Professional & Organized: How the GTSEZ Encourages the Multi-functional Criminal Enterprise, and What To Do About It
By Chuck Mackey
Introduction
In Part 1, we introduced you to the Golden Triangle Special Economic Zone (GTSEZ), established in 2007 in Laos’ Bokeo Province. Initially envisioned as a beacon of economic development, the GTEZ, located at the convergence of Laos, Myanmar, and Thailand, promised prosperity and growth. However, behind its glittering facade, a dark unchecked underworld has flourished over the last 15 years.
The GTSEZ is now a notorious hub for transnational crime, including drug trafficking, human trafficking, wildlife smuggling, and cybercrime. Despite international sanctions and efforts to curb ever-expanding criminal activities, the zone remains a lawless enclave, where corruption and exploitation thrive unabated.
In this article, we will explore how the Multi-functional Criminal Enterprise (MFCE) has flourished by adopting the same professional management doctrines and principles used by legitimate businesses worldwide. These criminal organizations have evolved beyond traditional illicit activities, employing sophisticated business strategies to expand their operations and maximize profits. By understanding their methods, we can better develop strategies to disrupt their activities and mitigate their impact.
How a Multi-functional Criminal Enterprise is Professionally Organized[1]
The Principle of Diversification
MFCEs have evolved into sophisticated operations, engaging in a wide array of illicit activities. Beyond traditional drug trafficking and extortion, they now delve heavily into cybercrime, human trafficking, arms smuggling, and environmental crimes. This diversification spreads risk across their entire operation and maximizes profits across various illegal markets.
Business-like Operations
MFCEs operate with a chilling level of professionalism. They employ business strategies such as market analysis, supply chain management, and financial planning. Legitimate businesses are often used as fronts to launder money and facilitate illegal activities. For instance, they invest in real estate, hospitality, or import-export businesses to mask their operations, creating a facade of legitimacy while conducting heinous crimes behind closed doors and aggressive expansion tactics.
Use of Technology
Advancements in technology have exponentially boosted the capabilities of MFCEs. They use encrypted communication, cryptocurrencies, and the dark web to conduct their activities with greater anonymity and security.
Cybercrime has become THE major component of their operations, with activities ranging from ransomware attacks to large-scale financial fraud. These enterprises exploit the anonymity of the Internet to perpetrate crimes on a global scale, often leaving victims powerless and law enforcement agencies struggling to keep up. Technology shrinks their “time-to-market” and enables cybercrime to expand on a global basis, hitting every single continent with endless phishing scams.
Organizational Structure
MFCEs have a hierarchical structure, not unlike any major corporation, with clear roles, responsibilities, and paychecks. This includes leaders, senior managers, advisors, and various heads of operations, finance, security, and external relations. Each division manages specific criminal activities, ensuring efficient and coordinated operations. This meticulous organization allows them to operate like well-oiled machines, executing complex criminal schemes with precision. See chart below.
The GTSEZ Encourages the MFCE
Strategic Location
The GTSEZ’s location makes it an ideal transit point for illicit goods and activities. This strategic positioning facilitates the flow of drugs, human trafficking, smuggling, technology, and other illegal operations. The zone’s geographical advantage is exploited to the fullest, turning it into a bustling hub of criminal activity.
Economic Development Facade
The GTSEZ was initially established to promote economic development, attracting investments and tourists. However, this facade of legitimate economic activity provides perfect cover for criminal enterprises to operate with minimal scrutiny. Mixing legitimate and illegal operations blurs the line, creating a confusing, hard-to-unravel web of deceit.
Corruption and Weak Law Enforcement
The influx of illicit money has fueled corruption, undermined the rule of law, and eroded public trust in authorities. Efforts by Lao authorities to crack down on these activities have been severely limited and ineffective, allowing the GTSEZ to continue operating as a haven for transnational crime. Corrupt officials turn a blind eye to the rampant criminality, further entrenching the zone’s lawlessness.
Cybercrime Operations
The GTSEZ has become a breeding ground for cybercrime. Fraud factories, staffed by human trafficking victims operate within the zone, conducting elaborate global scam operations. The phishing email or text you receive liking was generated by a MFCE, not some random lone criminal. Victims (human trafficking) are coerced into working in these scam centers and “Phishing Farms” where they are forced to make fraudulent calls and outbound texts and engage in other illegal activities. The exploitation of human trafficking victims for cybercrime adds a horrifying layer to the already grim reality of the GTSEZ.
What To Do About It
Strengthen Law Enforcement
There is a need for stronger law enforcement within the GTSEZ to crack down on criminal activities. This includes increasing the capacity of local police, improving investigative techniques, and ensuring that law enforcement agencies are free from corruption. Without robust law enforcement, the cycle of crime and exploitation will continue unabated.
International Cooperation
Given the transnational nature of the crimes associated with the GTSEZ and MFCEs, international cooperation is crucial. Countries need to work together to share intelligence, conduct joint operations, and apply consistent pressure on criminal enterprises operating within the zone. A united global front is essential to dismantle these sophisticated criminal networks.
Promote Legitimate Economic Development
Efforts should be made to promote legitimate economic development within the GTSEZ. This includes attracting genuine investors, creating job opportunities for local populations, and ensuring that economic activities are transparent and accountable. By fostering legitimate economic growth, the grip of criminal enterprises on the zone is weakened.
Protect Victims
There should be a focus on protecting victims of human trafficking and exploitation within the GTSEZ. This includes providing support services, safe havens, and legal assistance to help victims escape from criminal enterprises and rebuild their lives. The human cost of the GTSEZ’s criminality is immense, and addressing it requires a compassionate and comprehensive approach.
Address Corruption
Combating corruption is essential to restoring the rule of law within the GTSEZ. This involves implementing anti-corruption measures, holding corrupt officials accountable, and promoting transparency in government operations. Without addressing the root cause of corruption, any efforts to combat crime in the GTSEZ will be futile.
Public Awareness and Advocacy
Raising public awareness about the criminal activities within the GTSEZ and the broader operations of MFCEs is also a critical component of the response. Media investigations and reports have shed light on the dark underworld of the GTSEZ, prompting calls for action from the international community. Advocacy efforts by human rights organizations are also putting pressure on governments to take decisive action.
These advancements represent significant steps forward in the fight against the criminal enterprises operating within the GTSEZ. Continued international cooperation, technological innovation, and robust law enforcement efforts are essential to achieving lasting success.
Increased Regulation and Oversight
Efforts by Lao authorities to improve regulations and increase law enforcement within the GTSEZ have been ongoing. Although challenges remain, these efforts are aimed at curbing the rampant criminal activities and restoring some level of order within the zone. This includes stricter enforcement of existing laws and the implementation of new regulations to address emerging threats.
Technological Advancements
Law enforcement agencies are leveraging advancements in technology to combat MFCEs more effectively. This includes the use of artificial intelligence (AI) for predictive policing, improved surveillance capabilities, and more efficient identification of potential threats. AI technologies are being deployed to analyze large datasets, identify patterns, and predict crime hotspots, enhancing the ability of law enforcement to respond proactively.
Heightened International Scrutiny and Sanctions
The GTSEZ faces intense scrutiny from international bodies and human rights organizations due to persistent human rights concerns and criminal activities. The United States Treasury Department has sanctioned the Kings Romans Group, its owner Zhao Wei, and the “Zhao Wei Transnational Crime Organization” for their involvement in money laundering and drug trafficking. These sanctions aim to disrupt the financial networks supporting these criminal enterprises.
By addressing these issues, the international community can help dismantle the criminal enterprises operating within the GTSEZ and support efforts to restore law and order in this troubled region. The stakes are high, and the consequences of inaction are dire.
[1]Sources: Police 1, Business & Human Rights Resource Centre, Forbes, Sci-Tech Today, Infosec Institute, Bolster AI, Living Security, The Diplomat, purplesec.us.