Harmful Intent: Organized Crime & International Terrorism “And hate with them is limitless as love.” Lermontov

Presentation Objectives Validate the link between organized crime syndicates and international terrorism. Validate the link between organized crime syndicates and international terrorism. Assess the inherent dangers posed by international crime to the Homeland Security mission. Assess the inherent dangers posed by international crime to the Homeland Security mission.

Presentation Objectives (Cont) Evaluate the social and political junctures of organized crime and terrorist organizations through case studies. Evaluate the social and political junctures of organized crime and terrorist organizations through case studies. Critique the effectiveness of joint private sector, military, and political efforts to mitigate or eliminate terror/criminal junctures as part of the international “Global War on Terror” (GWOT). Critique the effectiveness of joint private sector, military, and political efforts to mitigate or eliminate terror/criminal junctures as part of the international “Global War on Terror” (GWOT).

Organized Crime and Terrorists - Commonalities Organization (hierarchic, cell, etc.) Organization (hierarchic, cell, etc.) Middlemen and contacts – various venues Middlemen and contacts – various venues Income-producing activities Income-producing activities Meet goals through terror, coercion, extortion, etc. Meet goals through terror, coercion, extortion, etc. Utilize corrupt officials to meet needs Utilize corrupt officials to meet needs

Key Links Between Intl. Crime & Terrorism Drug trafficking & narco-terrorism Drug trafficking & narco-terrorism Intl. arms trade - conventional Intl. arms trade - conventional Intl. arms trade – WMD Intl. arms trade – WMD Human trafficking Human trafficking Patent and trademark infringement Patent and trademark infringement Internet piracy Internet piracy

Case Study - Afghanistan World Bank estimates >1/2 of Afghanistan’s economy is based on the drug trade. World Bank estimates >1/2 of Afghanistan’s economy is based on the drug trade. In 2003, the total illicit drug trade profits totaled approximately $2.33 billion U.S. dollars. In 2003, the total illicit drug trade profits totaled approximately $2.33 billion U.S. dollars. The primary concern is that the opium debacle will negate all Coalition Forces efforts to win the Global War on Terror in-country. The primary concern is that the opium debacle will negate all Coalition Forces efforts to win the Global War on Terror in-country.

Afghanistan – Opium Capital of the World

Afghanistan – The Evidence

The Illicit Arms Trade in Conventional Weapons, Ammunition, and Explosives Commodities such as diamonds, timber, slaves, etc. are turned into cash or, in some cases, simply traded for weapons.

Case Studies – The Illicit Arms Market The illicit international arms market is referred to as the “Gray Market.” The illicit international arms market is referred to as the “Gray Market.” While numerous nations support a very active legal arms trade, illicit arms trafficking proliferates primarily in regions with little or no political, law enforcement, or regulatory supervision of commercial brokering operations. While numerous nations support a very active legal arms trade, illicit arms trafficking proliferates primarily in regions with little or no political, law enforcement, or regulatory supervision of commercial brokering operations.

Extent of the Problem – Specific Examples Ukraine: Ukraine: 7 million rifles, pistols, machineguns, and mortars 7 million rifles, pistols, machineguns, and mortars Moldavia: Moldavia: 42k small-arms 42k small-arms 20,000 tons of munitions including: aircraft bombs, rockets, 39k landmines 20,000 tons of munitions including: aircraft bombs, rockets, 39k landmines

Human Trafficking – Large Profit Margins for Terrorist Organizations World-wide

Trafficking in Persons

"As of May 2004, the U.S. Government estimates that 14,500 to 17,500 people are trafficked annually into the United States, and 600,000 to 800,000 are trafficked globally.”

Post 9/11 Terrorist Funding Al-Qaeda and similar groups switched to so-called “blood diamonds” as one key source of funding after 9/11. Al-Qaeda and similar groups switched to so-called “blood diamonds” as one key source of funding after 9/11. On-going civil wars in Sierra Leone and Angola provided a rich resource in diamonds On-going civil wars in Sierra Leone and Angola provided a rich resource in diamonds

Al-Qaeda Diamond Connection “Al- Al-Qaeda Diamond Connection “Al-Qaeda made a strategic decision to use diamonds to fund its operations. Rebel armies, drug dealers, organised crime outfits and rogue states have all recognized That rough diamonds can be put to covert or illicit uses. Easy to transport and conceal, and with an ability to maintain their price, they are already the favored method of payment or bribe in many illegal transactions.” Source: “For a Few Dollar$ More How al Qaeda moved into the diamond trade A Report”

Major Conflict Diamond “ Hot Spots”

Cyber-Terrorism

Case Study - Estonia Relatively modern state apparatus Relatively modern state apparatus Rapidly moved to on-line banking and personal living management after collapse of the Soviet Union Rapidly moved to on-line banking and personal living management after collapse of the Soviet Union Relatively modern infrastructure Relatively modern infrastructure Much tension between native Estonians and ethnic Russian residents Much tension between native Estonians and ethnic Russian residents

Estonia – Catalyst for Cyber- Terrorism Movement of Russian WWII “Bronze Soldier” monument from capital to a less conspicuous location Movement of Russian WWII “Bronze Soldier” monument from capital to a less conspicuous location Attacks initiated April 2007 and targeted all major banking institutions. Attacks initiated April 2007 and targeted all major banking institutions. IP addresses traced to Russian government sources IP addresses traced to Russian government sources NATO involvement necessary NATO involvement necessary

A New Paradigm for Success Realize that while combat between nation- -state actors is a threat, the threat posed by the nexus of international crime, terrorism, and rampant corruption in some regions of the world is the most immediate threat to national security. Realize that while combat between nation- -state actors is a threat, the threat posed by the nexus of international crime, terrorism, and rampant corruption in some regions of the world is the most immediate threat to national security.

Strategies and Concepts for Risk Mitigation Realization that criminal and terrorist threats are global Realization that criminal and terrorist threats are global Anti-corruption campaigns with real penalties for corrupt acts Anti-corruption campaigns with real penalties for corrupt acts Professionalization of law enforcement and security institutions world-wide Professionalization of law enforcement and security institutions world-wide Enhanced cooperation in intelligence and counter-intelligence gathering operations Enhanced cooperation in intelligence and counter-intelligence gathering operations

Failure to Share Intelligence – Case- in-Point In Bosnia and Herzegovina, SFOR (the NATO “Stabilization Force) detained a suspect for alleged involvement in terrorist activity. Ultimately, SFOR turned the suspect over to local law enforcement, which had to release him, since SFOR was not able to share its intelligence or provide evidence that could be used to sustain charges.”

The Future of Organized Crime & Terrorism Sources: Sources: dex.html dex.html dex.html dex.html

The Dilemma – “The Enemy of My Enemy is My Friend

The Enemy is Real

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