Advertisement

When Criminals Invest in Businesses: Are We Looking in the Right Direction? An Exploratory Analysis of Companies Controlled by Mafias

  • Michele RiccardiEmail author
Chapter

Abstract

The investment of criminals in companies has been receiving a lot of attention from policy makers and regulators worldwide. However this topic has often been neglected by researchers and relegated as a subspecies of money laundering: businesses are in most cases seen only as layers or shell companies used for concealing illicit proceeds. Is this only part of the story? This paper, after a critical review of the literature on criminals investments’ in businesses, performs an analysis of the geographical and sectorial distribution of about 2,000 companies confiscated from Mafia groups in Italy, highlighting how criminals’ investments may be explained not only by money laundering purposes, but also by other drivers such as profit maximization, control of the territory, social consensus and cultural/personal reasons.

Keywords

Money laundering Investments Mafia Organized Crime 

References

  1. Arlacchi, P. (1983). La mafia imprenditrice. L’etica mafiosa e lo spirito del capitalismo. Bologna: Il Mulino.Google Scholar
  2. Bertoni, A., & Rossi, E. (1997). I rapporti tra impresa criminale e l’economia legale di riferimento. La gestione del patrimonio cumulato con attività criminose. In Bertoni A. (Ed.), La criminalità come impresa. Milano: EGEA.Google Scholar
  3. Calderoni, F., & Riccardi, M. (2011). The investments of organized crime in Italy: an exploratory analysis. Working paper presented at the American Society of Criminology, November 16th, Washington D.C.Google Scholar
  4. Caneppele, S., Riccardi, M., & Standridge, P. (2013). Green energy and black economy: mafia investments in the wind power sector in Italy. Crime, Law and Social Change, 59(3), 319–339.CrossRefGoogle Scholar
  5. Cantone, R., & Di Feo, G. (2011). I gattopardi. Milano: Mondadori.Google Scholar
  6. Catanzaro, R. (1988). Il delitto come impresa. Storia sociale della mafia. Padova: Liviana.Google Scholar
  7. CSD—Center for the Study of Democracy (2011). Serious and organised threat assessment 2010–2011 in Bulgaria. Sofia: CSD. http://www.csd.bg/fileSrc.php?id = 20822.
  8. Fantò, E. (1999). L’impresa a partecipazione mafiosa. Economia legale ed economia criminale. Bari: Edizioni Dedalo.Google Scholar
  9. Fiorentini, G. (1999). Organized crime and illegal markets. Bologna: Università di Bologna, Dipartimento di Scienze EconomicheGoogle Scholar
  10. Gambetta, D., & Reuter, P. (2000). Conspiracy among the many: the Mafia in legitimate industries. In N. G. Fielding, R. V. Clarke, & R. Witt (Eds.), The Economic Dimensions of Crime (pp 100–121). New York: St. Martin’s.Google Scholar
  11. Mancini, L. (2011). TNT Commissariata per Mafia. Il Sole 24 Ore. http://www.ilsole24ore.com/art/economia/2011–04-17/commissariata-mafia-081626_PRN.shtml.
  12. Masciandaro, D., & Ruozi, R. (1999). Mercati e illegalità: economia e rischio criminalità in Italia. Milano: EGEA.Google Scholar
  13. OECD. (2002). Options for obtaining beneficial ownership and control information. Paris: OECD. http//www.oecd.org/corporate/ca/corporategovernanceofstate-ownedenterprises/1961539pdf Google Scholar
  14. OECD. (2001). Behind the corporate veil. Using corporate entities for illicit purposes. Paris: OECD. www.oecd.org/dataoecd/0/3/43703185pdf.Google Scholar
  15. Police College of Finland (2013), Research report for internal use for the Project OCP (www.ocportfolio.eu). Unpublished
  16. Reuter, P., & Levi, M. (2006). Money laundering. In M. Tonry (Ed.), Crime and justice: A review of research (pp 289–375). Chicago: Chicago University Press.Google Scholar
  17. Reuter, P., & Truman, E. M. (2004). Chasing dirty money: The fight against money laundering. Washington D.C.: Institute for International Economics.Google Scholar
  18. Riccardi, M., & Savona, E. (2013). The identification of beneficial owners in the fight against money laundering—final report of project BOWNET (www.bownet.eu). http://www.bownet.eu/materials/BOWNET_Final_report.pdf.
  19. Sacco, S. (2010). La mafia in cantiere. L’incidenza della criminalità organizzata nell’economia: una verifica empirica nel settore delle costruzioni. Palermo: Edizioni Pio La TorreGoogle Scholar
  20. Santino, U. (2006). Dalla mafia alle mafie: scienze sociali e crimine organizzato. Soveria Mannelli: Rubbettino Editore.Google Scholar
  21. Savona, E. U., & Riccardi, M. (2011). Come proteggere l’economia legale e gli imprenditori: gli strumenti di intervento. Report from the Meeting Assolombarda “Legalità e cultura d’impresa: risorse per il territorio”, 11th April 2011. http://www.viapantanonews.it/wp-content/uploads/2011/04/110411-Transcrime_presentazione-per-Assolombarda.pdf.
  22. Schneider, F. (2010). Turnover of organized crime and money laundering: some preliminary empirical findings. Public choice, 144, 473–486.CrossRefGoogle Scholar
  23. Schneider, S. (2004). Organized crime, money laundering and the real estate market in Canada. Journal of Property Research, 21(2), 99–118.CrossRefGoogle Scholar
  24. Transcrime. (2013a). Gli investimenti delle mafie. Final report of the project PON Sicurezza. Milano: Università Cattolica Sacro Cuore. http://www.investimentioc.it/files/PON-Gli_investimenti_delle_mafie.pdf.Google Scholar
  25. Transcrime. (2013b). Studio dell’impatto degli investimenti delle organizzazioni criminali sull’economia campana. Milano: Università Cattolica Sacro Cuore.Google Scholar
  26. Tribunale, diM. (2012). Ordinanza n. n. 35322/12 R.G.N.R. mod. 21 n. 9389/12 R.G.GIP (Blue Call s.r.l. investigation).Google Scholar
  27. Tribunale, diN. (2011). Ordinanza n. 2528/R/10 P.M. n. 23195/10 GIP n. 733/11 OCC.Google Scholar
  28. Unger, B., & Ferwerda J. (2011). Money laundering in the real estate sector: Suspicious properties. Cheltenham: Edward Elgar.Google Scholar
  29. UNODC (2011). Estimating illicit financial flows resulting from drug trafficking and other transnational organized crimes—Research report. Vienna: UNODC. http://www.unodc.org/documents/data-and-analysis/Studies/Illicit_financial_flows_2011_web.pdf.Google Scholar
  30. van der Does de Willebois, E., Halter, E. M., Harrison, R. A., Won Park, J., & Sharman, J. C. (2011). The puppet masters: How the corrupt use legal structures to hide stolen assets and what to do about It. New York: World Bank and UNODC. http://star.worldbank.org/star/publication/puppet-masters.Google Scholar
  31. van Duyne, P. C., & Soudijn, M. (2009). Hot money, hot stones and hot air: crime-money threat, real estate and real concern. Journal of Money Laundering Control, 12(2), 173–188.CrossRefGoogle Scholar
  32. Walker, J., & Unger, B. (2009). Measuring global money laundering: The walker gravity model. Review of Law & Economics, 5(2), 821–850.CrossRefGoogle Scholar
  33. Walker, J. (2007). How big is money laundering? Journal of Money Laundering Control, 3(1), 25–37.CrossRefGoogle Scholar
  34. World Economic Forum (2012). Organized crime enablers—Report of the Global Agenda Council on Organized Crime. http://reports.weforum.org/organized-crime-enablers-2012.

Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.TranscrimeUniversità Cattolica del Sacro Cuore di MilanoMilanItaly

Personalised recommendations