The global COVID-19 pandemic has tragically impacted the lives, health and wellbeing of many around the world. It has led to deep economic recessions, compounded business losses, increased unemployment and reduced consumer incomes. Often overlooked is the fact that the dire impacts of COVID are being worsened by illicitly traded goods such as fraudulent personal protective equipment (PPE). Transnational criminal organizations and global terror groups use illicit trade to facilitate crimes in local communities, disrupting civil society and cultivating corruption. The pandemic is a new business opportunity to finance their nefarious activities.
With or without a pandemic, the illegal global trade continues to grow. According to the World Economic Forum, $2.2 trillion will be lost due to diversions of illicit trade funds in 2020. The illicit trade economy is equivalent to the economies of Mexico and Indonesia combined, and dwarfs those of Brazil, Italy and Canada.
COVID-19 lockdown restrictions have boosted the key drivers of illicit trade:
- Scarcity of goods, mainly PPE, medicines and hand sanitizer;
- Loss of revenues due to overall reduced sales;
- Economic pressure from loss of income;
- Dependence on organized crime as a lender of last resort; and
- Limited capacity for enforcement as state resources are reallocated to address the pandemic
Criminals have been quick to capitalize on these opportunities, perpetuating illicit activity when governments, industry and the general public are most vulnerable. ...
