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tary morale and opened a dangerous chasm between
the Army and civilian society. While not formally cov-
ered by the Act, the Navy and Marines are customarily
excluded from law enforcement. However, court deci-
sions allow the services to assist police agencies and
recent laws expand the military’s counternarcotics
authority.

The Armed Forces have assisted law enforcement in
the struggle against organized crime in a number of
ways. Such activities have included:

¢ Aerial, ground and maritime surveillance to detect
aircraft and boats illegally entering U.S. airspace and
waters.

¢ Border surveillance and study of records to detect
patterns of illegal cross border movement.

¢ Training and equipping of Latin American paramil-
itary counter-drug forces.

¢ The fusion of intelligence on organized crime activ-
ities, and providing collated information to the U.S. and
foreign governments.

© The translation and analysis of records seized from
organized crime members.

¢ Providing transportation assets to law enforcement
agencies at home and abroad.

Some Americans have suggested using the armed
forces in combat missions against foreign organized
crime. Combat operations would likely be interpreted
as infringements of foreign sovereignty, if not outright
acts of war. Such actions could embroil the United States
in hostilities and arouse nationalist sentiment in favor of

the criminals attacked, making such assaults very
counter-productive. And, even well-established orga-
nized crime groups are unlikely to possess the perma-
nent, irreplaceable assets that provide targets for swift,
powerful military strikes.

A better way for the Armed Forces to fight orga-
nized crime abroad would be to assist the military and
security services of endangered states. This approach
has proved successful in some countries. In other cases,
some states might be ruled by governments controlled
or intimidated by organized crime. American offers of
assistance probably would be rebuffed or, if accepted,
sabotaged. At the same time, organized criminal groups
are unlikely to so undermine a host state as to cause its
downfall. Organized criminal organizations want sanc-
tuaries within weak and ineffective states, not the bur-
den of ruling such states themselves. In these cases,
international sanctions such as blockades backed by
military force might be the remedy.

In rare and extreme cases, it may well be that the
only way to eradicate the menace of a state run by orga-
nized crime would be an invasion by military forces.
But such an operation should be conducted under the
auspices of the UN or regional organizations, such as
the Organization of American States.

In general, however, the military only can assist in
the struggle against organized crime. The apprehension,
trial and punishment of gangsters is the mission of the
criminal justice system. Furthermore, the military is nei-
ther organized nor trained for law enforcement. To use
it extensively for such purposes would gravely detract
from the ability of the armed forces to defend the United
States against conventional security threats.

Recommendations

* The United States should work with other coun-
tries to fight organized crime in a concerted fashion.
Most important is the creation of uniform laws
against organized criminal activities.

¢ The provision of training, equipment and advice
to foreign police forces by the FBI, Secret Service and
other federal law enforcement agencies should be
expanded.

¢ The US. Armed Forces should encourage for-
eign militaries to render more assistance to their
national police forces in the struggle against orga-
nized crime.

¢ Military images, such as a “war on drugs” and a
“war on crime” should be avoided by federal offi-
cials. Law enforcement is not a form of warfare.
Police and soldiers have very different functions.
That distinction is one of the bases of American
democracy.

of remarks by distinguished speakers.

Editor - Jonathan W. Pierce

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include reports of original research, synopses of seminars and
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NATIONAL

DEFENSE

UNIVERSITY

STRATEGIC FORUM

INSTITUTE FOR NATIONAL STRATEGIC STUDIES

International Organized Crime:

Numser 74, May 1996

A Growing National Security Threat

by Brian Sullivan

Conclusions

© Organized crime has grown far more powerful
recently because of the fall of the Iron Curtain and
the spread of international drug trafficking.

¢ Russian organized crime is particularly danger-
ous due to the weakness of Russian law enforcement
agencies and the huge flow of dirty money through
Russian banks. Some experts believe the Russian

security services may be colluding with organized
crime.

¢ Despite the threat to U.S. security, organized
crime should be fought mainly by law enforcement
agencies not the Armed Forces.

¢ In rare cases, such as those in which organized
crime controls a weak state, military intervention
may be warranted.

A National Security Threat

Currently, foreign criminal organizations weaken
American national security by their attacks on U.S.
financial institutions, massive export of illegally
obtained dollars and their provision of addictive drugs
to millions of Americans. The 1995 The National Security
Strategy of Enlargement and Engagement states: “Not all
security risks are immediate or military in nature.
Transnational phenomena such as narcotics trafficking...
have security implications for both present and long
term American policy.”

In 1960, fewer than 30,000 people were arrested in
the United States for violating drug laws. Recent annu-
al drug arrests have increased to more than one million.
For the past seven years, more people have been impris-
oned for drug offenses than for all violent crimes com-
bined. The explosion of drug-related offenses explains
why more than two million people may be incarcerated

in the United States before 2010. The financial burden
caused by the drug trade is appalling. In late 1991, the
Director of the Office of Management and Budget testi-
fied that substance abuse cost the United States $300 bil-
lion per year. A 1996 Justice Department calculation that
crime costs the American people some $450 billion a
year leads to the conclusion that drug abuse accounts
for two thirds or more of this staggering loss. In 1992,
the House Select Committee on Narcotics Abuse and
Control estimated that there were 6.5 million American
drug users. And these numbers seem to be rising.
Organized crime also injures or poses grave threats
to the United States through a host of other illegal activ-
ities including: smuggling illegal migrants, murder-for-
hire, terrorism, corrupting political and police officials,
currency and document counterfeiting, arms trafficking,
and pirating of intellectual properties. Potentially the
most dangerous threat of all has been the conspiracy by
organized crime in Russia to steal and sell materials for

any other government agency.

“Approved for public relonsar for public release;
Disttihntien Ink.

Dr. Brian Sullivan is a senior fellow at the Institute for National Strategic Studies. For more information call Dr. Sullivan
at (202) 685-3837, ext. 552, facsimile at (202) 685-3866, or Internet: sullivanb@ndu.edu. Opinions, conclusions, and
recommendations expressed or implied in this paper are solely those of the author and do not necessarily represent
the views of the Institute for National Strategic Studies, National Defense University, the Department of Defense, or

Pecomeremmr| 9960030 080m:



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Staateeic Forum #74, May 1996

nuclear weapons construction.

Organized crime also endangers the well-being of
US. allies in Western Europe and East Asia, is under-
mining some of the new democracies in Eastern Europe
and the former Soviet Union, and is attacking the sover-
eignty of a number of weak states, particularly in the
Caribbean, Latin American and West Africa. While orga-
nized crime does not present a military threat, it causes
such damage to warrant a concerted international, fed-
eral, state and local effort to bring it under control. The
alternative would be the corruption of much of the pros-
perous world and the enslavement of much of the
developing world.

What is Organized Crime?

Organized crime (as opposed to ordinary gangs, ter-
rorist groups or guerrilla organizations):

lacks ideology

has an organized hierarchy

has continuity over time

has willingness to threaten or use force

has restrictive membership

gains profits through criminal activity

provides illegal goods/services desired by seg-
ments of the general population

neutralizes some public officials and politicians by
corruption or intimidation

seeks monopolies of specific goods or services
assigns specialized activities to gang members

has a code of secrecy

carefully plans for long-term goals

The most important factor in the growth of orga-
nized crime has been the development of a global net-
work for illegal drug trafficking that produces multi-bil-
lion dollar profits. Other developments also have an
impact. The collapse of the Soviet Empire and the
growth of capitalism in China removed barriers to both
legitimate business and criminal activity. The world-
wide financial system now involves so many transac-
tions that they cannot be monitored adequately. The
establishment of a North American free trade area and
the lowering of European customs and passport con-
trols provides unintended opportunities for criminals.
And, the weakening of state authority in former
Communist countries and in so-called failing states has
weakened their police agencies and judicial systems.

The Major Organized Crime Groups

The United States, Canada, Mexico, Colombia, Italy,
Russia, Turkey, China and Japan suffer most from the
strongest organized crime groups.

The United States and Canada: Until recently, orga-
nized crime was dominated by the American Mafia or

Cosa Nostra. In 1931, after a bloody struggle among the
gangs for national dominance, the Mafia worked out a
system of arbitration and the territorial division of the
United States and Canada into “family” fiefs. Their
main activities include drug trafficking, union control
and corruption, loan sharking, illegal gambling, stock
and financial fraud, and takeovers of legitimate busi-
ness. A sustained campaign by the FBI, the Drug
Enforcement Agency (DEA), the Royal Canadian
Mounted Police, and state, provincial and local police
forces, has greatly weakened the Cosa Nostra. However,
Russian, Latin American and East Asian organized
crime have moved into many criminal activities in the
United States previously monopolized by the Cosa
Nostra.

Mexico: Organized crime is dominated by four car-
tels that are consolidating. The cartels emerged from
Mexican gangs organized by the Colombian drug car-
tels to help smuggle cocaine into the United States.
However, the Mexican gangsters grew so rich and pow-
erful from such activity that they gained co-equal status
with their Colombian sponsors. The Mexican cartels
smuggle huge amounts of heroin, amphetamines,
marijuana, and cocaine, into the United States. In league
with the Chinese Triads, they also smuggle large num-
bers of illegal Chinese migrants into the United States.
The Mexican gangs have corrupted many politicians, as
well as judges, police and union officials, and carry out
many murders, for intimidation and profit.

Colombia: The Medellin and Cali cartels control
about 75% of the world production of cocaine, smug-
gling much into the United States themselves, but sell-
ing large quantities to other organized crime groups.
Recently, the cartels have imported opium poppies from
Central Asia and begun producing heroin, as well.
Excessive Medellin cartel violence proved counter-pro-
ductive. Now, the wilier Cali cartel predominates. It has
corrupted many Colombian officials, including some
senior officials.

Italy: Organized crime is dominated by the Sicilian
Mafia or Cosa Nostra. The Cosa Nostra is the largest and
most powerful of four main criminal gangs. It operates
in more than 40 countries, including all the Americas
and throughout drug-producing countries of Asia.
Italian gangs engage in every conceivable form of ille-
gality, although their most lucrative activity is drug traf-
ficking. Italian gangs have begun large-scale smuggling
of Albanians and members of other Balkan nationalities
into the European Union. Kidnapping for ransom and
prostitution are common organized gang activities,
although the Cosa Nostra prohibits its members from
engaging in those activities. The Cosa Nostra also serves
as an intermediary between other national criminal
associations. For example, the Cosa Nostra was instru-


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STAATEGIC Forum #74, May 1996

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mental in introducing opium poppies into South
America and coca plants into Central Asia.

The FBI and Italian internal security forces have
formed a close partnership to fight the Cosa Nostra.
Creating trust, sharing intelligence, learning to appreci-
ate each others’ methods and viewpoints have pro-
duced significant results. This joint police activity offers
a model that could work in other cases of international
cooperation against organized crime groups. Another
example of American-Italian anticrime cooperation has
been the passing of laws by the legislatures of both
countries making the same criminal activities illegal in
both countries. The lack of uniform laws has been one of
the major obstacles to international cooperation against
organized crime.

Russia: The Russian mafiya has expanded into
Europe and North America. Slavery, car theft, extortion,
arms trafficking, murder-for-hire, credit theft, money
laundering, raising poppies in Central Asia—world
opium-base production has doubled since the collapse
of the Soviet Union—and heroin dealing are their pre-
ferred crimes. But their attempts at the theft and sale of
nuclear materials makes them a threat of unparalleled
danger to the world.

Recent activities by Russian organized crime also
illustrate a disturbing development. While dangerous in
isolation, many of the individual international criminal
gangs are forming far more threatening alliances. Such
coalitions take two forms: agreements between two or
more international crime groups and cooperation
between organized crime and government officials. The
control of an estimated 400 banks by the mafiya allows it
to launder much of the estimated annual $250 billion in
international organized crime’s drug profits. The lack of
Russian regulatory agencies, and the crippling of their
law enforcement agencies, makes Russia ideal for such
purposes. Passing such huge amounts of hard currency
through the country gives international organized crime
immense power. Additional power may flow from links
to the Russian state.

In the 1950s, members of the government, the Party,
the KGB, and the police allied with organized crime to
provide goods and services not legally available under
Communism. In the late 1980s, the gangsters took
advantage of the new economics, while retaining their
links to Russian officials. But the relationship has shift-
ed in favor of the criminals, as the state has weakened
and illicit profits have soared. Many ex-Communists
were forced from the police, security and intelligence
services. Their links to organized crime, as well as their
knowledge and skills, made them natural recruits for
the mafiya.

Turkey: Organized crime in Turkey is dominated by
a dozen Kurdish clans commonly known as “The

Turks.” These gangs began as bands of smugglers that
operated across the Caucasus and the Ottoman-Persian
borders centuries ago. “The Turks” are closely connect-
ed to the Kurdish struggle for independence in Turkey,
Iran and Iraq. Part of their heroin profits from Central
Asia, Afghanistan and Pakistan are paid in transit fees
to the Kurdish rebels. In addition to heroin, these gang-
sters deal in pirated electronic and video products, and
counterfeit passports and identity papers. They also run
prostitution and slavery rings, illegal gambling dens,
and a wide assortment of extortion, fraud and embez-
zlement operations. “The Turks” also have roots in the
Kurdish communities in Germany, Sweden and other
European countries.

China: The Six Great Triads have existed for cen-
turies. The Triads form the world’s largest organized
crime association with at least 100,000 members scat-
tered throughout the world, wherever Chinese ethnic
communities exist. Five of the Triads have been head-
quartered in Hong Kong and Taiwan but have recently
joined the Great Circle triad in Shanghai. This move
seems to be due to the increasing wealth of the Peoples
Republic of China (PRC). More ominously, the move
may indicate the type of organized criminal-police-gov-
ernment cooperation that afflicts Russia.

The Triads engage in drug trafficking, arms traffick-
ing, smuggling of illegal migrants, vehicle theft, pirating
of electronics and software, gambling, loan sharking,
prostitution, pornography and fraud. The Triads also
engage in many legal activities ranging from arbitration
of commercial disputes to helping arrange marriages.
Such services have allowed the Triads to burrow their
way deeply into Chinese society, making them difficult
to uproot. The Triads could become the most dangerous
organized crime group in the 21st century.

Japan: the Boryokudan, commonly known in the
West as the Yakuza, number 60,000, a powerful presence
in a country of 126 million. The Yakuza have benefitted
from an anti-Communist alliance with the Japanese
National Police that was established shortly after World
War I. The Yakuza specialize in the production and sale
of amphetamines; protection and extortion rackets cen-
tering on large businesses and banks; stock, real estate
and financial fraud; illegal gambling; loan sharking;
arms trafficking and prostitution. Japanese organized
crime also operates in South Korea, Hawaii and
Australia.

Using U.S. Armed Forces against Organized Crime

The 1878 Posse Comitatus Act, and its subsequent
interpretations, forbids the use of the Army and its suc-
cessor, the Air Force, for the enforcement of American
laws. Following Civil War Reconstruction, Congress
decided that using soldiers as police was bad for mili-