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Annual Strategic Intelligence Review

International Organized Crime



Intelligence Reviews8

The Strategic Intelligence Reviews represent the highest priority concerns of our consumers in the policymaking, law enforcement, and military communities. They provide increased

depth on the issues outlined in both Presidential Decisionnd the DCI Guidance on Intelligence Priorities, Together with these documents, the Strategic Intelligence Reviews are intended to serveaseline for allocating collection and production resources and for supporting mission-based budgeting.

Strategic Intelligence Reviews





Denial and Deception


East Asia


Latin America

Neat East and South Asia

Russia and Eunwin


Multilateral, and Humanitariun Issues Force Modernization International Organized Crime Nonproliferaiien Science and Technology Strategic Military Force* Support to Diplomatic Operations Support to Military Operations

The above information is Unclassified

Scope Note

Strategic Intelligence Review for

International Organized Crime| |

They identify ihe core issues of highest priority concernenior intelligence consumcis in the policymaking, law cnforccmcnl. and mililHry-opertttiona) communities. These core issues reflect direct contribution* from imr consumers mid provide greater detail on and parallel the intelligence priorities listed in Presidential Decisionnd the DCI Guidunct on Priori/in. The core itsue*ramework and lubstaniive basis for resource considerations.

develop intelligence information needs thai provide gjiibutcc and aframework for allocating existing collection and production resources tothe core issues The needs represent what is must critical for the policy and operational cornraumrirs 'o know ova lhe(Smooths in orderunctions. The Intelligence CWrmunily (IC) is satisfying many of three needs on an ongoing basis.

The Reviews also identify the critical intelligence gaps that tlie Intelligence Community cannot addicss adequately at this time; imsi arc Mibtiamivr. hut some arc functional. Some gaps may be because of resource constraints, otheis to lack of capability or access. Whatever the reason, ihey. loo. reflect what the policy, operational, and collection cornmunitics must know to allocate resources and develop processes and strategics. Q

Taken together, thecustomer-derived core issues, needs, andthe common framework and substantive guidance for allocating collection and production resources. They alsooundation I'mthe key missions and objectives of US intelligence for the mission-based bud-geting


8 thereotal oftrategic Inleiligcnce Reviews, covering all the major geographic regions and the key transnational issues. The Issue Coordinators vctaed their respective SIRs with the appropriate inleDigence and consumer compiiiniues. TheoooCauon for identifying the key missions and objective* of t'S intelligence for tbe mission based budgeting process. Q

for farther ira'cernacon about tho SIR. call the Issuerhe Chairman ot ihr National ^cDiga.oc Council at

MC tfllsm

International Organized Crime Core Issues and Needs Q

Organised Criminal Groups and Activities ThatUS Interests

Corruption of Foreign Officials and Influential Citizens

International Financial Crimes, Including Large-Scale Fraud

Information Warfare-IJke Activities

Relationship to Narcotics Trafficking and Terrorism

Alien Smuggling

Involvement in Smuggling Arms, Nuclear Materials, or Weapons of Mass Destruction

Supporting Networks

Foreign Government Law Enforcement, and Intelligence Services' Capabilities and Willingness to Combat International Organized Crime

Organized Crime Threats to Stabilityof Foreign Governments and the Global Economy

Corruption of Foreign Officials and Influential Citizens

International Financial Crimes, Including Large-Scale Fraud

Information Warfare-Libs Activities

Relationship lo Narcotics Trafficking and Terrorism

Alien Smuggling

International Organized Crime Involvement in Smuggling Arms, Nuclear Materials, or Weapons of Mass Destruction

Supporting Networks

Foreign Government, Law Enforcement, and Intelligence Services' Capabilities and Willingness to Combat International Organized Crime

The aboveug^

Strategic Intelligence Review for International Organized Crime

I. Policy Context Q

International criminal activities areiowing threat to the national security interests of tlie United States. These activities include drug trafficking and related money laundering, financial crimes (including large-scalelien smuggling, gray arms smuggling, and the potential for nuclearand the manipulation of global financial markets. Extensive criminal networks involving front companies and other businesses, financial, legal, and transportation specialists, and corrupt political and law enforcement officials have global reach. They are exploiting countries in ihe midst of wrenclung political and economic transition, taking advantage of more open national borders and reduced trade barriers, and operating in commercial and financial centers around the world. The globalization offinance and commerce magnifies the international threat of organized crime, as well as other international criminal activity.enables criminal networks to nwve illicit contraband more quickly, efficiently, and with less risk; arrange financing for illicitlaunder money; and even manipulate legitimate trade and economic activity, f"

Of primary concern to US foreign and national security policymakers and US law enforcement agencies are the operations and networks of international organized criminal groups whose primary objective is to gain wealth and power illegally. International organized crime groups are defined by continuing criminal andactivities that arc transnational in scope.

Criminal organizations frequently have astructure and they typically advance their positions through the use of violence,of public officials, graft, or extortion. International organized crime groups include drug trafficking organizations (whose activities are covered in the Strategic Intelligence Review for Counsernarcotics) and traditional crime syndicates like the Italian Mafia. Russian crime groups. Nigerian criminal enterprises, andtriad associations. US policymakers and law enforcement agencies note, however, that ihe operations and influence of ad hoc and oflen-changing criminal networks not always linked to traditional organized crime groups alsoignificant threat to US interests, particularly in the areas of global economic crime and proliferation. |

Organized crime poses an increasing threat to societies and governments worldwide. As the richest and largest consumer market in the world, the United Slates offers lucrativefor major foreign organized crime groups. As these groups gain power andthey also could pose threats to theand political standing of countties vitalS national security. The intersection between criminal organizations and political and economic elites in manyin the former Sovietis aconcern, because these collaborative alliances of convenience share tlie common goal of enriching themselves at the expense of the national economy and political system. Global organized crime groups adapt quickly to

law cnlorccmeni challenges and havefinancial resources with which to corrupt govemment and law enforcement officials. OrgMii:/ed crime groups are becomingsophisticated and more technicallythey also are politically active and deeply involved in legitimate business activities around the world. Moreover, organized crime syndicates are taking hold to countries where democratic reforms arc just begir.ning or gaining footholds. | |

The Intelligence Community's (IC) focus on international organized crime is responsive to PreitoVntial Decision Ducctiven Intelligence Priorities PresidentialDirectiven IntemationnlCrime. Both these documents identify international organized crimeational security threat to the Unitedpecial coordinating group established underlans national-level initiative to support US objectives against international organized crime and is usedt>min to help enhancebetween Ihe intelligence, policy, and law enforcement communities. All involved agree foreign intelligence is viul. not only to the drvrlopment of effective mternaiionalagainst IOC. but also to the efficient allo-canon of resources needed to support our international partners:

Foreign intelligence helps policymakers gauge the threat to US interests fromcriminal activity, inducing threats lo foreign governments and die global economy.

Foreign intelligence tupports USanticrime policy initiatives. like the International Emergency Economic Powers Act (IEEPA) and denying criminals money laundering safehavens.

Actionable foreign intelligence forms the basis for law enforcement investigations and ii crucial for the formulation and refinement of policies and strategies designed lo comba: international organized crime.

Foreign intelligence supports intelligence and law enforcemeni operations against criminal organizations overseas.

Foreign intelligence supports anti crimeand initiatives of cooperating Host Nution liaison serviccsT" |

Consistent with appropriate policy guidance, the IC's primary interests are in the activities of international organized crime groups that directly tlueatcn the United Stain and the threat that these groups pose to the political and economic stability of foreign countries and lo the global economy. In collecting andintelligence on dieir activities, the IC is also very focused on the organizational structure, ownenhip. leadership, operations, andof the criminal groups and thenetwork of brokers, lawyers, shippers, financiers, and fronts used by the groups lo conduct their activities, r

While die IC has become significantly more involved in IOC-related collection and analysis, the Director of Central Intelligenceortion of IOC intelligence resources. Analysis of IOC issues is alsoby law enforcemeni agenciesood deal of US and foreign information is gathered by LEAs. Q

Challenges [

lhe IC ha* made major strides in developing expertise on international organized crime. The Communityational Intelligence Estimate. The Global Threat of Organized Crime, inhis NIEaseline of Iniclligence and Law Duurceineni Community understanding of this complex issue. The DCI has institutionalized dialogue and clow collaboration with the lawtheof Justice and tbe Federal Bureau ofall levels.he DCI broadened the charter of the Cnmc andCenter (formerly the Counternarcoticsto be more responsive to policy and law enforcement foreign intelligence requirements on international organized crime. Thiswas also in response to the growingof an increased IOC threat to US and allied national security interests. CNC serves as the focal point for coordinating the IC'sand collection efforts on organised crime. Policy and law enforcement agencies (LfiAt) will also directly benefit from focused target analysis on the leadership, structure,networks, and vulnerabilities of (specific organized crime groups.

lhe key challenges facing the IC onorganized crime arc no longerknowledge andthese areas can continue to he improved upon. The most significant challenge is in facilitating the exchange of information between theand law enforcement communities; just as actionable foreign intelligence canroviding law enforcement with leads to puisue criminal investigations, much of tbe information collected by law enforcement agencies can bc invaluable to enhancing Ihe ICs understanding of the problem and to

fine-tuning collection andritical component of this cooperation will bc the developmentechanism by which US law LEAs can provide the IC with foreigninformation collected by the LEAs, while also protecting LEA legal equities. Other key challenges include;

Ensuring that collection and analyticmeet lhe highest priority needs of US law enforcement agencies.

Finding way* to work aroundroblems like corruption and the constraints of international boundaries to enhance anli-criine cooperation with host nation liaison services. Unlike international criminalwhich are not constrained by national frontiers, sovereignty and jurisdictionof host nation services can he auto time-sensitive multinational cooperation against intr-niational organized ct inn. i

(nl Intelligence Community Activities

'llic PCI's Committee on InternationalChine Intelligence Issuesestablished ihrough Dixccior of CentralDirective (DCID)continue to expand its support via its complex mission:

Serves as the senior coordinating body within the L'S Government on matters affectingintelligence on IOC.

Advises and assists the DCI in discharging his duties and responsibilities with respect to IC policy and programs on IOC

Promotes the effective use of foreignresources to support the devekrpment and implementation of US policy to counter the activities of IOC groups.

Assists in evaluating die overall performance of the IC in accomplishing objectivesby the DCI.M

Although the international organized crime problem has been elevatedigher level of foreign intelligence attention, the current level of effort varies among Intelligence Cornrnunity

Formal needs statements from the primaryof foreign intelligence on IOC have improved, but more direction is needed. Inthere are now numerous standingvariousthe vast majority of collection disciplines. The National Intclli gence Needs Processechanism for identifying and promulgating foreigninformation needs. Together with US law enforcement agencies. CNC is developing aprocess to aggregate information available in law enforceinent or policy channels with foreign intelligence datauide towhere the Community can provideadded value to ongoing law enforcement and policy analysis and reporting, as well as to enhance IC understanding of the nationalaspects of IOC. The IC has been working closely with the LEAs and Department ofm develop and implement procedures which will facilitate information sharing whde protecting both IC sources and methodsA/DOJ prosecution equities. I

The IC is committed to improving the (low of intelligence on IOC to consumers. The Crime and Narcotics Center has significantly expanded the scope of its IOC efforts, and has augmented its internal analyticli drtailees from law enforcement agencies.

However, the IL" needs more cxpcnenir with the issue of IOC, and more feedback fromon the value added of IOCas our ability to contnbule lo meeting IOC goals and thereby facilitatingorder to meaningfully evaluate customers' satisfaction.!

We continue to idcrirjry two core IOC issues of enduring concern to VS diplomatic, law enforcement, and foreign inlclligence consumers.

Core Issuenternational Criminalund Activities That Directly Threaten US Interests I I

is ihe second Strategic Intelligence Review addressing international organized enme. It attempts to capture the needs of the various consumers as we currently iindcrstand diem However. IOCelatively new issue for (he IC to be bandUngystematic, toe used way. The IC currently lacks fullof major IOC organizations andas well as their full impact on US national security. In addition, the needs and demands uf policymaker and law enforcement officialsto evolve around the panoply of IOC issues. Q

II. Core Issues

Thereroad range of consumers ofonwith specialized areas of policy respcesibility, with unique authorities and competence in particular types oforganized criminal activities, and with specialized needs. Given the evolving nature of IC involvement with these consumers, there is no single, universally acccpied statement of detailed foreign intelligence needs on IOC issues, (However, such statements do exist under different collection discipline strategics and specific country collectionlieecognizes that such statements arc necessary for analytic focus and the tasking of collection resources.

Understanding the scope, breadth, supporting networks, and impact of international criminalthe criminal organizations responsible fordirectly threaten the United Slates, its citizens, and political and economic interests overseasajor objec-tive of US national security policy.

Intelligence Information Needs

Except as noted, die information needs listed below pertain lo both Core Issues.

Core Issuenternational Organized Crime Threats to Stability and Governability of Foreign Governments and the Global Economy

Understanding the impact of organized enmi nal groups and iheir activities on the political and economic stability and govemability of countries important to US policy interests Umajor objective of US national security policy.

Corruption of Foreign Officials andCitizens. Consumers of foreign intelligence we interested in the extent of corruption ofofficials and influential private citizens and lhe use of bribery, graft, and extortion lending lo the subversion of the political, economic, military, and social mfrastiuctures of nations

and regions. US pohcymakers are especially concerned when US individuals and enterprises overseas are targeted by IOC elements. The corruption of economic organizations includes the infiltration of legitimate businesses,financial institutions, and sometimesof entire industries.

International Financial Crimes, Including large-Scale Fraud. There is increasinginterest in international financial crimes, including manipulation of financial institutions and markets, uitemational money laundering, illicit currency movement, financial fraud, and counterfeiting These activities may be primary to IOC organizationsirect source ofor mayupport role for other activi. tics such as drug trafficking. Particular needs include identification of the groups, theirspecific sources of their illicit money, cuv lomers. and details of their operations.

Information Warfare-Like Activities. ITic pos sibillty of IOC involvement in computer-based "information warfare-like" activities is rapidly gaining the attention of national dcci3ionmak-eri. The IC is focusing on the extent of the threat through identification of illegal IOC access, manipulation, or corruption of govern mental or major private institutions*networks and databases. The most immediate foreign intelligence concern is with financial systems and data, but tbe potential threat includes any aspect of governmental and appropriate private operations that tely on informatitin support systems. Particular needs include identification of the group, the target, and die method ol attack.

Relationship to Narcotics Trafficking and Terrorism. The counicmarcoticscontinues its major interest in drugincluding crap cultivation, production, distribution, and money-laundering activities.

The foreign aspects of US countcmarcotics strategies emphasize activities related lo cocaine and hemin. While some IOC organizationson drugs as their primary activity,may engage in drug smuggling as partroader range of criminal pursuits. (Another example is IOC networks Uiat act astoor example, the

Anne same lime, ainsurntfl Ift

interested in any evidence thai would linki nized crime to terrorist activities, including financing or perpetrating such xx.%.

Alien Smuggling. Alien smuggling into the United States remains an important global issue lo US policymakers, particularly when itsand magnitude threaten to upset USeconomic, and cultural interests. The aliens come from many countries, but thenumber are from Latin America and East and South Asia. Policymaker and lawofficials are concerned about illicitfrom several regions, but arc especially interested in the movement of Chinese aliens by sea and the movement of any aliens through Latin America and across the US-Mexico land border; the threat on the US northern border cannot be discounted either, and its source is not solely from China. Officials also seek to identify alien smuggling groups and discover their routes. mooes of transportation, use of fraudulent documents, and timing of specific operations. Addmonally. consumers arein couiilenncasures by stales thai are host countries or transit points for illegal aliens. (Alien smuggling continues to be associated primurily with Core

1 TmiiuMii5be Saaiegictvitwfor Counitinart&ici.

Involvement in Smuggling Arms, Nuclear Materials, or Weapons of Mass Destruction. Foreign intelligence consumers also have ainterest in any evidence thai wouldIOC involvement in smuggling arms, nuclear material, or components of WMD and associated delivery systems. (This interest would include not only nuclear, but also chemical or biologicalolicy and law enforcement consumers are particularly interested inof the group involved; the type ofdates, routes, and modes of transport; and the end recipient.

Supporting Networks. Underlying thecriminal groups' activitiesetwork of brokers, front companies, lawyers, wittingfinancial intermediaries, and otherthat arc critical to the successful operations of the criiiiinal groups. In planning or acting against die crirrunal groups, policymakers, law crrforcement personnel, and intelligenceofficers need as much information asabout how the groups conduct their activities so that the enforcement actions have the greatest possible adverse impact on the full scope of the criminal groups' activities.

Foreign Government, Law Enforcement, and Intelligence Services' Capabilities andTo Combat International Organized Crime. This is with and without hi lateral and/or multilateral cooperation and assistance.

In support of law enforcement, operational, and some policy requirements, significant intelligence effort is directed at identifying,and determining the vulnerabilities of specific groups operating in broadly defined geographic areas:

IC response to (hese needs must take into account legal and procedural restrictions on direct foreign intelligence and Department of Defense participation in law enforcementThe IC has been working closely with the LEAs and Department of Justice lo develop and implement procedures that will facilitatesharing while protecting both IC sources and methods and LEA/DOJ prosecution equities. |

III. Functional Needs

We must continue to sirive to make intelligence on IOC issues and organizations timely and available in formats and at classification levels that are readily usable by consumers. This is particularly true when information- (level oped incidental to foreign intelligence nccds-is provided to interested law enforcement uveis. Communications systems and data bases must be compatible and readily accessible, yet ensure (hat sources and methods and legalissues are adequately addressed.

Particular shortfalls include:

Inadequate structures to coordinatebetween components, as cited above. Some possible structural solutions include periodic evaluation of collection,of collection strategies for eachdetermination of policy changes lo enhance dissemination, preparation ofneeds forecasts, and the establishment of an Intelligence Community AnalyticGroup to coordinate the production of strategic intelligence assessments.

A lack of continual reevaluation of needfrom the primary customers of foreign intelligence on IOC dial can be translated and/ or amended into requirements for tliedisciplines and analytic agencies.

Cultural, procedural, and legal factors, which impact on the timely, two-way exchange of information between intelligence, diplomanc. and lawsers. These factors, which hinder timely dissemination ofto diplomatic and law enforccmerit consumers at usable classification levels, have been sadsfactorily resolved at leas! tn pan by the efforts of the senior-level Joint Intelligence Conununity-Law Enforccmcni Working Group.

Lackorresponding formal process lo Ihe National Intelligence Needs Process toinformation available in lawor policy channels with foreign intelligence data. Wereechanism to exist, it could guide the IC in determining how to provide significani added value to ongoing law enforcement and policy analysis and repotting, as well as enhance ICof the national security aspect of IOC.

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