THEME 2: ORGANISED CRIME:
INTRODUCTION
Organised crime is an international phenomenon that has a
significant effect on the social economy.
It functions as an industry that aims to make a financial profit.
In so doing, legal activities are infiltrated and this makes
organised crime groups complex and diverse.
Definition of key concepts:
Organised crime
The South African Police Service (SAPS) tended to rely on the
definition that is used by Interpol’s Organised Crime Unit: “Any
group of criminals that have a corporate structure, whose primary
objective is to obtain money and power through illegal activities,
often surviving on fear and corruption” (The problem of definitions:
organised crime in South Africa 1998).
Organised crime in a South African context may be defined as
“those serious criminal offences committed by a criminal
organisation which is based on a structured association of more than
two persons acting in concert over a prolonged period of time in
pursuit of both their criminal objectives and profits” (The problem of
definitions: organised crime in South Africa 1998).
Types of organised crime:
Money laundering
Three stages underpin the instances of money laundering:
1. Placement (i.e. cash business, false invoicing, smurfing, offshore and
trust companies, foreign bank accounts, aborted transactions)
2. Layering
3. Integration
The aim of these 3 stages is to make dirty money look clean.
Methods of money laundering include:
1. Structuring (deconstructing) deposits: entails breaking up large
amounts of money into smaller less suspicious amounts;
2. Depositing money into overseas bank in friendly jurisdictions;
3. Using underground/ alternative banking: allowing for undocumented
deposits, withdrawals and/or transfers. For example hawala system
in Pakistan and Fei chien system in China
, 4. Establishing and making use of shell companies . Established
specifically for money laundering. They take in dirty money as
“payment” for good/ services rendered although none have actually
been provided
5. Investing in legitimate business, for example criminal gangs (mafia)
used to clean money obtained illegally through businesses such as
laundries.
Corruption
Historically, the crime known today as corruption was known as
bribery in common law.
Definition of corruption
Anybody who accepts any gratification from anybody else or gives
any gratification to anybody else, in order to influence the conduct
of the receiver to conduct herself in a way that amounts to the
unlawful exercise of any duties, commits corruption
The word “gratification” is further defined as follows:
o money, whether in cash or otherwise
o any donation, gift, loan, fee, reward, valuable security, property
or any other similar advantage
o the avoidance of a loss, liability, penalty, forfeiture, punishment
or other disadvantage
o any office, status, honour, employment, contract of
employment or services, any agreement to give employment or
render services in any capacity and residential or holiday
accommodation
o any payment, release, discharge or liquidation of any loan,
obligation or other liability, whether in whole or in part
o any forbearance to demand any money or money’s worth or
valuable thing
o any other service or favour or advantage of any description,
including protection from any penalty or disability incurred or
apprehended or from any action or proceedings of a
disciplinary, civil or criminal nature, whether or not already
instituted and includes the exercise of any right or any official
power or duty (Snyman 2008:414).
INCIDENCE OF ORGANISED CRIME
Strategic outcome goal 1
- is to ensure that all people in South Africa are and feel safe.
INTRODUCTION
Organised crime is an international phenomenon that has a
significant effect on the social economy.
It functions as an industry that aims to make a financial profit.
In so doing, legal activities are infiltrated and this makes
organised crime groups complex and diverse.
Definition of key concepts:
Organised crime
The South African Police Service (SAPS) tended to rely on the
definition that is used by Interpol’s Organised Crime Unit: “Any
group of criminals that have a corporate structure, whose primary
objective is to obtain money and power through illegal activities,
often surviving on fear and corruption” (The problem of definitions:
organised crime in South Africa 1998).
Organised crime in a South African context may be defined as
“those serious criminal offences committed by a criminal
organisation which is based on a structured association of more than
two persons acting in concert over a prolonged period of time in
pursuit of both their criminal objectives and profits” (The problem of
definitions: organised crime in South Africa 1998).
Types of organised crime:
Money laundering
Three stages underpin the instances of money laundering:
1. Placement (i.e. cash business, false invoicing, smurfing, offshore and
trust companies, foreign bank accounts, aborted transactions)
2. Layering
3. Integration
The aim of these 3 stages is to make dirty money look clean.
Methods of money laundering include:
1. Structuring (deconstructing) deposits: entails breaking up large
amounts of money into smaller less suspicious amounts;
2. Depositing money into overseas bank in friendly jurisdictions;
3. Using underground/ alternative banking: allowing for undocumented
deposits, withdrawals and/or transfers. For example hawala system
in Pakistan and Fei chien system in China
, 4. Establishing and making use of shell companies . Established
specifically for money laundering. They take in dirty money as
“payment” for good/ services rendered although none have actually
been provided
5. Investing in legitimate business, for example criminal gangs (mafia)
used to clean money obtained illegally through businesses such as
laundries.
Corruption
Historically, the crime known today as corruption was known as
bribery in common law.
Definition of corruption
Anybody who accepts any gratification from anybody else or gives
any gratification to anybody else, in order to influence the conduct
of the receiver to conduct herself in a way that amounts to the
unlawful exercise of any duties, commits corruption
The word “gratification” is further defined as follows:
o money, whether in cash or otherwise
o any donation, gift, loan, fee, reward, valuable security, property
or any other similar advantage
o the avoidance of a loss, liability, penalty, forfeiture, punishment
or other disadvantage
o any office, status, honour, employment, contract of
employment or services, any agreement to give employment or
render services in any capacity and residential or holiday
accommodation
o any payment, release, discharge or liquidation of any loan,
obligation or other liability, whether in whole or in part
o any forbearance to demand any money or money’s worth or
valuable thing
o any other service or favour or advantage of any description,
including protection from any penalty or disability incurred or
apprehended or from any action or proceedings of a
disciplinary, civil or criminal nature, whether or not already
instituted and includes the exercise of any right or any official
power or duty (Snyman 2008:414).
INCIDENCE OF ORGANISED CRIME
Strategic outcome goal 1
- is to ensure that all people in South Africa are and feel safe.
