Project Jackal for Businesses and Financial Institutions EMCDDA Lisbon November 2014

Basic Premises The primary focus of Organised Crime Groups is to make money not to commit crime Making money in any enterprise implies an ability to exploit competitive advantage in relevant markets Competitive advantage relies on the successful exploitation of Distinctive Capabilities Understanding the distinctive capabilities of OCGs will offer options and opportunities for dismantlement, disruption and restricting their ability to make money

What are the Distinctive Capabilities? Architecture – The network of customers, suppliers, professional enablers and other business contacts that sustain the OCG business presence in both legitimate and illegitimate markets Innovation - The ability of the OCG to innovate in terms of accessing and developing new products; reaching, exploiting and protecting new markets; developing new business alliances in both legitimate and illegitimate business markets Reputation – Reputation is crucial to OCGs in terms of achieving all of is goals in the criminal world. But legitimacy is also a key objective enabling OCGs to exploit legitimate business opportunities, win public sector contracts and enjoy the benefits of legitimised earnings EMCDDA Lisbon November 2014

Strategic Assets Successful exploitation of distinctive capabilities can enable certain OCGs to achieve a dominant market position which in turn becomes a STRATEGIC ASSET - another source of competitive advantage A dominant market position can be achieved in terms of control by reputation of a geographical area or exploitation of a transportation channel or control of over the production line of synthetic drug products Criminal distinctive capabilities can also be deployed to win dominant positions in legitimate markets essentially by eliminating competition through threat and fear This can lead to cartelisation of the supply of core services required by public sector agencies

An approach based on partnership

Breaking the SPINE of Organised Crime SPINE – Intelligence about SOCG cash flows and command structures PROACTIVE DISRUPTION – Intelligence about SOCG businesses and markets; their customers and suppliers INVENTORY – Intelligence about assets of SOCG businesses and principals NOT FORGETTING TAX – Intelligence about any SOCG issue that indicates tax avoidance or benefit fraud EDUCATION – The message to SOCGs that Scotland is a hostile place for Organised Crime

S P I Jackal Objectives Identify Cash Spines Build Command Structures Identify Competitive Strengths and Weaknesses Assess harm and develop interventions opportunities P Identify Business Assets Maximise Recoveries I EMCDDA Lisbon November 2014

Not forgetting TAX EDUCATION Jackal Objectives SOCG Achilles Heel Opportunities improve with level of business awareness Not forgetting TAX Telling the Story protects the Public Credibility of response deters SOCGs EDUCATION EMCDDA Lisbon November 2014

What kind of intelligence? Where does the money the SOCG generates come from, how do they use it and where it is going to? Who in the OCG controls the flow of money – what does it tell you about who is in charge and who is helping to manage the money? How does the SOCG survive as a business – what is its business support network? Who are its customers? Who are its suppliers? Who are its professional advisers?

How do we use the Intelligence? Cash Spines – Development of DETECT and DETER opportunities based on evidence of placement of criminal money and SOCG command structures defined by the way money is controlled and directed Competitive Advantage – Development of DISRUPT and DIVERT opportunities based on understanding of Competitive Strengths and Weaknesses and Interfaces between criminal and legitimate business EMCDDA Lisbon November 2014

A Common Goal ‘ Illicit drug markets are a huge economic challenge. According to the United Nations Office on Drugs and Crime, 70% of the criminal proceeds of drug trafficking are laundered through the financial system and then penetrate our licit economy. We need to be better able to identify this impact on European society and on the EU economy. This is the reason why future work should aim to quantify and analyse how illicit drug markets interact with the licit economy’ Cecilia Malmstrőm European Commissioner for Home Affairs Foreword to EMCDDA/Europol EU Drug Markets Report ‘A Strategic Analysis’ 2012 EMCDDA Lisbon November 2014

CONTACT Kenneth Murray MA CA Head of Forensic Accountancy Police Scotland Specialist Crime Division Scottish Crime Campus Craignethan Drive Gartcosh G69 8AE kenneth.murray@scotland.pnn.police.uk Tel: 01236 818918