Corruption & Organized Crime

By UN CICP

Corruption on the Palermo’s Convention

Article 8

Criminalization of corruption1. Each State Party shall adopt such legislative and other measures as may be necessary to

establish as criminal offences, when committed intentionally:

(a) The promise, offering or giving to a public official, directly or indirectly, of an undue advantage, for the official himself or herself or another person or entity, in order that the official act or refrain from acting in the exercise of his or her official duties;

(b) The solicitation or acceptance by a public official, directly or indirectly, of an undue advantage, for the official himself or herself or another person or entity, in order that the official act or refrain from acting in the exercise of his or her official duties….

Organized Crime link to Corruption

Group of three or more persons that exists during certain time. It acts by previous agreement, with the objective of commiting one or more serious crimes (4 years of jail). With the aim of obtaining financial or other material benefit

Organized Crime Group

O.C. links with Violence and Corruption

The O.C. Groups exert their powers

through the threat and use of violence

Information Centralized Systems used against O.C. must:

ID the organizational structure and the “company” shape

ID product/service offered ID and block modus operandi (supplying

logistic, production, marketing and financial channels)

Different levels of relationship between O.C. and Corruption

1st Level: Bribery 2nd Level: Continuous Acts of Bribery (“On

payroll”) 3rd Level: Infiltration into Government Agencies 4th Level: Infiltrating the Government (Higher

level) 5th Level: Infiltrating the Political Arena

1st Level: Bribery

The bribe is offered or solicited for a single act.

For example: to obtain a passport, licenses or to get information designed to enable criminal advantage.

Organized Crime Group

Public Officer

Benefits of the Bribery Acts

The O.C. Groups obtains an advantage False identities and documents Advance information about police activity Manipulation of official records Disappearing evidence Access to jury identities

The “Custom” Case

Drug Trafficking Cartel

Custom Officers

Border

DRUG

2nd Level: Continuous Acts of Bribery (“On the Payroll”)

Bribe payments are ongoing.

Ensures a continuous flow of information and protection from police intrusion into criminal activities.

Organized Crime Group

Public Officer

Periodically

Benefits of the Continuous Bribery Acts

O.C. Groups obtain constant access to confidential information allowing them to maintain patterns of illegal activity

The O.C. Groups remain “one step ahead” of Police

Measures to avoid the Bribery Acts

Strength the socio-economic status of public officers with fair and competitive salaries

Implement strong penalties for breaches of public duties

Encourage “whistle-blowers” Train and assign Integrity Officers to corruption-

prone government operations Reduce individual discretion

The “Informer” Case

Drug Lord

Military Officer

Information about:

• Court Orders

• Raid orders

• Operations

3rd Level: Infiltration Into Government Agencies

(Operative Level)

infiltration is sporadic within lower ranking official positions.

OC members and friends gain employment in law enforcement agencies,judiciary Prosecutor’s Office and other operations.

Organized Crime GroupMember

BE

CO

ME

S

Public Officer

How is Infiltration Accomplished?

1) Applying for Job Vacancies

The O.C. group supports one or more members or friends to participate and apply for job vacancies with the Government.

2) “Buying” the Job

The O.C. group bribes or blackmails officials to place its members and

friends in the government post.

The Typical Case

Organized Crime Group

Contracts

Local Governor

Ow

ned

by

4th Level: Infiltrating the Government (Medium-tactical Level)

This infiltration can encompass entire branches or higher ranking officers.

Top Officials in Law Enforcement, Prosecutor’s Office and other sensitive government offices are OC members.

Organized Crime Group

CO

NT

RO

LL

ED

Public Officer

Higher Rank

Methods Used to Infiltrate the higher levels of Government

1) Placement of Corrupted Officers into Higher Office

The O.C. group use bribery and blackmail to support Officers previously corrupted by their

organization to higher ranks with broader access to information. This “support” is repaid to OC with increased protection and access to more useful secret

police information

2) Control of the Chief of Section/Region

Bribery, blackmail and coercion is used to control the chief

decision-maker of an entire branch of government.OC can continue operating with very

little risk of discovery or successful prosecution.

Benefits of the Infiltration of O.C. Groups

O.C. Groups need support from government officials in order to maximize profits

bribery and extortion are used to influence police, judges and other key officials

OC gains control over entire sectors of the economy

The “General” Case

BECAME Anti-Drug ZsarGeneral

Head of a Military Region

Drug LordRival Drug

Cartels

The “Attaché” Case

WifeMilitary Attache

to an Embassy

Diplomatic Pouch

Organized Crime GroupDRUG

Measures to avoid the Infiltration of O.C. Groups

Transparency in the hiring process including public notification of potential candidates.

Strengthening promotional testing and strict secrecy of test questions

Vetting process thorough background investigations and polygraph test (updated financial statements, family ties, etc.)

Public disclosure of assets

5th Level: Infiltrating the Political Arena

Organized Crime Group

Congressmen Law Enforcement(For Security)

Politicians(Mayors, Governors, etc.)

Ministers

Inter-related mecanisms to translate social preferences into public policies.

Democracy

ScaleActorsState capture

Grand Corruption

Budgets distortedSocial investment reducedAccess to the poor is hamperedHampers Democracy

Grand Corruption

Grand Corruption

Democracy

How is Political Infiltration Accomplished?

Participating in Political Campaigns (giving money, media support and others)

Buying votes for candidates and corrupting the democratic election process

Lobbying other politicians for support using bribery and blackmail

Exploiting O.C. Members’ family links Creating “debts” for politicians to “repay” later by

using blackmail and extortion

The “Representative” Case

Drug Trafficker BECAME

Representative of National Security

Drug Trafficking

CONTINUED

The “Narco-campaign”Case

Drug Lord

Former Representative

Former DiplomatOffer the Money

Presidential Candidate

Campaign Treasurer

The “Governor” Case

Drug Trafficker BECAME

Senator

BE

CA

ME

Governor of Touristical StateCONTINUED

Drug Trafficking

The “Sixty-Million” Case

Drug Traffickers Group

Politicians

60 MM US$

To let them “Work”

Measures to avoid the Political Infiltration of O.C. Groups

The State should increase financial support of political parties and campaigns

Strengthening the laws of media concentrations, combating monopolies

Increasing the transparency of contributions Public disclosure of candidate background including

criminal records and links Strengthening banking and securities’ regulatory capacities

Best Practices in the Eradication of Organized Crime

An appropriate legal framework making it possible to fight OC effectively by following the Palermo Convention standards -(e.g. bank and securities regulations, witness protection laws, RICO-type statutes);

Compatible-harmonized legal norms among states; Harmonize, enhance, and coordinate international law enforcement efforts

and capabilities; An informed media with the capacity to address the issue with sophistication

while promoting democratic approaches in the fight against O.C.; An informed population ready to fight the issue. This includes the

development of significant literature to keep the citizenry informed; Schools incorporating civic tools into their curricula to counteract OC

activities;

Source: World Bank and World Economic Forum 2000.

OC

RO

L

Zimbabwe

Vietnam

Venezuela, RB

United States

United Kingdom

Ukraine

Turkey

Thailand

Taiwan, China

Sweden

Spain

South Africa

Slovak Republic

Singapore

Russian Federation

Portugal

Poland

Philippines

Peru

NorwayNew Zealand

Netherlands

Mexico

Mauritius

Malaysia

Luxembourg

Korea, Rep.

Jordan

Japan

Italy

Israel

Ireland

Indonesia

India

Iceland

Hungary

Hong Kong, China

Greece

Germany

France

Finland

El Salvador

Egypt, Arab Rep.

Ecuador

Denmark

Czech RepublicCosta Rica

Colombia

China

Chile

Canada

Bulgaria

Brazil

Bolivia

Belgium

Austria

Australia

Argentina

The Link Between Organized Crime and Rule of Law

Source: World Economic Forum, 2000 (organized crime and corruption in legal system)

OC

CO

RR

Zimbabwe

Vietnam

Venezuela, RB

United States

United Kingdom

Ukraine

Turkey

Thailand

Taiwan, China

SwitzerlandSweden

Spain

South Africa

Slovak Republic

Singapore

Russian Federation

Portugal

Poland

Philippines

Peru

NorwayNew ZealandNetherlands

Mexico

Mauritius

Malaysia

Korea, Rep.

Jordan

Japan

Italy

IsraelIreland

Indonesia

India

Iceland

Hungary

Hong Kong, China

Greece

Germany

France

El Salvador

Egypt, Arab Rep.

Ecuador

Denmark

Czech Republic

Costa Rica

Colombia

China

Chile

Canada

Bulgaria

Brazil

Bolivia

Belgium

Austria

Australia

Argentina

The Link Between Organized Crime and Corruption in Legal System

The Link Between Organized Crime andEnforcement of the Banking and Securities

Regulations

Source: (University of Vrginia Center for International Law and Economic Development--CILED Index) and World Economic Forum 2000 (organized Crime).

OC

EN

F

Venezuela, RB

United States

United Kingdom

Turkey

Thailand

Spain

South Africa

Slovak Republic

Russian Federation

Poland

Peru

Netherlands

Mexico

JapanItaly

Indonesia

IndiaHungary

Hong Kong, China

Greece

GermanyFrance

Czech Republic

Costa Rica

Colombia

China

Chile

Canada

Brazil

Bolivia

Belgium

Austria

Argentina

Source: World Economic Forum 1998 (regulatory discretion) and World Economic Forum 2000 (organized crime)

OC

RE

GD

IS Venezuela, RB

United States

United Kingdom

Ukraine

Switzerland

Sweden

Spain

Slovak Republic

Russian Federation

Portugal

Poland

Peru

Norway

Netherlands

Mexico

Japan

Italy

Ireland

Hungary

Greece

Germany

France

Denmark

Czech Republic

Costa Rica

Colombia

Chile

Canada

Brazil

Belgium

AustriaAustralia

Argentina

The Link Between Organized Crime and Regulatory Discretion

Anti-Corruption on Internet

Anti-Corruption Tool Kit Anti-Corruption Publications

http://www.odccp.org/corruption_toolkit.html