Alejo Campos has a degree in Political Science and Regional Director of Crime Stoppers International for the Caribbean, Bermuda and Latin America, based in Panama. Predicts one Innovative initiative to combat illicit trade and transnational crime in the region; points out that this complex phenomenon, which includes a plurality of jurisdictions and underlying crimes that affect national and international security, requires an immediate regulatory response that allows the problem of illicit trade to be addressed in a regional, multi-sectoral and transversal manner.
- What does the Model Law to Combat Illicit Trade and Transnational Organized Crime approved by the Latin American and Caribbean Parliament in February 2021?
The first thing that the Model Law contemplates is the link between illicit trade and transnational organized crime. This dates back about seven years, when organizations such as the OECD, WCO, FATF and the United States Department of State began to publish documents based on evidence that the Illicit trade is one of the sources of financing for transnational organized crime, which should not be seen as simple smuggling or forgery because behind it there are criminal organizations, such as Hezbollah and Al-Qaeda, which have a presence in the Triple Border of South America; and in Central America, organizations such as Mara Salvatrucha (MS13) or the Zetas in Mexico.
Over time, research extends to products such as: cigarettes, alcoholic drinks, drugs and in the context of the COVID-19 pandemic to everything related to the Vitamins, masks and even materials used in hospitals.
High-demand products that provide high profits with low risk are the ones that organized crime uses to counterfeit, smuggle and introduce into Latin American and global markets.
Taking this problem into account, we observe that lCustoms handle the administrative act of seizure but do not have a broad approach to smuggling. Therefore, it was necessary to introduce transnational organized crime into illicit trade legislation so that specialized prosecutors could take part in the investigation. Likewise, the idea was included that illicit trade can be considered as a precedent crime for money laundering because it generates resources that need to be laundered in order to be used. Currently, analysis units are beginning to intervene in customs financial of the countries and to cross information.
This explains that Let's be in one Meeting structure de Transnational organized crime with multiple jurisdictions where different regulatory frameworks intervene, there needs to be a model law that speaks a homogeneous language for everyone in the region, so that the fight against organized crime will be more effective.
They have very good lawyers, economists and financiers; they know how to find the legal weaknesses in each country and in which jurisdiction to do what.
For example, in Panama it is very easy to smuggle because, for it to be a criminal act, the seizure must be greater than five hundred thousand dollars, while in a country like Honduras it is two thousand dollars. They know the grey areas and how to act in each country within the criminal supply chain, which operates exactly the same as legal transnational trade.
-Does the scope of the Model Law include the free trade zone?
The Model Law has a special section for free trade zones, spaces identified by the OECD and FATF as breeding grounds for organized crime in customs fraud and financial crimes, due to the lack of controls.
An A successful experience is regulation 008/2019 of the Colon Free Zone, the second largest in the world with a high volume of containers, which is designed for cigarettes and pharmaceutical products, but could be implemented in other sectors. Companies that move these products must go through a verification site and indicate where they buy these products and where they sell them. This is important because as the information is obtained, it could be shared with other countries that receive cargo from the Free Zone and if the company is not registered, an alert is generated because it is not an authorized route by the Colon Free Zone. Therefore, the section of the Model Law has to do with greater controls on companies that are in the Colon free zones to safely strengthen the development of international trade.
-What are the crimes and criminal sanctions in the Model Law?
At the level of criminal sanctions, the framework law leaves this aspect to the discretion of national legislation. It does determine certain typologies of illicit trade crimes that should not be considered minors but serious crimes: This is the importance of the Model Law, understood as a regional public policy. From this, each country will know what a serious crime entails.
-How do you apply the domain forfeiture in the fight against transnational organized crime?
La Forfeiture of domain is an important instrument to weaken the economic structure of organized crime transnational corporations in the territory. It allows these organizations that generate money through smuggling, drug trafficking and/or human trafficking to have their assets of criminal origin taken away: properties, bank accounts, shares in companies, among others, for social uses such as schools, hospitals, police stations, or the transformation of drug boats to transport people to remote areas. Domain extinction seeks to be an agile mechanism for taking these assets on behalf of the State.
-How to combat illicit trade in the E-commerce?
The problem in e-commerce is much bigger than we think, because it is not a simple website that sells illegal products. Behind it, there is an illegal organization. The structures mentioned above have migrated to cyberspace where crimes are difficult to trace: financial crimes, Illegal e-commerce tied to artificial intelligence, cryptocurrency payments and others. Here, product traceability is lost. Nowadays, a person can hide in cyberspace with false identities. Not all countries are prepared in terms of knowledge, technical resources or legislation., to advance investigations in cyberspace. So, this space is being used a lot because organizations know how difficult it is to seize the product from an Instagram, Facebook or Twitter account. Interpol has a specialized team that maps and closes social media sites and platforms of dubious origin. The problem is so big that companies like Amazon and/or Mercado Libre have created special departments to fight cybercrime on their own platforms, but the gangs deceive the security system of these sites. Therefore, combating illicit trade in electronic commerce is complex. In addition, there is greater tax evasion than in physical commerce. Our recommendation to States is to strengthen regulatory frameworks, criminal investigations through prosecutors' offices with knowledge and technological tools, as well as consumer education.
-How important is the private sector in the Model Law on Combating Illicit Trade? How can you help?
The Model Law raises the Creation of a Public Private Council in response to this call for cooperation to provide advice on the design and implementation of policies aimed at combating and preventing illicit trade. This is reflected in the transfer of information, training law enforcement on how to identify their products when they are counterfeit, or collaborating with their teams of lawyers to file complaints with the Public Prosecutors in cases of intellectual property. There are many tasks in which the private sector can collaborate.
-And the academic sphere...?
The Model Law incorporates the academy into a particular sector. Following its approval, the CChair of Illicit Trade and Transnational Organized Crime at the United Nations University for Peace, as a driving force for academic research in order to consider the problem of illicit trade and transnational organized crime with a medium and long-term vision.
-Looking the futureWhat remains to be done with the Model Law?
We are currently finishing a work of socialization with some key actors to tell them that there is a Model Law against transnational organized crime. Afterwards, We will advance in some countries such as Panama, Ecuador, Dominican Republic and Guatemala where reforms to tax and customs laws are being debated, where the Model Law could be permeated with some article. It is worth clarifying that the Law is a framework intended to inspire local legislation with a regional vision regarding how to combat illicit trade, speaking the same language.
-Finally, how could the Model Law assist the public safety needs of the Argentina?
Argentina is complex like any federal country, with large borders and realities such as the triple border or the Uruguay River, which has historically been the entry and exit point for illicit goods, and a framework for regional integration that has not been definitively completed. In this context, the important thing is to strengthen the provinces that have border crossings. Coming soon, We will open a Crime Stoppers office in Jujuy to coordinate an operation in northwestern Argentina.
A cultural change needs to be generated in the population, not only in Argentina but also in the rest of the countries. On the one hand, there is an illicit market, which is created by citizens, linked to the family economy. On the other hand, illicit trade is accompanied by a value system where people are forced to accept recognition through the use of certain luxury brands that they cannot access due to their high cost, so they replace them with counterfeit products.
To this end, state capacity must be amplified to fully guarantee and protect consumer rights, particularly those related to adequate access to reliable information, their education and safety, and access to quality products.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
