BUSINESS FUNDAMENTALS
HOW ILLEGAL
DRUGS SUSTAIN
ORGANISED CRIME
IN THE EU
TS
REDI
TO C
PHO
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BUSINESS FUNDAMENTALS
HOW ILLEGAL DRUGS SUSTAIN ORGANISED
CRIME IN THE EU
© European Union Agency for Law Enforcement
Cooperation (Europol), 2017.
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CONTENTS
KEY JUDGMENTS
04
INTRODUCTION
06 The European drug markets
Europol’s support in the fight against the drug trade
The EU Policy Cycle for Serious and Organised Crime
EMERGING THREATS
09 The Darknet trade in illegal drugs
New psychoactive substances (NPS) on European drug markets
Fentanyl and its analogues – deadly synthetic opioids
SITUATIONAL PICTURE
12 Cannabis
Cocaine
Heroin
Synthetic drugs and NPS
LINKS TO THE TRADE IN ILLEGAL DRUGS
15 Terrorism
Money laundering
TS
The market for il egal drugs is
the largest criminal market in the
European Union (EU). The drugs
trade in the EU is conservatively
estimated to generate around
EUR 24 bil ion in revenue each
The market for cannabis remains
year.
by far the largest drugs market
in the EU. There has been a
further increase in the indoor
and outdoor cultivation of
herbal cannabis in and close to
consumer markets.
Around 35% of the Organised
Crime Groups (OCGs) active in
04
KEY JUDGMEN
the EU on an international level
are involved in the production,
trafficking or distribution of il egal
More OCGs are involved in
drugs.
cocaine trafficking than any other
criminal activity in the EU. The
significant increase in production
in Colombia has resulted in
intensified trafficking activity to
the EU.
75% of the OCGs involved in the
drugs trade in the EU deal in
more than just one il egal drug.
The Balkan route remains the
main entry route for the bulk of
the heroin trafficked to the EU.
However, there has been a partial
shift in the trafficking of heroin
from the Balkan route to the
Caucasus route.
The market for synthetic drugs
and NPS remains the most
dynamic drugs market in the
EU. Various synthetic drugs and
continuously emerging New
Psychoactive Substances (NPS)
constitute a significant threat for
Drugs are now widely traded
public health in the EU.
online on various platforms.
The sale of drugs via Darknet
marketplaces is a significant
threat and continues to expand.
Drug overdose deaths in Europe
rose 6% to 8,441 in 2015, rising
05
for the third consecutive year,
driven by increasing use of
synthetic opioids like fentanyl.
The scale of money laundering
The European Monitoring
activities in the EU is significant
Centre for Drugs and Drugs
reflecting the immense profits
Addiction (EMCDDA) warned that
generated by the OCGs involved
drug-related deaths in Europe
in the drugs trade and other
could be much higher due to
serious and organised crime.
“systematic under-reporting in
However, the global anti-
some countries” and delays in
money laundering framework
reporting.1
implemented by law enforcement
and other authorities in the EU
1 EMCDDA 2017, European Drug Report 2017,
has shown to have a poor success
accessible at http://www.emcdda.europa.eu/edr2017_
rate in identifying and seizing
en; Reuters 2017, Drug deaths on the rise in Europe for
third year: report [06 June 2017], accessible at http://
il egal funds generated by criminal
af.reuters.com/article/worldNews/idAFKBN18X1W4
organisations. Barely 1% of
criminal proceeds are confiscated
by relevant authorities at EU
level.2
2 Europol 2017, From Suspicion to Action - Converting
financial intel igence into greater operational impact,
accessible at https://www.europol.europa.eu/sites/
default/files/documents/ql-01-17-932-en-c_pf_final.
pdf
BUSINESS FUNDAMENTALS –
HOW ILLEGAL DRUGS SUSTAIN ORGANISED CRIME IN THE EU
INTRODUCTION
The European Drug Markets
06 Drug markets remain the largest criminal of the OCGs involved in the trafficking
markets in the EU. More than one third
of one drug also traffic and distribute
of the criminal groups active in the EU
other types of drugs. Some 65% of
are involved in the production, trafficking
OCGs involved in the drug trade are
or distribution of various types of drugs.
simultaneously involved in other criminal
TECHNOLOGY
The trade in il icit drugs generates
activities such as the trade in counterfeit
Technology has an impact on
multi-bil ion euro profits for the groups
goods, THB and migrant smuggling. Drugs
the production methods used to
involved in this criminal activity. The EU
are also used as a means of payment
manufacture drugs in the EU. Technical
retail drug market is estimated to be
among criminal groups. In the period
innovation and the accessibility of
worth at least EUR 24 bil ion a year.
3 The
between 2013 and March 2016, more
sophisticated equipment have al owed
immense profits generated from the
than 60 nationalities were involved in
OCGs to maximise the production output
trade in drugs fund various other criminal drugs trafficking crimes in the EU.
of individual sites. Large-scale cannabis
activities al owing OCGs to thrive and
cultivation sites are often maintained
develop their criminal enterprises at the
Drugs are also used as a means of
using professional growing equipment
expense of the health, prosperity and
payment among criminal groups.
such as climate control systems, CO2 and
security of EU citizens.
Herbal cannabis and cannabis resin
are exchanged for other drugs such as
ozone generators. Similarly, laboratories
OCGs involved in drug trafficking rely
cocaine trafficked to the EU from South
manufacturing synthetic drugs feature
heavily on corruption to facilitate their
America, heroin smuggled via Turkey and
advanced chemical equipment and
trafficking activities. They also make
methamphetamine produced in the EU.
production lines capable of producing
use of fraudulent documents such as
In some cases, couriers arriving in the EU
synthetic drugs on an industrial scale.
fake import or company registration
with cocaine travel back to the country of
OCGs involved in the drugs trade are
certificates to import il icit drugs among
origin with cannabis resin.
highly adept at exploiting communication
legal goods, to procure (pre-)precursors
technologies to facilitate their business.
and purchase equipment used as part of
In an increasingly competitive market
Encryption and other technical means
production processes.
featuring multiple producers and
distributors, OCGs engage in rivalries
of obfuscating lines of communication
to stake territories and distribution
make it increasingly difficult for law
CRIMINAL GROUPS
channels. In some cases, OCG
enforcement authorities to identify and
disrupt these OCGs.
The OCGs involved in the drugs trade
competition involves the use of violence
are highly poly-criminal. More than 75%
and raids on the cultivation sites of rival
Drone technology is expected to advance
groups.
al owing drones to travel greater
3 EMCDDA & Europol 2016, EU Drug Markets Report
distances and carry heavier loads as
2016
well as making them more affordable.
OCGs involved in drug trafficking will
likely invest in drone technology for
The environmental impact of the drugs
trafficking purposes in order to avoid
trade is also considerable. The cultivation
of cannabis increasingly entails the
07
checks at border crossing points, ports
and airports.
use of uncontrol ed pesticides and
insecticides, which may be harmful
to the environment. Synthetic drug
HARM
lethal overdose.
manufacturing produces significant
The most immediate impact of the
Drug deaths on the
amounts of hazardous waste. OCGs dump
trade in il icit drugs is on the health of
this waste away from their production
rise in Europe for
users. The consumption of all types of
sites in order to conceal their activities.
il icit drugs entails significant health risk
third year4
Dump sites are often highly contaminated
with potential y lethal consequences.
and require a lengthy and costly clean-up
Drug overdose deaths in
The consumption of cannabis may have
process.
Europe rose 6% to 8,441
serious health and social implications
in 2015, rising for the third
for some consumers, especial y cannabis
consecutive year, driven by
cultivated to feature a high THC content.
increasing use of synthetic
Europol’s support in the
Cannabis is the most frequently noted
opioids like fentanyl,
fight against the drug trade
reason for first-time admission to drug
according to the EMCDDA.
treatment programmes in the EU. The
use of heroin is associated with serious
The agency warned that
health harms including dependence,
drug-related deaths in
Europol is the EU’s law enforcement
overdose and death; unsafe injection
Europe could be much
agency and assists the Member States in
practices and multiple daily injections
higher due to “systematic
their fight against serious international
increase the risk for infectious diseases,
under-reporting in some
crime and terrorism. Established as an EU
such as HIV, hepatitis C virus (HCV)
countries” and delays in
agency in 2009
5, Europol, the European
and other infections. The long-term
reporting.
Union Agency for Law Enforcement
effects of NPS are virtual y unknown
Cooperation, is at the heart of the
due to the frequent appearance of
European security architecture and offers
4 EMCDDA 2017, European Drug
previously unknown NPS. Some NPS
Report 2017, accessible at http://
a unique range of services. Europol is
have proven extremely harmful to
www.emcdda.europa.eu/edr2017_en;
a support centre for law enforcement
Reuters 2017, Drug deaths on the
consumers. Synthetic drugs such as
rise in Europe for third year: report
5
methamphetamine can be highly
[06 June 2017], accessible at http://
Council Decision of 6 April 2009 establishing the
European Police Office (Europol) (2009/371/JHA),
addictive and their consumption entails
af.reuters.com/article/worldNews/
idAFKBN18X1W4
accessible at https://www.europol.europa.eu/
serious health risks including the risk of
publications-documents/council-decision-of-6-april-
2009-establishing-european-police-office-europol
BUSINESS FUNDAMENTALS –
HOW ILLEGAL DRUGS SUSTAIN ORGANISED CRIME IN THE EU
operations, a hub for information on criminal activities as
well as a centre for law enforcement expertise. Analysis is at
the core of Europol’s activities. To give its partners deeper
insights into the crimes they are tackling, Europol produces
regular assessments that offer comprehensive, forward-
looking analyses of crime and terrorism in the EU.
Europol supports the Member States in the fight against
High-level conference
il egal drugs with a team of experienced specialists and
analysts based in the European Serious and Organised Crime
at Europol to discuss
Centre. They provide operational, coordination and analysis
enhancing the fight against
support to investigating officers in the Member States.
illegal drugs
A large share of the information flowing to Europol from
In addition to operational support,
EU law enforcement authorities concerns drug-related
Europol also works with Member States
investigations and operations. In 2016, information related
and Third Partners to establish a joint
to drugs and migrant smuggling were the most frequently
strategic approach in fighting drug-
exchanged type of information via Europol. The number
related criminality. On 6 and 7 December
of contributions related to drug-criminality received by
2017, the Heads of Drugs Units of all
Europol has steadily increased over the last years. In 2016,
Member States, representatives of
Europol received more than 9000 contributions related to
relevant Third Partners and EU agencies
the trade in il egal drugs. Currently, Europol supports more
such as Eurojust and the European
than 100 high-priority cases at an international level often
Monitoring Centre for Drugs and Drugs
involving multiple Member States and partner countries
Addiction will gather at Europol to
targeting sophisticated criminal organisations involved in
identify and discuss the implementation
the production, trafficking and distribution of il egal drugs.
of new ways to tackle one of the most
Europol continuously supports Member States in executing
threatening criminal phenomena in the
complex operations targeting high-value targets that often
EU – the trade in il egal drugs.
result in the seizure of very significant amounts of various
types of drugs.
The conference complements the
Evaluation of the implementation of the
EU Drugs Strategy 2013-2020 and the EU
08 The EU Policy Cycle for Serious and
Action Plan on Drugs 2013-2016 by the
Organised Crime
European Commission. According to this
evaluation, available evidence shows that
there has been at least some progress in
all EU Action Plan actions aimed at drug
The Policy Cycle provides a robust framework that brings
supply reduction, however, a significant
together the law enforcement authorities of the Member
reduction of the supply of drugs was not
States, Europol and a wide range of multi-disciplinary
recorded in recent years.
partners in the fight against serious and organised crime.
The Policy Cycle translates strategic objectives at the
Building on the findings of the evaluation,
European level into concrete operational actions against
the new Action Plan on Drugs 2017-2020
serious and organised crime.
provides a strengthened response to
the newly-emerging health and security
Based on the analytical findings of the European Union
chal enges in the area of il icit drug use
Serious and Organised Threat Assessment (EU SOCTA)
and trafficking. While maintaining and
2017, the Justice and Home Affairs Council of the EU set
updating the core policy areas and cross-
the priorities for the fight against serious and organised
cutting themes of the overall EU Drugs
crime for the second full policy cycle from 2018 to 2021
Strategy, the new Action Plan identifies
in May 2017. The Council Conclusions clearly identify the
new priority areas for action, including
production, trafficking and distribution of il egal drugs as a
the monitoring of new psychoactive
key priority in the fight against serious and organised crime:
substances as well as the use of new
To (1) disrupt the activities of Organised Crime Groups (OCGs)
communication technologies in il icit drug
involved in the wholesale trafficking of cannabis, cocaine and
production and trafficking and evidence
heroin to the EU, to (2) tackle the criminal networks involved
gathering on the potential connection
in the trafficking and distribution of multiple types of drugs
between drug trafficking and financing
on EU markets and to (3) reduce the production of synthetic
of terrorist groups, organised crime,
drugs and New Psychoactive Substances (NPS) in the EU and
migrant smuggling or trafficking in human
to dismantle OCGs involved in their production, trafficking
beings.
and distribution.
This priority will largely determine the operational work
carried out in the framework of the Policy Cycle for the next
four years.
are lone offenders, dealing in small
amounts, it is reported that many of the
09
‘top sel ers’ are likely organised crime
groups earning significant profits.
The Darknet trade in il egal
Darknet marketplaces are attractive
platforms for clients and vendors alike.
drugs
They provide an anonymous and secure
environment to trade all types of il egal
drugs and other il egal commodities. The
The Darknet has emerged as a key
use of cryptocurrencies al ows vendors
platform to offer all types of il icit goods
and clients to exchange payments with
and services. Difficult to police yet easy
little trace and represent a significant
to access, the Darknet provides an ideal
hurdle in the attribution of transactions
environment for the distribution of all
to specific users. The trust and reputation
types of il egal commodities including
system used by Darknet marketplaces
drugs, firearms, child abuse material,
emulates those established by legal
counterfeit goods, and fraudulent
trading platforms on the surface web.
documents. The trade in il egal drugs
The trade in il egal drugs on Darknet
is the mainstay of most major Darknet
marketplaces has resulted in a significant
markets. The majority of activity on
RGING
increase in the use of post and parcel
Darknet markets is drug related, with
services to traffic drugs across the EU.
some studies estimating that 57% of Dark
market listings offer drugs. It is estimated
that the top 1% most successful
vendors are responsible for 51.5% of all
transactions on Darknet markets.6 While
EME THREATS
it is assessed that the majority of vendors
6 Carnegie Mel on University 2015, Measuring the
Longitudinal Evolution of the Online Anonymous
Marketplace Ecosystem, available at https://www.
usenix.org/system/files/conference/usenixsecurity15/
sec15-paper-soska-updated.pdf
BUSINESS FUNDAMENTALS –
HOW ILLEGAL DRUGS SUSTAIN ORGANISED CRIME IN THE EU
New psychoactive
drug markets are medicines diverted
from legal supply, many are deliberately
substances (NPS) on
produced for the il icit drugs market.
European drug markets
There has been large increase in the
availability of fentanils on the European
il icit drug market in the past few years
Previously unknown NPS continue to
mainly as a result of bulk production in
appear on EU markets in large numbers.
China and their online sale. Reports of
Since 2005, 620 new substances
deaths have also substantial y increased.
were detected in the EU for the first
Since 2012, a total of 24 new fentanils
time.7 NPS are initial y not covered by
have been identified on Europe’s drug
international drug controls and include
market — including 14 since January
various substances such as synthetic
2016. During this period there has also
cannabinoids, stimulants, opioids and
Fentanyl deaths:
been a large increase in seizures by law
benzodiazepines. In many cases these
Warning as drug
enforcement at international borders and
NPS emulate the effect of traditional
at street-level. Reports of fatal poisonings
drugs such as cannabis or cocaine and are
kills ‘at least 60’10
have also increased substantial y.
marketed as alternatives for these drugs.
Where known, the vast majority of
The consumption of NPS entails
At least 60 people have
shipments of new fentanils coming
significant risks to the health of users
died in the UK in the last
into Europe originate from chemical
including lethal overdose. In 2015, the
eight months after taking
and pharmaceutical companies based
synthetic opioid acetylfentanyl was linked
the strong painkiller
in China. However, production in il icit
to 32 deaths in Europe.8 Many other
fentanyl.
laboratories, including in Europe, have
NPS have been linked to health risks and
also been reported. Typical y, synthesis of
deaths in the EU over recent years.
Tests on heroin
seized by police since
fentanils is relatively straightforward.
NPS continue to be produced in China
November found traces
As new fentanils are not control ed
and, to a lesser degree, India and
of the synthetic drug,
under the United Nations international
trafficked to the EU in large quantities.
with more than 70
10
drug control conventions they can be
NPS are sold on online marketplaces and
further deaths pending
manufactured and traded relatively freely
distributed via postal and parcel services
toxicology reports, the
and openly in many countries — which
across Europe. NPS are shipped to the EU
National Crime Agency
has been exploited by entrepreneurs
in bulk where these substances are often
(NCA) said.
and organised crime using chemical and
processed and packaged for distribution.
Some contained
pharmaceutical companies based in
carfentanyl, which is
China. The fentanils are typical y shipped
to Europe by express mail services and
Fentanyl and its analogues
10,000 times stronger
courier services. They are then sold as
than morphine and
– deadly synthetic opioids9
‘legal’ replacements to il icit opioids
often used to tranquillize
on the surface web and anonymous
elephants. Health
marketplaces on the darknet. Unknown
officials and police have
to users, they are also sold directly on
The fentanils are a family of highly potent
warned heroin users to
the il icit drug market as heroin or mixed
opioid narcotic drugs. A small number are
be “extra careful”. They
with heroin, as counterfeit medicines,
widely used as medicines in anaesthesia,
were predominantly men
and as other il icit drugs such as cocaine.
for pain relief, and the immobilisation of
and a range of ages, with
This places users at serious risk of life-
large animals. Due to their psychoactive
none younger than 18.
threatening poisoning.
effects, such as causing euphoria, they
are also used as replacements for heroin
Recent NCA
Fentanyl and fentanyl analogues available
and other il icit opioids. Typical y, use
investigations found
on European drug markets are either licit
of very small amounts of fentanils can
that fentanyl and its
pharmaceutical products diverted from
quickly poison an individual by causing
analogues are being both
legal supply or il icit drugs produced in
central nervous system depression and
supplied in and exported
clandestine laboratories. The potency of
respiratory depression. Left untreated,
from the UK.
il egal y produced fentanils is typical y
poisoning may cause death.
higher than those diverted from legal
supply and their effect on the users is
While some fentanils on the European
therefore less predictable.
7 EMCDDA 2017, European Drugs Report 2017
10 BBC News 2017, Fentanyl deaths:
8
Warning as drug kil s ‘at least 60’
EMCDDA & Europol 2016, EU Drug Markets Report
[1 August 2017], accessible at
2016
http://www.bbc.com/news/uk-
9 Based on a contribution by the EMCDDA (November
england-40793887
2017)
Major international law enforcement operations
shut down AlphaBay and Hansa
Two major law enforcement operations, led by the Federal
addresses for a large number of orders. Some 10 000
Bureau of Investigation (FBI), the US Drug Enforcement
foreign addresses of Hansa market buyers were passed on
Agency (DEA) and the Dutch National Police, with the
to Europol.
support of Europol, have shut down the infrastructure of an
underground criminal economy responsible for the trading
In the meantime, an FBI and DEA-led operation, cal ed
of over 350 000 il icit commodities including drugs, firearms
Bayonet, was able to identify the creator and administrator
and cybercrime malware. The coordinated law enforcement of AlphaBay, a Canadian citizen living a luxurious life in
action in Europe and the US ranks as one of the most
Thailand. On 5 July 2017, the main suspect was arrested in
sophisticated take-down operations ever seen in the fight
Thailand and the site taken down. Mil ions of dol ars’ worth
against criminal activities online.
of cryptocurrencies were frozen and seized. Servers were
also seized in Canada and the Netherlands.
AlphaBay was the largest criminal marketplace on the
Dark Web, utilising a hidden service on the Tor network to
LAW ENFORCEMENT STRATEGY
effectively mask user identities and server locations. Prior
to its take-down, AlphaBay reached over 200 000 users and
In shutting down two of the three largest criminal
40 000 vendors. There were over 250 000 listings for il egal
marketplaces on the Dark Web, a major element of the
drugs and toxic chemicals on AlphaBay, and over 100 000
infrastructure of the underground criminal economy
listings for stolen and fraudulent identification documents
has been taken offline. It has severely disrupted criminal
and access devices, counterfeit goods, malware and other
enterprises around the world, has led to the arrest of key
computer hacking tools, firearms, and fraudulent services.
figures involved in online criminal activity, and yielded
A conservative estimation of USD 1 bil ion was transacted
huge amounts of intel igence that will lead to further
in the market since its creation in 2014. Transactions were
investigations. But what made this operation real y special
paid in Bitcoin and other cryptocurrencies. Hansa was the
was the strategy developed by the FBI, DEA, the Dutch
third largest criminal marketplace on the Dark Web, trading
Police and Europol to magnify the disruptive impact of
similarly high volumes in il icit drugs and other commodities. the joint action to take out AlphaBay and Hansa. This
The two markets were created to facilitate the expansion
involved taking covert control of Hansa under Dutch
11
of a major underground criminal economy, which affected
judicial authority, which al owed Dutch police to monitor
the lives of thousands of people around the world and
the activity of users without their knowledge, and then
was expressly designed to frustrate the ability of law
shutting down AlphaBay during the same period. It meant
enforcement to bring offenders to justice.
the Dutch police could identify and disrupt the regular
criminal activity on Hansa but then also sweep up all those
THE INVESTIGATIONS
new users displaced from AlphaBay who were looking for
a new trading platform. In fact they flocked to Hansa in
Europol has been supporting the investigation of criminal
their droves, with an eight-fold increase in the number of
marketplaces on the Dark Web for a number of years.
new members of Hansa recorded immediately fol owing
Europol and partner agencies supported the Dutch National
the shutdown of AlphaBay. As a law enforcement strategy,
Police to take over the Hansa marketplace on 20 June 2017
leveraging the combined operational and technical
under Dutch judicial authorisation, facilitating the covert
strengths of multiple agencies in the US and Europe, it has
monitoring of criminal activities on the platform until it
been an extraordinary success and a stark il ustration of the
was shut down on 20 July 2017. The Dutch Police col ected
col ective power the global law enforcement community can
valuable information on high value targets and delivery
bring to disrupt major criminal activity.
USERS
AlphaBay was taken
Two weeks later, the
The Dutch Police
down on 4 July
number of users in
shut down Hansa
2017
HANSA increased
marketplace on 20
eightfold
July 2017
BUSINESS FUNDAMENTALS –
HOW ILLEGAL DRUGS SUSTAIN ORGANISED CRIME IN THE EU
ICTURE
Cannabis
Cannabis remains, by far, the most
widely consumed il egal drug in the EU.
Cannabis is distributed on EU markets as
cannabis resin and herbal cannabis. In
recent years, herbal cannabis has been
increasingly popular with consumers,
which has led to an increase in the
production and availability of herbal
cannabis within the EU and in countries
close to EU markets. Market stability
indicates the success of the business
model of the OCGs involved in this crime
area as well as the key role played by
organised crime in the trade in this il egal
12
Growing equipment, seeds and other raw
drug.
materials used for cannabis cultivation
in the EU are available online. Growing
Cannabis is set to remain popular with
technologies have advanced al owing
consumers and, as a consequence, will
OCGs to automate the maintenance
continue to generate significant profits
of cultivation sites and reduce the risk
for the OCGs involved in its production,
of detection. The indoor cultivation of
trafficking and distribution. The indoor
herbal cannabis in the EU is expected
cultivation of herbal cannabis has proven
to further expand over the coming
a successful business model for OCGs
years with new growing techniques
and various groups will likely continue to
and increasingly sophisticated growing
invest in cultivation sites across the EU.
technologies being used by OCGs in order
to increase harvest yields and profits.
PRODUCTION IN THE EU
SITUATIONAL P
The production of herbal cannabis within
TRAFFICKING
the EU for domestic consumption has
Albania remains the main source of
increased significantly over recent years.
herbal cannabis trafficked to the EU. The
The indoor and outdoor cultivation of
main source of cannabis resin consumed
herbal cannabis in the Member States
in the EU is Morocco from where it is
or in countries close to EU consumer
trafficked to the EU primarily by sea and
markets is now likely the main source of
road transport. Cannabis resin originating
herbal cannabis distributed in the EU.
from Morocco is increasingly smuggled
Indoor cultivation of cannabis takes place
to the EU across the Mediterranean Sea
in most, if not al , Member States on
departing from Libya.
different scales.
Using front companies and middlemen,
some OCGs operate their own cargo
vessels or even small fleets of cargo
vessels transporting multi-tonne
shipments of cannabis. Cannabis resin
is trafficked to the EU in containers
concealed among legal goods.
Cocaine
The trafficking and distribution of cocaine
is the most common criminal activity
related to drugs among OCGs active
in the EU and generates multi-bil ion
profits for the criminal actors involved.
The annual retail market for cocaine in
by couriers. In some cases, OCGs use
Europe is conservatively estimated at
smal er leisure boats as well light aircraft
EUR 5.7 bil ion. OCGs involved in cocaine
to smuggle cocaine to and within the EU.
trafficking col aborate extensively in the
Most cocaine trafficked in containers
trafficking and distribution of cocaine to
arrives in the EU at major sea ports,
an extent that it is difficult to delineate
where OCGs often rely on corrupt port
between the different OCGs involved in
workers and other staff to extract the
the trafficking activity in South America,
cocaine shipments from the containers.
Africa and the EU.
Cocaine trafficked by air arrives at major
EU airports often fol owing multiple
PRODUCTION
changes as part of the couriers’ journey
Cocaine is primarily produced in
in order to obscure their original point
Colombia, Peru and Bolivia and trafficked
of departure. Smal er shipments of
to the EU via other South American
cocaine are frequently trafficked to
countries, the Caribbean Sea region
the EU in couriers’ luggage or by body-
and West Africa. Colombia remains the
packers. Cruise ships departing from the
biggest producer of cocaine in the world.
Caribbean Sea region are increasingly
being used to traffic cocaine to the EU.
13
TRAFFICKING
Cocaine also continues to be smuggled
incorporated into other items or as
Cocaine is typical y trafficked as part
liquid odourless substances and is later
of large shipments in containers and
extracted and converted into cocaine
marine vessels or in smal er quantities
hydrochloride in dedicated secondary
extraction and conversion laboratories.
The EU is increasingly used as a
transhipment point for cocaine trafficked
from South America to destinations in
Asia and the Middle East.
Significant increase
Over the last three years, the production
compared to the previous year.12
of cocaine in Colombia has intensified
in cocaine trafficking
significantly fol owing a peace accord
This unprecedented increase in cocaine
activities and seizures in
between the government of Colombia
production has resulted in intensified
trafficking activity to the EU. While the
the EU
and Revolutionary Armed Forces
of Colombia - People’s Army (FARC)
established routes and modi operandi
insurgents. The production output of
such as the trafficking of cocaine in
cocaine increased by 60% from 2014
containers and the use of couriers have
to 2015.
largely remained the same, the number
11 Between 2015 and 2016,
Colombian coca cultivation areas
and quantities of cocaine seizures in the
expanded by 52% representing a further
EU have notably increased.
increase in production output of 34%
11 United States Department of State 2017, International
12 UNODC 2017, UNODC Colombia Cultivation Survey,
Narcotics Control Strategy Report. Vol I, Drug and
accessible at http://www.unodc.org/documents/
Chemical Control.
colombia/2017/julio/CENSO_2017_WEB_baja.pdf
BUSINESS FUNDAMENTALS –
HOW ILLEGAL DRUGS SUSTAIN ORGANISED CRIME IN THE EU
Heroin
OCGs active in the trafficking and
Synthetic drugs and NPS
distribution of heroin rely on an
The market for synthetic drugs continues
established and successful business
to be most dynamic of the drugs markets
model generating significant profits.
in the EU. OCGs based in the EU remain
Despite a reported moderate decline
among the most prolific producers of
in heroin consumption levels in the EU,
various types of synthetic drugs in the
heroin continues to be trafficked to the
world.
EU in large quantities.
PRODUCTION
PRODUCTION
The production of different types
Afghanistan remains the leading producer of synthetic drugs takes place in
of heroin trafficked to the EU. The
various Member States. The intended
production output of opium and heroin in destination markets for synthetic drugs
Afghanistan is very high and is projected
produced in the EU vary according to
to remain so for the foreseeable future.
the substance and production location.
The estimated Afghan production output
A share of the large-scale production of
of opium in 2016 is approximately
3,4-methylenedioxy-methamphetamine
4800 tonnes, which could yield more
(MDMA), amphetamine and, to a lesser
between 290 and 510 tonnes of heroin
extent, methamphetamine in the EU
in production.
13 OCGs are thought to use
14
is intended for trafficking to markets
established trafficking infrastructure to
outside the EU, while the production of
traffic acetic anhydride, the precursor
synthetic drugs in other parts of the EU
used for heroin production, in large
predominantly supplies domestic and
quantities.
neighbouring EU markets.
TRAFFICKING
PRECURSORS AND
A large share of the heroin consumed
PRE-PRECURSORS
in the Member States is trafficked via
OCGs producing synthetic drugs in the
the Balkan route to the EU - overland,
EU continue to be highly flexible and
by sea or by air. Repeated large seizures
will remain so in the future. They are
indicate the growing importance of the
quick to adopt alternative precursor and
Caucasus route. The Southern Caucasus
pre-precursor substances in reaction to
region is an alternative transit hub for the any shortages in established precursor
trafficking of large quantities of heroin
substances. Some OCGs have specialised
from Iran to the EU.
in the procurement and production of
OCGs involved in heroin trafficking
pre-precursor and precursor substances
increasingly traffic heroin in large
supplying OCGs producing and
individual shipments in excess of 100
distributing synthetic drugs in the EU.
kilograms per shipment. Large shipments
are also transported via the Southern
TRAFFICKING
route, with East Africa and South Africa
as transhipment points, to key ports in
Synthetic drugs produced in the EU
Western Europe.
are trafficked within the EU and to
destination markets outside the EU
Couriers continue to be used to
mainly by couriers and parcels. Larger
traffic heroin to the EU. Heroin is also
shipments trafficked within the EU are
available on online marketplaces and is
typical y concealed in private vehicles and
occasional y distributed across the EU
on lorries. In some cases, large shipments
in small quantities via post and parcel
of synthetic drugs are trafficked to
services.
destinations outside the EU in maritime
shipping containers.
13 United Nations Office for Drugs and Crime (UNODC)
2016, Afghanistan Opium Survey 2016, p. 38, accessible
at https://www.unodc.org/documents/press/releases/
AfghanistanOpiumSurvey2016.pdf
cases, these OCGs launder these funds
by themselves investing in businesses,
real estate and other ventures across
and outside the EU. However, the most
successful drug trafficking networks
also make use of money laundering
syndicates, which have specialised in
laundering the proceeds of other OCGs in
exchange for a fee.
The scale of money laundering activities
in the EU is significant reflecting the
immense profits generated by the OCGs
involved in the drugs trade and other
Terrorism
serious and organised crime. However,
the global anti-money laundering
Terrorism and the groups carrying
framework implemented by law
out terrorist offences have evolved
enforcement and other authorities in the
significantly over the last decade. The EU
EU has shown to have a poor success rate
has been the target of repeated terror
in identifying and seizing il egal funds
attacks and plots in recent years. The
generated by criminal organisations.
trafficking and sale of il egal drugs in
Between 0.7-1.28% of annual EU GDP is
the EU is believed to primarily finance
detected as being involved in suspect
terrorist activities outside the EU.
financial activity. In 2014, EU Financial
Intel igence Units (FIUs) received almost
15
The pursuit of criminal activities in
support of terrorist activities is not a
1 mil ion reports. Although the overall
new phenomenon. Routes used to traffic
LINKS
number of suspicious transaction
cannabis and heroin traverse the same
reports (STRs) continues to increase,
regions, such as the Western Balkans,
only around 10% of these reports are
that are also linked to terrorism-related
further investigated – a figure that is
activities including terrorism financing.
TO THE
largely unchanged since 2006. Even
The actors involved in terrorism with
where further investigated, the likelihood
links to serious and organised crime use
of successful asset recovery is low,
criminal infrastructures to facilitate their
and barely 1% of criminal proceeds are
terrorism-related activities.
TRADE IN
confiscated by relevant authorities at EU
level. 14
EU-based criminals specialising in
the production of synthetic drugs
Money laundering is also increasingly a
are believed to be involved in the
ILLEGAL
technical chal enge for law enforcement
production of amphetamine used to
authorities. Criminal networks
manufacture “captagon” in the Middle
continuously seek to exploit the latest
East. “Captagon” is a popular drug in the
DRUGS
technological developments such as
Middle East and known to be used as a
cryptocurrencies and anonymous
psychostimulant in combat situations.
payment methods. Rapid transaction
The trade in this substance is likely a
processing and the proliferation of
source of finance for the activities of
effective anonymisation tools are
terrorist actors.
significant obstacles in the identification
of the beneficial owners of criminal
proceeds. A growing number of online
Money laundering
platforms and applications offer new
ways of transferring money and are not
Money laundering al ows OCGs to
always regulated to the same degree as
introduce the proceeds of crime into the
traditional financial service providers.
legitimate economy. Almost all criminal
groups need to launder profits generated
14 Europol 2017, From Suspicion to Action - Converting
from criminal activities. The trade in
financial intel igence into greater operational impact,
accessible at https://www.europol.europa.eu/sites/
il egal drugs generates substantial
default/files/documents/ql-01-17-932-en-c_pf_final.
profits for the OCGs involved. In some
pdf
BUSINESS FUNDAMENTALS –
HOW ILLEGAL DRUGS SUSTAIN ORGANISED CRIME IN THE EU
BUSINESS FUNDAMENTALS
HOW ILLEGAL
DRUGS SUSTAIN
ORGANISED CRIME
www.europol.europa.eu
IN THE EU