable objectives for policy intervention, for either development or security actors? The paper draws at the outset on two contrasting case studies - that of conflict in Libya and Nigeria in the recent past - both of which have shaped our work and thinking on the topic. Libya and Nigeria have some interesting parallels and some important differences. In both cases the oil economy is an important resource and driver of some aspects of the conflict. However, in Libya's case transnational or cross-border flows and their control have played a more important role then in Nigeria. In the case of the latter, the Boko Haram insurgency shows little evidence of resourcing from wider criminal flows; the movement has largely survived on extortion or protection money of local trade to raise funds. In Libya, payments from proxies and the state (in the form of legal transfers) have sustained the conflict. In Libya the central state has little reach. In Nigeria, the central state is comparatively stronger, but suffers from a debilitating level of corruption, providing opportunities for collusion between state and non-state actors which sustain conflict. Thus, with respect to the conflict in the Niger Delta, there is strong complicity between state, business and criminal actors. While the paper's focus is largely on Africa, given that much of the discussion on the political economy of conflict has had a link to conflicts on the continent, it also seeks to build on our wider experience of working in and researching conflict zones elsewhere and engaging with the range of stakeholders involved. The discussion begins with a short overview of the history of the debate on the linkages between organised crime and conflict with an African focus. This schematic serves as an introduction to a series of analytical issues that we have drawn from both the Libyan and Nigerian case studies as well as our own analytical work conducted on organised crime and illicit networks in several other conflict zones. While we do not claim these to be a definitive list, we hope that they serve to promote debate about the state of the evolving discussion and the linkages between global flows and local conflicts. Referring to the connection between criminal flows and conflicts is not necessarily new. However, the scale of the challenge has changed as has the analytical discourse that is increasingly being adopted. The current debate in our views reflects a merging between an older literature on "greed or grievance" as a cause of conflict, and a newer (and less developed) one that has sought to identify organised crime as one 'driver' of conflict. Driver in this context has four overlapping dimensions: 1. Conflict over the control of illicit markets; 2. Illicit markets providing resources for continuing conflicts; 3. Illicit revenue streams associated with conflict (and the disruption that it brings) postponing peace by ensuring that incentives from the criminal economy are seen as more advantageous than from peace; and, 4. External resourcing of conflict actors and/or wide spread corruption associated with illicit markets which is a "bleeding sore" that erodes the state, preventing a decisive end to conflict (and through collusion in illicit markets provides incentives for state actors to gain from its continuance). As these points suggest, and as we will argue as the paper unfolds, there are important overlaps between the older work on "greed and grievance" and the emerging focus. What is lacking is a better way of conceptually framing the connections to allow a more sophisticated policy discussion. We conclude that policy in this area is better informed by identifying a set of principles around which to frame responses rather than a set of 'actions' that are unlikely to be replicable across conflicts.

Details: Tokyo: University Nations University, 2017. 14p.

Source: Internet Resource: Crime-Conflict Nexus Series: No 2: Accessed June 20, 2017 at: https://i.unu.edu/media/cpr.unu.edu/attachment/2518/Global-Illicit-Flows-and-Local-Conflict-Dynamics.pdf

Year: 2017

Country: Africa

URL: https://i.unu.edu/media/cpr.unu.edu/attachment/2518/Global-Illicit-Flows-and-Local-Conflict-Dynamics.pdf

Shelf Number: 146316

Keywords:
Crime-Conflict Nexus
Illicit Goods
Illicit markets
Illicit Trade
Organized Crime

Author: Stakeholder Democracy Network

Title: Building Bridges: Community-Based Approaches to Tackle Pipeline Vandalism

Summary: Pipeline vandalism cost the Nigerian Government, oil-companies and communities an estimated $14bn dollars in 2014. The failure of the Nigerian state to provide basic public services and security in the Niger Delta has resulted in a significant breakdown of the social contract. In the void that remains, international and national oil companies are often seen as a Government proxy, spending millions of dollars in their operating locations through various formal and informal Corporate Social Responsibility (CSR) and security instruments. However, these efforts are not perceived to have the communities' interests at heart, preferring to secure a short-term license to operate as opposed to a long-term legacy in the region. In addition, the "quick and easy cash" approach by oil-companies in response to threats by vandals has created an implicit incentive to "crack pipes", earn money and survive. In communities, the feeling of anger and demand for attention motivates vandals to interrupt pipelines at the expense of their environment and livelihoods, with many addicted to easy money from surveillance and clean-up contracts. Others vandalise to survive in the absence of other employment choices ignoring the long-term impact to their local environment and health. The environmental impact is immense with an estimated 51,500 hectares devastated by oil spills in 2014 as a direct consequence of pipeline vandalism. In the creeks, enormous sums of money are earned from the illicit trade of stolen oil, often settled through cash and arms deals, fuelling a "cold-war" between entrenched actors and the State. This threatens the fragile and purchased peace currently holding together the Niger Delta. As previous patronage networks strain after elections, and the means to gain access to oil-proceeds are mitigated, old militant tactics of pipeline vandalism, kidnap and organised crime may again emerge to illicit a response from Government and oil-companies. The communities that surround Nigeria's pipeline infrastructure will continue to demand for socio-economic development of the region and based on history, there has been no quicker way to get the Government and oil companies attention than by vandalising pipelines and halting production. The new Administration has a short window of opportunity to address these issues once and for all, riding on post-election feelings of optimism and hope washing across the Delta; perhaps one of the first times there has been marginal support for a President not from the region. However, should the new Administration not act quickly, rising agitation and reduced patronage flows may inflame feelings of anger, resentment and hopelessness, with various individuals and groups, heavily armed and very wealthy, threatening the security of the oil industry and national income. Our investigation confirmed that International Oil Company (IOC) pipelines have more incidences of vandalism than their National Oil Company (NOC) counterparts. This is due in part because IOC's still own the majority of pipeline infrastructure, but also due to historically high community expectations as a result of enormous budget allocations and the availability of formal and informal channels of "easy-money" into host communities for CSR related activities, clean up and surveillance contracts. Our research has identified examples of alternative community based models to tackle pipeline vandalism that have been trialled with some success giving a degree of confidence that change is possible and relationships can be fixed. A solution will need to take into account the successes, challenges and lessons learnt from current approaches to provide a clear direction towards a sustainable and collaborative approach to tackle the issue. This report encourages the incoming government to consider alternatives away from a sole-security response to pipeline vandalism. There is a need to review and reset the relationships between Government, oil-companies and communities as a first step to tackle pipeline vandalism, maintaining oil production whilst reinforcing peace in the Niger Delta. We believe efforts to reset relationships could lead to new social contract in the Niger Delta. A sustainable approach to tackle pipeline vandalism will develop local institutions and economies, increase employment and lift many out of poverty whilst reversing current incentives away from vandalism and towards pipeline and environmental protection. The relationship between communities, oil companies and Government has been broken for too long. Now is the time to fix it.

Details: London: SDN, 2015. 44p.

Source: Internet Resource: Accessed July 3, 2017 at: http://www.stakeholderdemocracy.org/wp-content/uploads/2015/11/SDN-Building-Bridges-Community-Based-Approaches-to-Tackle-Pipeline-Vandalism.pdf

Year: 2015

Country: Nigeria

URL: http://www.stakeholderdemocracy.org/wp-content/uploads/2015/11/SDN-Building-Bridges-Community-Based-Approaches-to-Tackle-Pipeline-Vandalism.pdf

Shelf Number: 146500

Keywords:
Illicit Trade
Offenses Against the Environment
Oil Industry
Petroleum Industry
Pipeline Vandalism
Theft
Vandalism

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 Markets
Contraband Cigarettes
Contraband Tobacco
Illegal Cigarettes (Europe)
Illegal Tobacco
Illegal Trade
Illicit Trade
Organized Crime

Author: Prieger, James E.

Title: Cigarette Taxes and Illicit Trade in Europe

Summary: Cigarettes are highly taxed in Europe to discourage tobacco use and to fund public-health measures to mitigate the harms from tobacco consumption. At higher prices (more precisely, at higher differentials between licit and black-market prices) consumers substitute more toward illicit cigarettes. Illicit retail trade in cigarettes (IRTC) includes counterfeiting and smuggling - either of legally purchased products, from lower-tax to higher-tax jurisdictions, or of entirely non-tax-paid cigarettes. The existing literature includes claims that taxes are not an important factor determining the scale of IRTC. We investigate these claims with data from 1999-2013 in the European Union. We find that while the simple correlation between licit cigarette prices and the market share of illicit cigarettes in consumption is negative, raising prices in any one country would, on average, lead to substantial increases in the expected illicit market share and volume in that country. A one euro increase in tax per pack in a country is expected to increase illicit market share by 5 to 12 percentage points and increase illicit cigarette sales by 25% to 120% of the average consumption. We also find that the role of prices in stimulating IRTC is, empirically, far more important than the role of corruption. The results are robust to a host of alternative specifications and sources of data.

Details: Pepperdine University, School of Public Policy Working Papers, 2016. 77p.

Source: Internet Resource: Accessed August 29, 2017 at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2718519

Year: 2016

Country: Europe

URL:

Shelf Number: 146934

Keywords:
Cigarettes
Illicit Trade
Tax Evasion
Tobacco

Author: Organisation for Economic Co-operation and Development

Title: Mapping the Real Routes of Trade in Fake Goods

Summary: Trade in counterfeit and pirated goods is a vital threat for modern, innovation-driven economies, a worldwide phenomenon that grows in scope and magnitude. Counterfeiters ship infringing products via complex routes, with many intermediary points, which poses a substantial challenge to efficient enforcement. This study looks at the issue of the complex routes of trade in counterfeit pirated goods. Using a set of statistical filters, it identifies key producing economies and key transit points. The analysis is done for ten main sectors for which counterfeiting is the key threat. The results will facilitate tailoring policy responses to strengthen governance frameworks to tackle this risk, depending on the profile of a given economy that is known as a source of counterfeit goods in international trade.

Details: Paris: OECD, 2017. 159p.

Source: Internet Resource: Accessed September 1, 2017 at: https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/reports/Mapping_the_Real_Routes_of_Trade_in_Fake_Goods_en.pdf

Year: 2017

Country: International

URL: https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/documents/reports/Mapping_the_Real_Routes_of_Trade_in_Fake_Goods_en.pdf

Shelf Number: 147000

Keywords:
Counterfeit Products
Counterfeiting
Illicit Trade

Author: Framework Convention Alliance

Title: The use of technology to combat the illicit tobacco trade

Summary: A number of industries face a growing trend: new requirements to identify a consumer product in trade, to verify its authenticity and to trace it. The tobacco sector has joined these industries. The Framework Convention on Tobacco Control, a World Health Organization treaty, identifies elimination of illicit trade in tobacco products as a key element of global tobacco control. The treaty requires in Article 15.2(b) that Parties should "consider, as appropriate, developing a practical tracking and tracing regime that would further secure the distribution system and assist in the investigation of illicit trade." Negotiations have begun on a supplementary treaty, or protocol, for combating illicit tobacco trade. In the context of the Article 15.2(b) requirement, this paper is intended to provide a reference source on existing systems. A tracking system allows authorities to monitor the movement of tobacco products. Tracing helps authorities pinpoint where tobacco was diverted into illegal channels. During the negotiations on the FCTC and the protocol, we have noticed many misconceptions about tracking and tracing. Sometimes systems were described as tracking and tracing but they did not allow totally, or in part, the monitoring of tobacco products at the international level. The purpose of this paper is to clarify the concepts, to describe the current use of technology to combat illicit tobacco trade and to identify merits and limitations of these practices. This paper describes the use of codes and markings on tobacco packaging and tax stamps to allow a better monitoring of the tobacco trade. It also gives an overview of coding technologies that are used, or are in development, in the tobacco industry and other sectors.

Details: Geneva, SWIT: FCTC, 2008?. 6

Source: Internet Resource: Accessed September 9, 2017 at: www.fctc.org

Year: 20080

Country: International

URL: www.fctc.org

Shelf Number: 147165

Keywords:
Illegal Tobacco Trade
Illicit Tobacco
Illicit Trade
Technology
Tobacco Industry

Author: Global Initiative Against Transnational Organized Crime

Title: Transnational Organized Crime and the Impact on the Private Sector: The Hidden Battalions

Summary: his paper is based on a detailed review of the scale and nature of organised crime's infiltration of the private sector. These findings are a 'call to arms' for the international private and public sectors to transform their co-operation and teamwork. We have adopted a practical definition of organized crime as that which is carried out by a group of people, suspected of serious criminal offences, over a prolonged period, motivated by profit or power. In our analysis of six major private sector industries, six specific forms of organised crime stood out as either having material impact on the private sector, or using the private sector as facilitators. Money laundering is the process of making dirty money look clean. One estimate puts it at 2% of global GDP - c.$1.5 trillion. Money-laundering is an 'enabling crime', facilitating organized crime (as well as terrorism) with social and economic costs. Asset misappropriation refers to stealing from businesses. For example, cargo thefts cost as much as $30 billion in losses each year worldwide. Counterfeiting and contraband, whilst thought of as being a consumer goods crime, is rife in a broad range of sectors, in particular technology products and pharmaceuticals, to devastating effect. It is estimated by OECD at $461billion, or 2.5% of world trade. Fraud and extortion remain strongly present in the financial, construction and real estate industries. In construction extortion could account for of 20-30 per cent of lost project value. Human trafficking. High volume, low skilled labour enterprises such as construction and building, have the highest penetration of trafficking incidence in the private sector. Cyber Crime. Hacking attacks cost the average American firm $15.4 million per year over. In 2015 68,000 URLs containing child sexual exploitation and abuse (CSEA) images were hosted online on 1,991 domains. The reputational impact means major tech companies apply significant collaborative resources to weeding out criminal, terrorist and CSEA activity. Finding#1: The Scale and Impact of Crime in the Private Sector is Truly Staggering. A conservative estimate of the value of organized crime was $3.6-$4.8 trillion, in 2015/2016, 7% of global GDP. The broader impact of organized crime is difficult to assess as it is multi-dimensional, and shared across the private, public sector, and society itself. The impact on the private sector only - in terms of revenue loss - is estimated at c$130 billion. The Institute of Economics and Peace (IEP) calculated the financial cost of terrorism at over $52 billion in 2014. A conservative estimate of total transnational organized crime is $870 billion a year. This is more than six times the amount of official development assistance and close to 7% of the world's exports of merchandise Finding #2 Private sectors are either facilitators or targets. Crimes are either done 'to' private sector organisations, or 'through' them. Sectors are either the targets of fraud or asset theft themselves, particularly in construction, consumer goods ($460 billion counterfeit goods), and financial card fraud, or they facilitate crime unwittingly, through use of technology networks by fraudsters to target victims, e.g. the real estate sector laundering dirty funds or the transport industry moving illicit goods. Regulation varies between the 'victim' and 'enabling' industries. Laws are in place to criminalise the use of the private sector for technology or money laundering crime. The victim industries, however, often are reliant on existing laws around theft, or copyright infringement, which are not tailored to the activities of TOC groups and tend to have lower penalties for infringement. Finding #3 Organized crime's impact on the private sector is growing not shrinking. Counterfeit goods have risen from $250 billion to $461 billion in the last 8 years. Asset theft in the transport and logistics theft rose by over 90% 2015 to 2016. There is a sense that regulation is not working: money laundering seizures equated to 0.2% of all laundered funds in one study; and after the dark web's Silk Road was taken down, many sites sprung up to take on and indeed grow the trade. Finding #4 Direct impact of Crime Disproportionately felt in the global south. Sweatshops flourish in South Asia; trafficking of labour and sex workers originates predominantly in Africa, Asia and Eastern Europe; corruption in natural resources damages production in Africa and the Caucasus; technology fraud is driven from eastern and southern Europe, West Africa and the Middle East. Whereas in developed economies counterfeit drugs may comprise less than 0.2 percent of the market developing markets are often beset by 30% fakes, as a UNODC report showed for anti-malarial drugs in Africa. Globalization is increasing the 'attack surface' for TOC groups. The abuse of the often weaker regulatory regimes in the Global South by TOC groups further increases the risk for the private sector operating in these areas. Finding #5 Responses re confrontational rather than collaborative. There are very few examples of successful public and private sector co-operation against TOC groups. Private sector organisations complain that communication with the law enforcement sector is one-way and that the regulatory reporting burden, designed to combat crime, can act as a deterrent to co-operation. Tangible results have been seen when industries take the lead on disrupting the work of TOC groups, such as TAPA the Transported Asset Protection Association

Details: Geneva, SWIT: The Global Initiative, 2017. 84p.

Source: Internet Resource: accessed December 7, 2017 at: http://globalinitiative.net/wp-content/uploads/2017/12/gitoc_tocprivatesector_web-1.pdf

Year: 2017

Country: International

URL: http://globalinitiative.net/wp-content/uploads/2017/12/gitoc_tocprivatesector_web-1.pdf

Shelf Number: 148755

Keywords:
Cargo Theft
Contraband
Counterfeit Goods
Cybercrime
Extortion
Human Trafficking
Illicit Trade
Money Laundering
Organized Crime
Private Sector
Stolen Property
Theft of Goods

Author: Holtom, Paul

Title: Trade Update 2017: Out of the Shadows

Summary: The Small Arms Survey's Trade Update 2017: Out of the Shadows provides an overview of the international trade in small arms and light weapons in 2014, identifies the world's top and major exporters of small arms and light weapons, and assesses changes in trade patterns from 2013 to 2014. The Update also presents the 2017 edition of the Small Arms Trade Transparency Barometer, which scores key exporters from the most to the least transparent. The main findings include the following: In 2014, the top exporters of small arms (those with annual exports of at least USD 100 million), in descending order, were: the United States, Italy, Brazil, Germany, South Korea, Austria, Turkey, the Russian Federation, the Czech Republic, Belgium, Croatia, Israel, Spain, Switzerland, and Japan. Brazil exported more than USD 500 million worth of small arms for the first time during 2001-14. In 2014, the top importers of small arms (those with annual imports of at least USD 100 million), in descending order, were: the United States, Canada, Indonesia, Saudi Arabia, Germany, Australia, Iraq, France, the Netherlands, and the United Kingdom. The United States remains the world's largest importer, but the value of its imports declined for the first time since 2001, from USD 2.5 billion in 2013 to USD 2.2 billion in 2014. The international small arms trade was worth at least USD 6 billion in 2014. Ammunition accounted for 38 per cent of global transfers. The value of 'military firearm' shipments increased by 49 per cent between 2013 and 2014, from USD 475 million to USD 708 million. In contrast, the value of the trade in pistols and revolvers declined by 16 per cent, from USD 1 billion to USD 845 million. The 2017 edition of the Small Arms Trade Transparency Barometer identifies Germany, Switzerland, the Netherlands, and Serbia as the most transparent top and major small arms exporters. Iran, Israel, North Korea, Saudi Arabia, and the United Arab Emirates (UAE) are the least transparent major exporters. The average score in the 2017 Barometer is 11.33 out of 25 points. The areas that have seen the most improvement over the past year are: comprehensiveness (+17 per cent), access and consistency (+12 per cent), licences denied (+11 per cent), and clarity (+4 per cent). In their first ATT annual reports, Austria, Costa Rica, the Dominican Republic, and Liberia-none of which had reported small arms transfers to the UN Register-provided information on small arms transfers, thus increasing overall transparency on international small arms transfers. Although Iran, North Korea, and the UAE rarely, if ever, recorded small arms exports worth USD 10 million or more in Comtrade, Survey research indicates that they are major small arms exporters. It is more difficult to determine the status of Saudi Arabia, which appears to be a significant re-exporter of small arms.

Details: Geneva, SWIT: Small Arms Survey, 2017. 90p.

Source: Internet Resource: Accessed December 7, 2017 at: http://www.smallarmssurvey.org/fileadmin/docs/S-Trade-Update/SAS-Trade-Update-2017.pdf

Year: 2017

Country: International

URL: http://www.smallarmssurvey.org/fileadmin/docs/S-Trade-Update/SAS-Trade-Update-2017.pdf

Shelf Number: 148762

Keywords:
Illegal Trade
Illicit Trade
Trade in Arms

Author: Steinberg, Jonny

Title: The illicit abalone trade in South Africa

Summary: In the first 20 years following the introduction of a quota on abalone harvesting in 1970, poaching existed but was contained. This changed dramatically in the early 1990s. Within a couple of years, the illicit perlemoen trade had become a highly organised, multimillion-dollar industry, controlled by street gangs on the shoreline and by transnational enterprises on the trade routes to East Asia. As a result of this binge of illegal harvesting, South Africa's stock of wild perlemoen today stands on the brink of extinction. This paper explores why the illicit abalone trade took off so dramatically in the 1990s and chronicles the attempts of various enforcement agencies to contain it. We evaluate which measures may have worked, which may still work, and which were doomed from the start.

Details: Pretoria: Institute for Security Studies, 2005. 16p.

Source: Internet Resource: ISS Paper 105: Accessed April 4, 2018 at: https://issafrica.s3.amazonaws.com/site/uploads/105.PDF

Year: 2005

Country: South Africa

URL: https://issafrica.s3.amazonaws.com/site/uploads/105.PDF

Shelf Number: 106991

Keywords:
Abalone
Animal Poaching
Environmental Crimes
Gangs
Illicit Trade
Wildlife Crime

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 Markets
Cybercrime
Cybersecurity
Illicit Trade
Organized Crime
Security
Supply Chains

Author: Wingard, James R.

Title: Catch Me If You Can: Legal Challenges to illicit wildlife trafficking over the internet

Summary: Although illicit internet trade falls into the larger universe of cybercrime, it is better described as a cyber-enabled crime - in other words, a traditional crime that uses new technologies with the traditional part being the illegal capture of wildlife and the associated physical forms of trade. In addition to the many legal and enforcement challenges associated with conventional wildlife crimes, internet-based illegal wildlife trade (IWT) poses another set of problems for officials, forcing them to operate in a trans-jurisdictional, virtual space that they, and the law, are largely unprepared to manage. On the practical side, they face substantial difficulties merely distinguishing legal from illegal trade, including: - knowing which species are involved and which countries' laws apply to the activity in question (e.g. advertising, sale and purchase, arrangement of logistics); - determining trade quantities and making decisions on whether to invest resources in the pursuit of crimes; and - knowing which specific legal basis may apply to the species being traded. In terms of their legal authorities and practices, officials also confront further problems, in that they may have no specific power to carry out covert investigations; no, or limited, access to cybercrime units; and no, or limited, experience with cybercrime laws and digital forensics to conduct necessary investigations. Concerning the legal frameworks directed at illicit wildlife trade, they face: - criminal and related laws that do not adequately address all parts of the digital trade chain by expressly criminalizing the advertising of illicit wildlife trade or related offences; - differing investigative authorities between jurisdictions that compromise transnational enforcement efforts; and - inconsistent regulation of and limitations to subject matter and personal jurisdiction that create 'digital safe havens' and prevent prosecutions. Taken as a whole, the overall ability of enforcement authorities to adequately identify, investigate and prosecute the advertising of illicit wildlife on the internet is severely compromised. Key efforts to improve this situation have been included in the conclusion and recommendations to this brief.

Details: Geneva, SWIT: Global Initiative Against Transnational Organized Crime, 2018. 31p.

Source: Internet Resource: Accessed August 23, 2018 at: http://globalinitiative.net/wp-content/uploads/2018/07/Wingard-and-Pascual-Digital-Dangers-Catch-me-if-you-can-July-2018.pdf

Year: 2018

Country: International

URL: http://globalinitiative.net/wp-content/uploads/2018/07/Wingard-and-Pascual-Digital-Dangers-Catch-me-if-you-can-July-2018.pdf

Shelf Number: 151245

Keywords:
Computer Crime
Cybercrime
Illegal Wildlife Trade
Illicit Trade
Internet Crime
Trafficking in Wildlife
Wildlife Crime
Wildlife Trafficking

Author: Bate, Roger

Title: Large Cigarette Tax Hikes, Illicit Producers, and Organized Crime: Lessons from Pakistan

Summary: With the stated aim of increasing revenue and discouraging smoking, Pakistan raised tobacco duties over the past five years. The result empowered illicit actors, with a flourishing of illicit production and smuggling of cigarettes. Revenue rose initially, only to fall back as untaxed products proliferated. While organized crime and local production interests were the big winners, smoking rates have remained largely unchanged. Pakistan's authorities have tried to resolve the problem through better enforcement and lowering of duties for certain products, but overall the lesson learned is that rapid duty increases have significant negative effects that are difficult to reverse when illegal supply cannot be controlled.

Details: Washington, DC: American Enterprise Institute, 2018. 10p.

Source: Internet Resource: Accessed September 8, 2018 at: https://www.aei.org/publication/large-cigarette-tax-hikes-illicit-producers-and-organized-crime-lessons-from-pakistan/

Year: 2018

Country: Pakistan

URL: https://www.aei.org/wp-content/uploads/2018/06/Large-Cigarette-Tax-Hikes-Illicit-Producers-and-Organized-Crime.pdf

Shelf Number: 151466

Keywords:
Cigarettes
Illicit Trade
Organized Crime
Smuggling
Smuggling of Goods
Tobacco

Author: Center for the Study of Democracy

Title: The Illicit Trade of Tobacco Projects Along the Balkan Route: Bulgaria, Greece, Italy and Romania

Summary: The Balkans have long been a key route for various illicit goods and flows - drugs, firearms, human trafficking and human smuggling, etc. Since 2000 Greece became a key entry point and a source of 'illicit white' cigarettes. Upon entering Greece, the 'illicit whites' were further trafficked either to Italy and Western Europe or through Bulgaria and Romania to Central European markets. This was the onset of a resilient and hard to curb transnational criminal infrastructure. Apart from that Bulgarian organized crime is extensively involved in setting up clandestine factories for production of 'counterfeited' or 'illicit white' brands in various countries across the EU. Furthermore Bulgaria, Italy, Greece and Romania are the four top-ranking in the EU in terms of levels of perceived corruption according to the Control of Corruption indicator of the World Governance Indictors (WB, 2014), as well as according to the most recent Corruption Perception Index (Transparency International, 2016). Against this background, the current initiative aims are threefold: 1) to bring to light the institutional gaps impeding the effective response to the illicit trade of tobacco products and propose a method for evaluating institution's performance at regional level; 2) to examine the role of corruption as crime enabling factor for illicit trade of tobacco products, as well as suggest a method to assess it on regional level; 3) to advocate for more effective, evidence-based legislative and policy actions, and to put pressure on the relevant authorities in Bulgaria, Italy, Greece and Romania to step up their efforts to curb these organised crime activities and related corruption. The research initiative The illicit trade of tobacco products along the Balkan route: addressing institutional gaps and corruption is led by CSD group and is among the 32 projects, selected from more than 200 proposals in the first funding round of PMI IMPACT- a global initiative dedicated to support fight against illicit trade and related crimes. The research team involves experts from Bulgaria (CSD), Italy (Intellegit), Romania (SCE), as well as three independent criminology researchers from Greece. Over the next two years, the project will elaborate tools for performance evaluation and corruption risk assessment of law enforcement and revenue authorities with regards to illegal tobacco trade. Key points - The national tobacco policies in Bulgaria, Italy, Greece and Romania reflect the main trends and developments set by the international and EU regulatory mechanisms. However each country faces different challenges in the implementation due to differences in the institutional setup and administrative capacity. - The tobacco sector in the four countries has underwent very similar evolution, where following the liberalisation, the Big Tobacco producers hold between 80 % and 90 % of the market, although local producers still maintain their presence on national level. - The peak of the ITTP in the four countries was triggered by the economic crisis in 2008 - 2010, which led to 4 to 5 times increase in the consumption of illicit tobacco products. However, while Bulgaria and Italy eventually managed to stifle their illicit markets, Greece and Romania continue to face high levels of ITTP. - Greece, Italy and Romania are among the top five transit points in the EU and Bulgaria is an important regional transit point. There is a long history of well-established collaboration between the criminal networks of the four countries. - Three major categories of risks and vulnerabilities have been identified with regards to ITTP 1) Risks deriving from the overall political, institutional and legal environment in each country; 2) Risks related to the licit tobacco sector; 3) Risks related to the crime context in each country

Details: Sofia: CSD, 2018. 28p.

Source: Internet Resource: Policy Brief No. 80: Accessed October 5, 2018 at: http://www.csd.bg/artShow.php?id=18053

Year: 2018

Country: Europe

URL: http://www.csd.bg/artShow.php?id=18053

Shelf Number: 152838

Keywords:
Cigarettes
Illegal Tobacco Trade
Illicit Tobacco
Illicit Trade
Organized Crime
Tobacco Industry

Author: The Sentry

Title: Fear, Inc. War War Profiteering in the Central African Republic and the Bloody Rise of Abdoulaye Hissene

Summary: Since 2013, the conflict in the Central African Republic (CAR) has repeatedly made international headlines, with alarms being raised over the escalating violence and even precursors to genocide in the country. Ethnic purges and other mass atrocities continue to take place on a near-daily basis against entire communities. A great, but unknown, number of civilians have died in the conflict and the instability has led to a major humanitarian crisis. In May 2018, the United Nations High Commissioner for Refugees (UNHCR) announced that an unprecedented 1.27 million people have been internally displaced or forced to flee the country. Over the past 20 years, there have been a growing number of initiatives aimed at ending the CAR conflict, but these have had little impact. The country has seen a series of peace, disarmament and amnesty agreements; long-term UN peacekeeping missions and humanitarian assistance; foreign military operations; and elections. Billions of dollars have been spent in an attempt to restore stability and compensate for the lack of state control. Since 2014, the UN mission in CAR, also known as MINUSCA, has cost more than $3.2 billion. The European Union, a long-term and major development partner in CAR, has also disbursed nearly $200 million during the same period. Despite these efforts, the various mediation initiatives have failed to obtain a political compromise sufficient to manage the simple respect of a ceasefire. Today, there are multiple armed gangs, self-defense and politico military groups that control or exercise influence across the entire national territory. Worse yet, the perpetrators of atrocities are recognized by regional and international actors as legitimate political interlocutors with whom dialogue is necessary and peace must be negotiated. In August 2018 the African Union announced the end of a series of meetings with representatives of 14 armed groups to record their claims, even though some of the leaders have been placed under sanctions by the United Nations (UN) and the United-States (US). The African Union presented a list of more than 100 demands made by armed groups, including power sharing and amnesty. At the same time, a parallel dialogue was initiated by the Russian government, which invited to Khartoum the military leaders of the most violent armed groups active in the CAR conflict for almost a decade. Today, these so-called dialogues aimed at ending the deadly war have been captured by the agenda of perpetrators of mass atrocities who have shown no intention of making peace. Between 2016 and 2018, The Sentry investigated one such armed group representative, Abdoulaye Hissene, a notorious warlord involved in CAR's conflict for almost a decade. Formerly a diamond and gold trader, and since 2009 the leader of various politico-military groups, Hissene has been recognized as being responsible for an attempted coup in late 2015 and for targeted violence against UN and humanitarian staff. Since 2017, the United States, then followed by the full UN Security Council, have decided to impose sanctions through an asset freeze and travel ban. Chad announced it had implemented these sanctions, and the CAR government issued an international arrest warrant for him in 2016. Despite these measures and several attempts to arrest him, he remains a free man. The Sentry's investigation also reveals that Hissene has been successful building a profitable business and even since he has been under sanctions. He has amassed a fortune out of devastating sectarian violence. By inciting hatred and sowing divisions between ethnic and religious communities, he has gradually become a central player in the country's conflict. Hissene's rise has been possible thanks to strong ties he has developed over time with national and regional heads of state, their close allies, and with foreign business partners. In 2014, amid the ethnic cleansing of the Muslim population in CAR, Hissene enjoyed diplomatic status and traveled abroad, notably to Cameroon, the Republic of Congo, Chad, Kenya, United Arab Emirates, Switzerland, and France. During these travels, he expanded his list of partners and created lucrative business opportunities. At the end of 2014, after being fired from office and formally joining the armed opposition movement, he declared to the Chadian and Congolese heads of state that "what we want is to destroy everything to rebuild the country." He also convinced a Swiss oil company that he would be able to secure an oil contract with the Chadian national oil petroleum company. Acting as a "minister" and a leader of armed groups, and advertising his control of rich mining sites, Hissene has also developed an illicit trade in diamond and gold, particularly in Cameroon and in Kenya. Hissene's rise illustrates a violent system endemic in CAR, and similar to other countries in east and central Africa, that incentivizes conflict over peace. War profiteers and their allies hamper political and peace efforts, since conflict and state collapse are seen as lucrative business and smart politics. Sectarian violence is used as a political negotiation tool and actors who chose to pursue peace are largely kept out of negotiations. In this system, the greater the perpetrators of atrocities and their accomplices represent a threat to the central power, the more they will become essential political interlocutors and increase their financial gain. In 2015, the UN Security Council took a strong step when It decided to impose sanctions on a diamond company, Badica/Kardiam, accused of financing armed groups at the peak of the 2014 crisis. Despite this positive step, no other entities or businessmen faced any consequences for their role in the financing of the deadly conflict. By focusing on Hissene to illustrate war profiteering, this report calls for an in-depth reassessment of the strategy to support the emergence of CAR from its crisis. As long as violence is profitable for those behind the atrocities and their business networks both inside and outside the country, long-term peace in CAR and the rest of the Central African region will remain an illusion. It is time to send a strong signal to war profiteers so that their crimes will be less lucrative and bear increasingly costly consequences.

Details: Washington, DC: The Sentry, 2018. 50p.

Source: Internet Resource: Accessed November 13, 2018 at: https://cdn.thesentry.org/wp-content/uploads/2018/11/FearInc_TheSentry_Nov2018-web.pdf

Year: 2018

Country: Central African Republic

URL: https://cdn.thesentry.org/wp-content/uploads/2018/11/FearInc_TheSentry_Nov2018-web.pdf

Shelf Number: 153409

Keywords:
Gangs
Genocide
Illicit Trade
Profiteering
Violence
Violent Conflict
Warlords

Author: Ceesay, Hassoum

Title: Razing Africa: Combatting Criminal Consortia in the Logging Sector

Summary: Organised-crime syndicates � often with connections to Chinese markets � have been consolidating illegal timber exploitation in various African countries on an unprecedented and accelerating scale. This report, the result of ENACT research, analyses the layers of criminality that have come to define the logging supply chain, from extraction of rare species through to the sale of high-value timber in international markets. The report reveals how transnational organised crime allies with corrupt actors at the highest levels of states to profit from this lucrative and environmentally destructive illicit trade. ENACT research recommends for a policy-orientated investigation on organised crime in the forestry sector to be prioritized, advocating strongly for approaches targeted at disrupting these criminal consortia.

Details: ENACT Programme, 2018. 32p.

Source: Internet Resource: Accessed November 25, 2018 at: https://enactafrica.org/research/research-papers/razing-africa-combatting-criminal-consortia-in-the-logging-sector

Year: 2018

Country: Africa

URL: https://enact-africa.s3.amazonaws.com/site/uploads/2018-09-20-research-paper-06-logging.pdf

Shelf Number: 153026

Keywords:
Asian Markets
Environmental Crime
Forestry Sector
Illegal Logging
Illegal Wildlife Trade
Illicit Trade
International Markets
Logging
Organized Crime
Supply Chain
Timber Harvesting
Timber Theft
Transnational Organized Crime
Wildlife Crime

Author: Reitano, Tuesday

Title: Mind the Moratorium: Ending Criminality and Corruption in Africa's Logging Sector

Summary: Logging moratoria - or bans on the felling, transportation and export of forest and wood products - have been widely used in Africa as a means of preventing the degradation of natural forests, often with considerable support from the international community. However, their impact has almost universally fallen far short of expectations. Violations range from the questionable issuance of exceptions and the sale of concessions despite there being a ban in place, to continued illicit and artisanal logging. Evidence suggests that moratoria are increasingly being used to allow influential political and business elites to consolidate control over the logging sector in their own favour, rather than for their stated development objectives. This brief argues that it is time for a sharp reconsideration of the value of moratoria as a tool for forest governance in Africa.

Details: ENACT Programme, 2018. 15p.

Source: Internet Resource: Accessed November 25, 2018 at: https://enactafrica.org/research/policy-briefs/mind-the-moratorium-ending-criminality-and-corruption-in-africas-logging-sector

Year: 2018

Country: Africa

URL: https://enact-africa.s3.amazonaws.com/site/uploads/15-10-18-logging-policy-beirf.pdf

Shelf Number: 153025

Keywords:
Corruption
Environmental Crime
Forest Governance
Forest Products
Forestry Sector
Illegal Logging
Illicit Trade
Logging Moratoria
Timber Harvesting
Timber Theft

Author: Neumann, Vanessa

Title: The many criminal heads of the Golden Hydra: How the Tri-Border Area's Interlocking Arcs of Crime Create LatAm's #1 International Fusion Center

Summary: The Tri-Border Area ('TBA') that straddles the intersection of Argentina, Paraguay and Brazil is considered the 'Golden Hydra,' as it is the lucrative regional entry point of many 'heads' of transnational criminal organizations (TCOs) and foreign terrorist organizations (FTOs) that all lead to the underworld of illicit trade for more than forty years. This is partly a consequence of its ethnic composition and open borders, set by a policy to facilitate immigration from the Middle East, and also the connecting infrastructure to facilitate cross-border trade. The TBA gained notoriety in the 1990s after the bombings of the Israeli embassy (1992) and the AMIA center (1994), both in Buenos Aires, by Lebanese Hezbollah militants. The money, operatives and bomb parts all moved through the TBA. After 9/11, it again became the target of US counter-terrorism surveillance, as a 'safe haven' for terrorists from groups like Al Qaeda and Hamas, in addition to Hezbollah. With the world's attention firmly focused on the Middle East since then, the TBA has grown into a mini-state that benefits a corrupt elite while maintaining a large and efficient money laundering center for the world's organized crime and terrorist groups, not just in the region, but throughout the world, yielding TCOs and FTOs an estimated US$ 43 billion a year. Illicit trade of all sorts (including the illicit trade in tobacco products, 'ITTP') has been growing rapidly in recent years, corrupting good governance in all three countries and exploiting the degrading security and economic situation in both Argentina and Brazil. The TBA has become a regional crime fusion center where corrupt politicians work with drug cartels from Bolivia, Colombia, Mexico and Brazil, as well as organized crime groups from China, in conjunction with a large Lebanese merchant community, part of which gives support to Hezbollah. Though illicit funding for Hezbollah is generally high on the US agenda, that is not the case for the countries of the TBA. For historical reasons, Hezbollah is on the political agenda of Argentina. Brazil, however, does not consider Hezbollah a terrorist group; it considers only three groups as terrorists: the Taliban, Al Qaeda and ISIS. Paraguay considers Lebanese Hezbollah a group that poses a problem for its neighbors Argentina and Brazil, but not for Paraguay. authorities and mandates, Paraguay is constitutionally structured for corruption and illicit trade. Despite its smaller population and economy, it is the source and economic driver of illicit trade and money laundering affecting the other two countries. At the heart is Paraguay's lame-duck president, Horacio Cartes, the architect of the region's ITTP; he is the owner of Tabesa tobacco company. Furthermore, the removal of Cart�s from the presidency and its assumption by his successor (and fellow party member) Mario Abdo Benitez , will not reduce this illicit trade: Cartes will continue to wield tremendous power as a senator; several of his close friends will also enter the Senate, and his party won the presidency in the April 2018 elections. Security is the highest-ranked agenda item in Brazil's upcoming presidential elections in October 2018. This is primarily because of the military operations in Rio's favelas, where the criminal group Comando Vermelho (CV) and its affiliates are so widespread and heavily-armed, they are challenging the state for supremacy. The CV is enabled and funded by drugs and weapons that come mainly from Paraguay. This growing illicit trade has also turned Brazil into a prime export point for narcotics from South America to North America, Europe, Asia and Africa. Because of the complexity of the TBA's organized crime cluster, as well as the weakness of regional counter-terrorist protocols, we recommend engaging international authorities with regional mandates over the core crimes of corruption, money laundering, and proceeds of crime, with the aim of dismantling the source from the fusion centre. These authorities include: the IMF, UNODC, UN CTED, and FATF. Given that the US is largely absent from the region, it is recommended to open pathways to the US and European enforcement communities and the aforementioned authorities through well-structured workshops in Washington, DC and other key cities to build awareness. The other way to influence regional ITTP is to become a larger stakeholder in the Paraguayan tobacco industry.

Details: New York: Counter Terrorism Project, 2018. 119p.

Source: Internet Resource: Accessed Dec. 12, 2018 at: https://www.counterextremism.com/sites/default/files/The%20Many%20Criminal%20Heads%20of%20the%20Golden%20Hydra%20%28May%202018%29.pdf

Year: 2018

Country: South America

URL: https://www.counterextremism.com/sites/default/files/The%20Many%20Criminal%20Heads%20of%20the%20Golden%20Hydra%20%28May%202018%29.pdf

Shelf Number: 154457

Keywords:
Illicit Tobacco
Illicit Trade
Money Laundering
Organized Crime
Proceeds of Crime
Smuggling
Terrorists
Tobacco

Author: Home Office

Title: Serious and Organized Crime: Home Office Research Priorities 2018/19 - 2020/21

Summary: Summary This document summarises research priorities to support the current and future needs of the Government's 2018 serious and organised crime (SOC) strategy. It aims to set out clearly the most important areas for research and analysis in this area, improving the evidence base on which policy choices are made and the targeting of resources on the most important risks and vulnerabilities. The research priorities presented here have been identified in discussion with a range of partners and relate specifically to the priorities set out in the current SOC strategy. This is to ensure that research is focused on the questions that are most relevant to current policy priorities and will have the greatest impact. They are grouped into the following four thematic areas, though there is considerable overlap between them and they should not be viewed in isolation. 1. Understanding the threat: It is likely that SOC will continue to operate in new ways and places. Improved research and intelligence in this area will help to develop a better evidence base on the changing landscape of SOC and the harms it presents. 2. Criminal markets: The supply and demand of illicit goods or services is a key characteristic of organised crime. Understanding more about the threat posed by SOC markets and their operating models will help to inform the most effective response. 3) Vulnerabilities: Organised crime groups (OCGs) exploit the vulnerabilities of individuals, businesses and society at large to further their criminal interests. Improving our understanding of the vulnerabilities of both victims and offenders will help to direct when and where to respond. 4. What works: The threat from SOC is complex and wide-ranging, requiring an equally diverse response. Improving the evidence base of what works in terms of prevention, disruption and tackling SOC, will achieve better value for money interventions. It can help to ensure that the most appropriate and up-to-date tools are used to respond at the most effective points. The remainder of this document sets out the key research questions underpinning these cross-cutting thematic topic areas, including a description of broad, high-level questions applying to the range of SOC threats as well as considering individual crime types where relevant. It also includes details of how we intend for this document to be used, outlines sources of funding for research and existing centres of expertise. Finally, it also includes contact details for Home Office analysts working in this area. We are committed to working collaboratively with the wider research community to improve the evidence base on SOC.

Details: London, UK: Home Office, 2018. 25p.

Source: Internet Resource: Accessed January 9, 2019 at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/753188/serious-and-organised-crime-research-priorities-horr105.pdf

Year: 2018

Country: United Kingdom

URL: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/753188/serious-and-organised-crime-research-priorities-horr105.pdf

Shelf Number: 154048

Keywords:
Criminal Markets
Evidence-Based Policy
Illicit Services
Illicit Trade
Organized Crime
Organized Crime Groups
Serious and Organized Crime

Author: Underwood, F.M.

Title: Dissecting the Illegal Ivory Trade: An Analysis of Ivory Seizures Data

Summary: Reliable evidence of trends in the illegal ivory trade is important for informing decision making for elephants but it is difficult to obtain due to the covert nature of the trade. The Elephant Trade Information System, a global database of reported seizures of illegal ivory, holds the only extensive information on illicit trade available. However inherent biases in seizure data make it difficult to infer trends; countries differ in their ability to make and report seizures and these differences cannot be directly measured. We developed a new modelling framework to provide quantitative evidence on trends in the illegal ivory trade from seizures data. The framework used Bayesian hierarchical latent variable models to reduce bias in seizures data by identifying proxy variables that describe the variability in seizure and reporting rates between countries and over time. Models produced bias-adjusted smoothed estimates of relative trends in illegal ivory activity for raw and worked ivory in three weight classes. Activity is represented by two indicators describing the number of illegal ivory transactions - Transactions Index - and the total weight of illegal ivory transactions - Weights Index - at global, regional or national levels. Globally, activity was found to be rapidly increasing and at its highest level for 16 years, more than doubling from 2007 to 2011 and tripling from 1998 to 2011. Over 70% of the Transactions Index is from shipments of worked ivory weighing less than 10 kg and the rapid increase since 2007 is mainly due to increased consumption in China. Over 70% of the Weights Index is from shipments of raw ivory weighing at least 100 kg mainly moving from Central and East Africa to Southeast and East Asia. The results tie together recent findings on trends in poaching rates, declining populations and consumption and provide detailed evidence to inform international decision making on elephants.

Details: S.L., 2013. 12p.

Source: Internet Resource: Accessed May 21, 2019 at: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0076539

Year: 2013

Country: International

URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0076539&type=printable

Shelf Number: 155956

Keywords:
Environmental Crime
Illegal Ivory
Illicit Trade
Ivory Trade
Poaching
Seizures
Wildlife Crime

Author: Economist Intelligence Unit

Title: The Global Illicit Trade Environment Index: Free Trade Zones: Five Case Studies

Summary: Free trade zones (FTZs) are the problem child of global trade. On the one hand they highly valued for their contributions to trade facilitation but on the other they are criticized for vulnerabilities that facilitate many forms of illicit trade and other illegal activities. Though the concept of a "geographically delimited area administered by a single body, offering incentives [to business]" has been around for hundreds of years, it wasn't until the 1980s that countries, mainly in the developing world, truly started creating them. And they were conceived as a means of stimulating economic growth, which in many instances is what they have done, with the most prominent example being the Shenzhen Special Economic Zone (SEZ). Many of the zones have come at a cost, however. In enticing businesses with the promise of a tax-free environment, with little in the way of regulation, governments across the world have created within their borders unmonitored havens ripe for criminal operations, including those of transnational organised crime networks. Over the past decade, numerous international bodies, non-governmental organisations (NGOs) and consultancies, including the OECD, the International Chamber of Commerce (ICC) and the UN Office on Drugs and Crime, as well as The Economist Intelligence Unit (EIU), have documented the myriad ways that free trade zones are used to facilitate trade in illicit goods. While no one knows for certain the precise volume or value of illicit trade that flows through the zones, it is estimated, by almost everyone, to be substantial and include counterfeits, narcotics, alcohol, tobacco, pharmaceuticals, wildlife and humans. Moreover, FTZs have been exploited by criminals as a means to initiate and facilitate illicit financial transactions, such as traditional money laundering, trade-based money laundering (TBML) and terrorist financing. Yet, it didn't - and doesn't - have to be this way. Free trade zones don't need to be free of oversight to deliver on their commercial and economic promise, and many governments are grappling with approaches to find the balance between facilitation and control/monitoring. Perhaps what might be concerning are cases where governments appear to be indifferent to the issue, some actively so. To measure how nations are addressing the issue of illicit trade, the Transnational Alliance to Combat Illicit Trade (TRACIT) has commissioned the Economist Intelligence Unit to produce the Global Illicit Trade Environment Index. The global index expands upon an Asia-specific version, originally created by The Economist Intelligence Unit in 2016 to score 17 economies in Asia on the extent to which they enabled or prevented illicit trade. The Asian index generated much needed attention on the issue of illicit trade within the region. Building upon the success of the Asia index, the global index now includes 84 economies, providing a global perspective and new insights on the social and economic impacts of illicit trade.

Details: New York: Transnational Alliance to Combat Illicit Trade (TRACIT), 2018. 28p.

Source: Internet Resource: Accessed June 21, 2019 at: http://illicittradeindex.eiu.com/documents/EIU%20Global%20Illicit%20Trade%20Environment%20Index%202018%20-%20FTZ%20June%206%20FINAL.pdf

Year: 2018

Country: International

URL: http://illicittradeindex.eiu.com/documents/EIU%20Global%20Illicit%20Trade%20Environment%20Index%202018%20-%20FTZ%20June%206%20FINAL.pdf

Shelf Number: 156581

Keywords:
Free Trade Zones
Illegal Trade
Illicit Trade
Organized Crime

Author: Economist Intelligence Unit

Title: The Global Illicit Trade Environment Index: Serbia, Bosnia and Montenegro

Summary: Geography, history and political culture (characterised by high levels of corruption) combine in the economies of the former Yugoslavia (and the Balkans in general) to create a range of issues when it comes to combatting illicit trade. Serbia, for one, lies on a major trade corridor known as the Balkan route, which is used by criminal groups for various activities, including human trafficking and the trafficking of drugs coming from Asia and South America. Montenegro's ports are similarly used as transit points for the unloading and reloading of illicit cargo destined for Central and Western Europe. Bosnia's porous borders with the former two economies, as well as with neighbouring Croatia, enable easy transit from Eastern Europe and the Balkans region to economies in Western Europe. This could be made worse by the adoption of a Visa Liberalisation Agreement between the European Union's (EU) Schengen zone and Kosovo (which lies in an area considered by Serbia to be vulnerable to trafficking), expected by the end of the year. Compounding the problem, the disintegration of Yugoslavia in the 1990s, and the accompanying conflicts, is thought to have led to an increased risk of terrorism in the region - with an increase in Islamic radicalisation and in nationals of countries and territories in the region joining the so-called Islamic State (IS) as foreign fighters in Syria and Iraq. Ethnic separatist and religious extremist groups are active in some southern regions of Serbia and Kosovo, whose declaration of independence in 2008 was not recognised by Belgrade. These factors lead to increased terrorist financing and thus money laundering. Bosnia's complex and decentralised government structure has also been an obstacle to reforms, and corruption is prevalent in all three economies. This briefing paper will look at the illicit trade environment in Bosnia, Serbia and Montenegro across the four categories of the index: government policy, supply and demand, transparency and trade, and the customs environment. It will consider how these economies compare at global and regional levels, as well as looking at some of the details particular to each.

Details: New York: Transnational Alliance to Combat illicit Trade (TRACIT), 2018. 22p.

Source: Internet Resource: Accessed June 21, 2019 at: https://www.tracit.org/uploads/1/0/2/2/102238034/eiu_serbia_bosnia_and_montenegro_illicit_trade_paper_final.pdf

Year: 2018

Country: Serbia and Montenegro

URL: https://www.tracit.org/uploads/1/0/2/2/102238034/eiu_serbia_bosnia_and_montenegro_illicit_trade_paper_final.pdf

Shelf Number: 156582

Keywords:
Drug Trafficking
Extremist Groups
Financing of Terrorism
Human Trafficking
Illegal Trade
Illicit Trade
Organized Crime
Political Corruption
Terrorism

Author: Economist Intelligence Unit

Title: The Global Illicit Trade Environment Index: Asia

Summary: Economies around the world are facing the blight of illicit trade, but perhaps nowhere more so than in Asia-Pacifc. The region, long a source of supply for illicit goods - be it counterfeits, drugs, or traffcking in humans or illicit wildlife - is now emerging as a major source of demand, compounding the problem signifcantly. And although not much hard data are available, it is quite clear that "due to rising affuence in Asia and other major consuming economies, illicit trade volumes have gone up," says Steven Galster, founder and executive director of the Freeland Foundation, an Asia based non-governmental organisation (NGO) focused on environmental conservation and human rights, who cited the trade in endangered species, specifically. As a result, wildlife species are disappearing at alarming rates; pirated and mislabelled products are traded freely across borders and sold openly within them, with varied rates of concern and control on the part of governments; narcotics-related incidents frequently make headlines of regional newspapers; human trafficking is becoming even more common, abated and masked at the same time by various refugee crises in South-east Asia; illegal logging remains a threat to deforestation throughout the region, spurring corruption and lining the pockets of criminals with piles of cash; and illegal arms sales are rampant. The Global Illicit Trade Environment Index is a tool not to measure the size of the problem, but to better understand underlying vulnerabilities in economies that give rise to illicit trade or fail to inhibit it. Although the size of the problem in monetary terms is hard to measure, it is clear the sums of illegal money involved are huge, and there is a consensus on the need to curb illicit trade. Through this study, we hope to provide insight on how economies can use the tools at their disposal to create the right environment to do so. Given Asia's geographic, economic and political diversity, it should come as no surprise that its economies have had varying degrees of success in - and varying attitudes towards - combating illicit trade. As the region continues to grow, and as it moves towards deeper economic and trade integration via various trade agreements and related initiatives, such as the Association of South-East Asian Nations (ASEAN) Economic Community (AEC), there will be an attendant need for it to implement stricter policies on illicit trade. Its record so far is not encouraging. There have, however, been some positive developments in recent years, says Jeremy Douglas, regional representative of the UN Offce on Drugs and Crime (UNODC) for South-east Asia and the Pacifc. Mr Douglas notes that there has been "increasing political interest" in addressing illicit trade and [we are seeing] a couple of key ASEAN member states prioritising action on border management and scanning illicit flows of all kinds. Nevertheless, he does caution that political interest "hasn't translated into practical change yet". To measure how nations are addressing the issue of illicit trade, the Transnational Alliance to Combat Illicit Trade (TRACIT) has commissioned the Economist Intelligence Unit to produce the Global Illicit Trade Environment Index. The global index expands upon an Asia-specifc version, originally created by The Economist Intelligence Unit in 2016 to score 17 economies in Asia on the extent to which they enabled or prevented illicit trade. The Asian index generated much-needed attention on the issue of illicit trade within the region. Building upon the success of the Asia index, the global index now includes 84 economies, providing a global perspective and new insights on the social and economic impacts of illicit trade. This briefng paper focuses on the 21 economies in the Asia-Pacific covered by the index. For an explanation of how the global illicit index differs from the 2016 index, please consult the methodology in the appendix.

Details: New York: Transnational Alliance to Combat illicit Trade (TRACIT), 2018. 29p.

Source: Internet Resource: Accessed June 21, 2019 at: https://www.tracit.org/uploads/1/0/2/2/102238034/eiu_asia_illicit_trade_paper_final.pdf

Year: 2018

Country: Asia

URL: https://www.tracit.org/uploads/1/0/2/2/102238034/eiu_asia_illicit_trade_paper_final.pdf

Shelf Number: 156583

Keywords:
Drug Trafficking
Endangered Species
Human Trafficking
Illegal Trade
Illicit Trade
Wildlife Crime
Wildlife Trafficking

Author: Euromonitor International,

Title: Size and Shape of the Global Illicit Alcohol Market

Summary: Alcoholic beverages are deeply ingrained in most societies worldwide, with global consumption in 2017 generating US$1.6 trillion in legally registered sales1 of 222.8 million hectolitres of pure alcohol ("hectolitres of alcohol equivalent", or hl lae). However, despite the efforts of policy-makers, law enforcement officials, and legitimate alcohol manufacturers, illicit alcoholic beverages still account for a significant share of the total volume of alcohol consumed in many countries. This white paper explores critical issues affecting the problem of illicit alcohol in today's global alcohol industry. To this end, the paper analyses research conducted in 24 countries in Latin America, Africa, and Eastern Europe, and examines the major factors shaping their illicit alcohol markets. Illicit alcohol is prevalent in these countries: Of the 42.3 million hl lae of total alcohol consumed each year, approximately 25.8% is illicit. In other words, nearly 10.9 million hl lae of illicit alcohol is consumed annually in these 24 countries alone. This suggests they represent an effective sample for exploring this important topic. Illicit alcoholic beverages are defined as those not complying with the regulations and taxes in the countries where they are consumed, resulting in serious health risks to consumers, revenue loss, and brand degradation for legitimate manufacturers, as well as reduced tax revenue for governments. These products are responsible for hundreds of cases of death and illness due to accidental methanol intoxication, millions of dollars used to fund other criminal activities, and the fiscal loss of billions of dollars in unpaid taxes. Health risks affect the poorest and most vulnerable consumers by contributing to widening health inequalities. The most significant risks and costs for each country depend on the characteristics of the local market for illicit alcohol. The landscape of illicit alcohol is varied and complex, ranging from homemade artisanal beverages sold without the proper sanitary permits to legitimately branded bottles of alcohol smuggled illegally into a country. However, although market characteristics differ across countries, the problem of illicit alcohol exists in every region, in developed and developing countries, urban and rural areas, and higher-income and lower-income neighbourhoods alike. Governments, businesses, and civil society organizations - all stakeholders with vested interests in curbing illicit trade - have responded to this problem from many angles. The approaches are as varied as the markets themselves, but have often been partial or ineffective, especially due to rapid adaptation of illicit businesses to new regulations and restrictions This white paper analyses and summarises findings that may help stakeholders better understand the illicit alcohol trade. In particular, the paper identifies five themes that are shaping the global illicit alcohol trade and affecting the stakeholder initiatives intended to reduce it.

Details: London: Author, 2018. 42p.

Source: Internet Resource: Accessed June 24, 2019 at: https://www.tracit.org/uploads/1/0/2/2/102238034/illicit_alcohol__-_white_paper.pdf

Year: 2018

Country: International

URL: https://www.tracit.org/uploads/1/0/2/2/102238034/illicit_alcohol__-_white_paper.pdf

Shelf Number: 156727

Keywords:
Alcohol Industry
Consumer Fraud
Illicit Alcohol
Illicit Markets
Illicit Products
Illicit Trade
Organized Crime

Author: Economist Intelligence Unit

Title: The Global Illicit Trade Environment Index. Overall Results

Summary: Behind most every major headline, every major story in the news, lies another potential headline and another story about some form of illicit trade. From the refugee crises in the Mediterranean and South-east Asia, where the chaos is providing cover for human traffckers, to North Korea, a criminal state that couldn't survive if it didn't trade in arms, illicit cigarettes and counterfeit currency. Even the investigation into Russian interference in the 2016 US presidential election has led to indictments on money laundering, which is both a product of illicit trade and a facilitator of it. To measure how nations are addressing these and other issues related to illicit trade, the Transnational Alliance to Combat Illicit Trade (TRACIT) has commissioned the Economist Intelligence Unit to produce the Global Illicit Trade Environment Index. The global index expands upon an Asia-specifc version, originally created by The Economist Intelligence Unit in 2016 to score 17 economies in Asia on the extent to which they enabled or prevented illicit trade. This year's updated and expanded version now includes 84 economies, providing a global perspective and new insights on the trade's societal and economic impacts. Key fndings from the index are: - With a score of 85.6 (out of 100), Finland ranks frst in the overall index, besting the United Kingdom by only 0.5 points. The rest of the top 10 is rounded out by a handful of European countries (Sweden, Austria, Netherlands, Denmark and Germany), along with the United States, Australia and New Zealand. - At the bottom of the overall index is a group of developing economies from all regions of the globe. Libya ranks 84th out of 84 economies, with a score of 8.6, and is joined by Iraq in 83rd place, scoring less than six points better. Faring slightly better, but still poorly, are a group of economies that score in the twenties and thirties in the index: Myanmar (82nd), Laos (81st), Venezuela (80th), Cambodia (79th), Kyrgyzstan (78th), Belize (77th), and Ukraine (76th) and Trinidad and Tobago (75th). - Regionally, Europe (34 economies in the index), which includes the EU-28 plus six other countries, earns the highest the average score (68.0). The Asia-Pacifc (21 economies) comes second at 56.0 and the Americas (19 economies), including the US and Canada, is in third at 54.0. The Middle East and Africa (10 economies) is last among the regions, mainly due to low scores on the "supply and demand" and the "transparency and trade" indicators. - Among the four categories in the index, the highest average score (69.0) across all 84 economies is in "customs environment," which measures how effectively an economy's customs service manages its dual mandate to facilitate licit trade while also preventing illicit trade. - The lowest average score (50.0) is in the "supply and demand" category, which measures the domestic environment that encourages or discourages the supply of and demand for illicit goods. A close look at the global environment that enables illicit trade can prove a somewhat dispiriting exercise. The average overall score in the Global Illicit Trade Environment is a shade under 60.0. Where economies aren't underresourced in customs or law enforcement, they may otherwise be indifferent or actively neglect illicit practices in order to continue reaping the economic benefits of being a global financial centre (like the UK) or a regional logistics hub (like Singapore, Dubai and Panama) or one of the world's factories (like China and Vietnam) or a main source of narcotics (like Colombia). Or they may just be corrupt; corruption is far more pervasive than people appreciate and it is by no means limited to the developing world, as investigations in the US and elsewhere have recently shown. As we noted in our 2016 paper, however, and emphasise again in this year's edition, there is an international community of people- observers, experts, private sector executives and government offcial- who have identified the many ways in which illicit trade, in all it various forms, can be combatted. The solutions they propose range from the quotidian to the more extreme. Few, if any, are unrealistic. What the index, this paper and all the other papers published alongside it as part of the larger project, proposes is that economies that are laggards on the issue can start small and build towards a better environment for preventing illicit trade. And the economies that are leaders should lead.

Details: London: Author, 2018. 44p.

Source: Internet Resource: Accessed June 24, 2019 at: https://www.tracit.org/uploads/1/0/2/2/102238034/eiu_global_illicit_trade_whitepaper_final.pdf

Year: 2018

Country: International

URL: https://www.tracit.org/uploads/1/0/2/2/102238034/eiu_global_illicit_trade_whitepaper_final.pdf

Shelf Number: 156605

Keywords:
Economic Crimes
Illicit Cigarettes
Illicit Products
Illicit Trade
Money Laundering

Author: KPMG

Title: Eurasian Economic Union Illicit Cigarette Report

Summary: Key findings: Illicit cigarette consumption has grown rapidly in the Eurasian Economic Union from 2015 to 2018 - Illicit cigarette consumption rose from 0.6% to 6.8% of total consumption in the past 4 years, representing over 20bn cigarettes in 2018 - Had these cigarettes been sold legally in 2018, an additional 68bn RUB would have been collected in taxes (VAT & Excise) across the Eurasian Economic Union in 2018, with 99% of the taxes lost from Russia - A large proportion of the growth occurred in the Russian Federation, where non-domestic cigarette consumption increased from 0.7% to 8.7% of consumption, of which 90% was illicit. Widening price differences between countries and free movement of goods and people are two possible drivers behind the growth in illicit cigarette consumption - The price differences (in particular between Belarus and Russia) have increased by over 40%, making cigarettes from Belarus more affordable(с) - In addition, the establishment of the EEU (in 2015) enabled free movement of goods and people, reducing customs inspections between countries and removing limits on goods imported for personal consumption - The 8 billion Belarusian labelled cigarettes identified in Russia were not supported by the number of travellers buying for their own personal consumption, indicating that a high volume of cigarettes are contraband. Furthermore the seizures of millions of Belarusian labelled cigarettes in Russia indicated that these cigarettes are transported by criminal networks. Distributors of illicit cigarettes have grown to exploit the price differences, reduced affordability and the lack of personal allowance quotas when travelling between EEU countries, especially from Belarus to Russia - Belarus is the primary source of illicit cigarettes, with almost 8 billion of the 20 billion illicit cigarettes identified in this study coming from Belarusian trademark-owned manufacturers, whilst production capacity was reported at 29 billion cigarettes(4) which is not supported by domestic consumption (estimated at 16 billion) - Belarusian labelled cigarettes were identified across Russia, indicating that they are being purchased by consumers who are not travelling across the Belarusian border - In addition, 47% of C&C identified had no identifiable origin including counterfeit, illicit whites and cigarettes with suspicious Russian tax stamps, which have had no taxes paid in any jurisdiction. Some may be illegally manufactured inside Russia - Illicit cigarette smuggling has been shown to help enable Organised Criminal Groups (OCGs), using similar networks to sell other products and its rapid growth in EEU is unlikely to be any different, as profits can be high whilst penalties remain low. Throughout the report, our analysis has focussed on the following categories of cigarette consumption: Legal domestic consumption - Cigarettes legally purchased and consumed within the country of study, based on In Market Sales data provided by the tobacco industry Non-domestic legal (ND(L)) - ND(L) represents cigarettes which are purchased in another country but legally consumed in the country of study, through cross-border or tourism purchases. This represents 0.8% of total consumption in the EEU Illicit consumption - divided into three components: - Illicit Whites: Cigarettes that are usually manufactured in one country/market but which the evidence suggests have been smuggled across borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax - Contraband (Other): Cigarettes where the tax was paid legally in one country, but the cigarettes were taken to another country and re-sold without any applicable tax, mainly when the excise tax regimes in the source country are lower than the destination country. Many of these cigarettes originated from an EEU country and whilst they were legally transported (due to no legal personal allowance limits) they were then re-sold illegally - Counterfeit: Cigarettes that deliberately copy a legally traded brand, deceiving consumers who believe that they are purchasing this brand. Counterfeit was only identified by participating trademark owners in the Empty Pack Survey - Russian suspicious tax stamps: Cigarettes where further analysis has revealed that the packs may have been sold without the payment of tax, despite bearing domestic labelling

Details: London: Author, 2019. 48p.

Source: Internet Resource: Accessed June 28, 2019 at: https://www.stopillegal.com/docs/default-source/external-docs/eea-illicit-cigarette-report-2018-english.pdf?Status=Temp&sfvrsn=ab4677d7_2

Year: 2019

Country: Europe

URL: https://www.stopillegal.com/docs/default-source/external-docs/eea-illicit-cigarette-report-2018-english.pdf?Status=Temp&sfvrsn=ab4677d7_2

Shelf Number: 156923

Keywords:
Asia
Cigarettes
Contraband
Counterfeit Cigarettes
Counterfeit Goods
Europe
Illicit Cigarettes
Illicit Markets
Illicit Trade
Organized Crime
Tax Evasion
Tobacco

Author: KPMG

Title: Illicit Cigarette Trade in the Maghreb Region

Summary: A recent study from KPMG explains that more than 93% of cigarettes consumed by Libyans are illegal; 7 million cigarettes come from United Arab Emirates' free zones and; 5 billion cigarettes have transited through Algeria toward different destinations in 2015-2016.

Details: London: KPMG, 2019. 66p.

Source: Internet Resource: Accessed July 19, 2019 at: https://www.pmi.com/resources/docs/default-source/pmi-sustainability/report-on-the-illicit-cigarette-trade-in-the-maghreb-region.pdf?sfvrsn=67a69ab5_2

Year: 2017

Country: Africa

URL: https://www.pmi.com/resources/docs/default-source/pmi-sustainability/report-on-the-illicit-cigarette-trade-in-the-maghreb-region.pdf?sfvrsn=67a69ab5_2

Shelf Number: 156731

Keywords:
Cigarettes
Contraband
Illicit Economy
Illicit Trade

Author: Bate, Roger

Title: Smoking Out Illicit Trade: How Some Policies Intended to Limit Smoking Drive Illegal Trade

Summary: The World Health Organization (WHO) states that smoking cigarettes is the largest cause of preventable premature death globally and as therefore enacted various protocols in attempts to lower the death toll. However, in many cases the attempts to lower smoking, such as raising taxes and introducing or expanding regulation on tobacco products, has resulted in the rise of illicit tobacco, whether counterfeits or legally produced smuggled products. Bate argues that free trade zones, rogue nations and attempts by governments to stop illicit trade are the main drivers of illicit tobacco.

Details: Washington, DC: American Enterprise Institute, 2016. 22p.

Source: Internet Resource: Accessed July 21, 2019 at: https://www.aei.org/wp-content/uploads/2016/09/Smoking-out-illicit-trade.pdf

Year: 2016

Country: International

URL: http://www.aei.org/publication/smoking-out-illicit-trade-how-some-policies-intended-to-limit-smoking-drive-illegal-trade/

Shelf Number: 156739

Keywords:
Cigarettes
Illegal Trade
Illicit Markets
Illicit Tobacco
Illicit Trade

Author: Magliocca, Nicholas R.

Title: Modeling Cocaine Traffickers and Counterdrug Interdiction Forces as a Complex Adaptive System

Summary: Abstract: Counterdrug interdiction efforts designed to seize or disrupt cocaine shipments between South American source zones and US markets remain a core US "supply side" drug policy and national security strategy. However, despite a long history of US-led interdiction efforts in the Western Hemisphere, cocaine movements to the United States through Central America, or "narco-trafficking," continue to rise. Here, we developed a spatially explicit agent-based model (ABM), called "NarcoLogic," of narco-trafficker operational decision making in response to interdiction forces to investigate the root causes of interdiction ineffectiveness across space and time. The central premise tested was that spatial proliferation and resiliency of narco-trafficking are not a consequence of ineffective interdiction, but rather part and natural consequence of interdiction itself. Model development relied on multiple theoretical perspectives, empirical studies, media reports, and the authors' own years of field research in the region. Parameterization and validation used the best available, authoritative data source for illicit cocaine flows. Despite inherently biased, unreliable, and/or incomplete data of a clandestine phenomenon, the model compellingly reproduced the "cat-and-mouse" dynamic between narco-traffickers and interdiction forces others have qualitatively described. The model produced qualitatively accurate and quantitatively realistic spatial and temporal patterns of cocaine trafficking in response to interdiction events. The NarcoLogic model offers a much-needed, evidence-based tool for the robust assessment of different drug policy scenarios, and their likely impact on trafficker behavior and the many collateral damages associated with the militarized war on drugs.

Details: S.L.: Proceedings of the National Academies of Sciences of the United States of America, 2018. 9p.

Source: Internet Resource: Accessed July 27, 2019 at: https://www.pnas.org/content/pnas/116/16/7784.full.pdf

Year: 2018

Country: International

URL: https://www.pnas.org/content/116/16/7784

Shelf Number: 157047

Keywords:
Cocaine
Drug Trade
Drug Traffickers
Drug Trafficking
Illegal Trade
Illicit Trade
Narcotics
War on Drugs

Author: Euromonitor International,

Title: Illicit Alcohol Research Review: Global Summary

Summary: Illegal alcohol: includes all the alcoholic beverages, distilled or fermented, that exist outside legal framework due to counterfeiting, contraband of finished product or raw material, illegal artisanal manufacturing, tax leakage at a local level, or surrogate alcohol that is shifted to the alcoholic beverage market.

Details: London: Euromonitor Consulting, International, 2018. 70p.

Source: Internet Resource: Accessed August 25, 2019 at: https://www.tracit.org/uploads/1/0/2/2/102238034/illicit_alcohol_meta_study_-_euromonitor_.pdf

Year: 2018

Country: International

URL: https://www.tracit.org/uploads/1/0/2/2/102238034/illicit_alcohol_meta_study_-_euromonitor_.pdf

Shelf Number: 156586

Keywords:
Alcohol
Black Market
Counterfeit Alcohol
Illegal Alcohol
Illicit Market
Illicit Trade

Rutgers - School of Law, Newark

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