The threat to global security from Southeast Asia’s transnational crime groups
The destabilizing impact of organized crime networks is a danger to security and democracy, sex workers aim to ensure their inclusion in an upcoming UN report, and cotton produced with forced labour is found in products sold by global retailers.
The power, reach, and influence of the Southeast Asian criminal networks behind scamming operations have expanded to the point that they now directly threaten human and national security globally, according to a new report by the United States Institute of Peace (USIP). Furthermore, the melding of these mostly China-origin groups with corrupt local elites has generated a malign ecosystem that is rapidly evolving into “the most powerful criminal network of the modern era”, the authors say.
Aside from targeting citizens, the criminal networks behind these scams threaten the security interests of the U.S. and its allies for three key reasons, the report states. First, they endanger democracy, good governance, and stability around the world by co-opting local elites, undermining law enforcement, weakening state authority, and threatening a free and open Indo-Pacific. Second, they take advantage of weak governance to gain control over territory and acquire opaque influence over governments, which allows them to victimize citizens around the world with near impunity. And third, China’s government is now using the presence of Chinese-led crime groups in other countries to justify striking increases in the presence of its authoritarian police around the globe.
USIP has also raised concerns about the potential for these criminal networks to escalate their activities beyond financial fraud to target critical infrastructure. At the report’s launch event yesterday, it warned of the possibility of future attacks on essential services such as water and transportation systems, emphasizing the need for proactive measures to mitigate such risks.
A study group formed by USIP found dispersal of these criminal networks throughout Southeast Asia strongly correlated with the areas of weakest governance and the most profound state-embedded criminality. By operating in both licit and illicit business spheres, criminal groups gain access to regional government and business elites through apparently legitimate connections and become embedded within official systems, ultimately propping up corrupt and dangerous regimes from Myanmar to North Korea and posing a direct threat to regional stability.
For instance, scamming operations in Myanmar along the Chinese and Thai borders have become a key driver of the country’s internal conflict. Widespread fighting between the Myanmar military and anti-junta resistance forces not only makes the military and its associated forces – as well as some of the militia groups involved in the criminal activity – more reliant on the revenue from the criminal operations, but also contributes to the militarized fortification of their compounds.
In Cambodia, the return on cyber scamming is estimated to exceed US$12.5 billion annually – half the country’s formal GDP – with many compounds owned by local elites. More broadly, the study group calculates that funds stolen by these criminal syndicates likely exceeds US$43.8 billion a year – nearly 40 per cent of the combined formal GDP of Laos, Cambodia, and Myanmar. A significant share of profits is reported to flow to the Myanmar military and to ruling elites in Cambodia and Laos.
Meanwhile, the relationship between these criminal groups and the Chinese government is a confusing complex of mixed incentives and mutual opportunity, the authors say. While crime groups maintain close relations with members of the Chinese Communist Party and a range of state actors, the Chinese state, recognizing it can no longer control them, has become more concerned about the threat their activity poses to its citizens, who are major victims of criminal scamming and forced labour through fraudulent trafficking. At the same time, however, Beijing appears to see opportunity in harnessing the global reach and influence of criminal groups to advance China’s Belt and Road Initiative and its new Global Security Initiative, which aims to counter global security norms.
Constraining transnational criminal networks ultimately requires international coordination and a holistic response that addresses their power, reach, and methods of operation. Against the current backdrop of regulatory gaps and a lack of measures to monitor and regulate cryptocurrency transactions, exchanges and platforms, information is fragmented and compartmentalized, leading to a lack of action and accountability. Yet to combat these crimes effectively, collaboration between countries, international organizations, and law enforcement agencies is crucial. Should countries, in particular the U.S. and China, fail to find means of coordinating their efforts, criminal networks will exploit the resulting gaps to sustain their activities.
Here’s a round-up of other noteworthy news and initiatives:
New data obtained through a freedom of information request reveals that hundreds of children identified as potential victims of trafficking are left vulnerable to exploitation after falling out of the UK government system once they turn 18. The figures underscore the urgent need for reforms to ensure young victims of trafficking receive the support they need as they transition into adulthood, according to anti-trafficking charities.
A collaborative study by New York University and The Freedom Fund examines the experiences of Ethiopian migrant domestic workers (MDWs) in Lebanon, Kuwait, and Jordan, highlighting the challenges they face with recruitment, employment conditions, and access to assistance. Through interviews and data analysis, the study documents pervasive issues such as exploitation, long working hours, visa irregularities, and limited support from Ethiopian diplomatic missions, aiming to inform policy and advocacy efforts to combat abuse and exploitation of MDWs in the region.
Sex workers’ rights organizations worldwide are submitting inputs for a UN report on the intersection of “prostitution and violence against women and girls”, critiquing the terminology used in the report’s title and its focus on a specific perspective and ideological approach. These submissions aim to ensure the inclusion of sex workers’ voices and experiences of violence in the report’s discourse.
Forced-labour-linked Xinjiang cotton is still being detected in products sold by U.S. and global retailers, with a significant portion concealed in blended fibers labeled as American or Brazilian in origin, highlighting ongoing challenges in supply chain transparency and enforcement of anti-forced labour legislation. Despite efforts to curb the influx of Xinjiang cotton, its presence underscores the need for enhanced testing and verification methods, as well as closer collaboration among stakeholders to ensure compliance and accountability throughout the supply chain.
A new investigative report reveals that Venezuelan women are increasingly targeted by human trafficking rings, with recruitment extending beyond the Colombia-Venezuela border, indicating a shift in tactics to exploit vulnerable individuals.
The Environmental Justice Foundation’s investigation into China’s distant-water fishing fleet in the Southwest Indian Ocean highlights egregious human rights abuses, including physical violence, abusive working conditions, and intimidation. Despite claims of sustainable development, the report uncovers a troubling reality of routine exploitation and disregard for the wellbeing of those working aboard these vessels.
The Global Initiative Against Transnational Organized Crime (GI-TOC) has launched its fifth edition of the Resilience Fellowship, aimed at supporting community responses in fragile contexts affected by organized crime, and bringing together diverse civil society actors to collaborate on countering its impacts. Open for applications until 25 May, the Fellowship offers mentorship, capacity-building workshops, and a global platform for journalists, activists, and leaders to enhance skills, build networks, and address local dynamics.
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