Organized crime

I. INTRODUCTION:

Organized crime is increasingly attracting the attention of the general public, national governments, and international organizations. The issue has many facets and can be analyzed from various perspectives. For example, there is a growing trend to view this phenomenon as a national security threat, particularly as criminal groups are involved not only in the dangerous game of arms proliferation but also in illegal immigration, the corruption of national governments, and the infiltration of an ever more interconnected global financial system.

The threat posed by organized crime has grown to such an extent that the world's most powerful nations have called for the establishment of a multilateral convention granting new powers and an expanded scope to national law enforcement agencies. The omnipresence of organized crime in national and international legitimate markets has significant repercussions across all spheres of society. For instance, healthcare, security systems, and financial security are among the sectors hardest hit by organized crime. This phenomenon undermines our right to peace, order, and the sound management of public affairs. Acts of violence or intimidation in communities, corruption of political systems and governments, diminished quality of life, threats to personal security, and disruption of family life are all effects of the activities of criminal groups.

Faced with this increasingly internationalized threat, how can we respond to the challenges posed by organized crime?

The rapid globalization of economies at the end of the 20th century has led to a radical transformation of organized crime and corruption phenomena, now characterized by their scale and transnational nature. The international community has become aware of the particularly damaging effects on the social, economic, and political stability of countries. This has led to efforts to seek international cooperation through multilateral action and the establishment of a United Nations-backed convention.

This study, therefore, aims to highlight the new threats posed by organized crime in the era of globalization and the various measures taken at the international and European levels to counter these threats, while acknowledging the significant obstacles to the fight against organized crime.

I/ Globalization and the New Threats of Organized Crime:

Globalization has certainly facilitated the expansion of criminal organizations, constituting a threat to the global market, transitional economies, and becoming an international phenomenon that tends toward what could be called the globalization of crime.

1. A Threat to the Global Market:

1.1 Expansion of Money Laundering: 

To convert the vast illegal revenues into legitimate profits, criminal organizations often resort to money laundering.

Indeed, if we consider the estimates of the annual turnover of organized criminal groups and assume that approximately half of this sum must, in one way or another, be recycled into the legal economy, the amount of money laundered annually could reach between 250 to 500 billion dollars. Given the colossal profits generated by organized crime, the transformation of illegal profits into legal assets represents one of the greatest challenges for these organizations. Money laundering can be defined as the conversion of illegally obtained revenues into legitimate profits, during which deliberate concealment methods are used to avoid or obstruct the discovery of the origins of the assets involved.

Money laundering has become a highly specialized activity, involving lawyers, accountants, tax advisors, banking professionals, etc. Given the huge profits generated by their activities, criminal organizations have the means to enlist the services of top-level professionals to assist them in laundering money. The methods used include the purchase of movable goods and stocks, participation in public sales, and taking stakes in family-owned businesses. However, money laundering is also the Achilles' heel of organized crime, as it is precisely at this stage that criminals expose their assets for a short period, and it is also here that investigators have a chance to infiltrate the criminal network at a higher level.

In addition to the activities traditionally used for money laundering (catering services, casinos, restaurants, supermarkets, used car sales, currency exchange offices, etc.), investments of dirty money are often made in economic activities that support or cover up criminal activities, what is known as the synergy effect: acquisition of real estate, creation of transport companies, travel agencies, or pharmaceutical factories. The stock markets also provide excellent opportunities to launder dirty money. U.S. authorities are increasingly facing the presence of mafia groups operating in their markets to manipulate prices and launder money. Since the U.S. stock market is generally considered one of the most transparent in the world, the infiltration of this type of market by the mafia suggests that the situation is even worse in less developed countries or more opaque markets.

Money laundering can itself generate considerable profits. A real danger lies in the fact that through money laundering, criminal influence tends to infiltrate respectable sectors of the economy. For instance, Swiss authorities are increasingly concerned about the growing presence of organized criminal groups attracted to Switzerland due to its banking secrecy laws. Once established, mafia groups quickly use their laundered money to penetrate the local commercial world, such as restaurants and hotels.

1.2 The Economic Impact of Organized Crime:

Organized crime presents a series of very worrying challenges to an increasingly integrated global market.

This is particularly evident when we know that police work remains mainly confined to the local and national levels, and mechanisms for international cooperation are sadly underdeveloped. Since many organized criminal groups operate beyond their national borders, their activities necessarily have international consequences. For example, the omnipresence of criminal groups in Russia is a problem not only for that country but for the international community as a whole. The same goes for many other criminal groups operating in different countries.

The presence of mafia groups can also contribute to increasing income disparities in transition and developing societies. Organized crime can block potential paths of economic progress. Moreover, if society comes to believe that mafia connections take precedence over merit in obtaining promotions, the damage to national morality and the economy can be considerable.

But the damage doesn't stop there! Given that honest businesses are often forced to pay for "protection," they must bear an additional cost that erodes their profits and investment opportunities, raises prices, and thus contributes to inflation. Furthermore, as the state apparatus is often riddled with corruption, business leaders no longer have the stable environment essential for long-term planning and investment. Foreign investors are the first to withdraw, faced with reduced profitability and increased physical danger associated with their presence in the local market.

Additionally, the substantial revenues generated by organized crime escape any form of taxation and contribute to worsening the state's financial crisis. Once again, honest businesses and employees must make up for this shortfall, and the increase in the tax burden drives many of them into the underground economy, further increasing the climate of widespread illegality that characterizes the local market. Faced with serious financial difficulties, the state may be tempted to print more money to try to solve its problems. An economy thus destabilized is obviously unable to generate general prosperity and instead encourages public opinion to associate the market economy with rising crime. If this equation becomes widely accepted, it could steer a country away from the reform process and push it towards extremist policies or cynical collaboration with criminal groups.

It goes without saying that the impact of organized crime varies considerably from country to country; it actually depends on many factors. These include a country's economic and financial situation, the fundamental legitimacy of the state, its ability to enforce laws, its culture in this regard, citizens' willingness to resist mafia development, and its geographical location.

New democratic states are undergoing deep institutional and legal restructuring, which makes them vulnerable to criminal penetration. For example, privatization offers criminal groups the opportunity to operate in the market, recycle their illegal profits, and even legitimize their activities. It is essential that, alongside the progressive liberalization of society, transitional governments ensure the establishment of appropriate regulatory institutions and macroeconomic policies. In the absence of these, openings are likely to emerge, into which organized criminal groups will be all too happy to rush.

In transition countries, the impact of criminal organizations is amplified because criminals often manipulate enormous sums of money and currency compared to the national money supply. They are thus able to erode the state's ability to manage the money supply, control exchange rates, and effectively monitor fiscal policy. As a result, significant capital outflows can lead to a sharp depreciation of the currency. Once again, this results in the erosion of state authority.

13. The Impact of Organized Crime on Businesses:

While organized crime certainly has a negative impact on the economy, criminal organizations have also quickly realized the benefits they can gain from the vulnerabilities of multinational companies setting up in unstable countries.

Indeed, companies must confront the threats posed by criminal or terrorist organizations. Victims of money laundering, businesses also face the kidnapping of their executives, blackmail, extortion, and attacks. Certain regions of the world are more sensitive than others: Latin America (Colombia), the Caucasus, and Asia. Sometimes forced to pay for their protection, businesses bear an additional cost that makes them less competitive. Moreover, in many cases, the state apparatus where they are based is often riddled with corruption, leaving business leaders without the stable environment essential for long-term planning and investments. Foreign investors are the first to withdraw in the face of this loss of profitability and the increased physical danger associated with their presence in the local market.

Furthermore, it is important to note that organized crime is increasingly investing in cybercrime, as the potential financial gains are high. Since IT has become a strategic element for certain companies, any destruction or alteration of data in systems can compromise their competitiveness. Therefore, companies are placing greater importance on investments in cybersecurity.

2. A Threat to Countries in Transition:

Virtually all transitioning states are facing a sharp increase in criminal activity.

21. The Black Market, a Springboard for Organized Crime Penetration:

The practice of the black market serves as a way to operate and break into markets outside of existing legal structures.

Indeed, centralized economies had significant black markets. These markets responded to essential consumer needs in economies that ignored certain fundamental demands, as well as the conditions of demand and pricing. Thus, the black market played an important role in preparing these societies for market rules.

Moreover, black markets certainly thrive when the state's presence is not overly oppressive, but criminal groups can also exploit a situation where the state's authority and resources suddenly weaken, making it vulnerable to subversion. In a sense, many transitioning societies have gone from one extreme to the other. This is particularly true in post-Soviet Russia and Ukraine. The absence of up-to-date and coherent criminal legislation, the lack of resources, the corruption of authorities, and the moral, economic, and social trauma associated with the system change have almost inevitably led to an increase in illicit activities.

Finally, criminal groups are able to fill part of the void left by the collapse of the former communist state. However, it is important to distinguish between the underground economy and the illegal activities of true organized criminal groups. Often, the existence of an underground economy is not the result of criminal intent but rather of regulations so restrictive and contradictory that covert transactions become the only way to survive. This is particularly true in Russia and Ukraine, where the arbitrary application of constantly changing tax laws and the inadequacy of business regulations have created an environment that makes it impossible to conduct legitimate business.

22. Privatization as a Source of Crime:

Privatization creates opportunities for organized criminal groups, especially when the state fails to fully develop the necessary institutional framework to carry out the transition.

Indeed, privatization exemplifies this phenomenon. In many cases, the struggle for control of public commercial assets began before the state had developed the legal framework for privatization. Intentional bankruptcies, unrealistic valuations of state-owned companies, rigged bids, and outright theft of public property are all examples of how privatization can morph into something entirely different from what it was meant to be.

Additionally, criminal groups engage in these practices with such mastery and dynamism that oversight bodies are simply overwhelmed, and the representatives of these bodies are not inclined to object. But criminal groups go even further. They use violence or threats to rig auctions, eliminating competing bids. These practices naturally deprive states of much-needed resources and automatically grant wealth and legitimacy to a criminal layer of society.

Finally, when ordinary citizens understand that criminal groups are the first to benefit from market reforms, the very concept of these reforms can lose all legitimacy, a phenomenon that can only make the transition process more difficult. The crisis currently affecting Russia is certainly not unrelated to this phenomenon.

23. Delegitimization of the Market:

The role of organized crime in privatization highlights the importance of keeping legal and institutional reforms in step with rapid social and economic changes.

Indeed, financial and banking systems, designed and developed in a completely different economic environment, struggle to meet the capital needs of emerging markets while operating transparently. This is not always possible, and when, for example, governments fail to establish rigorous legislation on banking transparency, they open the door to criminal infiltration of the financial sector. Once these groups secure some degree of control over credit allocation, they can further insinuate themselves into the legal economy while effectively removing any hope of success for honest entrepreneurs.

Moreover, the social and political impact is devastating. The cumulative effect delegitimizes the market, which is seen as a system that only benefits criminals. The issue of crime can also become an ideal way to attack, or even overthrow, legitimate democratic institutions. The threat is real in Russia and Ukraine, where criminal groups have managed to acquire highly sought-after assets for a fraction of their value. In some cases, privatization in these two countries has essentially become a money-laundering operation, helping criminal groups legitimize their assets and activities. This situation is a central element of the economic, political, and social debacle currently plaguing Russia.

Finally, border control poses another series of problems for new democracies. After decades of sealed borders, the collapse of the communist system has led to greater ease in the movement of goods and people. The need to re-establish some form of control is now evident, particularly due to the exponential growth of illegal immigration and smuggling activities, which deprive states of much-needed revenue. This situation creates a paradox and places democracies in a politically uncomfortable position, as they are, by nature, expected to support the principle of greater openness of borders.

3. The Globalization of Organized Crime:

31. Trends and Networks in Transnational Organized Crime:

Organized criminal groups operate with impunity, disregarding laws and national borders.

First, the relationships between criminal groups range from short-term agreements to long-term alliances aimed at maximizing profits. The most sophisticated links between transnational criminal organizations are called strategic alliances, which involve constant cooperation and partnership in markets. Such alliances allow transnational organizations to minimize the risk associated with entering foreign markets and to use existing distribution channels through their partners.

Additionally, the most well-known and well-established series of alliances ties the Sicilian mafia to those based in the United States. Italian organized criminal groups, which also include the Neapolitan Camorra, the Calabrian 'Ndrangheta, and the Sacra Corona Unita from Apulia, have successfully adapted to the challenges posed by economic and social changes. For instance, the Sicilian mafia has undoubtedly moved far from its original activities, which involved providing enforcers, to seeking to impose a land-owning oligarchy on the island. Italian criminal families have also formed alliances with groups operating in many Western countries and are involved in a wide range of both legal and illegal activities. Although the Italian and American governments have recently made significant progress in uncovering these ties and arresting numerous mafia "bosses," including Sicilian mafia leader Toto Rino, Italian criminal groups remain active in drug trafficking, extortion, illegal financing, cigarette smuggling, illegal lotteries, and public works contracts.

Moreover, international drug trafficking is the foundation of the American Cosa Nostra. The leaders of this organization have established numerous international alliances and gained control of new drug-trafficking routes, allowing them to launder colossal amounts of dirty money. The boom in the U.S. stock market opens new opportunities for them. The Securities and Exchange Commission and the U.S. Department of Justice are seeing an increase in organized criminal activities in the market, such as money laundering, insider trading, and stock price manipulation through either violence or threats of violence. Cosa Nostra groups operate worldwide.

Finally, arms trafficking is another clandestine and lucrative enterprise, particularly threatening international stability. The black market for weapons has significantly expanded, especially because formerly tightly controlled Soviet arsenals are now under insufficient supervision. As a large part of the Russian military faces extremely difficult living conditions, the temptation to sell weapons cheaply to traffickers is great, who, in turn, can easily resell them to terrorist organizations, other criminals, and unscrupulous states. The seriousness of the problem was revealed during the Chechen war when Russian forces sold weapons to Chechen rebels, who used them to kill Russian soldiers.

Arms trafficking is often the result of weakened state authority. The collapse of the Albanian state should serve as a warning in this regard. During times of chaos, gangs seized most of the country's light weapons, an event that quickly fueled low-cost arms stocks on black markets throughout the region. It goes without saying that the collapse of public authority and war both create conditions conducive to all sorts of organized criminal activities, as seen in Serbia and Bosnia.

32 - The Global Criminal Network:

Transnational criminal organizations operate on all continents, often differing in structure, methods, preferred fields of activity, and specialization. Their business profile ranges from "corporations" to local franchises, and their organization can vary from fluid or ad hoc alliances to strict hierarchical structures.

Chinese Triads, which include organizations like "Sun Yee On," "14K," and the "Wo Federation" based in Hong Kong, as well as "United Bamboo" and the "Four Seas Band" from Taiwan province in China, and the Chinese "Great Circle," are involved in various illicit activities: extortion, drug trafficking, prostitution, illegal immigration, and gambling. They operate through large Chinese immigration channels and have established networks in the United States. Their activities have spread to Western Europe, with operations now in Amsterdam, London, and Spain.

The Yakuzas, including groups like "Toa Yuai Jigyo Kumiai," "Inagawa Kai," "Sumiyoshi Rengo Kaie," and "Yamaguchi Gummi," are a particularly corrupting force within Japanese society. They are at the center of several extortion schemes targeting businesses, which have caused significant scandals and tarnished the reputations of companies, banks, and top corporate executives. Japanese criminal groups are present throughout Southeast Asia, where they are involved in prostitution, extortion, gambling, scams, and money laundering.

The Colombian cartels (Medellin and Cali) are unique in that they primarily focus on drug trafficking and the infiltration and corruption of the state. Their once dominant position in cocaine trafficking in Colombia has significantly declined, and numerous criminal groups are now vying for control of the Colombian drug market. These groups have a presence in Europe and use highly sophisticated techniques to import and distribute drugs and launder their proceeds.

Russian criminal groups have only recently emerged on the international scene, but their rapidly expanding presence in a wide range of activities and their extremely violent methods are of great concern to law enforcement.

This overview of the international sphere clearly shows that criminal powers are now extending their activities beyond their territorial base and functioning in networks. Recent developments concerning migrant trafficking are a striking example of the close ties between mafia groups and illustrate Luciano VIOLANTE's statement: "The transnational nature of goods has led the most important mafias to establish strong relationships with each other."

Thus, the free movement of people, goods, information, and ideas has increased dramatically thanks to globalization. These changes resulting from globalization offer new opportunities for criminal circles and have allowed criminal activities to thrive due to open borders, the emergence of multiple markets, and the use of new communication technologies. Liberalization is indeed essential for a successful transition, but it can also create fertile ground for illicit economic activities if certain precautions and countermeasures are not taken.

II/ Measures to Combat Organized Crime:

In the context of globalization, where organized crime disregards state borders and national sovereignty, a global approach to fighting crime is indispensable. Strengthening international cooperation, especially between judicial and law enforcement agencies, is critical.

1. International Cooperation Against Organized Crime:

1.1. The Work of the United Nations:

The United Nations initiated a convention against transnational organized crime aimed at establishing a set of universal definitions regarding certain criminal law concepts related to combating organized crime, and strengthening international judicial cooperation by creating mutual assistance and extradition procedures within a universal framework.

1.1.1. The International Convention Against Organized Crime:

By Resolution 53/111, dated December 9, 1998, the UN General Assembly mandated a special committee to draft an international convention against transnational organized crime.

This convention aims to promote and strengthen cooperation to more effectively prevent and combat transnational organized crime. It seeks to eliminate the disparities between national legal systems, which have previously hindered mutual assistance, and to establish standards for national legislation so they can effectively fight organized crime. The convention also addresses the underlying causes of transnational crime, providing strong measures that allow law enforcement authorities to confiscate illicit assets and combat money laundering. It also calls for witness protection.

Under the convention, states commit to criminalizing participation in an organized criminal group, including corruption and money laundering, facilitating extradition, protecting witnesses testifying against criminal groups, enhancing cooperation to apprehend and prosecute suspects, preventing organized crime at national and international levels, and developing protocols containing measures to combat specific activities of transnational organized crime.

To improve the mechanisms in legal frameworks, states must harmonize their domestic laws to ensure that what constitutes a crime in one country is also a crime in others. To strengthen their cooperation in apprehending and prosecuting suspects, states must harmonize laws concerning offenses with a transnational character and adopt standardized procedures for international cooperation.

Additionally, companies and corporations must be held legally responsible when they participate in or benefit from serious offenses involving an organized criminal group or when they engage in money laundering. To prevent money laundering, states must implement mechanisms to regulate financial institutions, lift banking secrecy, create financial intelligence units, and confiscate criminal proceeds. Such measures would significantly harm criminal groups.

To enhance the effectiveness of extradition, the Convention of December 15, 2000, consolidates these mechanisms by requiring states to accept the extradition of offenders for the offenses covered, even in the absence of an extradition treaty in the requesting country. It also calls for speeding up extradition procedures and concluding bilateral and multilateral agreements or arrangements.

To tighten the net around suspects involved in criminal organizations who flee abroad, states must cooperate with each other, particularly in gathering evidence and sharing information. In the context of international cooperation, states with sophisticated means of combating transnational organized crime are invited to share their experiences and knowledge with developing countries. In this regard, the creation of a special fund to assist these countries in implementing the convention demonstrates the early stages of a "globalization" in the fight against organized crime.

112. The UN and Crime Prevention:

The UN also has the mission of implementing crime prevention policies and harmonizing legislation to combat transnational organized crime. In addition to the Convention on Transnational Organized Crime, the UN has two bodies focused on crime prevention: the Commission on Crime Prevention and Criminal Justice (CCPCJ) and the United Nations International Drug Control Programme (UNDCP).

The UN views sustainable development as inseparable from crime prevention and repression. Crime thrives where structures of authority are weak or threatened, and underdevelopment limits people's choices and perpetuates poverty. Thus, integrating crime prevention and criminal justice programs into efforts to build the capacity of member states and promote sustainable human development is encouraged, in hopes of preventing criminals from exploiting development to the detriment of society as a whole.

The United Nations' oversight body for crime is the CCPCJ, which, along with its associated organs, aims to establish international standards of criminal justice, harmonize laws, and strengthen the rule of law globally. The CCPCJ formulates principles, monitors progress in promoting international criminal justice standards, and improves justice administration in countries. It coordinates technical assistance provided by the UN to member states, especially helping revise laws to comply with international standards, and facilitates information exchange between states determined to combat crime and ensure humane treatment of offenders. The ultimate goal of these efforts, supported by international conventions, is to help member states create a climate conducive to sustainable development planning and present a unified front against criminals in all spheres of activity.

Recognizing that transnational crime and money laundering are facilitated by corruption, the UN, through the CCPCJ, also advocates for an international anti-corruption strategy. An International Code of Conduct for Public Officials (adopted by the General Assembly in December 1996) provides guidelines to states aiming to fight corruption.

12. Efforts at the G8 Level:

The G8 has established an expert group on organized crime, known as the "Lyon Group," which aims to combat organized crime.

The G8, concerned as early as the late 1980s about the international crime’s ability to corrupt the global economy, created the Financial Action Task Force (FATF) at the 1989 Arch Summit in Paris to monitor money laundering. The FATF has since published 40 recommendations aimed at enhancing the effectiveness of anti-money laundering efforts. During the 1997 G8 summit in Washington, justice and interior ministers tasked G8 experts on organized crime (Lyon Group) with two projects: improving investigative capabilities for technological crimes and ensuring that criminals can be prosecuted globally by strengthening extradition and legal assistance regimes.

The G8 summit in Birmingham agreed on additional measures to address the threat posed by international crime. During this meeting, ministers noted progress in projects such as high-tech crime prevention. The G8 countries established a permanent network of law enforcement experts capable of promptly responding to requests for assistance in investigating transnational criminal activities, including hacking. This network is open to a wide range of clients, and non-G8 countries have already used its services. The Lyon Group continues to consult with industry, including Internet service providers, to prevent the criminal use of networks and ensure the traceability of communications.

The group is also developing proposals for a legal framework for the rapid extraction of electronic evidence in cross-border cases. Regarding money laundering, the Birmingham summit endorsed the principle of asset forfeiture, leading the G8 to adopt effective powers to confiscate criminal proceeds both domestically and upon the request of partner countries. The G8 is also working on other aspects of transnational organized crime, such as human trafficking and corruption.

Thus, the efforts of the G8 countries demonstrate their determination to tackle this phenomenon, which continues to internationalize. Implementing the measures adopted by the G8 could effectively and efficiently address the globalization of organized crime.

2. European Cooperation Against Organized Crime:

21. Within the Framework of the Council of Europe:

The European Union has also made the fight against crime a priority. The Council has approved an action plan that outlines a series of measures to curb this phenomenon.

Established in 1949, the Council of Europe aims to promote the exchange of information on member states' judicial systems and improve international cooperation. Several conventions have already been signed and ratified, such as the 1957 European Convention on Extradition, the 1959 Convention on Mutual Assistance in Criminal Matters, and the Convention on Laundering, Search, Seizure, and Confiscation of the Proceeds from Crime. A group of experts from this forum is working on developing a binding legal instrument to harmonize the fight against cybercrime.

Indeed, the rapid advances in information technology have had direct repercussions on all sectors of modern society. The integration of telecommunications and information systems, which allow data storage and transmission over any distance, opens up vast new possibilities. These advances have been facilitated by the emergence of computer networks and information highways, especially the Internet, through which almost anyone can access all electronic information services from anywhere on the planet. By connecting to communication and information services, users create a common space known as cyberspace, which is used for legitimate purposes but can also be abused. Crimes committed in this cyberspace are against the integrity, availability, and confidentiality of computer systems and telecommunications networks, or they involve the use of these networks or services to commit conventional crimes. The international nature of these crimes—for example, those committed using the Internet—clashes with the territorial jurisdiction of national enforcement institutions.

Criminal law must therefore keep pace with these technological developments, which provide highly sophisticated means of misusing cyberspace services to harm legitimate interests. Since computer networks transcend borders, a concerted international effort is needed to address such abuses. The warning concerning certain forms of computer abuse must not only bring national concepts closer together, but only a binding international instrument could have the necessary effectiveness in combating these new phenomena. Such an instrument should not only provide for international cooperation but also address issues of substantive and procedural law and factors related to the use of computer technologies.

22. Within the Framework of the European Union:

Since the mid-1990s, the European Union has been intensively addressing the issue of combating organized crime. The agreement on strengthening cooperation in justice and home affairs stemming from the Treaty of Amsterdam has significantly improved the ability to take coordinated action against organized crime.

The 1985 Single European Act and the Maastricht Treaty, which came into effect in 1993, created a geographic and political space where people, goods, capital, and, unfortunately, crime, can move freely. It soon became clear that reserving border controls solely for law enforcement and justice was dangerous. The elimination of internal borders necessitates the adoption of compensatory measures to ensure the security of people and property. Since home and justice affairs had long been excluded from European integration, a new sector was born within the community institutions and policies: the "third pillar," also known as the "justice and home affairs" (JHA) sector. It encompasses immigration and asylum policy, police and customs cooperation, and civil and criminal judicial cooperation.

Being part of the sovereign domain, the core of national sovereignty, home affairs remained imbued with intergovernmental procedures: the role of community institutions is limited; the European Commission, which normally holds the monopoly on legislative initiative, must share this power with states, and the European Parliament is merely informed and consulted; the legal means available (common positions and actions, conventions) are not sufficiently binding and are too poorly defined.

The Treaty of Amsterdam, which came into effect on May 1, 1999, partially modified this situation and provided a complex transitional procedure that opened up the possibility, after five years of operation, of adopting common law procedures for the "justice and home affairs" sector. However, legal measures dealing with organized crime are still adopted unanimously, covering a good portion of the 45 areas that still escape the now-common rule of qualified majority voting.

Although these matters still fall under intergovernmental cooperation, the European Union is the only international organization to adopt such high-level texts, programs, and bodies that support member states. The EU bases its fight against international crime on three levels.

221. A New Judicial Approach: 

Judicial cooperation aims for better harmonization of criminal law and cooperation between states to benefit magistrates. However, this judicial cooperation faces many obstacles as justice, like defense, falls under the sovereign authority of each state.

Indeed, to prevent criminal groups from exploiting the gaps in national legislations, the Council adopted a joint action harmonizing the criminalization of participation in a criminal organization. Progress has been made in the fields of corruption and money laundering as the Union aims to fight against banking secrecy and the current slowness in processing rogatory commissions.

Several legal tools have been adopted to allow magistrates to cooperate more effectively: European Union extradition conventions; the Schengen Agreements; the European Convention on Mutual Assistance in Criminal Matters; the European Judicial Network created by a joint action of June 29, 1998, which complements the exchange framework for liaison magistrates.

But now, the goal is to create a system to establish conditions for prosecutorial coordination. This involves, in continuation of the already launched liaison magistrates, the creation of a pool of judges, police officers, and prosecutors responsible for encouraging and improving cooperation practices, establishing privileged relations between law enforcement authorities.

222. A New Police Approach: 

To improve the fight against organized crime, the European Union has implemented measures to intensify cooperation between national law enforcement administrations.

In this context, the Schengen Agreements remain the cornerstone of this cooperation by establishing compensatory measures to ensure that the abolition of border controls does not lead to an increase in crime. For example, we can note mutual assistance, cross-border surveillance, the right of pursuit, and border cooperation through police and customs cooperation centers that bring together police and customs services in shared buildings.

In addition to these legal means, the European Union provides programs, i.e., budgets managed by the European Commission, to finance specific actions against organized crime. For example, the Falcone program (€2 million) is intended to develop cooperation between those responsible for combating organized crime.

Europol has been established to collect and analyze data related to organized crime in all its forms (terrorism, money laundering, illicit trafficking of drugs, vehicles, radioactive materials, human trafficking, and illegal immigration channels).

3. Obstacles to Globalizing the Fight Against Organized Crime: 

Large criminal organizations can only ensure the laundering and recycling of the enormous profits from their activities with the complicity of business circles and the "laissez-faire" attitude of political power.

Regarding financial institutions, the traditional form has been the deposit of cash. This operation requires the conscious complicity of some members of staff, or the ability to convince the financial institution that a large cash deposit or the purchase of a cashier's check is legitimate. To maintain a favorable system, criminal organizations also contribute to financing and corrupting political parties and leaders.

31. Banking Secrecy and Taxation: 

Today, criminal organizations of all kinds need to launder funds from their activities for two reasons. The first is that the traces of the money earned can become evidence against the perpetrators; the second is that this money itself may be subject to investigation and seizure.

Indeed, funds of criminal origin are frequently transferred abroad before being recycled into the international payment system to blur verification tracks. Despite numerous complications, the underlying structure of all international money-laundering activities at this stage of the process is simple. The launderer often uses one of the many locations that offer the possibility of creating a company in a few minutes. Many sell offshore companies, which are allowed to operate only outside the country where they were formed, are not subject to taxes or regulation, and are protected by trade secrecy laws. Once the company is created in an offshore location, a bank deposit is made in the tax haven in the name of this company, ensuring that the owner’s identity is protected by trade secrecy laws. The launderer is thus shielded from law enforcement by banking secrecy on the one hand, trade secrecy on the other, and possibly also by attorney-client privilege if a lawyer was tasked with creating and managing the company in the country applying trade secrecy.

The international financial system has undergone several transformations in recent decades, making it even more difficult to trace, freeze, and seize criminally obtained income and assets. There has been the "dollarization" (i.e., the use of the U.S. dollar in transactions) of parallel markets, a general trend toward deregulation of the financial sector, advances in the Euro-market, and the proliferation of tax havens that protect financial secrecy.

We can see in the features of offshore financial centers and strong banking secrecy jurisdictions a set of tools that can be used not only to launder the proceeds of drug trafficking and other crimes but also to commit certain types of financial crimes. However, not all these places show the same level of laxity. It is a constantly evolving world that reflects the diverse policies pursued to strike a balance between competitiveness and strict ethical standards. The optimal policy is not to control clients too strictly but without too blatantly accepting anyone.

Significant efforts have been and continue to be made to improve transparency in the financial sector, but the offshore financial world remains largely a "Bermuda Triangle" for financial investigations. Successful law enforcement operations give a glimpse of the imagination deployed and sometimes the rudimentary methods used to conceal, transfer, and launder crime proceeds in financial havens. This is an area where criminals often outpace law enforcement. Some cases highlight the advantages, from the criminals’ point of view, of colluding with bank employees and using professional money launderers. They also reveal how criminals can exploit what has, in fact, become a borderless world for them. It is the combination of fast, largely anonymous transfers and protective destinations that anti-money laundering efforts must penetrate.

The common denominator of money-laundering operations and various financial crimes is the apparatus put in place in financial havens and offshore centers, which facilitates them. The effectiveness with which these centers help individuals and businesses conceal their assets does not result from a single device. Changing banking secrecy rules alone will not suffice. These centers have indeed developed a whole range of instruments (foundations, trusts, fiduciary companies, banks, and bank accounts) fully integrated into countries and territories that have made it a point not to cooperate with the rest of the international community in criminal and tax investigations. What began as an activity to meet the needs of a few privileged individuals has become a significant loophole in the international legal and tax system. If the international community wants to establish a legal regime adapted to the globalization of trade and the movement of people, it will need to address the problems posed by this loophole. It will need to deal with the issue of how some countries use the principle of national sovereignty to allow citizens of other countries to circumvent the laws of their own societies.

32. The Complicity of Some States and Business Circles: 

Faced with the internationalization of organized crime, democratic states have become aware that a response is needed. However, it is evident that to achieve their goals, transnational criminal organizations increasingly seek to control the social and political fabric in which they operate.

Thus, the corruption of political powers remains one of the means for these criminal powers to obtain the requested advantages in terms of obtaining markets, for example, but also protection in case of prosecution by paralyzing government action through fear of scandal. One of the classic avenues of collusion between the mafia and political circles lies in the traditional corruption-clientelism relationship. Maintaining a clientele and financing an election campaign are costly for candidates. This is why mafias seek to control votes and, in return, provide politicians with campaign money. Thus indebted, politicians grant advantages to mafia organizations, for instance, in public markets.

States are not the only culprits; the economic-financial world also has links to criminal organizations. International business companies and fiduciary funds are at the heart of the money-laundering problem. Practically all laundering channels involve this type of entity to conceal the identity of the owner of the assets. They play a crucial role whenever it comes to hiding the origin and destination of goods in international trade, bypassing arms sales laws, or avoiding taxes by placing profits or assets out of reach of tax authorities.

Money launderers also turn to lawyers and accountants to help them conceal funds. Far too often, unscrupulous legal advisors or lawyers offer their clients advice on money laundering, operating on the assumption that they will be protected by the privilege covering the confidentiality of the attorney-client relationship. The protection provided by this privilege is often very effective, as individuals seeking help to conceal assets often consult lawyers abroad.

Thus, resolutely involved in mobilizing and combating organized crime and corruption, and convinced of the need to complement the bilateral assistance provided to developing countries and transition economies in matters of justice and police with multilateral cooperation, the international community increasingly joins sub-regional, regional, or global initiatives to eradicate this phenomenon that continues to internationalize.

CONCLUSION:

In conclusion, since the end of the Cold War, organized crime has drawn increasing attention from the general public, governments, and international organizations. Indeed, globalization, by fostering and strengthening an economic and financial approach to illegal activities, increases the threat posed by organized crime. This shift endangers the global market and transition economies. Due in particular to the removal of legal and technical barriers to trade, global commerce has increased, as have opportunities for transnational organized crime groups. The greater ease of movement of people, goods, services, and capital has made it more difficult for governments and, especially for the police, to control the parallel development of illegal activities.

The globalization of organized crime now worries political leaders, prompting them to call for the establishment of a multilateral convention under the auspices of the United Nations. To combat organized crime, the emergence of a common judicial culture appears, but it does not yet seem sufficient today to ensure effective criminal prosecutions. If we truly want to fight organized crime, we must become more coherent and build judicial cooperation commensurate with the challenge.