September 2013 Volume 10, Issue 3

Newsletter
In ThIs Issue
Meeting Crim Interview with MEP Salvatore Iacolino Page 2 Non conviction-based Confiscation within the new EU Directive by Fabio Licata Page 4 Know your enemy: Reflections on challenges faced by UK law enforcement agencies in policing international organised crime. by Joseph Whittle Page 6 Endless opportunities money laundering through high value portable commodities by Nicholas Gilmour Page 8 Calls for Papers, Conferences, Miscellaneous From page 10

Editorial note

September in Cambridge and Bordeaux

by FALKO A. ERNST and ANNASERGI (Editors)
Centre for Criminology, University of Essex

he ECPRStanding Group on Organ- tional Organised Crime in a Globalised ised Crime in the month of Septem- World. The Section has been well atber has participated to two main events. tended and has allowed researchers to First, the International Symposium on share their insights and findings in a Economic Crime, held for the 31st year highly interactive environment. Old and in Cambridge from the 1st to the 7th of new members had the chance to meet September. ECPR also during the Standing SGOC members, in this Group General Assembly, occasion, on the 3rd of where a number of practiMembers of the September, have been cal issues for the evolution SGOChave attended invited to participate to of the SGOC have been both the International three sections on the discussed. Symposium in Cambridge past, present and future and the ECPR General ith the motivation reof organised crime Conference in Bordeaux newed in these awareness and remeetings, this issue of the search, contributing to round-tables and workshop alongside newsletter presents an interview with the practitioners and experts in the field. After European Parliament CRIM committee, a Cambridge, ECPRSGOC members reflection piece on UK appraoches and have moved to the ECPR 7th Annual two articles on financial aspects of the General Conference, held in Bordeaux fight againstorganised crime. from the 4th to the 7th of September. As Happy reading! some of you might remember, the SGOC had organised a section on Transna-

Bordeaux, Place de la Bourse Image Source wikimedia.org

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

Meeting CRIM
Special Committee on Organised Crime, Corruption and Money Laundering

Interview with MEP Salvatore Iacolino

Interview by Anna Sergi
Salvatore Iacolino is a Member of the European Parliament in the Group of the European People's Party (Christian Democrats) 1. Can you briefly explain how did the Commission started? From what ideas and needs? The Special Commission on Organised Crime, Corruption and Money Laundering (CRIM) , for which I am the only Rapporteur for the European Parliament, was established in March 2012, in line with what had been decided in October 2011 with a special resolution of the European Parliament on organised crime in the European Union to which I had contributed within the Group of the Popular Party. CRIM stems from the evident consideration that the transnational dimension of organised crime and the strong entrepreneurial spirit of criminal organisations require a European response, common legal standards and instruments for police and judicial authorities involved in the fight. Europol estimates around 3600 international criminal organisations, which operate in the EU and diversify their illicit activities also in the legal economy, posing a threat to the safety and welfare of citizens, as well as to the internal market 2. What are the main objectives of the Commission in the short and medium-long term? The CRIM Commission aims to analyse and assess the extent of organised crime, corruption and money laundering and their impact on the EU and its Member States; analyse and evaluate the current degree of implementation of the legislation in the EU in the field of organised crime, corruption, money laundering and related policies; examine and monitor the implementation of the role and activities of the agencies of the Union in the field of Home Affairs - Europol, Eurojust and the Standing Committee on Operational Cooperation on Internal Security
MEP Salvatore Iacolino Photo: eppgroup.eu

(COSI) - in order to propose - once identified the extent of the problem - appropriate measures to enable the EU to prevent and combat these threats. Through numerous hearings, CRIM has gathered together all different institutions, international and European organisations as well as national investigative and judi-

cial authorities to develop an integrated and comprehensive approach to effectively combat criminal systems and related activities such as corruption and money laundering. 3. What kind of results the CRIM Commission hopes for in terms of changes in instruments of cooperation and European legislation? The CRIM Commission intends to make a number of suggestions for the creation of legislative and operational measures to combat the phenomena object of its analysis. Member States should

adopt common legal standards, starting with a common definition of organised crime that includes the case of mafia association and a specification of the offence of self-laundering. We need a European law that allows the confiscation of criminal assets - including preventive and basic civil and criminal confiscations - also allowing their reuse for social purposes. There should be greater use of new technologies to combat the growing threat of cyber-crime. It is necessary, in the field of public procurement, to exclude from public offices in all the EU those who have been convicted for organised crime, corruption, money laundering or crimes against the Public Administration. Connections between phenomena of tax evasion, fraud and tax avoidance and the financing of the illegal activities of criminal organisations, as well as the financial support given by criminal organisations to terrorist groups in some cases, should be clarified. We want greater accountability of political parties, specific predictions for candidacy criteria, ineligibility and disqualification from elective and public office. We have requested more transparency and cooperation on the part of the banking sector, with the abolition of bank secrecy and a resolute approach towards the so-called tax havens, including responsibility for professionals. Corruption must be tackled also through cutting bureaucratic procedure in government agencies; indeed corruption, in a period of severe economic and financial crisis, diverts resources that could be devoted to considerable economic growth and essential services (education, health, welfare). We have also included the case of manipulation of sports event, to promote legal games and avoid illegal betting and match fixing. The strengthening of police and judicial cooperation between Member States and with other countries is in any case, the basic premise to all the law enforcement activities against the criminal phenomena described.

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

CRIMKEYDATES
14.03.2012 EP decision on the CRIM Mandate 18.04.2012 CRIM Constitutive Meeting 16-18.07.2012 Delegation to Serbia (Belgrade) 28-31.10.2012 Delegation to Italy (Milan, Rome, Palermo) 11.12.2012 EP decision to extend the CRIM Mandate 11-12.02.2013 Delegation to Europol/ Eurojust (The Hague) 4-5.03.2013 CRIM - DG EXPO Seminar with Parliamentarians from the Western Balkans 29.04-01.05.2013 Delegation to the US (Washington D.C.) 07.05.2013 Interparliamentary Committee Meeting with National Parliaments 11.06.2013 Adoption of the Mid-Term Resolution on Organised Crime, Corruption and Money Laundering by Plenary 17.09.2013 Adoption of the Final Report on Organised Crime, Corruption and Money Laundering by CRIM (last CRIM meeting) October II 2013 Expected adoption of the Final Resolution on Organised Crime, Corruption and Money Laundering by Plenary

4.What kind of challenges the Commission is facing in terms of the interests involved, obstacles and resistance on the part of the Member States?

Agencies of the EU, the UN, the World Bank, the Council of Europe and other organisations as well as academics, the judiciary, police , national administrators and civil society. Visits were carried out in Belgrade, Milan, Palermo, Rome, The There are, in my view, two types Hague and Washington, where we audiof obstacles. On the one hand different ted a total of nearly 150 authorities and legal traditions, different legal systems experts and held meetings with represenand national constitutional settings make tatives of the Parliamentary committees more difficult the approximation of crimi- within national parliaments. I was therenal laws based on the best practices im- fore inspired by all the aforementioned plemented by some Member States. On contributions, as well as inputs from fellow the other side it is not fully acMEPs during cepted yet - even if it has been We want greater accoun- t h e s e widely documented in the tability of political parties, months, to course of the hearings for CRIM prepare a text specific predictions for - the idea that mafias or organithat meets candidacy criteria, ineligibi- the need that sed crime are not unique to certain geographic areas, that cannot be polity and disqualification corruption not only lurks in some stponed any from elective and specific state institutions, that longer to efpublic office. money laundering does not take fectively complace only in some contexts, but bat the that all these phenomena involve all phenomena of organised crime, corrupMember States and undermine the licit tion and money laundering. On the 7th of economy as well as the welfare of all Eu- May my interim report was approved with ropean citizens. The composition of the a large majority and with the support of all CRIM Commission - composed of MEPs political groups. In June, I submitted my from 24 different Member States - certifies final report that shall be voted upon in the however the interest and political will for next CRIM hearing in September 2013 to joint efforts to arrive at effective solutions. land in Plenary in Strasbourg in October. In the recent weeks I have been negotia5. Can you give us some examples ting with other political groups a list of poof the work that the Commission has sitive actions which the European done so far? Commission and the Member States should prioritise in the near future, ambiThe CRIM Commission held 15 tious challenges that can be met only with hearings of experts: more than one hun- everyone's responsible effort. dred representatives of Institutions and

THEECPR SGOC Who is Who

Steering Committee 2012-2017
Convenor: Felia Allum, University of Bath Co-convenor: Francesca Longo, University of Catania Social Media Officer: Bill Tupman, University of Exeter, Anglia Ruskin University Funding Officer: Daniela Irrera University of Catania Events & Publication Officer: Helena Carrapico, University of Dundee Strategic Communication: Panos Kostakos, University of Bath Newsletter Editors: Anna Sergi & Falko Ernst University of Essex Online Publication Project Felia Allum, University of Bath Anita Lavorgna, University of Trento Yuliya Zabyelina, University of Edinburgh Member Giap Parini University of Calabria All documents related to the activities of the CRIM Special Committee can be found at: www.europarl.europa.eu/committees/en/crim/

TOTALMEMBERS (SEPT.2013)

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

Non-conviction based Confiscation within the new EU Directive

by Hon.Judge Fabio Licata
Fabio Licata is Judge of the Criminal Division and Prevention Measures in Palermo, Italy. Confiscation of illegal proceeds is considered at international level an indispensable tool against organized crime, as criminal organizations use free market to disguise and secure the proceeds of crimes, as well as to produce new resources ready to be used for financing further illegal activities However, terrorist and criminal organizations take advantage of globalization and complexity of modern economy to disguise their criminal profits and to distance them from the criminal acts, from which they derive, in order to avoid confiscation of proceeds even in case of criminal conviction. As a matter of fact, the classic penal confiscation entails a criminal conviction, as well as evidence, beyond any reasonable doubt, of the instrumental link between the crime and the alleged criminal proceeds. Consequently, it is extremely difficult to fulfil such standard, particularly in cases of organized crime and economic crimes, as it is proved by the inadequate results obtained by using the classic criminal approach. Therefore, a new approach has been adopted in order to rethink the patterns of the evidence needed to consider illicit the origin of properties and assets. Illicit activities as organized crime, terrorism, drug trafficking, racketeering, smuggling of goods and human beings, corruption and illicit exploiting of public works, normally produce huge unlawful proceeds that are generally easily hidden and reinvested in legal market. As a consequence, international treaties and several national legislations have envisaged the idea to overcome the need of giving evidence of the direct link between the offence and the unjustified assets of the offender. The main feature of this method is the use of extended and non-conviction based confiscation, aimed at directly target illegal revenues and assets of the alleged offenders by using legal presumptions, inversion of burden of proof or non-criminal standards of proof. In particular, non-conviction based confiscation is a notion that allows property to be confiscated without the need to obtain a crimition and suppression of money laundering and obliges them to introduce the confiscation of the equivalent value (if it is impossible to confiscate the proceeds). Moreover, the Action Plan to Combat Organised Crime, adopted by the Council of the European Union, on the 27 of April 1997, highlighted the importance for member states to introduce special procedures for tracing, seizure if confiscation of proceeds from crime and, on 29 March 1999 the European Council adopted a joint position on the aforesaid Draft UN Convention in which it was observed (art. 7) that in the matter of proceeds of crime the pertinent provisions of the Draft Convention could be drawn up on the basis of the Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988 as well as taking full account of the Council of Europe Convention of 1990. Another important step in this field is represented by the Framework Decision of the Council of the European Union (2005/212/JHA of 24 February 2005 on Confiscation of crime-related proceeds, instrumentalities and property), calling member states for adopting models of extended confiscation for crimes with prison terms exceeding one year, requiring just the judicial ascertainment of the crime related with the assets, without requiring a criminal conviction of the defendant. Finally, in terms of approved rules, it must be mentioned the Council Framework Decision 2006/783/JHA of 6 October 2006 on the application of the principle of mutual recognition to confiscation orders. However, according the implementation reports published by the EU Commission, the above-mentioned EU legal framework has proven to be inadequate and scarcely implemented. In terms of perspective, a significant step towards the harmonisation of Member States freezing and confiscation regimes and facilitation of mutual trust and effective cross-border cooperation is the proposal for a directive of the European Parliament and of the Council on the freezing and confiscation of proceeds of crime in the European Union (COM(2012)0085 C7-0075/2012 2012/0036(COD)), currently discussed before the EU Parliament.

Fabio Licata

nal conviction against the owner; this is done by filing civil action against the property itself. Jurisdictions which have introduced non-conviction based confiscation legislation include: Italy, Ireland, United Kingdom, Albania, Bulgaria, Slovakia, U.S.A., Australia, South Africa, the Canadian provinces of Alberta and Ontario. The first international treaty where these goals are enshrined is the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, adopted in Vienna in 1988. In particular, article 5 of the Convention recognises the need of modern tools in order to cover the lack of efficacy of the classic criminal law in depriving criminal organisations of their illicit profits, by inviting national states to ensuring that the onus of proof be reversed regarding the lawful origin of alleged proceeds or other property liable to confiscation, to the extent that such action is consistent with the principles of its domestic law and with the nature of the judicial and other proceedings. The same perspective has been embraced by later UN treaties, like the 2000 Convention against Transnational Organized Crime (art. 12) and the 2003 Convention Against Corruption (art. 12). At European level, the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime, signed in Strasbourg in 1990, obliges the States Parties to achieve uniformity in their laws regarding the preven-

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Justice and Home Affairs has recently amended the proposed draft, reinforcing the provisions of non-conviction based confiscation and extended confiscation, so as to make them more efficient in order to actually serve the purpose of preventing the use of proceeds of crime for committing future crimes or their reinvestment into licit activities. In this respect, it is provided that Member States are free to adopt confiscation procedures which are linked to a criminal case before any court, whether criminal, civil or administrative. Consequently, confiscation is possible both on a criminal conviction and in the property derives from activities of a criminal nature. On the other hand, it was proposed that third-party confiscation should also be possible where the suspect or accused person was acting for another natural or legal person from the outset. Finally, it is envisaged the introduction of a crime aimed at punish the conduct of fictitiously attributing ownership and availability of property to third parties, with the aim of avoiding seizure or confiscation measures. To sum up, it could be affirmed that the proposal of directive on confiscation, as amended by the European Parliament, is a fundamental tool to harmonize the European legal framework with the legal instrument introduced in members states as Italy and UK. Besides, the system is consistent with fundamental rights. In this regard, national and supranational courts several times have considered these non-conviction based systems compatible with national constitutional requirements, as well as with fundamental rights protected by European Convention of Human Rights. In particular, ECHR has concluded that they match the requirements of art. 6 of the Convention as they are adopted by a judicial authority, with full respect of the rights of the defence and of bona fide third parties, and that they can be challenged before a court. Consistently with this framework, the European Directive has fully implemented these basic safeguards, envisaging a system both tough on criminal wealth and respectful of human rights.

This Directive lays down the minimum rules for Member States with respect to freezing and confiscation of criminal assets through direct confiscation, value confiscation, extended confiscation, nonconviction based confiscation and third party confiscation. Nonetheless, the draft proposed by the Commission differs widely from commonly known non-conviction based confiscation law: Primarily as it suggests proceedings would be conducted within a criminal law frame; secondly as it limits the non conviction based confiscation to

Image from www.nationofchange.org

absence of such conviction.

cases of death, or serious illness or escape of the defendant, implying a serious risk of prescription. Moreover, third parties confiscation would be hardly applicable, as it is provided just if there is evidence that the proceeds or property were transferred for free or in exchange for an amount lower than their market value when the third party knew, or he should have known, the illicit origin of that proceeds. In other words, the Commissions proposal risks of being less effective than expected and inconsistent with the Italian model of antimafia preventive measures or than the Common law non-conviction based confiscation model. Taking into account these shortcomings, the Committee on Civil Liberties,

Moreover, in case of criminal activities such as organized crime or terrorism, where a criminal conviction is not pursued or cannot be achieved, it should be possible to confiscate assets, if a court is satisfied, after making full use of the available Non-conviction based confiscation is a notion that alevidence, including lows property to be confiscated without the need to obthe ditain a criminal conviction against the owner; this is done sproporby filing civil action against the property itself. tionality of assets Jurisdictions which have introduced non-conviction compared based confiscation legislation include: Italy, Ireland, Unito the deted Kingdom, Albania, Bulgaria, Slovakia, U.S.A., Auclared instralia, South Africa, the Canadian provinces of Alberta c o m e , that the and Ontario.

For more information check

Best Practices on Confiscation (Recommendations 4 and 38) And a Framework for Ongoing Work on Asset Recovery
available for download at http://www.fatf-gafi.org

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

Know your enemy: Reflections on challenges faced by UK law enforcement agencies in policing international organised crime
by Joseph Whittle
Joseph G. Whittle is a part-time PhD student and tutor London Metropolitan University. After several years living in China JG completed his MSc at Oxford before joining the Civil Service where he has worked across several state departments. In The Art of War Sun Tzu speaks of the need to know your enemy if battlefield success is to be achieved. Is there a parallel here with the preparedness of UK law enforcement to tackle aspects of transnational crime involving different cultures and languages. Human smuggling is identified as one of the major organised crime threats facing the UK (Home Office 2011). However, owing to the clandestine nature of such activities and the fact they are cross-border in nature and incorporate different nationalities, relatively little is known about these groups and how they operate. Building on ongoing PhD research, this article will attempt, through the lens of Chinese transnational human smuggling networks, to identify some of the problems faced by UK law enforcement in confronting the challenge posed by criminal groups from different states and cultures. How many and who? It is estimated that there are approximately 150-200,000 people of Chinese origin in the UK illegally (Wu et al, 2009). Many of these are migrants who, predominantly from the coastal provinces of Fujian and Zhejiang, pay Snakehead gangs up to 30,000 to be transported via various routes to the UK (Pieke and Xiang 2007). Piekes (2002) research on Chinese migratory patterns finds that many migrants do not believe paying to be smuggled to the UK is illegal, and in some areas migration forms part of a cultural tradition dating back centuries. Economic factors are also a key consideration. Income earned abroad is remitted home to build large houses to project status, and increase the social standing of families in Chinese society (Chu 2010). These cultural and economic push factors are problematic for law enforcement and Government to control human smuggling empires from the Far East. Snakehead gangs comprise small networks of people with key skills (document forger, link to corrupt border guard, financier etc.) and each link in the chain is vital in mounting a successful smuggling operation (Chin 1999). Snakeheads themselves are entrepreneurial businessmen and women who have the finances and guanxi (social connections) to facilitate smuggling operations (Zhang and Chin 2008). Chinese Snakehead gangs do not then fit into the stereotypical organised crime template, and this has implications in devising strategies to tackle them.
Joseph Whittle

counter outside of the country of origin. Triads? Organised Crime? Neither? In the UK media Snakeheads are variously portrayed as Triads, Tongs or other sinister organised crime groups, with trafficking and people smuggling labels also interchangeably applied (Sky 2013, BBC 2007, Thompson 2003). However as Zhang and Chin (2008) have observed during 15 years researching Chinese human smuggling networks to the USA and interviewing 129 Snakeheads, there is no basis for the supposition that Snakeheads are Triads or other typical organised crime groups. Chin (1999) and Zhang (2008) suggest that the opposite is true, and that owing to the nature of human smuggling networks from China, Snakeheads consider Triads to be bad for business, with Triads only occasionally used as muscle to collect debts or police safe houses. No comparable research to date has been conducted in the UK. However, Piekes (2002) exploration of Chinese migratory trends emphatically dismisses the premise that traditional organised crime groups like Triads are involved. A more realistic description of Snakehead gangs is offered by Finkenauer as crime that is organised as opposed to organised crime (cited in Kyle and Dale 2001). Zhang and Chin (2008) found that Snakehead gangs are close knit and small scale horizontal networks, rather than the elaborate hierarchical groups of organised criminals, who

Challenges for Law Enforcement It is challenging for UK law enforcement to infiltrate or understand Snakehead gangs dynamics and modus operandi owing to their limited size and fluid nature. Silverstone (2011) suggests that law enforcement tends to perceive and treat criminal groups as mirroring their own hierarchical structures. However Snakehead gangs are horizontal, with each group member playing a specific part within the smuggling process (Zhang and Chin 2008). As such law enforcement, like the media, struggles with the concept of Snakehead gangs being run by business men and women who provide a community service (Zhang et al 2007) valued by their customers, rather than a folk devil like a Triad. In an operational environment it is questionable how well frontline police officers are equipped to tackle different cultures and languages generally. For example, The West End Policing Team in London who police Chinatown have only recently appointed their first Chinese speaking (Cantonese) officer after 28 years (Personal communication 2013). Frontline officers without specific knowledge of Chinese culture may also miss the significance of someone in Chinatown offering to decorate your business or home. These offers relate to extortion whereby a business or homeowner is obliged to pay significant amount for a seemingly innocuous service (Chu 2000).

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

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der issue, it does draw attention to some of the challenges UK law enforcement face in knowing their enemy. Foreign Secretary William Hague recently highlighted the threat posed to Britains diplomatic position by the lack of UK students learning foreign languages (Boffey 2013). This threat is also applicable to UK law enforcement in which a lack of language skills and cultural understanding provides a shield for criminal elements from the law. The importance of linguistic and cultural knowledge was highlighted recently in a multi-national policing operation on the streets of the UK. Operation Trivium involved officers from Poland, Lithuania and Romania patrolling with British counterparts to overcome the language and cultural barriers police face (Warwickshire Police 2013). Increasing recruitment of those skilled in relevant foreign languages could greatly assist law enforcement in formulating more effective responses and gaining intelligence from communities. In the context of Snakeheads and human smuggling from China, UK law enforcement is yet to understand organisational dynamics or overcome cultural and language challenges. Empirical research regarding Snakeheads and their facilitation of human smuggling from China to the UK is required to evidence who Snakeheads are, and how they operate. Exploring these operations and the steps law enforcement needs to take tackle the problem effectively are aims of my 2014 fieldwork.
from Hungary, Poland and Ukraine Geneva, International Organisation for Migration. Morselli C Turcotte M and Tenti V (2011) The mobility of criminal groups: Global Crime, 12(3), 165-188. Personal communication (2013) Interview with Metropolitan police officer based in Westminster. Pieke F.and Mallee H (eds) (1999) Internal and International Migration: Chinese Perspectives. Richmond, Surrey Curzon. Pieke F (2002) Recent Trends in Chinese Migration to Europe: Fujianese Migration in Perspective. IOM migration research series no.6. Geneva, International Organisation for Migration. Pieke. F and Xiang.B (2007) Legality and Labour: Chinese Migration, Neoliberalism and the State in the UK and China. COMPAS working papers No. 56 Oxford University, Centre for Migration Policy and Study. Serious Organised Crime Agency (2008) Annual Report 2008 09 http://www.soca.gov.uk/about-soca/library Sheptcycki J (2004) Organizational Pathologies in Police Intelligence Systems: Some Contributions to the Lexicon of Intelligence-led Policing: European Journal of Criminology 1(3) 307 332. Silverstone D (2011) A response to Morselli C Turcotte M and Tenti V (2010) The Mobility of Criminal Groups, Global Crime 12(3) 189-206. Silverstone D (2011a) From Triads to snakeheads: organized crime and illegal migration within Britain's Chinese community. Global Crime 12(2) 93-111. Sky (not attributed) (2013) Chinese Human Trafficking Bust in Europe Sky News http://news.sky.com/story/1126984/chinesehuman-trafficking-ring-bust-in-europe Thompson T (2003) Snakehead empress who made millions trafficking in misery: Guardian Newspaper http://www.theguardian.com/uk/2003/jul/06/ immigration.china Tzu Sun The Art of War http://www.gutenberg.org/catalog/world/readfile?fk_files=327356 7 Warwickshire Police (not attributed) (2013) http://onlinenews.warwickshire.police.uk/wp news_pressrelease/police-forces-tackle-foreign-national-criminals-on-our-roads/15480 Wu B, Guo L and Sheehan J (2010) Employment Conditions of Chinese Migrant Workers in the East Midlands: A Pilot Study in a Context of Economic Recession. Draft consultation paper, University of Nottingham China Policy Institute, School of Contemporary Chinese Studies. Zhang. S. (2008) Chinese human smuggling organizations : families, social networks, and cultural imperatives: Stanford, California: Stanford University Press Zhang S and Chin K (2008): Snakeheads, mules and protective umbrellas: a review of current research on Chinese organised crime: Crime Law Social Change 50 177 195. Zhang S Chin K L and Miller J (2007) Womens participation in Chinese transnational human smuggling: a gendered market perspective Criminology 45(3) 699 733.

Police also face challenges in gathering effective intelligence from foreign nationals. Similarly if a Chinese person is stop checked by police and gives Li as their name it will be recorded as such. However Li can be translated into 30-40 different Chinese characters with different meanings; the value and accuracy of the intelligence collected is then greatly diminished. If this information is subsequently shared or used to cross reference information with Chinese authorities it is of extremely limited value. Sheptcycki (2004) has identified the problems associated with police intelligence gathering and sharing. This becomes even more problematic when law enforcement is reliant on data that is being shared across borders and translated into different languages (Laczko and Thompson 2000). Language and culture also appears to act as a shield insulating some communities from law enforcement responses that do not understand them. For example Silverstone (2011a) recent research of Chinese language newspapers in Londons Chinatown noted many examples of overt illegal employment opportunities. Similarly he reports about illegal activity such as cigarette selling taking place with impunity within Chinatown. The language and cultural limitations police face in tackling Chinese crime in the UK was further exemplified by Dees (2012) case study of a murder within the Chinese community and the difficulties local police, even with national support, faced in the investigation. An indirect challenge is placed upon law enforcement by Government. In response to human smuggling, Government rhetoric espouses the idea of international cooperation and collaboration to tackle organised crime (SOCA 2008, Home Office 2011). This rhetoric is unhelpful for two reasons. Firstly, it attaches the label of organised crime to an activity which, as described above, does not seem to fit with standard organised crime frameworks and is not even considered criminal by those smuggled. Secondly, phrases such as cooperation and collaboration assume active cooperation from foreign governments. As Zhang points out, this is not necessarily forthcoming in relation to China: the Chinese governmentfaces far greater social and political challenges than this benign irritant that at worst can only cause occasional embarrassment (2008, p.218) Next steps While the above provides only a brief overview of one aspect (Chinese Snakeheads) of a much more complex and broa-

References: BBC (not attributed) (2007) http://news.bbc.co.uk/1/hi/england/london/7 039952.stm Boffey D (2013) Lack of language skills is diminishing Britains voice in the world. The Observer. London Chu J (2010) Cosmologies of Credit: Transnational Mobility and the Politics of Destination China Durham and London, Duke University Press. Chu Y K (2000) The Triads as Business, London, Routledge. Chin K L (1999) Smuggled Chinese: clandestine immigration to the United States: Philadelphia, Temple University Press. Dees J (2012) Claws of the Dragon: Chinese Organised Crime in the UK: Papers from the British Criminology Conference. British Journal of Criminology. 12 61-78 Home Office (2011) Local to Global: Reducing the Risk from Organised Crime London, Home Office. Kyle D and Koslowski R (eds) (2001) Global Human Smuggling: comparative perspectives. Baltimore, Johns Hopkins University Press Laczko F and Thompson D (eds) (2000) Migrant Trafficking and Human Smuggling in Europe: A review of the evidence with case studies

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

Endless opportunities. Money-laundering through high value portable commodities

by Nicholas Gilmour
Nicholas Gilmour works as an international law enforcement adviser. After 10 years as an aircraft electrician, Nicholas joined the Lancashire Constabulary before moving to New Zealand to join the New Zealand Police. After retuning to the UK in 2008, Nicholas worked for the National Policing Improvement Agency (now National Police College) writing practice advice for the UKs 43 police forces. ners are unlikely to reject customers as they rely on profit to ensure survival. Easily transported An array of high value commodities are frequently simple to disguise. The convenience of using mules to minimise transportation risks can lead to the prioritization of certain commodities. However, a lack of inspection capabilities and requests relating to proof of purchase present situational factors (Tilley, 2012) that enable unassuming passage. The capacity in which to transfer high value portable commodities and the ease in which transportation can be arranged is further supported by the modest understanding of susceptible routes of passage, the methods and techniques used to conceal items and the overall knowledge necessary to identify the money laundering process. Emphasis on this susceptibility is apparent in the lack of control surrounding jewellery, watches and further items frequentlz worn by travellers. Undefined This feature not only implies commodities are chosen because they are capable of secretion but also because they are difficult to validate. The absence of specialised law enforcement resources alongside insufficient AML expertise and knowledge concerning particular methods of money laundering implies that certain items may appear to less valuable than is actually the case and fail to be recognised as money laundering items. Easily sold While smaller commodities can hold the greatest value, in contrast art work and antiques and the ongoing obsession with wildlife products suggests items are in fact chosen for their resale value, both in licit as well as illicit markets. As such, easily sold items accelerate money laundering, further limiting opportunities for the tracing of once illicit funds back to the predicate offence. The four above outlined factors highlight vulnerabilities of existing practices aimed at reducing the profitability of organised crime and prevent money laundering in the U.K. and Europe. More importantly, these vulnerabilities underline the durability in purchasing high value

As a method through which to transfer value, the purchasing of high value portable commodities is perhaps centuries old, refined through the historic movement of populations seeking to protect individual wealth and avoid paying compulsory taxes. Today, however, the purchasing of high value portable commodities also represents a distinctive method of money laundering, briefly described within popular typological appraisals and identified in the U.K. as representing a significant concern to law enforcement (IMF, 2011). High value portable commodities Recent increases in techniques, the scope and the abuse of previously unchartered activities have, in combination with the aggregate enormity of AML practices, demonstrated the striving of organised crime to incessantly seek out new, less visible opportunities to legitimise wealth (Rider, 2006). In this context, high value portable commodities have gained importance. Arguably, the augmenting use of the latter has emanated from the value of certain commodities and the possibility to utilize everyday consumer purchasing practices as a cover. Research undertaken in the U.K. by the author during 2012 and early 2013 identified how surges in popularity and consumer buying habits similarly added to the scope of commodities exploitable for money laundering. While the study identified as the most susceptible high value portable commodities gold, diamonds, jewellery and artwork, law enforcement and AML professionals acknowledged that the scope of applicable commodities remained constrained only by criminal imagina-

Nicholas Gilmour tion. Vulnerabilities The success of money laundering through the purchasing of high value portable commodities relies on many variables. The latter include the aptitude of the money launderer, the location and importantly the predicate crime generating the illicit funds. Examination of research data collected by the author through interviews with AML professionals across nine sectors determined how the four most popular high value portable commodities exposed several characteristics that directly coincided with opportunities to facilitate this approach while complying with the basic necessities of the criminals involved: efficiency, discretion, profitability and evasion of AML controls. Gold, diamonds, jewellery and artwork surfaced as key high value portable commodities as they are: Easily purchased Opportunities to purchase these items exist extensively throughout the U.K., essentially allowing criminals to spread the risk of suspicion and thus detection. Many businesses selling such items have procedures that by their very nature enable purchases to remain simple as well as deficient of adequate regulatory obligations. The possibility to purchase high value portable commodities in cash supports anonymity. Similarly, business ow-

ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

portable commodities for money laundering purposes. Notwithstanding the various shapes this particular process can take, key vulnerabilities also persist across the scope of money laundered through the purchasing of high value portable commodities. From evidence considering why criminals choose this particular modus operandi, it has been possible to determine from the research data collected by this author that this method of money laundering further characterises a process that: Enables direct control over the entire money laundering process, despite several variables existing specifically during transportation and at the point of sale; Requires little effort by the criminal/money launderer; Requires items that tend not to attract attention, typically assisted by the careful selection of particular locations, points of sale, transport routes, and/or the persons involved; Represents normality in many cases as purchases of such commodities take place on a regular basis without pressure on many sellers to raise unnecessary suspicion to regulatory authorities. Opportunities for prevention High value portable commodities will continue to provide unique opportunities through which to launder illicit funds. However, this method offers many options for introducing preventative measures

based merely on its simplistic nature. As such, a script theoretic approach (Cornish 1994, p. 160) can help to provide the herefore needed knowledge, identifying specific procedural aspects of a specific crime. This approach can help to limit crime facilitators needed for success at various stages of the money laundering process. Responsibility for preventative action is, however, perhaps the most difficult aspect to resolve. With preventative guardianship for this method remaining widespread, those agencies through which the process of money laundering passes clearly hold the most critical obligations. According to data collected by this author, such obligations involve enforcing a limit on cash only purchases, exercising strict due diligence associated with customer purchases, increasing suspicious activity reports to be submitted by high value commodity dealers, introducing a code of ethics and increasing knowledge and understanding by customs and border officials through which such commodities. A further option also identified during research includes the active encouragement of electronic means of payment for high value portable commodities, thus increasing the traceability of transactions. If applied appropriately, collaboration in form of information sharing and the adoption of comparative strategies between answerable entities in the U.K. as well as overseas can occupy a crucial role. Furthermore, collaboration is consi-

dered essential in supporting efforts to minimalise the cost associated with the implementation of preventative measures as well as limiting disinterest caused by an inadequate return on investment, particularly for those within the public sector. However, like most preventative measures, sufficient collaboration must include entire sectors through which criminal activities, such as money laundering, take place, thus guaranteeing sufficient manipulation of the entire money laundering environment while enabling the diffusion of preventative benefits laterally in form of other methods of money laundering.

References Cornish, D. (1994). The procedural analysis of offending and its relevance for situational prevention. In: Clarke RV (ed.). Crime Prevention Studies, Vol. 3. Monsey, NY: Criminal Justice Press pp. 151-196. IMF. (2011). United Kingdom: Anti-Money Laundering/Combating the Financing of Terrorism Technical Note. International Monetary Fund. Retrieved August 12th, 2013, from website: http://www.imf.org/external/pubs/ft/scr/20 11/cr11231.pdf Rider, B. A. K. (2006). The price of laundering dirty money, private paper, Jesus College, University of Cambridge, Cambridge. Tilley, N. (2012). Crime Reduction: Responsibility, Regulation, and Research. Criminology & Public Policy. Vol 11 (2), pp. 361378

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ECPR Standing Group on Organised Crime ECPR Standing Group on Organised Crime 2013, Volume 10, Issue 3 3 September 2013, Volume 10, Issue September

Policing Organised Crime Changing landscape, changing practice

Tuesday 5 November 2013 BT Auditorium and Customer Showcase, London
CHAIR The Lord Dear QPM DL SPEAKERS INCLUDE Keith Bristow QPM Director General, National Crime Agency Gregor McGill Head of Organised Crime Division, Crown Prosecution Service Professor Michael Levi Professor of Criminology, University of Cardiff Martin Hewitt Deputy Assistant Commissioner, Crime Operations, Metropolitan Police Service

About the conference

Concern about serious organised crime, which is costly, harmful and widespread, is rising. The internet offers attractive new opportunities for committing crime, rising commodity prices and the increasing mobility of populations offer new sources of illicit income, and even the recession is being exploited as loan sharks take advantage of those in debt and rogue landlords exploit vulnerable tenants. Despite this, organised crime is less of a priority for the police and their partners at the local level than it is at a national level. Cuts to police funding and the introduction of Police and Crime Commissioners (PCCs) are only likely to further reduce the resources available to tackle organised crime. Within this context, the conference will ask: What should the police be doing to protect the victims of organised crime in their force area? How can they work better with their partners, including national organisations such as Action Fraud and the Child Exploitation and Online Protection Centre? What role should PCCs play in the fight against organised crime? What impact will the National Crime Agency have on organised crime and how will it work with Chief Constables and PCCs? The conference will focus on the local rather than national and on the practical. It provides a unique opportunity for the police service and its partners to listen to some of the leading experts in the field, to contribute to discussions on some of the most challenging issues organised crime raises and to share some practical ways of tackling one of the biggest threats to society.

Who should attend?

The conference will bring together senior police officers, Police and Crime Commissioners, government policy makers, national agency specialists, representatives from the private and the third sector and academics. What previous conference delegates have said: Events like this are really useful to pause and recalibrate before tackling the challenges of the future Charlie Hall, Assistant Chief Constable, Norfolk Constabulary The content was completely here and now but pushed boundaries of current thinking far and wide Nick Parker, Managing Director, Nicholas Parker Limited A great conference with quality speakers who can challenge your thinking in lots of ways Chief Superintendent Irene Curtis, President, Police Superintendents Association of England and Wales This was an excellent conference that prompted me to think about aspects of policing that I would not have considered otherwise. A day well spent! Chief Superintendent Tim Jackson, Past National Deputy Secretary, Police Superintendents Association of England and Wales. Excellent content, and excellent venue and networking opportunities Martyn Underhill, Police and Crime Commissioner for Dorset

The venue
BT Auditorium and Customer Showcase, London BT Centre, 81 Newgate Street, London EC1A 7AJ Complimentary drinks and buffet reception at the BT Tower A complimentary networking and drinks reception will be open to the first 40 people who register for the conference. The event will be held on Monday 4 November, the night before the conference, in the stunning BT Tower Revolving Restaurant, 60 Cleveland Street, London W1T 4JZ. This venue is not normally open to the public and places are limited. Book now to avoid disappointment.

For more information and registration: https://www.regonline.co.uk/custImages/290000/293138/PoliceFoundation2013latestbrochure.pdf

ECPRStanding StandingGroup Group on onOrganised OrganisedCrime Crime ECPR September2013, 2013,Volume Volume10, 10,Issue Issue3 3 September

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ECPR Standing Group on Organised Crime May 2013, Volume 10, Issue 2

11 11

CROSS-BORDER CRIME COLLOQUIUM

The 15th Cross-border Crime Colloquium will be hosted by the Criminal Policy Research Centre in Sarajevo, Bosnia and Herzegovina on 25 -27 May 2014 Economic and Organised Cross-Border Crime in Times of Crisis - Legal entities and organised crime - Mobility, offending and exploitation - Austerity and law enforcement - Criminal wealth untapped - Old and new forms of crime-forprofit Integrity and corruption For information, please contact Dr. Almir Maljevic : amaljevic@fkn.unsa.ba Prof. Dr. Petrus C. van Duyne: Petrus@uvt.nl Participation in the Colloquium is free of charge. The hosting institution, the Criminal Policy Research Centre, invites contributors presenting a paper to the welcome dinner at the eve of the event and offers them accommodation (bed & breakfast) for two nights. Lunch and refreshments will be provided to all attendees during the two conference days. Travel expenses have to be paid for by the participants. Participants are invited to submit an abstract before 25 October 2013 to the coordinators mentioned above.

CALL

THESGOC WELCOMES FOR SUBMISSIONS THE INTERNATIONALADVISORS

whose role will be mainly one of guidance of the Groups activities. The Com-

The ECPR Standing Group on Organised Crime is happy launching a new editorial project: The Group is particularly to welcome our International Advisors

The European Review of Organised Crime

We welcome theoretical and empirical contributions presenting the latest research on organised crime broadly conceived from a variety of disciplines, such as criminology, criminal justice, political science, law, security studies, sociology, gender studies, economics, media studies, anthropology, and history. We also seek contributions from practitioners who can share knowledge about organised crime by drawing upon their on-the-ground experience. We are now collecting papers for the Reviews inaugural issue. The deadline for the submission of manuscripts is November, 25. However, authors are strongly encouraged to express interest and send abstracts of potential contributions to the editors by October, 18. For further information, please contact european.review.oc@gmail.com or visit our webpage (http://www.sgocnet.org/index.php/the-european-review-of-organised-crime).

Research Institute for European and American Studies

http://www .rieas.gr/

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ECPR Standing Group on Organised Crime September 2013, Volume 10, Issue 3

John Jay College of Criminal Justice of the City University of New York, in collaboration with the Center for Security Studies (KEMEA) at the Greek Ministry of Public Order and Citizen Protection, will host its 11th Biennial International Conference in Athens, Greece, from June 11 to June 14, 2014. The theme of the conference is The Rule of Law in an Era of Change: Security, Social Justice and Inclusive Governance. The array of political, social and economic transformations before us poses critical challenges to individual and collective welfare. While a consensus has yet to emerge from the ongoing global debates on how to address these challenges, there is a growing realization that our collective responses must be guided by the rule of law. The many controversies surrounding the rule of laws content, reach and use notwithstanding, it does constitute, as a recent United Nations resolution noted, the basis on which just and fair societies are built. In the context of the severe social and economic stress currently experienced by many societies, it is imperative to reaffirm the importance of accountability for all to fair and equitable laws, and entitlement for all to equal protection of the law, so as to ensure inclusive social orders and enhance the prospects for social justice. This conference will provide an interdisciplinary forum for scholars, government officials, representatives of intergovernmental and non-governmental organizations, and

civic leaders to critically discuss current rule of law-related research, policies and practices, explore ways of strengthening the rule of law in all forms of governance, and engage with pressing demands for social justice. It is the expectation of the organizers that several publications (books and/or special issues of scholarly journals) will result from the conference.

Proposals for papers may address a broad range of issues including, but not limited, to: Philosophical perspectives on the rule of law Gender-based approaches to the rule of law International law enforcement cooperation Transitional justice and its challenges Training of law enforcement and judicial officers Post-conflict peace building in divided societies Substantive and procedural aspects of criminal justice systems International crimes and tribunals International human rights and international humanitarian law Plural legal orders Migration and border security Terrorism and counter-terrorism Comparative perspectives on the adjudication and reintegration of offenders Transnational organized crime and criminal networks

International and comparative perspectives on juvenile justice Capital punishment NGOs, social movements and the quest for social justice Critical race theory Literary representations of justice and the rule of law The body and the rule of law Psychology, mental health and public policy Privatization of state functions and its legal/social/ economic implications Corruption Non-traditional threats and social order Environmental justice International financial institutions and accountability Paper and panel proposals that address these and other issues are welcome from all disciplines in the social sciences, humanities and natural sciences. Please submit your paper abstract here http://johnjay.jjay.cuny.edu/ic_gre ece/abstracts.asp (500 word limit) or panel proposal (750 word limit) by

October 31, 2013.

For more information about the conference please visit www.jjay.cuny.edu/ic or send an email to IC2014@jjay.cuny.edu

ECPR Standing Group on Organised Crime

For the newsletter we are looking for short original articles (1000-2000 words) on different organised crime-related themes. These contributions can stem from yur on- going research or from summaries of published material, which you might wish to circulate among the organised crime research community. You may also contribute to the content of the newsletter by sending us any announcement of conferences/ workshops/ literature references you feel could be of interest to this field.

SUGGESTIONS!

You are also invited to propose things that could improve the quality of the newsletter. Please send your suggestions and articles to: asergi@essex.ac.uk faerns@essex.ac.uk

The Next Issue of the ECPR Standing Group on Organised Crime Newsletter will be available at the end of January 2013. The deadline for articles and contributions is 07 January 2013.

CONTRIBUTIONS!

DONOTMISS...all the content from this and previous newesletters, and info on the authors, will be uploaded on the new website www.sgocnet.org

Visit the SGOC Website at: www.sgocnet.org Visit the SGOC blog at: http://sgoc.blogspot.co.uk Join Our Facebook Group Page..our Like us on Facebook! And we are also on LinkedIn and Twitter @ecpr_sgoc!