Unit-3 MODERN CRIME-

Introduction
A criminal wrong is considered to be graver than a civil wrong as it is considered as an act
against the whole society. Increasing crimes in any legal system are an example of a chaotic and
alarming situation for the country. Amidst all crimes, certain crimes are performed repeatedly by
certain criminals, to not take revenge but to gain profits. Such instances fall under the scope of
organised crimes. This article makes an attempt to identify some of the most prominent forms of
organised crimes in India, the legal framework surrounding these crimes and the challenges faced
by the State to curb these crimes.

Concept of organised crime

Organised crime means the commission of a crime at regular intervals in order to make money or
profits. Some examples could include human trafficking, money laundering, smuggling, etc.
Certain characteristics of organised crimes have been discussed hereafter to get a better
understanding of the concept.

Nature and characteristics of organised crime

Presence of mens rea and actus reus

The very first step in any crime is the intention. The presence of mens rea and actus reus are the
two imperative essentials to prove that a certain crime has been committed. The former implies a
guilty mind i.e. a person being mindful of his/her actions and knowing that a successful attempt
would result in a crime and the latter implies a physical activity or omission by the person which
gives effect to the crime. To know more about these two elements, check out this article.

Commission of crime
To commit a crime (including organised crime), there are four stages that needs to be fulfilled.
First, there should be an intention to commit a crime. Secondly, there must be some preparation
to give effect to the crime. Third, there should be an attempt, i.e., presence of some action in
pursuance of the crime being committed. Lastly, the attempt should be accomplished for the
commission of that crime.

Objective of earning profits

It is important to understand that the purpose of committing an organised crime is not to take
revenge or harm someone, rather it is a kind of illegal business or a way for people to earn profits.
However, the crime which is committed is incidental to such activity and ultimately, there is
some kind of physical and/or mental injury.
Regularity
Another important characteristic of an organised crime is that it is not a one-time event, but rather
on a regular basis, just as a business. It is because of this aspect of continuity that the term is
referred to as ‘organised’, since a structure has been created wherein similar activities (crimes)
are being conducted regularly to earn profits.

Types of organised crimes

There are various activities that may be termed as organised crimes. Though there cannot be a
definite list, some of the most common types of organised crimes in India have been discussed
below.

Money laundering
Money laundering is one of the most serious crimes which can severely affect any economy in
several aspects. This crime is specifically governed by the Prevention of Money Laundering Act,
2002. It is a way by which illegal money earned from sources such as drug trafficking, human
trafficking, etc. are diverted to create an impression that such money comes from a legitimate
source. Many criminals are engaged in this profession where they help people with an illegal
income to convert it into a legitimate income.

Smuggling
Smuggling is another major economic offence in a form of organised crime. This is mostly
governed by the Customs Act, 1962. It is natural that the goods which are illegal in the territory
of India or heavily taxed are smuggled to continue their trade or maintain profits. With a change
in fiscal policy, the definition of smuggled goods vary but it is mostly items such as contraband
substances, valuable jewels, electronics, certain fabrics, etc. which are smuggled in India. Due to
the vast coastline, it becomes easy for people to smuggle goods.

Drug trafficking
Drug trafficking is another major crime that poses a threat to the younger population of India,
considering its drastic effects on physical and mental health. It is usually considered that the most
important reason for the high rate of drug trafficking is the geographical condition of India. It is
located between the Golden Triangle (Myanmar, Thailand, and Laos) on the northeast and
Golden Crescent (Pakistan, Afghanistan, and Iran) on the northwest- both of which are the two
largest sources of illicit drugs in Asia. Resultantly, this form of organised crime has become more
prevalent and significant in the country.

Human trafficking
Article 23 of the Indian Constitution explicitly prohibits human trafficking. Further, there are
various trafficking prohibition laws discussed in the latter part of the article. Human trafficking is
one of the most significant and heinous organised crimes. This involves women trafficking, child
trafficking, trading in sex workers, etc. A book titled “Indian Mafia” by S.K. Ghosh has revealed
that there are more than twenty-five lakh prostitutes in the country and roughly, three lakh
prostitutes get into the profession every year. Prostitution per se is not a crime but forcefully
dragging young girls or running a brothel imposes criminal liability. Moreover, human trafficking
is undoubtedly a crime.

Contract killings and kidnapping

These are governed by the Indian Penal Code. Contract killings means murdering someone for
money on a contractual basis. This is usually prevalent among the highly influential and public
personalities who are being murdered by their enemies/competitors through some other criminal
for a ransom. Similarly, kidnapping incidents are also prevalent wherein people pay a certain sum
of money to get someone kidnapped or these criminals ask someone for a ransom. Such crimes
are performed by organised criminals who do such tasks on a regular basis.

Laws governing organised crimes in India

Indian Penal Code

Criminal conspiracy
Section 120A of the Indian Penal Code, 1860 (IPC) deals with criminal conspiracy. Where two or
more persons agree to commit a crime, then they can be punished for criminal conspiracy. The
exception clearly provides that it is immaterial whether the object of such crime committed is the
main intention or incidental. Hence, organised crimes shall definitely be governed by this
provision. Further, Section 120B of the IPC imposes criminal liability which can extend up to
death punishment and even heavy fines.

Specific crime under the IPC

Additionally, these organised criminals shall also be charged for the specific crime which they
have committed. For instance, criminals engaged in contract killings shall be liable under Section
300 and Section 302 of the IPC which deals with murder. Similarly, an organised criminal
engaged in kidnapping shall be dealt with under Section 360, Section 363 and Section 364A of
the IPC. A person engaged in human trafficking shall be charged under Section 370 and Section
370A of the IPC.

Organised crime-specific law

There is no central legislation on organised crime. However, owing to the high rates of organised
crimes in Mumbai, Maharashtra came up with the Maharashtra Control of Organised Crime Act,
1999. It provides for different provisions dealing with the evidence to be admitted, protection of
witnesses, presumption of the court to consider the accused as criminals on fulfilment of certain
conditions, etc.

Preventive laws

National Security Act, 1980

There are various preventive laws existent in India which are applicable to organised crimes,
explicitly and implicitly. One of them is the National Security Act, which provides for the
detention of individuals “acting in any manner prejudicial to the defence of India, the relations
of India with foreign powers, or the security of India”. The scope of the term ‘defence’ is very
wide and it includes operations carried out by gangsters and since the preventive detention is
carried out by the executive, there is very little role of courts to play.

Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic

Substances Act, 1988
Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act is another
preventive law enacted with the aim of controlling the actions of people engaged in the illicit
trafficking of drugs and other narcotic substances. Under this law, a person can be detained for
upto one year if found to be engaged in drug trafficking. In certain cases, this period can be
further extended to one more year depending on the severity of the case.

Miscellaneous laws
Apart from these laws, there are various other laws that govern certain specific organised crimes.
To exemplify, the Narcotics Drugs and Psychotropic Substances Act, 1884 govern the cases
relating to trafficking of different narcotic substances; Customs Act, 1962 governs and imposes
liability for cases related to smuggling; Prevention of Money Laundering Act, 2002 governs the
cases relating to money laundering. Apart from these, there are many other laws such as
the Immoral Traffic (Prevention) Act, 1956; the Foreign Exchange Regulation Act, 1973,
the Public Gambling Act, 1867 etc.

Legal problems associated with organised

crimes

Law-making and enforcement

There is no central legislation specifically governing organised crime in India. It is important that
specialised steps are taken to curb this menace. Specific laws are required and the executive
needs to be empowered to take steps accordingly. Moreover, the enforcement should also be
stringent failing which, the whole object of enacting such a law would defeat.

Slow trials
Though these organised criminals are tried under different laws, the whole process of trials is
very slow and there is a very low conviction rate because in most of the cases, in such a long
period of time, the witnesses deny to come out of fear and in some cases, the pieces of evidence
are lost.

Obtaining proof
As mentioned earlier, most of the witnesses deny coming out of fear, so even if they are arrested,
they are later acquitted because of insufficient evidence and longevity of time. These players are
really strong and influential in their area of operations and naturally, people would not wish to
risk their lives by providing statements against them.

Lack of resources
A major part of the country is still unorganised and lack of proper resources and technology
become an obstacle in way of curbing organised crime. The lower-ranked police officers are not
given sufficient powers and a statement before them is not an admissible evidence. Further, these
officers do not have sufficient equipment to tap these criminals.

Lack of coordination
Since there is no central agency controlling these activities, every state has its own way of
functioning. These criminals do not stay for long at one place and keep migrating every now and
then. In such cases, due to lack of coordination, it becomes difficult and sometimes, impossible to
catch them.

Conclusion
The aforesaid discussion reveals the concept of organised crime where the ultimate intention of the
criminals is not to harm someone but rather make profits, however, some form of injury is caused.
Some common features of these crimes have also been mentioned above. Such crimes occur in
various forms including drug trafficking, human trafficking, money laundering, contract killings, etc.
There are various central and state laws such as the Indian Penal Code, PMLA, NDPS Act, preventive
laws, etc. to govern and curb organised crimes. Despite the existence of various legislation, the State
has not been successful in curbing these crimes to a considerable extent. This is because of various
challenges faced by the State such as lack of proper enforcement, lack of resources, slow trials,
difficulty in obtaining proof, etc. In light of these circumstances, it is imperative that the Parliament
bring in some laws specifically governing organised crimes and form diplomatic relations with other
nations since many of these crimes are transnational in nature.
White collar crime is a crime committed by the people who belongs to the higher class of society and
are from the reputable group of society. This crime is committed during the course of their
occupation. The people who are committing this crime have usually a better understanding of
technology, their respective field, disciplines etc. White collar crimes are largely evolved from few
years. And they are seen to be committed in large organizations that cover a large number of
activities. So we can say that these crimes are common to trade, commerce, education, health etc. As
the criminal profile has changed a lot in few years the traditional crimes have partially switched by
the white collar crimes in the country. The primary difference between the white and the blue crime
is that the ordinary i.e. the criminals of blue crime are people of under-privileged section and upper
class is involved in white collar crime and they commit the crime in a very organized manner. They
maintain their respect in the society until the crime is discovered.

Historical Background:

# Edwin Sutherland an American sociologist who first defined the white collar crimes in the global.
He described this crime to be committed by the person of high social status as compared to those
who commit ordinary crimes during the course of his employment.

# In 1934, Again Morris drew attention to the necessity of a change in emphasis regarding crime. He
arrested that anti-Social activities of persons of high status committed in course of their profession
must be brought with the category of crime and should be made punishable.

# Finally, E.H. Sutherland through his pioneering Work emphasised that these ‘ Upper Worked1
crimes which are committed by the persons of upper Socio-economic groups in course of their
occupation - violating the trust , Should be termed as “ White Collar Crime “ So as to be distinguished
from traditional crime which he called “ Blue Collar Crime “

# And the concept of White Collar Crimes found its place in criminology for the first time in 1941.[1]

White Collar And Blue Collar Crime: Differentiation

# The criminals of white collar crime are relatively more intelligent, smart and successful men of the
higher class than the ordinary criminals.

# These crimes are difficult to detect and not at all personal. And on the other hand, the ordinary
crimes are direct and are very personal. They also involve violent methods such as using force to
commit crime.

# The ordinary criminals are usually afraid of the law agencies after committing the crime but the
white collar criminals are not at all afraid of the law agencies because of the fact that if they got
detected they will be fined or transferred or the maximum that they will get a short-term
imprisonment.

# Another difference between blue and the white collar crime is that the economic loss of white
collar crime is thousands time higher than that of the ordinary crimes. The financial loss which the
society has to bear is higher in white collar crimes than the crimes committed by the people of low-
social standard.

· White collar crime committed out of greed and it is ver y well planned and executed on the other
hand blue crimes are usually committed out of rage, revenge and other emotions. In white
collar crime harm is caused to the casualties or cash but harm is physical in case of blue
collar crime.

How White Collar Crimes Affects More Than Just The Criminals:
White collar crime can have a large impact on the society and it does not only affect the
criminals. It is also called as a socio-economic crime because it has a direct impact on the
society. When a white collar crime is committed huge losses on business occur which have a
direct impact on the consumers and the society. There are various numbers of frauds and
scams that had been exposed in our country from the past few years like 2g scam, havala
scam, banking scam, fodder scam and many more. Due to these frauds and scams the
economy of our country has shambled. And then to make up these losses of fraud or any
scams, they increase the costs. This means higher prices for the consumers in the way of
higher taxes, government revenue, and increased insurance costs. The impact of white collar
crime on society is great. There is loss in every field from the costs of commodities to the
securities and insurance. One financial fraud can affect the businessmen, the investors and the
government. All you need is one bad employee who out of greed of money will commit a
financial fraud and will cause harm to the reputation of the company, lack of profits and gain
of losses.

Common Types Of White Collar Crime In India:

1) Bank Fraud Fraud is a crime committed with an intention to deceive and gain undue
advantage. Bank Fraud is a fraud committed on the banks. It is committed by the fraudulent
companies by making fake representations. It is also related to the manipulation of the
negotiable instruments like cheque bouncing, securities, bank deposits etc. Bank fraud is
concerned to the public at large because there is a relation of trust between the banks and the
public. It is the most common type of white collar crime and also a corporate crime. It harms
public as well as the government of the country.

2) Bribery: Bribery is also a very common type of white collar crime. By bribery we means
giving money or some goods to the person at a high position in return of a favor. In simple
words bribery is when one man gives money to the other which is in authority. It is done for
the purpose of insisting him to do something or to prevent him from doing something. It is
the most common income of most of the public officials of our country.

3) Cybercrime: Cybercrime is the biggest cause leading to these type of crime in India. It is
the latest problem prevailing in the cyber world. Cybercrime is the crime which is related to
‘computer networks’. With the rapid increase of advancement of technology there is also a
rapid increase in the crime related to the technology. Cybercrime involves the persons who
are expert in computer related technology. And it is committed against the victim directly or
indirectly to cause a harm to his reputation or to harm in physical or mental way using
internet, networks and other technological sources.
Cybercrime threatens the nations as well as the person’s security and financial status.
Cybercrime can cause huge financial loss to the country. Not only the financial loss but it can
also threaten the privacy of a person. Disclosure of confidential information can create
privacy problems. Also cybercrime against women is also rising. By the use of
telecommunication networks, mobile phones cyber stalking, sending obscene messages and
pictures by criminals to women is also increasing.
# Hacking,
# Child pornography,
# Copyright infringement,
# Cyber terrorism,
# Cyber stalking are some of common examples of cybercrime.

4) Money Laundering: Money laundering is a crime in which the criminals disguise the
identity of the money. In this crime, criminals try to hide the original ownership of the money
and the place where they obtained that money by illegal means. Laundering is done with the
intention of making that money came from legal sources. In simple words money laundering
means to show the illegitimate money as legal money. For instance if a person obtain money
from black marketing, trafficking of illegal goods the money will be considered ‘dirty’ and he
cannot deposit into the banks as it may seem suspicious if he directly deposit money into the
financial institutions because he had to create statements and records stating that where the
money came from. Money laundering involves three steps:

# Firstly, the owner of the money obtain the money from some illegal means and deposit into
the bank by some way.
# Then through multiple transactions the transfer of money is being done.
# Lastly, they return the money into banks to make it legitimate.

5) Tax Evasion: Tax evasion is committed with an intention to conceal one’s actual taxable
income and one’s original position to the authorities. This concealment of income is done to
reduce the tax liability in the eyes of government. In simple words it means to hide the money
obtained from the illegal means in order to reduce one’s liability to pay tax and to show low
income to the tax authorities. Tax evasion has a negative impact on the social values as it
demoralized honest tax payers and they might also want to do tax evasion also it gives
economy power in the hand of few undeserving people.

6) Identity Theft: Identity theft is one of the easiest type of crime these days. Due to
advancement of technology it is very easy to access personal information of anyone. Identity
theft is the crime in which the criminal access unauthorized information such as name,
address, phone number etc. and use this information to gain money. In simple words identity
theft is committed by using some other person identity to commit fraud or to gain money by
illegal means.

White Collar Crime In Different Professions:

1) In Medical And Health:
# Making of false medical certificates by the doctors.
# Fake and intended prolong the treatment in order to increases the bills.
# Sex discrimination of the child by the doctors on the compulsion of the patient to gain
money.
# Delaying of time by doctors to increase the amount of money in the bills.
# Sale of sample medicines which are not allowed to the chemists.

2) In Legal Profession:
# Fabrication of forged documents.
# Threatening the witnesses of the other party.
# Violation of ethical standard of legal profession to gain money.

3) In Education:
# Collecting huge sums of money in the name of donations by students in order to give them
admission.
# Merit based admission is replaced by donations.
# Collect huge amount of money in the name of government grants.

Legislations Against The White Collar Crime In India:

Government has made various legislation for identifying white collar crime. These legislation
contains punishment regarding these crimes.
# Companies Act, 1960.
# Income Tax Act, 1961.
# Indian Penal Code, 1860.
# Commodities Act, 1955.
# Prevention of corruption Act, 1988.
# Negotiable Instrument Act,
# Prevention of money laundering Act, 2002.
# IT Act, 2005.
# Imports and Exports (Control) Act, 1950.

Conclusions And Suggestions:

White collar crimes are the crimes which cause a harm to the economy of the country as a
whole. It threatens the country’s economy by bank frauds, economic thefts, evasion of tax
etc. It not only affects the financial status of a country or a person but It has also a negative
impact on the society. The various crimes such as bribery, corruption, money laundering has
affected society in a negative way.
# There is no proper definition of White collar crime in Indian laws. These socio-economic
crimes should not be taken leniently by the government.
# Punishment regarding White collar crime should be stricter as harsh punishment can
prevent these crimes to a great extent.
# If the crime is very heinous the punishment might also be extended to life imprisonment.
# People are not aware about most of these crimes so the public awareness through any
communication medium is also necessary.

PINK-COLLAR CRIME

Pink-collar crime was popularized by Dr. Kathleen Daly, originally mentioned in her 1989
article, “Gender and varieties of white-collar crime,” in the academic
journal, Criminology. Pink-collar crime refers to embezzlement-related crimes, which are
often times lower- to mid-level office women, who steal from their employers. Examples
could include bookkeepers, office managers, and accountants, who have limited opportunity
and access to intimate information.
It is important to note pink-collar crimes are not exclusive to women as it’s the position, not
the gender that defines pink-collar crimes. Generally speaking, there are more women than
men in these roles of opportunity. Though not as publicized, pink collar crime is serious and
is growing at an alarming rate, approximately increasing 40% since 1990.

GREEN-COLLAR CRIME

A seemingly more recent form of crime, some consider “green crimes” to be a subsect of
white-collar crimes. Green-collar crimes are defined as crimes committed against the
environment for profit.
In 2013, Ian David Macdonald and David John Downes of the U.K. were the two of the first
individuals to be charged with a green-collar crime for their involvement with a carbon credit
boiler room scam, ultimately defrauding investors out of $9 million dollars (U.S.). The men
were charged with 4 and 8 year prison sentences, proving green-collar crimes are considered
serious.

BLUE COLLAR CRIME

Blue-collar crime is considered to be any crime committed by someone from the working
class or lower class of society. These crimes tend to fueled by passion, lust, or rage, in
opposition to white collar crimes, which tend to involved extensive planning and are
meticulously calculated. Examples of blue-collar crimes include burglary, drug crimes,
assault, sexual assault, and theft crimes
Since blue-collar crimes often cause immediate and highly visible injury to society, they tend
to be punished more severely than other forms of collared crimes.

RED-COLLAR CRIME

The term “red-collared crime” has been used to describe white-collar crimes that turn
horribly violent. After their white-collar crimes have been discovered, red-collar criminals
use murder as a method of concealment, also called “fraud concealment homicide”, thus
changing the white-collar crime to a red-collar crime. The red-collar criminal usually has a
mixed criminal history of white-collar and non-white-collar crimes, that often includes a
history of violence.
Frank Perri coined the term “red-collar crime” in a 2015 article in the International Journal of
Psychological Studies, stating, “red-collar criminals engage in violence to silence those who
are in a position to detect and/or disclose their fraud schemes: hence the name fraud detection
homicide describing the motive to classify the murder.

BLACK-COLLAR CRIME

Though not officially confirmed in criminology studies, the term “black-collar crime” has
been used to refer to priests who commit crimes. Often times, these crimes are subsequently
covered by the Church.
Blue, pink, red, white, black, and green-collared crimes are different types of crimes
unfortunately present in modern-day society. Regardless of the type of crime, being informed
can help us understand how and why these crimes are committed. It also can help law
enforcement officers, lawyers, and our criminal justice system learn how to properly process
individuals convicted of these crimes.
WHITE COLLAR CRIMES
White Collar Crimes are crimes committed in the context of their employment by a person of
high social status and respectability. It is a crime committed by workers or business people
and usually involves a form of financial robbery or stealing. In 1939, sociologist Edwin
Sutherland described the term “White Collar Crime” as a non-violent felony committed by
business owners who have access to substantial amounts of money by fraudulent activities.
White Collar Offences are committed by people who are not involved in legal businesses,
across a wide range of activities. Unless their crime is exposed, offenders have a respectable
part to play in the communities. The legislation on white-collar crimes depends on the type of
crime committed.

There are many types of white-collar crimes, the following are some of them:

1. Tax and Bank frauds: Bank fraud includes engaging in such activities with a view to
defrauding a bank by using dishonest ways of acquiring properties owned by financial
institutions, while tax fraud means avoiding taxes by providing fake tax information
by secretly transferring assets in order to escape taxes.Computer fraud, such as
hacking or manipulating data from an agency or individual, is also used.
2. Embezzlement and Inside trading: It is embezzlement when someone entrusted with
cash or property uses it for their own use, and inside trading is when someone uses
classified knowledge to invest on publicly traded corporate securities.
3. Blackmailing and Bribery: Blackmail means asking for money by threatening a
person with physical harm or revealing his secrets, and Bribery means offering
someone money, goods or other presents to manipulate his acts. When someone else
pays or takes a bribe, it is a crime.
4. Extortion and money laundering: If a person illegally acquire the property of a person
by means of an actual or threatening force, so it is called extortion, while money
laundering means concealing the sources of money illegally obtained.
CAUSES OF WHITE-COLLAR CRIMES
The prevailing belief is that, irrespective of corruption or economic instability, white-collar
crimes are committed. However, regardless of the situational burden or the innate essence of
possessing more than any of them, some crimes are always committed. Any defendant is
convinced that their actions are not assaults, as the behaviours involved do not resemble
street crimes. In committing crimes, some people excuse for thinking that the administrative
legislation does not understand the realistic complexities of competition in the free enterprise
climate. The lack of awareness of people is one of the main factors of white-collar crime. The
nature of the crime is different from traditional crimes, because while they are the worst
victims of the crime, people scarcely remember it. Greed is another of the crime
commission’s reasons. Some people claim that others break the rules as well, and so it’s not
bad if they do the same. Another factor inherent in committing crimes is requirement. To
appease their ego or help their families, people commit white collar crimes.
ORGANISED CRIMES
Organized crime is defined as “one involved in continuing serious illicit activity to a
considerable degree elsewhere, typically operating with others.” Organized offenders
operating together for the duration of a single illicit crime or crime are what we call an
orchestrated gang of criminals. The mechanisms of organised crime are distinct. Successful
gangs of organised crime often consist of a long-lasting nucleus of significant people. There
is a circle of supervisors, advisors, and other more temporary members accompanying them,
plus an expanded network of redundant associates. In reality, most gangs are loose networks
of criminals that come together for the duration of an illicit activity, operating on their skills
and expertise in different roles. Collaboration is strengthened by shared knowledge (such as
incarceration) or guidance from trustworthy individuals. Others are related to family or race
relations. Organized criminals make use of practitioners, often from a number of criminal
organisations, who deliver services. Tools include transportation, money laundering, loan
management or the supply of false documents, a wide number of organised criminals
underpin identity theft.

ELEMENTS OF ORGANISED CRIMES

1. The criminal organisation is organised as a collection of interdependent,
hierarchically-ordered offices devoted to the operation of a common objective. It may
be tightly coordinated or very fluid. It is nonetheless recognisable as the ranks are
based on authority and control.
2. Membership is limited and relies on shared characteristics such as race, criminal
background or popular belief in the central criminal culture. Prospective participants
are subject to a great deal of review and are expected to display their value and
contribution to the crime environment. The rules of membership require anonymity,
ability to perform any act on behalf of the party and the duty to protect the party. In
exchange for loyalty, a member of a crime organisation gains economic rewards,
some prestige and immunity from law enforcement.
3. In order to collect money, the crime community relies on continuing criminal activity.
As a result, continued criminal conspiracy is inherent in organised crime. Any
processes, such as the supply of unlawful goods and services.
4. Aggression and the threat of aggression are an essential component of a criminal
organisation. In order to protect the economic rights of the party, the violence or
threat of it is used against the members of the group to keep them in line as well as
against outsiders. Participants are required to commit, condone or authorise acts of
aggression.
5. Participants of the criminal organisation seek to increase the profits of the
organisation. Political power is gained by corrupting elected officials, including
politicians and political leaders. Through its association with the “protectors” who
defend the group and its profits, the criminal group maintains power.
CONSEQUENCES OF CORPORATE CRIMES
These crimes cause instability in the economy of any nation. Corruption being the worst
reason for such an instability. Corruption costs are estimated to be more than 5% of global
GDP at $2.6 trillion (WEF) and more than $1 trillion paid in bribery each year (World
Bank).On average, it raises the cost of doing business by up to 10 percent. Business
mechanisms such as fair competition are skewed, transaction prices and uncertainty are
increased, and domestic and foreign investment is deterred, stifling growth, creativity and
future opportunities for industry. Investment in corrupt countries is 5% less than in relatively
corruption-free nations.
International outrage at the payment of bribes to foreign public officials has led to the
establishment, within the scope of the OECD Convention on the Bribery of Foreign Public
Officials, of a comprehensive international agreement on the prohibition of bribery
worldwide. The Convention requires OECD Member States to commit criminal acts for the
payment of bribery to public authorities by any of their citizens and companies, in any
jurisdiction in which they are established or anywhere bribery is paid. This also brought an
element of forced extraterritoriality to the constitution of several nations. Except in the
absence of the relevant host state rule, the rule of the home state applies to its citizens.
However, by the majority agreement of the Convention, those jurisdictions together limit the
aspirations of economic dominance of more powerful regimes and the fact that main gains are
being achieved by host nations, not by the home governments of companies expecting to
benefit from the payment of bribes.
Commerce, competitiveness, innovation and global economic growth are threatened by
cyber-crime. If more government and business operations move online as more economies,
companies and people around the world connect to the Internet, the cost of cybercrime will
continue to increase. Intellectual property theft loss will also escalate as acquirers escalate
their ability to make use of it to produce competing goods.The fast-growing class of
intangible assets and their legitimacy are being threatened by cybercrime. According to CSIS
McAfee research of 2014, Cybercrime adds around $475 billion annually to the global
economy, ranging from a small level of $375 billion in losses to a peak of $575 billion.