NCJ Number
193330
Date Published
1999
Length
22 pages
Annotation
This paper provides an overview of recent trends in organized crime and money laundering activities in central and eastern European countries, and it compares policies designed to prevent organized criminal groups from infiltrating the financial systems of these countries.
Abstract
The author concludes that there is an increasing exploitation of eastern European countries for criminal purposes. These countries have undergone major political changes that have involved the reorganization of economic systems into free markets. Both local and foreign criminal organizations have benefited from this circumstance, as they have used their illicit proceeds to corrupt financial markets and public officials. Local groups have acquired significant power over illicit activities in the large cities and have begun to develop illicit activities at the transnational level. These groups either compete with one another or build strategic alliances with foreign organized criminal groups. Experience in the fight against money laundering shows that when one mechanism is thwarted, new methods and new countries are found for laundering criminal proceeds. In the attempt to counter money laundering, almost all eastern European countries have enacted measures to protect the transparency of their financial systems; however, many still lack the effective implementation of these provisions. The accumulation of power and wealth by organized criminal groups, made possible by money laundering operations, has the potential to place national economies and democratic systems at risk of instability and deterioration. A comprehensive response requires that illicit proceeds be prevented from infiltrating the economy through non-regulated investments, that anti-corruption strategies be mounted, and that international cooperation be developed in law enforcement efforts. 21 references