When we think about Organized Crime, we generally see it as something the police and the prosecution need to address through investigation and criminal charges. However, the Criminal Justice System has only a limited impact on Organized Crime. Consequently, authorities and other interested parties are increasingly realizing the importance of complementing the traditional criminal justice approach. The Administrative Approach to Organized Crime is one of the methods authorities use to complement their traditional efforts.
The Administrative Approach originates from authorities’ efforts to prevent Organized Crime from exploiting public funding and regulated businesses. When the controversial Rudy Giuliani became mayor of New York City in 1993, he knew how criminals manipulated the city’s infrastructure from his time prosecuting the mafia. Based on Giuliani’s insights, the city introduced measures to prevent criminal organizations from participating in public tenders and obtaining licences.
A few years later, Dutch authorities developed an approach with the overarching goal to prevent public servants from unintentionally facilitating criminal activities. The initiative began after a parliamentary committee revealed the extent to which Organized Crime had infiltrated the legal economy and seized control of specific geographical areas and generally the hospitality industry.
The Dutch Administrative Approach had three main emphases. First, to ensure the integrity and knowledge of the civil service. Second, to purchase strategically positioned buildings to disrupt the control established by Organized Crime. Finally, the natural and legal persons applying for permits, subsidies or tenders are screened for involvement with Organized Crime. The government agency has access to information held by the police and prosecution. In Italy, a similar program requires certain tenderers and licence applicants to acquire and produce a government certificate showing no mafia connection.
The European Union has promoted complementary approaches for addressing Organized Crime since 2009. The union facilitates the collection and sharing of existing practices and experiences. The European Network on the Administrative Approach (ENAA), a European Union institution, promotes the approach and encourages transnational cooperation between administrative authorities and law enforcement authorities. The ‘3rd EU Handbook on the administrative approach in the European Union’ was published last year and is the first publicly available version of the handbook.
The EU handbook emphasizes how all government institutions can contribute to the prevention and disruption of Organized Crime. The term ‘apart together’ is used to describe how institutions can detect Organized Crime involvement as part of their regular operations and ensure such involvement is part of the criteria of any decisions. The handbook explains how Organized Crime utilizes illicit capital, violence, and corruption to establish themselves and their rules while decreasing public confidence in legitimate authorities. Consequently, government institutions are encouraged to prevent those involved in Organized Crime from using society’s infrastructure, including legitimate businesses, to facilitate and conceal their criminal activities or invest their illicit gains.
The importance of the Administrative Approach for complementing the Criminal Justice System is evident from reports showing how Organized Crime increasingly infiltrates legitimate business sectors in Europe. More than 80% of criminal networks are found to use legitimate businesses as part of their illegal operations. Additionally, despite authorities’ best efforts, EUROPOL estimates that 98% of the proceeds generated by crime remains in the hands of criminals.
The successful infiltration of Organized Crime into the legitimate business sectors creates unfair competitive advantages for those involved. As discussed in my previous blog, those involved in Organized Crime unsurprisingly break the rules for legitimate businesses such as toxic waste management. Flouting the rules decreases costs and gives a competitive advantage while causing danger for workers and the public. Illicit profits can be used to undercut the competition and gain market control. Furthermore, violence is a constant and increasing part of Organized Crime modus operandi and may be utilized for the benefit of legitimate businesses. Organized Crime’s success in the legitimate economy reduces public confidence in public oversight bodies and the Rule of Law.
The opportunities and barriers for Organized Crime are largely generated by policy and decision-makers outside the Criminal Justice System, whose priority concerns are not Organized Crime and who know little about this plague. I have discussed some of the opportunities generated in my previous blogs and suggested how to inform decision-makers outside the Criminal Justice System to prevent them from creating such opportunities. The Administrative Approach ensures some policy and decision-makers are informed about the impact their decisions make on crime and encourages them to make every effort to ensure their decisions do not enable Organized Crime.
Prevention of crime seems logical if only to avoid the victimization of our fellow citizens. Criminal investigations and prosecution can take months or years to conclude. During this time, criminals continue to exploit their victims, gain position in our society and acquire considerable illicit profits. Given how difficult it is to recover the illicit gains and lost confidence in authorities, it seems logical to get ahead of the problem and prevent its acquisition. Addressing crime opportunities through prevention can complement deterrence and disruption provided by criminal punishment.
