Preventing organised crime infiltration in retail

Transcription

1 Preventing organised crime infiltration in retail Michele Riccardi Crime&tech - Spin-off Transcrime-Università Cattolica del Sacro Cuore michele.riccardi@unicatt.it

2 2 Some Measure figures

3 OC infiltration in legal businesses Approx 2,500 companies confiscated from OC in Italy since 1983 G - Wholesale and retail trade F - Construction 27,0% 25,2% I - Accomodation and food service 12,6% L - Real estate C - Manufacturing A - Agriculture, forestry and fishing H - Transport and storage R - Arts, entertainment and N - Administrative and support K - Finance and insurance M - Professional, scientific and Other sectors 7,2% 6,9% 5,8% 3,8% 2,5% 1,8% 1,6% 1,3% 4,3% 3 Source: Crime&tech elaboration of ANBSC data

4 Focus: Retail trade Retail sale of information and 0,5% Non specialised wholesale trade 0,5% Retail trade not in stores, stalls or markets Retail sale via stalls and markets Agents involved in the sale of food, Sale of motor vehicle parts and accessories Maintenance and repair of motor vehicles Retail sale of cultural and recreation goods Retail sale of automotive fuel in specialised 2,2% 2,2% 2,5% 3,0% 3,6% 4,1% 4,4% Retail sale of other household equipment in Retail sale in non specialised stores Sale of motor vehicles Retail sale of food, beverages and tobacco 9,3% 11,5% 12,6% 14,5% Retail sale of other goods in specialised 29,0% 0% 5% 10% 15% 20% 25% 30% 35% 4 Source: Crime&tech elaboration of ANBSC data

5 Focus: Wholesale trade Wholesale of other machinery, equipment and supplies 4,5% Wholesale of agricultural raw materials and live animals 5,7% Wholesale on a fee or contract basis 7,0% Other specialised wholesale Wholesale of household goods 23,4% 27,9% Wholesale of food, beverages and tobacco 31,6% 0% 5% 10% 15% 20% 25% 30% 35% 5 Source: Crime&tech elaboration of ANBSC data

6 Retail trade supply chain Food manufacturing 1% Crops growing, farming, animal production 5.2% Bars & Restaurants 11.5% Retail trade 15.5% Wholesale trade 11.5% Freight Transport 2.9% 6 Warehousing and storage 1.5%

7 Retail trade supply chain Food manufacturing 1% Crops growing, farming, animal production 5.2% Bars & Restaurants 11.5% ~ 49% of all confiscated Retail trade 15.5% companies Wholesale trade 11.5% Freight Transport 2.9% 7 Warehousing and storage 1.5%

8 8 Case-study: Northern Italy, 2017 Investigation by Milan judicial authority Cosa Nostra group Extortion Drug trafficking Tax evasion Trade misinvoincing Money laundering Corruption Big supermarket player 8 Logistics and Private security companies 4 out of 10 Italian DGs under judicial administration

9 9 Case-study: Southern Italy, Investigation by DDA Catanzaro + Carabinieri Ndrangheta group Cocaine trade Money laundering Extortion Intimidation Bombings Competitors Big supermarket player 9

10 10 Case-study: the Netherlands, Investigation by Italian LEAs + Dutch LEAs Transportation + Wholesale Ndrangheta group But also Flowers trade 10 Cocaine trade Money Laundering Theft & product laundering (stolen 257 tons chocolate)

11 What the risks? Money laundering Corruption Property crime Credit risk Business continuity Reputational 11 Pink Floyd

12 Financial ratios (averages) Receivables days Legitimate companies 89.4 Confiscated companies Payables days With negative shareholders funds Total assets (mln) % % Profit margin 2.3% 1.6% 12 Source: Transcrime preliminary analysis on NACE section H in Italy

13 13 Organised crime = bad manager? Logistics companies infiltrated by organised crime: Take more time to pay suppliers Take more time to be paid by clients Are smaller than legal companies Are less profitable Show a weaker financial structure 13

14 Is it possible to identify businesses at risk of OC infiltration?? 14

15 Identifying companies at risk of OC infiltration The idea is that certain company information could provide red-flags and predictors of risk They can be used for due diligence & monitoring purposes Geographic area Business sector Risk factors Ownership structure Financials Adverse news 15

16 Source: Transcrime analysis Female owners (%) Legitimate Confiscated F - Construction 6% % G Wholesale and retail trade H - Trasportation 9.7% 24% 37.8% % I Bars, restaurants, hotels 29.5% 51.9% All sectors 22% 36.7% 16

17 Crime&tech risk indicators IPM Mafia presence OCI-T/OCI-S Organised crime infiltration in businesses (territories and sectors) ML-T/ML-S Money laundering (territories and sectors) VCI-T Violent crimes CAP-T Crime against property 17 CAP-VEHICLE Crime against vehicles CAP-HOUSE Crime against private houses CAP-TRANSPORT Crime against transport CAP-STREET Street crime CAP-BUSINESS Crime against commercial businesses

18 18 Spin-off Università Cattolica

19 Spin-off Università Cattolica COMPANY ALIAS SRL MRS ALIAS 19

20 20 Spin-off Università Cattolica

21 Spin-off Università Cattolica c/o Università Cattolica Sacro Cuore Largo Gemelli Milan Tel