The financial management of cocaine trafficking in Italy

Abstract

Drawing on a set of empirical data, including in-depth interviews with law enforcers and public prosecutors, the article provides preliminary and detailed information on the structure, social organization of actors and financial management of cocaine trafficking in Italy. The article aims to increase knowledge on the financing mechanisms of organized crime activities and uses the Italian cocaine market as a case example. The findings suggest that the national market is fragmented into an interplay of actors who belong to upper, middle or low segments, depending on the level of the trafficking operations (that is, large, medium, small scale), that join as criminal networks to lower risks and maximize profits. These networks are mainly based on family, kinship or ethnic ties or relations built in other social/work settings. Cocaine trafficking operations are financed by both legal and illegal capital whose boundaries are blurred especially when organized crime groups are involved. Settlement of payments in cocaine trafficking operations reflects the level of trust between buyers and suppliers, with credit arrangements often set in longstanding business relationships or, at the other extreme, at the retail level to test clients’ reliability. The findings also add knowledge to existing research, improve the understanding and representation of organized crime, and contribute to enhance prevention and control activities of law enforcers, prosecutors and policy makers at the European and international level.

Financial crime scripting: Introducing a financial perspective to the Dutch cocaine trade

“…Contrary to earlier findings on the cocaine trade by Krekel (2019), the financial transactions consist of more than just direct cash or underground banking transactions as it is shown that bartering and banking transfers are also used (see also Terenghi, 2020). However, information about other payment methods, that is, cryptocurrency and tradebased money laundering (TBML) are absent in the analysis.…”

“…Besides law enforcement agencies sometimes paying relatively little attention to the financial management of the cocaine trade, research on this topic is also scarce (Hall and Antonopoulos, 2017; Terenghi, 2020). Therefore, given the importance of enhancing a financial approach to (organized) crimes, this article builds on crime script analysis as a way to develop financial crime scripts.…”