A/CONF. 187/6 newcomers are said to bring with them their social and issues. Some studies indicate that criminal groups are commercial networks, which make law enforcement slowly abandoning their involvement in visible economic difficult and, at the same time, facilitate"conspiracy".No activities and are diverting criminal profits towards the attention is given to similar difficulties encountered by law more secretive financial sector. This diversion is said to enforcers prior to the arrival of migrants and to the make detection more difficult and the confiscation of assets commercial"conspiracy" that already features in host problematic. The entry of transnational criminal operators countries long before they are"invadedby aliens. In other in the financial world is believed to herald potential words, the fact that migrants find in the host countries the disruption, distortion of rules, erosion of ethics and social and institutional environment that makes their illicit suppression of competition; ultimately, it is assumed to enterprises possible is normally deemed unworthy of any foster a"purge"among entrepreneurs, leading to the analytical effort survival of those more criminally fit. Some arguments 17. Some definitions of transnational crime imply a behind this belief are given below notion of ethnic succession. According to this notion, 21. Organized criminal groups have been charged with certain national cultures and groups are expected to climb upsetting the harmonious relationship between demand and the crime ladder and eventually occupy a prominent supply. By making illicit goods available, for example, position in illegal markets. Official classifications of they are said to reduce the aggregate demand for licit organized crime, for example, have often been inspired by goods in the market and consequently to limit the revenues ethnic qualifications and categories of the legitimate companies producing and distributing 18. Criminological analysis has long disputed the them. This argument implicitly rules out the possibility that "ethnicity trap",6 both because of the large number of criminal proceeds may be used to acquire licit goods, ethnic groups involved in transnational organized crime although there is no evidence that members of organized and because of the interaction in which they engage in crime groups are more restrained spenders than ordinary criminal business. Given the increasing social consumers. It has also been argued, however, that geographical and inter-cultural mobility, ethnicity may be organized criminal groups have a low propensity for seen less as a causal or facilitating factor than mobility consumption because their illicit income continues to itself circulate within criminal markets to finance subsequent illicit initiatives. It has also been claimed that criminals 19. More attention should be given to analysing how tend to transfer abroad parts of their earnings, thus geographical,social and cultural mobility may facilitate depriving the country in which they operate of substantial criminal undertakings. More specifically, analysis should funds focus on how criminal activity conducted by aliens needs a receptive environment, along with a range of indigenous 22. Yet another controversial issue emerges here, activities are carried out. Many officials are concerned organized crime. Legitimate entrepreneurs also accumulate that, because migrant communities or groups of ethnic inert wealth and may fail to translate all their earnings into finalize criminal enterprises run by their compatriots. This belief entrepreneurs and politicians may also transfer money should be challenged,and the facile equation migrants plus abxsallowing them to move their capital across borders marginalization equal crime should be severely criticized legall In this respect, a different issue could be explored, namely they find ways of increasing the sums moved by resorting that ethnic minority groups, in order to develop criminal to illegal practices. It is worth pointing out, in this respect, entrepreneurship, need partners among the indigenous that so-called"hot money", which is commonly and almost groups of the very host society marginalizing them. automatically associated with criminal proceeds being Partnerships with legitimate entrepreneurs of the host laundered, in fact includes money earned, legitimately or country, moreover, may offer larger guarantees that, along otherwise, by official actors. Monies that are used for or accumulated through tax evasion, bribes, flight capital with official commercial consortia, effective smuggling illicit transactions in licit goods(such as arms transfers) lines are also set up and the illegal funding of political parties are exampl 20. The investment of illegitimate proceeds hot money, as is money loaned to developing countries economically advanced countries raises other controversial that is furtively invested in the developed world that gaveA/CONF.187/6 4 newcomers are said to bring with them their social and commercial networks, which make law enforcement difficult and, at the same time, facilitate “conspiracy”. 5 No attention is given to similar difficulties encountered by law enforcers prior to the arrival of migrants and to the commercial “conspiracy” that already features in host countries long before they are “invaded” by aliens. In other words, the fact that migrants find in the host countries the social and institutional environment that makes their illicit enterprises possible is normally deemed unworthy of any analytical effort. 17. Some definitions of transnational crime imply a notion of ethnic succession. According to this notion, certain national cultures and groups are expected to climb the crime ladder and eventually occupy a prominent position in illegal markets. Official classifications of organized crime, for example, have often been inspired by ethnic qualifications and categories. 18. Criminological analysis has long disputed the “ethnicity trap”,6 both because of the large number of ethnic groups involved in transnational organized crime and because of the interaction in which they engage in criminal business. Given the increasing social, geographical and inter-cultural mobility, ethnicity may be seen less as a causal or facilitating factor than mobility itself. 19. More attention should be given to analysing how geographical, social and cultural mobility may facilitate criminal undertakings. More specifically, analysis should focus on how criminal activity conducted by aliens needs a receptive environment, along with a range of indigenous partners and agents, in the countries in which criminal activities are carried out. Many officials are concerned that, because migrant communities or groups of ethnic settlers are marginalized, they are believed to support the criminal enterprises run by their compatriots. This belief should be challenged, and the facile equation migrants plus marginalization equal crime should be severely criticized. In this respect, a different issue could be explored, namely that ethnic minority groups, in order to develop criminal entrepreneurship, need partners among the indigenous groups of the very host society marginalizing them. Partnerships with legitimate entrepreneurs of the host country, moreover, may offer larger guarantees that, along with official commercial consortia, effective smuggling lines are also set up. 20. The investment of illegitimate proceeds in economically advanced countries raises other controversial issues. Some studies indicate that criminal groups are slowly abandoning their involvement in visible economic activities and are diverting criminal profits towards the more secretive financial sector.7 This diversion is said to make detection more difficult and the confiscation of assets problematic. The entry of transnational criminal operators in the financial world is believed to herald potential disruption, distortion of rules, erosion of ethics and suppression of competition; ultimately, it is assumed to foster a “purge” among entrepreneurs, leading to the survival of those more criminally fit. Some arguments behind this belief are given below. 21. Organized criminal groups have been charged with upsetting the harmonious relationship between demand and supply. By making illicit goods available, for example, they are said to reduce the aggregate demand for licit goods in the market and consequently to limit the revenues of the legitimate companies producing and distributing them. This argument implicitly rules out the possibility that criminal proceeds may be used to acquire licit goods, although there is no evidence that members of organized crime groups are more restrained spenders than ordinary consumers. It has also been argued, however, that organized criminal groups have a low propensity for consumption because their illicit income continues to circulate within criminal markets to finance subsequent illicit initiatives. It has also been claimed that criminals tend to transfer abroad parts of their earnings, thus depriving the country in which they operate of substantial funds. 22. Yet another controversial issue emerges here, because these are hardly specific characteristics of organized crime. Legitimate entrepreneurs also accumulate inert wealth and may fail to translate all their earnings into dynamic investment or consumption. Some legitimate entrepreneurs and politicians may also transfer money abroad, and, despite the existence of permissive rules legally allowing them to move their capital across borders, they find ways of increasing the sums moved by resorting to illegal practices. It is worth pointing out, in this respect, that so-called “hot money”, which is commonly and almost automatically associated with criminal proceeds being laundered, in fact includes money earned, legitimately or otherwise, by official actors.8 Monies that are used for or accumulated through tax evasion, bribes, flight capital, illicit transactions in licit goods (such as arms transfers) and the illegal funding of political parties are examples of “hot money”, as is money loaned to developing countries that is furtively invested in the developed world that gave