Introduction

Years, decades and centuries have passed organized crimes

continuously exists without the exact and clear explanation of
its existence, but its presence is felt though they are intangible,
they are ghost co existing with human, they have a government
much organized and powerful than ours. For an organized
crime group, money is everything and to have money they’ll
need power and in order to achieve power they must show an
uncontested display of strength and superiority, through this
they slowly evolved and one by one achieved their main goal,
“to acquire dirty monies and power.”
Origins of Organized Crime
The pirates who plundered and looked merchant vessels
in the 17th century and who undertook large-scale trade
in stolen goods may be considered among the earliest
organized crime groups. However, most observers
locate the origins of the distinctly American style of
organized crime in the urban centers of the late
nineteenth and early twentieth century. In a fundamental
way, urban conditions provided the kind of environment
in which organized crime could flourish.
The large population sizes provided a “critical mass” of
offenders, customers, and victims and thereby
facilitated the development of profitable markets in
illicit goods and services. Moreover, the size and
density of urban networks allowed criminal forms of
organization to become diversified and encouraged the
growth of essential support services, such as those
offered by corrupt politicians or police.
These early forms of criminal organization were typically tied
to local areas and because of the highly segregated character of
the city, they had important ethnic dimensions. During the
first two decades of the 20th century, residents of the “Little
Italies” of many eastern industrialized urban areas had to
contend with a crude form of protection racket known as “La
Mano Negra” or “the Black Hand.” Those members of the
local community who were better off financially might receive
an anonymous note demanding that a sum of money be paid to
the writer.
Characteristics of Organized Crime
Organized crime groups may be small, but they
typically involved a sizeable number in the planning
and execution of illegal acts. They require a continuous
commitment by its members although there may be
some non-members participating for short periods of
time. A major factor that distinguishes them from others
is their elaborate planning and lack of impulsiveness in
committing crimes.
Organized crime groups have as their fundamental
goal is the economic gain. Economic gain may be
achieved through many means—both legitimate
and illegitimate. Group members use a wide
variety of tactics to accomplish the criminal
enterprise—violence and intimidation, inspired by
corruption and greed are common working tools.
Another characteristic of an organized crime
groups is close-knit nature of its membership,
which serves to make the group extremely
difficult to penetrate from outside elements.
Loyalty to the group is ensured by high control;
there is swift discipline for those who reveal
information concerning the group. These factors
contribute to the incorrigibility common to
organized crime members who been incarcerated.
Traditional Organized Crime Groups
Enumerated and briefly discussed hereunder are the traditional organized crime
groups, as follows:
1. Italian-American Mafia

The American Mafia, also known as American Cosa Nostra or Italian-

American Mafia, is an Italian-American criminal society and offshoot of
the Sicilian Mafia. It emerged on the East Coast of the United States
during the late 19th century following waves of Sicilian and Southern
Italian emigration, the Mafia often refers to Italian organized crime in
general, rather than just traditional Sicilian organized crime. For
example the five main Mafia families include Gambino, Luciano,
Genovese, Lucchese and Colombo crime families with only Italian-
American made members.
2. Japan’s Yakuza

Despite their notoriety in modern Japan, the precise origin of the Yakuza
is still somewhat the subject of debate. The first historical interpretation
of their derivation is from the Hatamoto-Yakko or Kabuki-Mono of the
17th century Genroku Era, who were derivative classes of the low-rank
hatamoto, lower salaried samurai who constituted a quarter of the
shogun’s retainers. Other theories, suggested by the Yakuza members
themselves claim their origins are from the Machi-Yokko, who policed
villages by protecting them from the Hatamoto-Yakko that tried to steal
from them, despite their being outmatched by the Hatamoto-Yakko in
training and strength.
3. Chinese Triad

The Triads were started as a resistance to the Manchu Emperor of the

Qing Dynasty - the ethnic Manchus were regarded as a foreign
occupation at the time. In the 1760s, a society called the Tian Di Hui,
“The Society of Heaven and Earth,” was formed in China. Its purpose
was to overthrow the Manchu-led Qing Dynasty and restore Han
Chinese rule. As the Tian Di Hus spread through different parts of
China, it branched off into many groups and became known by many
names, one of which was “Sanhehui”, literally “Three Harmonies
Society”, referring to the unity between Heaven, Earth and Man.
Organized Crime Situation in the Country
The following will present the current crime situation on four of the more prevalent
activities, as follows:
1. Drugs Trafficking
Shabu in the Philippines mainly comes from Southern China
particularly from Guandong and Fujian. Previously, “ephedra”
or “ephedrine” is processed in China and smuggled in the
Philippine as shabu. However, the discovery of a big
clandestine shabu laboratory in Cagayan Province at Northern
Luzon in 1999 showed that the drug syndicates have also
started processing ephedrine and shabu right in the Philippines.
Intensified campaign against illegal drugs resulted in more
discoveries of shabu laboratories even in the National Capital
Region.
2. Kidnap-for-Ransom

KFR groups have displayed a higher level of

sophistication in their operations. Extensive research
and planning are conducted prior to their operations.
Vital data and information are obtained including inside
information about net worth and liquidity of assets of
prospective victims, usually Filipino-Chinese nationals,
and his family.
3. Robbery-Hold-Up

Bank robbery groups are considered as the most organized

among the crime groups. They are usually composed of
hardened criminals and/or personalities of tested daring
capabilities. Members are trained to follow and executed
minute details of a well-planned operation. Usually, all
members are heavily armed and ready to forcibly douse any
opposition. The robbery group initially places the target bank
under a thorough casing and surveillance, week or even
months in advance.
4. Carnapping

Most of the vehicles were carnapped in parking lots, residential

areas and middle class subdivisions. Car theft usually occurred
between 2 o'clock and 4 o'clock in the morning due to
following reasons: inadequate police visibility, street parking
opportunity, natural advantage during nighttime for criminal
elements, and lack of appropriate security measures in
residential areas. These vehicles were later either sold after
acquiring falsified documents or dismantled and sold as used
parts.
Philippine Laws on Organized Crime
In the absence of specific law in the Philippines against
organized crime, the provision in the Revised Penal Code on
conspiracy may find application. Conspiracy is not a felony per
se but only a manner of incurring criminal liability. Article 8 of
the Revised Penal Code states that: “A conspiracy exists when
two or more persons come to an agreement concerning the
commission of a felony and decide to commit it.” Thus,
conspirators share equal criminal liabilities regardless of their
levels of participation.
It has been said the common denominator among OCGs is the
objective to acquire “dirty money” through their illicit
activities. Thus, denying the OCGs to enjoy the fruits of their
criminal act can serve as effective deterrence to these groups.
Along this line of argument, the Anti-Money Laundering Act
(AMLA) or RA 9160 was enacted in 2001, and amended by
RA 9194. Among others, the AMLA criminalizes money
laundering and provides for the penalties therefore, and the
freezing and forfeiture of assets.
ORGANIZATIONAL STRUCTURE
Definition of Organized Crime
The UN Convention Against Transnational Organized Crime,
held in Palermo, Italy in 2000, established and international
definition of organized crime. The convention states, at Article
2(a), that, “organized crime group is characterized as a
“structured group of three or more persons existing for a period
of time and acting in concert with the aim of committing one
or more serious crimes or offenses in order to obtain, directly,
or indirectly, a financial or other material benefit.”
Types of Structures of Organized Crimes
There are two (2) types of organizational structures of organized crime group, as
follows:
1. Bureaucratic or Corporate Model

The corporation, the police, the military are examples of

bureaucracies, the mode of organization essential for
efficiently carrying out large scale tasks. All bureaucracies are
rational organizations sharing a number of attributes, i.e., a
complicated hierarchy, an extensive division of labor, position
assigned on the basis of skill, responsibilities carried out in an
impersonal manner, extensive written rules and regulation, and
communication from the top of the hierarchy to persons on the
bottom, usually in written form.
2. Patrimonial or Patron-Client Network

The patrimonial organization is a characteristic of traditional

societies that centers on families, patrons and their clients, and
other personality networks. The emphasis is on traditional
rituals that demonstrate the emotional bond among the men. In
contrast, personal ties in the modern bureaucratic organization
are weaker, less ritualized, and emotionally demonstrative.
Lengthy chains of command, characteristic of modern
bureaucracy, are impractical for organized crime, and this
limits the span of control.
Prominent Features of Organized Crimes
Briefly discussed and enumerated are some of the prominent features of
organized crimes, as follows:
1. Rank and Responsibilities

The criminals who fill the rosters of organized crimes are ranked
according to the importance of their positions. Each member either
serves within the management structure or contributes to the
operation of a particular enterprise. Several roles can be identified
within their general structure, i.e., money mover—assists in the
flow of cash from illegal to legal, corrupter—a defense attorney or
lobbyist, money maker—members whose rackets brings a lot of
profit, enforcers—members skilled in violence, and associates
members—those who works on a contractual basis.
2. Syndicates and Enterprise

An organized crime, regardless of its size, has one of more of

three types of relationships with individual criminal enterprise
or racket within its territory. First is the syndicate-run
operation, such as numbers bank, where the syndicate’s own
employees and capital are used; second is the syndicate
franchise, whereby a distinct geographical area, is ceded to an
independent operator for the purpose of running an illegal
business; and third may be termed as a joint venture, involves
two criminal groups of comparable size and ability to employ
violence at any given moment.
3. Leadership Styles

Whatever the organizational attributes of a given organized

crime, the leaders choose their own styles of handling outside
competition, internal disputes, and relationships with public
officials. Some leaders consciously choose a low profile that is
consistent with the claim—usually traceable directly to them—
that there is no organized crime in their community because no
racketeers can be identified. Others seem to enjoy the public
spotlight and the influence and prestige that go with a position
for the cold, calculating exercise of power.
Business and Forms of Organized Crimes
The business of organized crime group has been described as
providing goods and services that happens to be illegal. The
core of organized crime activity is the supplying of illegal
goods and services-gambling, loan sharking, narcotics, and
other forms of vice.

As in any business, the better organized are usually the more

successful, and organized crime is basically a business
enterprise. Organized crime group has three forms:
1. Parasitic
Members of criminal organization extort money from illegal
entrepreneurs under a threat of violence.

2. Reciprocal
Members of a criminal organization require illegal entrepreneurs to
pay a fixed or percentage amount but in return provide services
such as debt collection or restricting market entry.

3. Entrepreneurship
A member of a criminal organization provides an illegal goods or
services.
Elements of Organized Crime
When looking for commonalities, it should be recognized that
there is no “typical” profile. Several elements exist that are
unique to such organized crime groups, to wit:

1. Vertical Integration

The attribute is common of many international drug-trafficking

groups as well as domestic groups. Vertically integrated groups
are structured where they control both the manufacturing and
wholesale distribution of dangerous drugs in the local or
international markets.
2. Use of Alternative Sources of Supply

The organized groups whore having sources of supply

which are complicated and varied, and are typically
more able to avoid detection and investigation by the
law enforcement.
3. Exploitation of Social and Political Condition

Many organized crime groups that focus on the drug

trade have learned to capitalize on vulnerable social and
political conditions of certain third world countries and
the social inequities suffered by many inner-city
residents, more particularly those living in depressed
urban or squatters areas.
4. Insulation of Leaders

As with all large and successful organized crime

groups, organizational structure tends to insulate the
upper echelon from those at the lower rung of the
organizational structure. Direct contact with drug users
or buyers is usually avoided to prevent detection from
outsiders, or more commonly from becoming easily
established positive identity.
Effects of Organized Crime
The following two sections address “the pyramid effect” and
“corruption of public institution” and how organized crime produces
genuine harm to individual citizens and the community at large.

1. Pyramid Effect

The crime pyramid begins with a large-grossing enterprise such as a

numbers bank. To run the bank, its managers and employees must
violate lottery and perhaps other gambling laws, as well as conspiracy
laws, and income tax laws. If communication’s facilities are use to lay
off heavy bets or if the bank’s personnel travel to and from work, anti-
racketeering laws are violated each day the banks operates.
2. Corruption of Public Institution

The perpetrator of illegal enterprise depends on public

corruption—the medium in which organized crime syndicated
flourish and grow. Unless organized crime corrupts public
institutions to minimize its risks, it cannot continue to exist.
Such corruption undermines the political system and citizens’
faith in their institutions. When public servants are dishonest,
especially those in the front lines of protecting the public—law
enforcement and judiciary, all citizens suffer.