Question

Q.4.1 Define organised crime and provide an example of contemporary organised crime. (10) Q.4.2 Explain the measures that are put in place to control organised crime. (10)

Answer 1

1)Organized crime is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. Some criminal organizations, such as terrorist groups, are politically motivated.

An example of a business that has incorporated organized crime would be to conduct illegal activities, such as insider trading, racketeering or drug trafficking. These legal corporations incorporate illegal organized crime methods in order to help them succeed and earn more money. An infamous example would be Bernard Madoff and his corporate associates who orchestrated a $65 billion Ponzi scheme, which was considered one of the biggest frauds in U.S. history, taking the life savings of over 1,000 investors.

2)

the effectiveness of the various strategies and tools available to combat OC :
1)Prosecuting Persons Involved in Organized Crime
A number of countries have passed legislation prohibiting participation in the activities of a criminal entity or organization. Perhaps the best known of these laws is the Racketeer Influenced and Corrupt Organizations (RICO) statute in the US. Enacted in 1970, RICO defines racketeering very broadly, including murder, kidnapping, gambling, arson, robbery, bribery, extortion, drug dealing, and a list of federal offences, such as loansharking, counterfeiting, mail and wire fraud.
2)Prosecuting Organized Crime Kingpins
For decades, law enforcement strategies have focused on identifying and prosecuting the leaders of criminal enterprises.Members may be charged or arrested for relatively minor infractions. Charges for even small infractions provides prosecutors with the leverage to conduct further investigations of the group. The goal is to get "smaller fish" to "flip" and testify against the heads of the organization. The ultimate aim is to disrupt the group. This "headhunting" strategy is predicated on the assumption that OC operations are too complex to be proven in court.
3) Prosecutions Through the Use of Taxation Laws

Citizens have obligations as taxpayers to file tax returns, make truthful declarations, and maintain complete business records. When income cannot be accounted for, whether connected to illicit acts or otherwise, recourse exists in the form of prosecutions for failing to report it. The Internal Revenue Service in the United States, for example, employs special agents who are charged with gathering evidence of criminal violations for prosecution by the Department of Justice.
4) Monitoring Financial Transactions and Tackling Money Laundering

In the United States alone, drug trafficking and other profit-motivated crime generate in excess of $300 billion annually. The risks associated with the accumulation of and transactions in large sums of cash earned illicitly are substantial, as these assets may be seized and the owner may face criminal prosecution. Hence, to obtain the full benefit of illicit activities, offenders must convert their cash proceeds of crime to another form in order to engage in everyday commerce. Money laundering has been described as, "the process of converting illegally earned assets, originating as cash, to one or more alternative forms to conceal such incriminating factors as illegal origin and true ownership".