Thursday, 27th March, 2025
FICCI CASCADE hosted an engaging Twitter Space session titled “The Cost of Crime: How Organized Crime and Illicit Trade Weaken Economies” on Thursday, 27th March. The session featured Mr. Prem Mahadevan, Senior Analyst, Global Initiative Against Transnational Organized Crime. Drawing on his extensive experience, Mr. Mahadevan offered profound insights into the alarming surge of organized criminal activities and their intricate ties to illicit trade. He emphasized how these nefarious networks pose a serious threat to economic resilience, national security, and the overall well-being of societies across the globe.
Mr. Prem Mahadevan provided an in-depth analysis of the sophisticated mechanisms employed by organized crime networks to exploit financial systems. He explained how these networks skilfully launder vast sums of illicit money, often using layers of complex financial transactions to obscure the origin of funds and evade detection by regulatory authorities. Shell companies, offshore accounts, and digital currencies are among the tools frequently used to move and clean dirty money across borders with relative anonymity.
Mr. Mahadevan opined that significant loss of tax revenue for governments is due to illicit trade. When goods are smuggled, counterfeited, or sold through underground channels, legitimate businesses suffer, and governments are deprived of the taxes and duties that would have been collected through legal trade. This not only weakens public finances but also distorts fair market competition and undermines the formal economy. He further highlighted how illicit trade often serves as a key funding source for terrorist organizations and insurgent groups. The proceeds from such illegal activities are frequently funnelled into operations that threaten national and international security. These financial links between criminal and terrorist networks create a dangerous ecosystem that is both resilient and adaptive.
Mr. Mahadevan also shed light on the pivotal role played by the GITOC in addressing the far-reaching economic impact of organized crime and illicit trade. As an international network of experts, GITOC works to analyze, expose, and disrupt criminal networks by supporting evidence-based policy responses, enhancing global collaboration, and strengthening institutional capacities. At the same time, raising consumer awareness about the hidden costs of purchasing counterfeit and smuggled goods, such as funding criminal enterprises, and weakening national economies can significantly reduce demand. By combining global intelligence, technological innovation, and informed consumer behaviour, the international community can take stronger, more coordinated action to disrupt illicit trade and weaken the foundations of organized crime networks.
The discussions not only illuminated the multifaceted impacts of organized crime and illicit trade but also underscored the urgency of adopting a comprehensive and collaborative response. Beyond the immediate economic losses and threats to national security, the session highlighted how these illicit activities erode public trust in institutions, undermine legal businesses, and fuel broader societal instability.
The virtual programme garnered enthusiastic participation from over 40,000 attendees worldwide.
