Updated February 15, 2017
Transnational Crime Issues: Global Trends Overview
Introduction
Counterfeiting and Intellectual Property Theft
Transnational organized crime (TOC) is perceived by many
Intellectual property theft refers to the unauthorized transfer
to have evolved into a significant and potentially growing
of proprietary or corporate information and material. It
global issue with political, economic, and security
includes product counterfeiting, a type of consumer fraud in
implications. According to U.S. government reports, TOC
which items are sold to consumers, purporting to be
groups may be involved in the
something they are not, and which includes imitations of
popular and trusted brand names. Intellectual property theft
accumulation of wealth, both from illegal activities as
also encompasses intrusions into corporate and proprietary
well as investments in legitimate business;
computer networks in order to obtain copies of movies,
commission of acts of violence, intimidation, and
music, and video games, as well as proprietary designs of
threats;
high-tech devices and manufacturing processes.
penetration, co-optation, and weakening of state
Trafficking in Persons
institutions and governance capacity;
Trafficking in persons, or human trafficking, refers to the
acquisition of power and influence in government,
subjection of men, women, and children to compelled
politics, and commerce through corruption and other
service for the purposes of exploitation. Examples of
means;
human trafficking include trafficking for commercial sexual
exploitation, including that of children; forced labor,
exploitation of world financial systems through
including bonded labor, involuntary domestic servitude, and
subversion, manipulation, and distortions of the global
forced child labor; and the unlawful recruitment and use of
markets and economy; and
child soldiers. In 2012, the International Labor
facilitation of terrorist financing and travel.
Organization estimated that some 20.9 million men,
women, and children around the world were subjected to
Both the nature of TOC and the national security
forced labor, including trafficking, debt bondage, and
implications associated with it are widely seen to be
slavery-like conditions.
expanding, diversifying, and destabilizing. Since 2009,
TOC has featured in the Intelligence Community’s annual
Human Smuggling
Worldwide Threats Assessment to Congress. In 2016, for
Human smuggling refers to the clandestine movement or
example, then-Director of National Intelligence (DNI)
attempted transportation of people and the use of false
James Clapper identified TOC as among the top eight
identities to facilitate travel of such persons across an
global threats in his annual congressional testimony.
international border, in violation of one or more countries’
laws. Such activities may involve the use of vendors of
fraudulent identity and travel documents and criminal
On February 9, 2017, President Donald Trump signed
groups with local expertise in exploiting porous borders.
an Executive Order (E.O.) on Enforcing Federal Law
Smugglers may move criminals, fugitives, terrorist, and
with Respect to Transnational Criminal Organizations and
trafficking victims, as well as economic migrants.
Preventing International Trafficking. The E.O. prioritizes
According to UNODC, major transnational flows of
federal law enforcement responses to TOC, including
migrant smuggling have historically included Latin
international cooperation.
American migrants to North America and African migrants
to Europe. A more recent flow to Europe, spurred by the
Drug Trafficking
displacement of civilians from conflict zones in the Middle
According to the United Nations Office on Drugs and
East and North Africa, is both an opportunity for smugglers
Crime (UNODC), TOC groups around the world derive
and an escalating challenge for authorities.
their most significant source of revenue from illegal drugs,
accounting for approximately 50% of TOC proceeds. Major
Environmental Crimes
types of illicit drugs trafficked around the globe include
Crimes involving illicit exploitation of natural resources
cocaine, produced entirely in South America; heroin
include wildlife trafficking, timber trafficking, illicit trade
produced in Southwest and Southeast Asia as well as
in marine resources, and toxic waste dumping. Crimes
Mexico; cannabis, produced in nearly all countries
related to illegal wildlife reportedly generate billions of
worldwide; methamphetamine and other synthetic
dollars each year, a source of funds that may fuel instability
substances; and new psychotropic substances, which are
and finance armed groups, particularly in Africa. Asian
designer synthetics that are not yet under international
demand for illegal wildlife has increased in recent years,
control but produce effects similar to prohibited drugs.
raising concerns about species conservation amid
heightened poaching rates. The markup on wildlife products
is most pronounced in Asia, and Asian criminal groups
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Transnational Crime Issues: Global Trends Overview
largely control this high-profit, low-risk black market—
culminated in a transnational phenomenon that many regard
often benefitting from the proximity to illicit retail outlets
as having grown in global scale, diversity, and reach.
and cooperation of corrupt government officials to facilitate
cross-border shipments and protect traffickers.
Since the end of the Cold War, international crime has been
a policy priority for administrations. In 2000, the Clinton
Arms Trafficking
Administration issued an interagency International Crime
Arms trafficking involves the movement and acquisition of
Threat Assessment; in 2008, the Bush Administration’s
arms, ammunition, and military materiel central to the
Justice Department issued a Law Enforcement Strategy to
operations of both criminal and terrorist groups. According
Combat International Organized Crime; and in 2011, the
to UNODC, the global proliferation of small arms is
Obama Administration issued a Strategy to Combat
directly connected to the dissolution of the former Soviet
Transnational Organized Crime (C-TOC). The 2011
Union and the inability of the international community to
Strategy defined TOC to include drug trafficking and
stem transfers and trafficking of large stockpiles of aging
placed this broader conceptualization of transnational
but still functional weapons. Globally, the National
criminal threats within a U.S. national security paradigm.
Intelligence Council estimated in 2010 that firearms
trafficking may generate $170 to $320 million annually.
2011 C-TOC Strategy’s Five Key Objectives
1. Protect U.S. citizens and interests from TOC
Cybercrime
2. Support partner nations to address TOC threats
A growing field of illicit activity centers on an array of
3. Protect U.S. financial system from exploitation
cyber-related offenses that include hacking, phishing,
4. Target TOC networks threatening national security
electronic identity theft and credit card fraud, as well as
5. Build international support for C-TOC
dissemination of child pornography and pirated content.
According to the UNODC, cyber-related identity theft
victimizes some 1.5 million people worldwide and
Next Steps
generates some $1 billion annually. It is widely assumed
The February E.O. on Enforcing Federal Law with Respect
that virtually all transnational criminal organizations are
to Transnational Criminal Organizations and Preventing
connected and enabled by online technologies, including
International Trafficking instructs federal agencies to
access to encrypted networks on the dark web, which can
prioritize coordination and information sharing, including
be exploited to breach sovereign borders virtually.
with foreign counterparts, for the purpose of thwarting
TOC in Historical Context
transnational crime groups engaged in illicit activities that
are a threat to U.S. public safety and national security. In
The U.S. government’s policy response to organized crime
addition to enhanced intelligence and law enforcement
with international or transnational dimensions is largely
information sharing with foreign partners, the E.O.
informed by U.S. domestic experiences with such criminal
encourages the Departments of Justice and Homeland
activity in the 20th century, including Italian-American
Security to enhance security sector assistance. The Defense
organized crime, international cocaine and heroin
Department, however, which plays a significant role in
trafficking, and illicit opportunities that emerged from post-
executing U.S. security sector assistance, was not
Cold War globalization. Early U.S. efforts focused on
mentioned in the E.O.
combating Italian-American organized crime, which
stemmed from the emigration of Sicilian Mafia members to
Implementation of the EO is to be led by the Threat
the United States in the late 1800s.
Mitigation Working Group (TMWG, an entity established
in 2011 as part of the Obama Administration’s C-TOC
Contemporary U.S. counternarcotics efforts were brought to
Strategy). The E.O. expands the TMWG’s co-chairmanship
the forefront of U.S. policy debates in the late 1960s. In
to include the Attorney General, DNI, as well as the
1971, President Richard Nixon declared that illicit drugs
Secretaries of State and Homeland Security. Within 120
were America’s “public enemy number one.” President
days of the E.O.’s issuance (June 2017), the TMWG is to
Ronald Reagan followed with a directive in 1986 that
submit to the President a report on transnational criminal
identified narcotics trafficking as a threat to U.S. national
organizations, the extent of their penetration into the United
security. Part of U.S. efforts to address international drug
States, progress made to combat such groups, and
trafficking, beginning in the late 1960s, included tools such
recommendations for further actions.
as the use of foreign aid for counternarcotics objectives,
including crop control, eradication, interdiction, and
The TMWG is also tasked to review existing statutory
provisions of training, equipment, and construction to
authorities and federal policy implementation, including the
foreign security forces for crime-control purposes.
relationship between C-TOC policies and U.S. immigration
policies—issues that the 115th Congress may also consider
The collapse of communism in the late 1980s and 1990s
reviewing. Congress will also determine the availability of
and the geopolitical restructuring following the demise of
appropriations to implement the E.O.
the Soviet Union provided the seeds of opportunity for
localized and regional organized crime and black market
Source material, legislative research, and further policy
activity, which had incubated under communism rule, to
analysis are available upon request.
expand globally. Since then, continued and increasing
international access to global criminal opportunities via
Liana W. Rosen, Specialist in International Crime and
open borders, financial markets, and the Internet have
Narcotics
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Transnational Crime Issues: Global Trends Overview
IF10601
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