Submission - Inquiry into the legislative arrangements to outlaw serious and organised crime groups

202 Pages·2009·1.87 MB·English

PALERMO IN THE PACIFIC:
ORGANISED CRIME
OFFENCES IN THE ASIA
PACIFIC REGION

Andreas Schloenhardt
The University of Queensland
TC Beirne School of Law
The University of British Columbia
Centre of International Relations

PRELIMINARY REPORT
January 8, 2009

kindly supported by:
2

About the author
Dr Andreas Schloenhardt
PhD (Law) (Adelaide), Associate Professor
The University of Queensland, TC Beirne School of Law, Brisbane Qld 4072, Australia
 [phone],  [phone], [email protected]
The University of British Columbia, Centre of International Relations, Liu Institute of Global
Issues,6476 NW Marine Drive, Vancouver BC V6T 1Z2, Canada
 [phone],  [phone], [email protected]

Andreas Schloenhardt is Associate Professor at The University of Queensland TC
Beirne School of Law in Brisbane, Australia, a visiting professor at the Centre of
International Relations at The University of British Columbia, Vancouver, and an
Adjunct Professor at the Monterey Institute of International Studies in Monterey,
California. His principal areas of research include criminal law, organised crime,
narcotrafficking, terrorism, international criminal law, and immigration and refugee
law. His recent works focuses on organised crime legislation, the illicit trade in timber
and timber products, the illicit market for amphetamine-type stimulants (ATS), and
the plight of North Korean Refugees in China. His work is frequently cited by other
scholars, in government publications, and judicial decisions, including the High Court
of Australia.

Note:
This preliminary report was prepared in January 2009 for presentation to the
Parliament of Australia, Joint Committee on the Australian Crime Commission, the
United Nations Office on Drugs and Crime, the Australian Federal Police, the
Australian Institute of Criminology, and the Embassy of Australia in Vienna.

This preliminary report does not include analyses of the organised crime offences in
Cambodia, Lao PDR, the Republic of Korea, and the United States. This preliminary
report also does not include a conclusion and it makes no recommendations. These
chapters will be included in the final report.

It is anticipated that the final report will be released in August 2009. Please contact
the author for further details.
3
Table of Contents

About the author ................................................................................................. 2
Note: .................................................................................................................. 2

Table of Contents ...................................................................................................... 3
Abbreviations ......................................................................................................... 7
Acknowledgments.................................................................................................. 8
Publications & Presentations .............................................................................. 9

PART 1 INTRODUCTION AND BACKGROUND: CRIMINALISING ORGANISED
CRIME .................................................................................................. 10
1 Introduction .......................................................................................................... 10
1.1 Background and Significance ................................................................ 10
1.2 Purpose and Structure .......................................................................... 12
1.3 Methodology ......................................................................................... 12

2 Criminalising Organised Crime – The Need for Special Laws .............................. 14
2.1 Existing Extensions of Criminal Liability ................................................ 14
2.1.1 Inchoate liability ................................................................................. 16
2.1.2 Secondary Liability ............................................................................. 17
2.1.3 Conspiracy ......................................................................................... 18
2.2 Case examples ..................................................................................... 21
2.2.1 Alphonese Capone............................................................................. 21
2.2.2 Pablo Escobar .................................................................................... 22
2.2.3 Nicolo Rizzuto .................................................................................... 23
2.2.4 Foot-soldiers ...................................................................................... 23
2.3 Reservations and observations ............................................................. 24

PART 2: INTERNATIONAL LAW ............................................................................. 26
3 Convention against Transnational Organised Crime (Palermo Convention) ......... 26
3.1 Background ........................................................................................... 26
3.1.1 Giovanni Falcone ............................................................................... 26
3.1.2 Naples Conference on Organised Transnational Crime, 1994 ............ 27
3.1.3 Development of the Palermo Convention ........................................... 28
3.2 Definition of Organised Criminal Group ................................................. 30
3.3 Organised Crime Offence, article 5(1)(a) ............................................... 34
3.3.1 Article 5(1)(a)(i): the conspiracy model ............................................... 35
3.3.2 Article 5(1)(a)(ii): the participation model ............................................ 36
3.3.3 Remarks ............................................................................................ 38

PART 3: DOMESTIC LAWS .................................................................................... 40
4 Canada .............................................................................................................. 40
4.1 Background of Canada‘s Organised Crime Laws .................................. 41
4.1.1 Bill C-95 (1997) .................................................................................. 41
4.1.2 Bill C-24 (2001) .................................................................................. 45
4.2 Criminal organisations ........................................................................... 46
4.2.1 A group of three or more persons in or outside Canada, s 467.1(1)(a) 48
4.2.2 Facilitating or committing of one or more serious offences, s 467.1(1)(b)
........................................................................................................... 49
4.2.3 Material benefit, s 467.1(1)(b) ............................................................ 50
4.3 Relevant offences ................................................................................. 51
4.3.1 Participation in activities of criminal organisation, s 467.11(1) ............ 52
4.3.2 Commission of offence for criminal organisation, s 467.12(1) ............ 55
4
4.3.3 Instructing commission of offence for criminal organisation, s 467.13(1)
........................................................................................................... 57
4.4 Observations and remarks .................................................................... 60

5 New Zealand ........................................................................................................ 64
5.1 Former s 98A Crimes Act 1961 (NZ), 1997-2002 .................................. 64
5.2 Current s 98A Crimes Act 1961 (NZ), 2002- .......................................... 66
5.2.1 Organised criminal group ................................................................... 66
5.2.2 Participation offence ........................................................................... 69
5.3 Observations ......................................................................................... 71

6 Australia .............................................................................................................. 73
6.1 Introduction ........................................................................................... 73
6.1.1 Organised crime in Australia: A snapshot ........................................... 73
6.1.2 Criminal law in Australia ..................................................................... 74
6.2. New South Wales ................................................................................. 74
6.2.1 Background ........................................................................................ 75
6.2.2 Definition of ―criminal group‖ .............................................................. 77
6.2.3 Participation in criminal groups........................................................... 79
6.2.4 Aggravations ...................................................................................... 83
6.3 Queensland........................................................................................... 85
6.3.1 Organised criminal group ................................................................... 85
6.3.2 Participation in an organised criminal group ....................................... 86
6.3.3 Further remarks ................................................................................. 89
6.4 South Australia ...................................................................................... 90
6.4.1 Declared organisations ...................................................................... 91
6.4.2 Control orders .................................................................................... 94
6.4.3 Criminal association offences ............................................................. 95
6.4.4 Observations ...................................................................................... 96
6.5 Federal initiatives .................................................................................. 98
6.5.1 Australian ratification of the Convention against Transnational
Organised Crime ................................................................................. 98
6.5.2 Parliamentary inquiry into legislative arrangements to outlaw serious
and organised crime groups 2008 ....................................................... 99

7 China ............................................................................................................ 103
7.1 Context and Background ..................................................................... 103
7.1.1 Patterns of organised crime in China ............................................... 103
7.1.2 Criminal Law in China ...................................................................... 105
7.2. Extension of criminal liability, Article 26 ............................................... 106
7.3. Offence for Criminal Syndicates, Article 294 ....................................... 107
7.3.1 Criminal organisations of a syndicate/triad nature ............................ 108
7.3.2 Organising, leading, participating in a criminal syndicate ................. 112
7.4 Observations ....................................................................................... 114

8 Hong Kong SAR ................................................................................................. 116
8.1 Organised Crime in Hong Kong........................................................... 116
8.1.1 Opium and other illicit drugs ............................................................. 116
8.1.2 Criminal organisations in Hong Kong ............................................... 117
8.2 Organised and Serious Crime Ordinance ............................................ 120
8.2.1 Definition of organised crime ............................................................ 121
8.2.2 Other provisions ............................................................................... 122
8.3 Societies Ordinance ............................................................................ 123
8.3.1 Unlawful societies ............................................................................ 124
8.3.2 Offences associated with unlawful societies ..................................... 125
8.4 Remarks ............................................................................................. 129
5

9 Macau SAR ........................................................................................................ 131
9.1 Context and overview .......................................................................... 131
9.1.1 Organised crime in Macau ............................................................... 131
9.1.2 Criminal law in Macau ...................................................................... 132
9.2 Criminal associations, Penal Code (Macau) ........................................ 133
9.3 Secret society/associations, Organised Crime Law 1997 (Macau) ...... 133
9.3.1 Definition of secret society/associations ........................................... 133
9.3.2 Offences relating to secret societies/associations, ........................... 135
9.3.3 Specific Offences, arts 3–13 Organised Crime Law 1997 (Macau) ... 135
9.4 Observations ....................................................................................... 136

10 Taiwan ............................................................................................................ 138
10.1 Organised Crime in Taiwan ................................................................. 138
10.2 Criminal Code (Taiwan) ...................................................................... 140
10.3 Organised Crime Control Act 1996 ...................................................... 141
10.3.1 Definition of Criminal Organisation .................................................... 142
10.3.2 Creating/controlling criminal organisations ........................................ 143
10.3.3 Participating in a criminal organisation .............................................. 144
10.3.4 Financing criminal organisations ....................................................... 144
10.3.5 Offences for public officials ............................................................... 144
10.3.6 Other provisions ................................................................................ 145
10.4 Remarks ............................................................................................. 145

11 Singapore ......................................................................................................... 146
11.1 Organised Crime in Singapore ............................................................ 146
11.2 Conspiracy Provisions ......................................................................... 146
11.2.1 Criminal Conspiracy ......................................................................... 146
11.2.2 Abetment by conspiracy ................................................................... 147
11.2.3 Observations .................................................................................... 148
11.3 Societies Act ....................................................................................... 149
11.3.1 Meaning of Societies ........................................................................ 149
11.3.2 Criminal Offences for Unlawful Societies and Triads ........................ 149
11.3.3 Remarks .......................................................................................... 151

12 Malaysia ........................................................................................................... 152
12.1 Organised crime in Malaysia ............................................................... 152
12.2 Criminal conspiracy laws ..................................................................... 152
12.3 Societies Act 1966 .............................................................................. 153

13 Brunei Darussalam ........................................................................................... 154

14 Philippines ........................................................................................................ 155
14.1 Patterns of Organised Crime in the Philippines ................................... 155
14.2 Racketeer Influenced and Corrupt Organisation Laws ........................ 156
14.2.1 Participation offence ......................................................................... 157
14.2.2 Proceeds of crime and money laundering offences .......................... 158
14.2.3 Observations .................................................................................... 159

15 Vietnam ............................................................................................................ 160
15.1 Organised Crime ................................................................................. 160
15.1.1 Organised crime in Vietnam ............................................................. 160
15.1.2 Vietnamese organised crime abroad ................................................ 160
15.2 Organised Crime in Vietnam‘s Criminal Law ....................................... 161

16 Cambodia ......................................................................................................... 163
6

17 Lao PDR .......................................................................................................... 164

18 Japan ............................................................................................................ 165
18.1 Yakuza & Boryokudan: Organised Crime in Japan .............................. 165
18.2 Organised Crime under Japan‘s Criminal Law .................................... 168
18.2.1 Law to Prevent Unjust Acts by Organised Crime Group Members 1991 .
......................................................................................................... 169
18.2.2 Law for Punishment of Organised Crimes, Control of Crime Proceeds
and Other Matters 2000 .................................................................... 171
18.2.3 Remarks .......................................................................................... 171

19 Pacific Islands .................................................................................................. 175
19.1 Patterns of Organised Crime in the South Pacific ................................ 175
19.1.1 Narcotrafficking in the Pacific Islands ............................................... 175
19.1.2 Migrant Smuggling ........................................................................... 177
19.1.3 Trafficking in Persons ....................................................................... 177
19.1.4 Firearms Trafficking ......................................................................... 178
19.2 Criminal Law in the Pacific Islands ...................................................... 178
19.2.1 Sources ............................................................................................ 178
19.2.2 Conspiracy ....................................................................................... 179
19.3 Organised crime laws .......................................................................... 180
19.3.1 Adoption of the Palermo Convention ................................................ 180
19.3.3 Regional initiatives: Pacific Islands Forum ....................................... 181
19.3.4 Cook Islands .................................................................................... 185

20 United States of America .................................................................................. 188

21 Countries without any organised crime laws ..................................................... 189
21.1 Thailand .............................................................................................. 189

PART 4: THE WAY AHEAD .................................................................................. 190

Bibliography ....................................................................................................... 192
7
Abbreviations
ACC Australian Crime Commission
ACT Australian Capital Territory
AFP Australian Federal Police
AUD Australian Dollar
CAD Canadian Dollar
China People‘s Republic of China (PRC)
CISC Criminal Intelligence Service Canada
Cth Commonwealth of Australia
FBI United States Federal Bureau of Investigations
HKD Hong Kong Dollar
MYR Malaysian Ringgit
NSW New South Wales
NT Northern Territory
NZ New Zealand
NZD New Zealand Dollar
OMCG Outlaw motorcycle gang
Qld Queensland
QPS Queensland Police Service
MOP Macau Pataca
PRC People‘s Republic of China (China)
RCMP Royal Canadian Mounted Police – Gendarmerie Royale du Canada
SA South Australia
SAR Special Administrative Region of China
SGD Singapore Dollar
Taiwan Republic of China
Tas Tasmania
TWD New Taiwan Dollar
UN United Nations
UNODC United Nations Office on Drugs and Crime
USD United States Dollar
Vic Victoria
WA Western Australia
8
Acknowledgments
I am deeply indebted to the many friends, colleagues, and institutions that have
supported me during the time this study was taking shape.

The University of Queensland TC Beirne School of Law has kindly supported this
research project with a competitive research grant in 2007, and I thank Mr Gus
Graham for his excellent research assistance.

Between November 2007 and December 2009, Professor Brian Job and The
University of British Columbia‘s Centre of International Relations have offered me a
‗home away from home‘ and have facilitated my research by providing me with
logistical and administrative support. I want to thank Brian and also Ms Erin
Williams, Ms Alana Tiemessen and Ms Ashley van Damme for their friendship and
cooperation during my time in Vancouver. Thanks also go to Ms Kristy Lennox for
her research support.

The United Nations Office on Drugs and Crime (UNODC) Regional Centre for East
Asia and the Pacific generously supported this project with a research grant
specifically to study the implementation of the Convention against Transnational
Organised Crime in the region. Special thanks go to Mr Jeremy Douglas and the
many colleagues and friends at UNODC‘s Bangkok and Vienna offices for their
insight and expertise.

The Australian Institute of Criminology (AIC) in Canberra has contributed to this
project with a research grant to explore specifically the patterns of transnational
organised crime in the Asia Pacific region and also to study the anti-organised crime
laws in the United States. I want to thank Dr Judy Putt and Professor Toni Makkai
(now ANU) for allowing me to include these important aspects into this study.

Between December 2007 and December 2008, the Australian Federal Police (AFP)
kindly supported this project with a research grant. This grant assisted in the
analysis of organised crime offences in Australia, Canada, and New Zealand, and
helped liaise with many experts in law enforcement agencies around Australia and
Canada. Special thanks go to Mr Peter Drennan, Mr Peter Whowell, and Mr
Christopher Vas, AFP, Canberra.

The research for this project, which commenced in November 2007, involved
extensive travel and collaboration with a great range of key stakeholders in Australia,
Austria, Canada, Fiji, Japan, New Zealand, Thailand, and the United States. Many
‗insiders‘, colleagues, and friends shared their experience, knowledge, and opinions
with me and thus made invaluable contributions to the depth of this analysis.
Specifically, I want to acknowledge Dr Allan Castle, Royal Canadian Mounted Police
(RCMP), Vancouver, Professor Akio Shimizu, Waseda University Law School, Tokyo,
and the staff of the Pacific Islands Forum Secretariat in Suva, Fiji, for commenting on
earlier drafts of this manuscript.

Andreas Schloenhardt
Vancouver, January 8, 2009

NOTE:
The views expressed in this document are those of the author. In particular, they do not
reflect the position or opinion of the Australian Institute of Criminology, the Australian Federal
Police, the Australian Government, the United Nations, and the United Nations Office on
Drugs and Crime.
9
Publications & Presentations
This study has formed the basis of a number of publications and presentations,
including:
Publications
―Taming the Triads: Organised Crime Offences in PR China, Hong Kong and Macau‖
(2008) 38(3) Hong Kong Law Journal

―Transnational Organized Crime‖ in M Cherif Bassiouni (ed), International Criminal
Law, volume I: Sources, Subjects, and Contents, Boston (MA): Brill, 3rd ed 2008

―Transnational Organized Crime and International Criminal Law (2008) 10 Waseda
Proceedings of Comparative Law (Waseda University, Tokyo) 311-334

―Mafias and Motorbikes: New Organised Crime Offences in Australia‖ (2008) 19(3)
Current Issues in Criminal Justice (University of Sydney) 259-282
Presentations and Conference Proceedings
―Palermo in the Pacific. Organised Crime Offences in the Asia Pacific Region‖,
presentation at the United Nations Office on Drugs and Crime (UNODC), Vienna,
December 18, 2009

―Guilt by association? New ways to fight organised crime‖ paper presented at the
conference Canada and the Changing Strategic Environment, Security and Defence
Forum, Vancouver (BC), October 24, 2008

―Organised Crime in Australia: Trends and Developments‖ presentation to the
Department of Foreign Affairs and International Trade, Ottawa, July 29, 2008

―Mafias and Motorbikes: New Organised Crime Offences in Australia‖, paper
presented at the Attorney General‘s Department (Cth), Canberra, March, 14 2008

―Mafias and Motorbikes: New Organised Crime Offences in Australia‖, paper
presented at the Australian Federal Police, Canberra, March 14, 2008

―Mafias and Motorbikes: Fighting Organised Crime in Canada and Australia‖
presentation at the Liu Institute for Global Issues, University of British Columbia,
Vancouver, November 6, 2007 (with Dr Allan Castle, RCMP)

―Transnational Organised Crime and International Criminal Law‖ paper presented at
Waseda University, Tokyo, November 1, 2007

―Mafias and Motorbikes: Organised Crime Laws in Australia and New Zealand‖ paper
presented at The University of Auckland, September 3, 2007
Other
Submission to the Joint Committee on the Australian Crime Commission, Inquiry into
the legislative arrangements to outlaw serious and organised crime groups,
Parliament of Australia, April 2008, available at
www.aph.gov.au/Senate/committee/acc_ctte/laoscg/submissions/sublist.htm
(accessed 5 Dec 2008).
10
PART 1 INTRODUCTION AND BACKGROUND:
CRIMINALISING ORGANISED CRIME
1. Introduction

This study analyses organised crime legislation in the Asia Pacific region. It
examines offences criminalising the participation in criminal organisations and
equivalent provisions penalising the existence and operation of organised crime
under domestic laws. The study also explores the adoption of relevant international
treaties, in particular the Convention against Transnational Organised Crime, and
examines efforts by the international community to promote wider implementation of
this Convention in the region. The aim of this project is to assess the adequacy and
efficiency of the existing provisions under domestic and international laws, and to
develop recommendations for law reform to prevent and suppress organised crime
more effectively in the region.

1.1 Background and Significance
Organised crime is a phenomenon that has emerged in different cultures and
countries around the world. Organised crime is ubiquitous; it is global in scale and
not exclusive to certain geographical areas, to singular ethnic groups, or to particular
social systems. Criminal organisations exist in dynamic environments, both as a
function of the illegal markets in which they operate and as a result of the changing
nature of law enforcement activities and government policies.

Organised crime has a long history in the Asia Pacific region. Triads and the Yakuza
have existed in Chinese and Japanese societies for centuries and have also spread
to other countries in the region. Many criminal organisations, including outlaw
motorcycle gangs (OMCGs), Colombian drug cartels, Italian and Russian mafias and
the like, are well established in Australia, Canada, New Zealand, and the United
States. Vietnamese organised crime operates throughout Southeast Asia, and West
African criminal groups are increasing their presence in Indonesia and elsewhere in
the region.

Despite the omnipresence of criminal organisations in the region, the concept of
organised crime remains contested and there is widespread disagreement about
what organised crime is and what it is not. Generalisations about organised crime
are difficult to make. Defining organised crime has been a long-standing problem for
criminologists, legislators, law enforcement agencies, and others in the field — not
just in this corner of the world. Many attempts have been undertaken to develop
comprehensive definitions and explanations that recognise the many facets and
manifestations of organised crime. The spectrum of approaches to organised crime
is very broad as governments, law enforcement agencies, and researchers have
different objectives when fighting, sanctioning, and analysing organised crime.

The United States and Italy — two countries with a notorious organised crime history,
especially in relation to the Mafia — were among the first countries to respond to
organised crime by amending their substantive criminal law with the introduction of
the US Racketeer and Corrupt Organisations Act of 19701 and art 416bis ―mafia-type
associations‖ in Italy in 1982. Since that time, many other countries — including
some in the Asia Pacific region — have followed the same trend by criminalising the

1 18 USCA § 1961.