Organized Crime

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Organized crime is a problem throughout the world. There are the drug cartels of Mexico and Columbia, the Russian Mafia, Asian Triads, and Eastern European crime syndicates to name a few. It is estimated that organized crime generates more than one trillion dollars in profits annually.1

An organized crime syndicate works in a very similar way to a government or corporation. There are different streams of income coming from drug and human trafficking, arms dealing, prostitution, blackmail, protection money, and legitimate business endeavors. It also provides protection similar to police and military.2 Much of the money that they collect needs to be “cleaned” before it can be seized by law enforcement and many legitimate business will not touch this money if it can be traced . If this money were to be rendered useless by freezing the accounts or if the money was seized this would cripple the organization because without the money, they can not pay off their debts if they purchased their drugs on credit, buy weapons or ammunition, pay their associates, or bribe officials.

One of the major problems in dealing with organized crime is that many often launder their money outside of the U.S. in order to avoid laws that were put in place to prevent laundering from happening. Some of the major countries are the Bahamas, the Cook Islands, Dominica, Lebanon, Liechtenstein, the Marshall Islands, Nauru, Niue, Panama, the Philippines, St. Kitts and Nevis, and St. Vincent, Russia, Israel, the Cayman Islands and the Grenadines.3 People, companies, and criminal organizations use these countries in order to keep the money out of the local authorities jurisdiction. It also makes the money difficult to trace once it crosses into a different count...

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