Chapter 6

Drug and Criminal Organizations

Drug and criminal organizations pervade the contemporary operational
environment. These organizations exist in time of war and peace. They
operate totally in their own self-interest, and their principal goal is to
flourish and expand.

This chapter will focus on the organization and activities of large-scale

drug and criminal organizations. They are normally independent of
nation-state control and often extend beyond national boundaries to
operate regionally or worldwide. Individual drug dealers and criminals or
small-scale organizations do not have the capability to adversely affect
legitimate political, military, and judicial organizations—but the large-
scale organizations do.1

SIMILARITIES
6-1. Drug organizations and criminal organizations have many similarities
in terms of capabilities and structures. First, there is the profit motive. Both
organize like businesses, have compartmented cells, and can operate legally
(through front companies) as well as illegally. Both transport items,
distribute products and services, and launder money. Both may employ terror
tactics and militarily unconventional methods to achieve their goals. Both
organizations may also have enormous influence within a country or an area.
This influence is a direct result of a desire to accumulate wealth. In some
cases, the power exerted may be greater than that of recognized political,
legal, judicial, and military institutions. For example, a drug organization
may invest enormous amounts of money in a country’s infrastructure. It may
also infiltrate or bribe members of the country’s political, military, legal, and
judicial institutions, and wield great influence over their policies and
procedures.

MOTIVATION
6-2. The primary motive of these organizations is financial. For most of them,
the money is an end in itself. However, there are other groups that conduct
drug-trafficking or other illegal actions as a means to finance political,
terrorist, or other paramilitary activities.
6-3. Members of the drug or criminal organization may share common
political, religious, or ethnic ties. While these ties may increase loyalty and
security, they do not motivate the organization. These bonds are a result of

1
For brevity, the remainder of this chapter refers to these simply as drug organizations and criminal organizations,
but with the understanding that discussion here applies only to large-scale organizations and their capabilities.
Small-scale drug or criminal elements are discussed in Chapter 7.

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the environment in which the people operate rather than being a reason for
the existence of organization itself. For example, an organization with strong
familial ties may share the same religion. However, religion is not the
motivating factor or tenet of the organization.

THREATS
6-4. The enemies of drug and criminal organizations are political, military,
legal, or judicial institutions that impede their actions and interfere with
their ability to maximize profits. To a lesser degree, they may be concerned
about drug and criminal competitors.

ORGANIZATION
6-5. The structure of drug and criminal organizations is similar to that of a
vertically-integrated business rather than a hierarchical organization, such
as a military unit. Normally, there is a leader or team of leaders who direct
the group’s actions. As in any business, the leaders are managers who
attempt to cut costs and maximize profits. Many of these organizations
organize under a cellular structure with each level or cell operating
independently. However, this is not a mandatory requirement.
6-6. In a cellular structure, the cells or departments are organized based on a
specific function, such as production, transportation, or money laundering.
Although the grouping of functional experts is the organizing principle, the
cellular structure inherently offers increased security. Since most cells are
not familiar with the organization’s entire operation, one cell can be
compromised without compromising the others. The members of all cells and
workers at each echelon, except the leaders in the headquarters cell, receive
payments for services rendered. However, these payments are minimal with
the majority of the profits shared by the leaders.
6-7. To avoid duplication, this chapter focuses on the organization of a large-
scale drug organization. This basic organization can also serve as a model for
criminal organizations. Occasionally, the text will refer to a criminal
organization in order to highlight the peculiarities of this type of
organization.

CRIMINAL ORGANIZATIONS
6-8. Criminal organizations are non-ideological groups of people organized
for the purpose of acquiring money. However, it is important to understand
what makes a large-scale criminal organization different from individual
criminals or small criminal gangs. While money motivates both entities, the
differences are in three major areas:
• A criminal organization has a distinct hierarchy; individual criminals
and gangs operate outside a formal organizational structure.
• Criminal organizations develop a strategy and long-term plan, while
criminals are opportunists.
• They are capable of adversely affecting legitimate political, legal, and
military organizations. A criminal organization can adversely affect
legitimate government institutions (political, legal, judicial, and

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military) through its financial transactions or criminal activities. For

example, it may bribe politicians or police to take actions favorable to
the organization. In contrast, a criminal does not have the power to
influence entire legitimate institutions. He may be a nuisance to local
law enforcement personnel, but he is not capable of bribing on a grand
scale. Similarly, he cannot cause a financial crisis within a country like
a criminal organization can.
PARALLEL “INDUSTRIES”
6-9. Drug or criminal or terrorist organizations can be parallel “industries”
that interact synergistically. All three rely on transnational infrastructures
that extend largely underground and can be shared to achieve mutual
benefits. For the criminal or terrorist, drug trafficking provides cash with
which to purchase weapons and finance other actions. The drug trafficker
uses sophisticated methods (including criminal action or terror tactics) to
ensure the sources of his supply, and the discipline and integrity of his
organization. Whether the motivation is profit or ideology, or a combination
of both, the end product is social disruption through violence that knows no
national borders and that functions outside the norms of international
diplomacy and war. Thus, the modes of operation of these organizations may
converge.

NARCO-TERRORISTS
6-10. One possible combination of these elements is narco-terrorism. It may
include some of the same techniques used by terrorist or criminal groups, but
conducted to further the aims of drug traffickers. Actions conducted by narco-
terrorists may include assassinations, extortion, hijackings, bombings, and
kidnappings. Most of these actions are directed against judges, prosecutors,
elected officials, or law enforcement agents who interfere with the drug
business. However, some actions aim at general disruption of a legitimate
government in order to divert attention from drug activities. Narco-terrorists
may also prey upon individuals within the drug culture, to discourage
competitors or to keep their own subordinates in line. Ultimately, narco-
terrorists have the upper hand in the tenuous relationship with other
criminal and drug organizations. Leaders in these latter two organizations
will attempt to appease the narco-terrorists in any way.

DRUG ORGANIZATIONS
6-11. Drug organizations are groups of people organized to produce,
transport, and distribute illegal drugs to acquire money. Figure 6-1 depicts
the functions of a vertically-integrated drug organization. Each level or cell is
a separate entity, operating independently, but the actions of one cell depend
on the success of others. For example, money laundering depends on the
money obtained through the distribution function. Similarly, the laboratory
cell depends on the cultivation function for crops and on the transportation
function for delivery of crops and necessary chemicals. This organizational
structure is typical, and the sizes for the functions in the figure are relative to
the actual size of the groups within the organization.

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HQ

Support

Cultivation/Laboratory

Transportation

Distribution

Money-Laundering

Figure 6-1. Elements of Drug Organization

6-12. While not all drug organizations have a cellular structure, or employ all
of these cells, the organization or others operating on its behalf execute the
same functions. The size of the drug organization determines the existence of
different types of cells and the number of each. A large organization may
employ many cells with more than one of each type. There may be several
dedicated to one function, such as cultivation. If the organization is small,
there will be fewer cells, and some cells may be multifunctional. For example,
the functions of cultivation and laboratory processing may be conducted by
separate organizations or by a combined “production cell.”
6-13. Alternatively, a drug organization may outsource some functions, just
as businesses contract services with other organizations. For example, the
drug organization may contract with a criminal organization or local gang to
conduct distribution.
6-14. If cellular structure is employed, it differs from that found in a terrorist
organization. There is not necessarily any formal chain of command or
hierarchy. There is little, if any, loyalty to the organization as a whole. The
cells and most of their members act as “subcontractors” with the sole motive
of making money.
6-15. Members of a drug organization dress in casual attire to blend in with
the local population. For example, headquarters cell members may wear suits
and casual attire similar to that worn by managers and supervisors in a
corporation. Similarly, members of the transportation cell may wear a
uniform similar to that worn in the transportation industry, such as flight
suits for pilots and mechanic’s overalls for maintenance personnel.
Cultivation cells dress like any other farmers.

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Headquarters
6-16. Leaders, security, direct action, and communications personnel
compose the headquarters cell. This cell is responsible for overseeing the
activities of the entire organization, establishing and implementing high-
level security plans, and conducting offensive actions, such as extortion or
assassination. The leaders have detailed knowledge of the entire
operation, and a leader or small group of individuals acts as the
“president” or “chief executive officer” of the organization. The
headquarters cell often includes “counselors.” These are former leaders
who have retired from active participation and now advise the current
leaders on past practices and historically relevant information. The
leaders of the individual cells at lower levels control and manage the
activities at their respective level.
6-17. The leaders of the organization use different modes of operation
depending on the power of the organization and the individual leader. Those
with great power over the political, military, legal, and judicial institutions of
a country may conduct their business openly with minimal fear of reprisal.
Alternatively, those leaders with limited power may have to conduct business
covertly to avoid arrest or detention.
6-18. Regardless of the method of leadership, security personnel protect the
leaders from the enemy. Security details include personal bodyguards to
protect the leaders and their families. They also include intelligence
personnel who conduct reconnaissance and surveillance leaders’ homes,
places they visit, business establishments, and enemy personnel.
6-19. Direct action personnel conduct offensive actions on behalf of the
organization. These actions may include terror tactics (such as extortion,
kidnapping, hijacking, assassination, maiming, or sabotage) as well as
criminal actions (such as theft and murder).
6-20. Communications specialists coordinate systems for communication
within the headquarters cell, and from this unit to other the functional
elements. The organization primarily uses commercial communications
systemstelephones, cellular phones, and faxesto conduct business. The
members use codes when discussing sensitive information about activities
and personnel. They may also attach encryption devices to communications
systems to prevent disclosure of information.
6-21. The organizations at the cellular or functional level, such as the
cultivation and laboratory cells, do not require sophisticated communications
and security equipment. Compromise of information at their level does not
have grave consequences for the entire organization. On the other hand,
compromise of some cells’ members and activities could have devastating
effects on the survival of the group. For example, if front companies operating
on behalf of the organization compromised information that led to the halting
of activities or the compromising of money laundering, the entire
organization would suffer.

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Support
6-22. The support cell includes a variety of individuals such as lawyers,
bankers, politicians, doctors, realtors, and travel agents. They perform the
same functions as if they were acting on behalf of a legitimate corporation.
For example, the lawyers advise commanders on the legal implications of
various actions; realtors buy and sell property; travel agents book
reservations. Some of these support personnel are willing participants while
others are not. The organization bribes those people it can; those who refuse
bribes are often targets of extortion or death threats. The organization
frequently coerces and intimidates personnel to take actions in support of its
operation. (This would be the job of direct action elements from the
headquarters cell.)

Cultivation
6-23. The cultivation cell, comprised of farmers, is responsible for cultivating
crops that others process into drugs. They are the most removed from the
drug organization and are not familiar with the organization’s entire
operation. Typically, farmers grow these crops because the profit is greater
than producing other crops, such as corn or coffee. Small profits, relative to
the profits of members higher in the organization, motivate these farmers.
Some drug-producing crops, such as coca, are legal, while others, such as
marijuana, are illegal. The country of origin determines if the crop is legal or
illegal.
6-24. The farmers often affiliate with insurgents because of the government’s
involvement in drug eradication. The insurgents recruit these farmers and
inflame their anger against their common enemy. Some farmer’s affiliation
with drug production may also be due to insurgent intimidation and/or lack of
government presence in the areas where they cultivate. The insurgents'
interactions with the farmers do not concern the drug organization as long as
the farmers keep growing drug-producing crops.
6-25. The farmers typically do not have security programs or personnel like
those found in other cells, but they may have personal firearms. If the enemy
or local law enforcement personnel attempt to destroy the crops, the farmers
are virtually helpless. A security or armed detail from the drug organization
will not intervene to prevent destruction. The farmers are expendable
because there are many farmers growing crops in support of the drug
organization. The farmers conduct business with a middleman who
coordinates pickup and delivery of the crops. There is no communication
between the farmers and other functions within the organization.

Laboratory
6-26. Chemists, cooks, lab workers, and security personnel compose the
laboratory function. This cell is responsible for processing the drug-producing
crop or component chemicals into a drug fit for consumption. It maintains
various lab sites in less-populated areas to avoid detection or suspicion.
Security is a very high priority, and security elements are established in
the vicinity of its laboratories to warn of intruders. Sometimes this
security element conducts diversionary tactics to mislead the enemy. The

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diversion permits the laboratory members to escape and, time permitting,

the members attempt to carry processed drugs or equipment with them.
The security element performs warning functions, not direct action
functions.
6-27. Members of the laboratory cell may have small arms for personal
protection, but they would rather compromise current activities than become
involved in a head-on confrontation with law enforcement personnel or the
enemy. Sometimes, the drug organization leadership may intentionally
compromise a smaller lab to protect a larger one. A periodic compromise of a
drug lab may avoid large-scale enemy activities in a given area.
6-28. The laboratory cell attempts to disguise or camouflage its lab to prevent
detection. The amount of equipment and the size of the lab depend on the
drug being processed. Figure 6-2 illustrates a typical lab setup. Cocaine labs,
for example, require large, ventilated areas to process leaves into paste and
are labor-intensive. Business is conducted with a middleman who coordinates
pickup of the drugs. As with the cultivation cell, there is no communication
between the laboratory and the other functions.

1
3

Processing
4 Area
ST

6
R

5
EA
M

9
2-5 Km
7
8

Key:
1. Bunk house 6. Drying area
ST

2. Latrine 7. Open-air filtering area

RE
AM

3. Kitchen 8. Storage huts

4. Chemical storage area 9. Grassy airstrip
5. Plastic-lined processing area

Figure 6-2. Example of a Drug Laboratory Setup

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Transportation
6-29. There is at least one transportation cell per function described below:
• Transporting supplies, such as chemicals and expendables, to
cultivation, laboratory, and transportation cells.
• Transporting crops from farms to laboratories.
• Transporting drugs from laboratories to distribution points.
They transport drugs along various routes using multiple means, such as
animals, vehicles, boats, and aircraft.
6-30. There is usually no relationship between different transportation cells.
However, one transportation cell may transfer goods to another during
transit. A specific transportation cell includes personnel required for moving
goods, such as vehicle drivers, pilots, boat captains, and associated support
personnel. They have their own maintenance and support personnel to
operate, maintain, and sustain all means of conveyance.
6-31. Sometimes, couriers are hired to transport drugs. Some couriers are
willing participants in the transportation of drugs, and others are the victims
of extortion and intimidation forced to support the drug business. They
attempt to conceal the drugs using various techniques, such as wearing bulky
clothes, swallowing condoms full of drugs, or taping drugs to their bodies. A
transportation cell may use families as couriers to avoid suspicion at enemy
checkpoints. Other couriers are unsuspecting individuals who think they are
transporting a legal product. For example, the driver of a vehicle may not
know that a group member has concealed drugs within a shipment of
produce. The drug organization uses these expendable couriers during
intentional compromises, which may divert the enemy’s attention away
from a larger shipment or prevent increased enemy observation and
surveillance.
6-32. The transportation cells employ a variety of transportation
conveyances. The conveyance must blend in with the environment and be
feasible. Frequently animals are used in rough or impassable terrain. The
animals can carry, internally if necessary, a large quantity of drugs or
materiel. Animals carry many of the supplies used by the cultivation,
laboratory, and transportation cells. The transportation cells also use
humans as couriers in ways discussed above.
6-33. Vehicles, both commercial and private, are the conveyance of choice for
the organization. With any mode of transportation however, the most
significant indicator to the presence of hidden transported narcotics is the
use of a masking odor (particularly for marijuana loads). Items such as
laundry detergent, dryer sheets, cologne, perfume, etc., are often used to
disguise the scent of illicit drugs, and to throw the authorities or a canine
off of the scent.

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6-34. Using vehicles requires little operator training and less logistics
support from the organization. Figure 6-3 illustrates some of the areas within
and on a vehicle used to conceal drugs and materiel. But smugglers will use
any hollow space in all modes of transport to conceal narcotics. If sufficient
space is not available, the smugglers will construct it.

Concealed
Compartments

Figure 6-3. Example of Concealed Compartments in a Vehicle

6-35. By using vehicles, the risk of compromise is inherently lower than

using other modes of travel for the following reasons:
• The probability of search is lower because of the sheer number of
vehicles on the roads.
• Vehicles can travel over many road networks without filing plans
similar to those required for waterborne craft and aircraft.
• Vehicles can divert their route without drawing attention.
• Commercial vehicles can conceal large amounts of drugs.

HISTORICAL PERSPECTIVE: NARCOTICS TRAFFICKING OVER U.S.

BORDERS
The U.S. Border Patrol can attest to the fact that transporting narcotics in passenger or
commercial vehicles along the borders of the U.S. is the preferred method of narcotics
smugglers. The advantage is obvious, considering the vastness of the borders, the
thousands of potential crossing sites into the U.S., and the difficulty of manning them. If a
loaded vehicle successfully crosses, the smuggler avoids the risk of compromising a
narcotics load, and the load proceeds safely to a storage or distribution center within the
borders of the U.S. Additionally, by breaking up large loads into smaller vehicle-sized
loads, the smuggler is actually securing his profit. For example, if a smuggler attempts to
cross 600 pounds of cocaine in a tractor-trailer, and the tractor is seized at a port of entry,
the smuggler loses his entire profit. Conversely, if a smuggler crosses 600 pounds of
cocaine in ten vehicles with 60 pounds each, or 20 vehicles with 30 pounds each, he
limits the risk of losing his entire profit. In his cost/benefit analysis he may deem it
acceptable to lose one or two smaller loads. The resulting increase in logistical and
command and control concerns in minimal when given the nature of the action and the
enormous profits involved.

6-36. Waterborne craft offer excellent opportunities to transporters. They use

crafts ranging from large commercial ships and fishing boats to pleasure and
private boats to high-speed, low-profile vessels fabricated of wood or

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fiberglass. The latter vessels offer outstanding protection against radar and
visual detection. Concealed compartments in waterborne craft are useful to
transport large quantities of drugs. (See Figure 6-4.)

Concealed
Com partments

Figure 6-4. Example of Concealed Compartments in a Waterborne Craft

6-37. A transportation cell may use aircraft for delivering and air-dropping
drugs and materiel. This conveyance offers the greatest potential results but
is the one with the most risk. Often, contracts for air transport are made with
outside companies. They pick up and deliver the drugs and receive payment
upon return. Aircraft range in size from large cargo aircraft to small
propeller-driven aircraft. Each aircraft has strengths and weaknesses. Large
jets have great cargo capacities, are capable of long flight range, and of
outrunning some enemy aircraft, but they are vulnerable to detection by
radar and visual means. Small aircraft can avoid detection by flying in radar
shadows, are capable of landing on unimproved landing strips, and can
change routes quickly to avoid detection by enemy surveillance. Yet the
capacities of these aircraft are small, and the aircraft offer few compartments
for concealment.
6-38. The aircraft and waterborne craft used by the organization have
sophisticated electronics and communications systems onboard. The
organization spares no expense to equip these craft with the latest
technology, and they are obtained through legal and illegal methods.
Members may purchase, rent, steal, or otherwise commandeer a mode of
conveyance. They may hire thieves to steal those vehicles used especially for
international transportation.
6-39. The transportation cells employ security elements, called “screeners,” to
provide early warning. On transportation routes, they travel ahead of drivers
and warn them of roadblocks or other obstructions so that they can reroute.
Screeners may use visual signals to warn other drivers, such as a raised
hood, or they may create a diversion to distract enemy personnel. A
sophisticated organization may use cellular or radio communications to warn
drivers. Security elements also provide early warning around loading and
unloading points, to prevent compromise at these sites. Drugs must be loaded
and unloaded in areas free from enemy observation and in a manner that
does not draw attention. Typically, security elements are more heavily armed
than the other members of the transportation cell. They use their weapons to

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create diversions and assist in escapes, rather than to confront enemy

personnel.
6-40. Although the transportation personnel attempt to avoid contact with
the enemy, they are capable of conducting actions to defend themselves. For
example, if the enemy attempts to force an aircraft to land, the crew may
attempt to outrun the enemy aircraft. If these attempts fail, the crew may
air-drop the drugs in the ocean. Similarly, if the enemy detains a vehicle to
conduct a search, the driver may attempt to escape and can use force if
necessary.

Distribution
6-41. The distribution cell is responsible for bringing drugs to the
marketplace for sale and distribution. Typically, members of this group
operate in enemy-held territory and include many people, such as brokers,
wholesalers, and dealers. The distribution cell has a triangular structure.
(See Figure 6-5.) Each level is dependent on the level above it, but each
element within a level operates independently. A dealer, for example,
depends on his wholesaler for drugs, but he operates independently of other
dealers. Although there is no command structure per se, each level responds
to the requests of its next higher level. Brokers are individuals who
coordinate with the transportation cells to deliver drugs. Wholesalers deliver
drugs to dealers who, in turn, deliver them to users. Brokers, wholesalers,
and dealers receive and store drugs, break down large quantity of drugs into
smaller quantities, and distribute drugs. The size of their activities is directly
related to the quantity of drugs distributed. For example, brokers handle
larger quantities of drugs than wholesalers, and wholesalers deal with larger
quantities than dealers. Similarly, the facilities for storage and the number of
security personnel required at each level are proportional to the quantity of
drugs handled.

BROKER

Wholesaler Wholesaler

Dealer Dealer Dealer Dealer Dealer Dealer

Wholesaler

Dealer Dealer Dealer

Figure 6-5. Example Structure of the Distribution Cell

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6-42. The facilities used to store and distribute drugs range from large
warehouses to small apartments or even vehicles. The facilities are
inconspicuous and blend in with the environment. Abandoned buildings or
front companies offer good protection for the organization’s activities.
Security measures, such as lookouts, simplistic sensors, and rudimentary
barriers, attempt to warn of intrusions or prevent observation. The crafty
members of the organization alter their movements and their storage and
distribution facilities to lessen the chance of compromise.
6-43. Typically, members of the distribution cell arm themselves for
protection. An extra security detail would draw attention to group members,
so they provide security for themselves. The weapons of choice for include
small arms and light assault weapons. The members employ communications
security measures, such as codes, cellular telephones, and beepers, to avoid
detection.

Money Laundering
6-44. The money laundering cell includes a variety of personnel, including
accountants, bankers, tellers, and couriers. As in the support cells, some
money laundering cell members are willing participants in the money
laundering process and accept bribes for their services. Extortion and
intimidation keep unwilling members active in the process. Members of
money laundering organizations also establish and operate front
companies.
6-45. Some members, such as accountants and bankers, perform their normal
functions as in a legal business; however, they may conduct illegal acts on
behalf of the organization. Because of banking regulations, members must
conduct activities that do not draw attention to themselves. As an example,
couriers deposit less than $10,000 in bank accounts to avoid federal banking
regulations. However, not all countries have such regulations, making it
easier to launder large sums of money.
6-46. Couriers conduct many transactions with financial institutions. They
travel from bank to bank making deposits, or converting money into checks
and money orders to prepare for smuggling activities. Couriers perform
functions in the same manner described previously, except that cash,
checks, or money orders replace drugs. The money laundering cell may
also use electronic fund transfers which makes tracking of illegal
transactions much more difficult, especially when the country has lax
banking laws.

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EXAMPLE DRUG ORGANIZATION

6-47.Figure 6-6 shows an example drug organization capable of conducting
discussed activities.

HEADQUARTERS Support

1-3 Members
1 x Leader
1 x Counselor
1-2 x Security Spec
1-2 x Direct Action Spec
1-2 x Communications Spec

Cultivation 2-5 Members

Laboratory 5-10 Members

Transportation 2-4 Members Close Coordination

Tacit Coordination

Distribution 3-6 Members

Money
2-3 Members
Laundering

Figure 6-6. Example of a Drug Organization

ACTIVITIES
6-48. Drug and criminal organizations conduct many of the activities
discussed below. The level of sophistication with which the organizations
execute these actions depend on their size and the resources available. An
organization with great wealth, for example, may conduct these activities on
a grand scale using the latest technology.

SECURITY
6-49. For both drug and criminal organizations, security is paramount to
their activities. The members of these organizations may use the highest
degree of sophistication available to conduct intelligence collection and
counterintelligence activities. These activities are a priority, can be well
funded. In many cases, intelligence sources extend to high levels within
government and law enforcement agencies. The local citizenry may willingly
provide ample intelligence collection, counterintelligence, and security support.
Intelligence and security can also be the result of bribery, extortion, or coercion.

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6-50. Most members of drug and criminal organizations are capable of

protecting themselves and their assets. Typically, they carry small-caliber
weapons, such as handguns, pistols, rifles, and shotguns. They are lightly
armed out of necessity or convenience, not for lack of resources. When greater
force of arms is necessary to control people, protect vital resources, or obtain
information, these organizations typically have “enforcers” who can use
heavier arms, such as machineguns and assault weapons, if necessary.

SMUGGLING
6-51. Smuggling is the act of transferring illegal goods. In this case, it means
transporting drugs or money in violation of the enemy’s laws. Members of the
transportation and money laundering elements conduct smuggling activities.
Couriers conceal drugs, money, and other materiel either on their body or
within conveyances. Individuals build special compartments within
conveyances to conceal drugs or money to avoid detection. The hidden
compartments must not draw attention and must protect the stored items.
Only the creativity of the smuggler limits concealment possibilities. (See
Figures 6-3 and 6-4 for examples of concealment techniques.)

MONEY LAUNDERING
6-52. The organization conducts money-laundering activities to transfer
funds into the legitimate international financial system. Because of the legal
restrictions levied by the enemy, the organization must have a way of
transferring “dirty,” or illegally earned, money into “clean” money. The
organization smuggles some currency back to its country of origin. However,
large sums of enemy currency are not feasible for the organization because it
must use the legal currency of its government to make transactions. For
example, a farmer cannot receive payment for his crops in the enemy’s
currency because he would be unable to use it.
6-53. A more productive way to transfer funds into the legitimate financial
system is to operate through front companies. Front companies are legitimate
businesses that provide a means to distribute drugs and launder money. The
organization establishes its own front companies or approaches legal
companies to act as intermediaries. Some front companies, such as an import
or export business, may operate for the sole purpose of laundering money.
Other companies, which are targets of extortion, operate as profit-making
activities and launder money as a service to the organization. Drug and
criminal organizations operate front companies in their host country, as well
as in other countries.

EXTORTION
6-54. Extortion is the act of obtaining support by force or intimidation.
Organizations use extortion to obtain information or to protect members.
Members of the headquarters element conduct extortion on behalf of the
organization; other cells may extort as part of their activities. Examples of
extortion include intimidating politicians to vote in a manner favorable to the
organization, intimidating judges to free an organization member, and
forcing a farmer to grow drug-producing crops.

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BRIBERY
6-55. Bribery is the practice of giving money or other favors to influence
someone. Organizations give money to people in power who make or influence
decisions. For example, law enforcement officials receive bribes, which causes
them to make decisions that favor the organization. Law enforcement officials
or enemy reconnaissance patrols may avoid the organization’s infiltration
routes to allow drugs to enter enemy territory. If the organization is unable to
bribe someone, it employs harsher methods, such as extortion, assassination,
or murder, to gain cooperation.

RECRUITING
6-56. Drug or criminal organizations do not recruit for the same reasons or in
the same manner as other paramilitary organizations. They do not try to
increase their membership or build their organizations. They increase their
numbers only if it is profitable to do so. For example, the organization may
need more chemists to process drugs, so it recruits chemists. When the
organization no longer requires their service, it dismisses them. The drug or
criminal organization may bribe, extort, or simply pay for services, whereas
another paramilitary organization may appeal to an individual’s ideological
desires. While other forces recruit and indoctrinate, drug and criminal
organizations hire people to perform a given function.

CIVIC ACTIONS
6-57. Drug and criminal organizations conduct programs under the guise of
civic actions in order to gain and maintain support, reward their supporters,
and facilitate their continued activities. They may build a school, improve a
road, or supply food and medicine. These projects benefit the local population
because they improve the people's quality of life and may improve their
standard of living. For example, road building makes it easier to transport
goods to market and creates jobs. Some of the jobs may be temporary, such as
those in construction, while others may be permanent, such as those in
education and clinics. Through its propaganda efforts, the organization
ensures that the population knows who is making the improvements.
6-58. Sometimes the organization cooperates with an insurgent force to
conduct civic actions. Both groups want to create chaos or increase instability
within the enemy government. They do not cooperate for ideological reasons.
Their sole purpose is to inhibit the enemy’s ability to affect their activities by
gaining the inherent security a grateful public can provide.

INFORMATION WARFARE
6-59. Drug and criminal organizations may have the resources to conduct a
variety of information warfare activities (see Chapter 2). However, their focus
is often on a well-orchestrated perception management (propaganda) effort.
This can be a powerful tool for intimidating enemies and encouraging support
of the organization’s moneymaking efforts. The use of perception
management techniques can ensure that the population knows who is
making improvements in the local environment and allow the organization to
take credit for other benefits it provides to the local population.

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Draft FM 7-100.3 (4 Feb 02))__________________________________________________________________

6-60. The organization can also use counterpropaganda to spin events

against the enemy. For example, the enemy may burn a farmer’s drug-
producing crop and then broadcast announcements that the action is a direct
result of the farmer’s involvement with an illegal activity. However, the drug
organization can counter this by instilling the idea that the enemy does not
have programs to help the farmer make profits legally and reminding the
populace of the new medical clinic it built.

CRIMINAL ACTIVITIES
6-61. Drug organizations may conduct other criminal activities (such as
murder, theft, prostitution, arms trafficking, and racketeering) that support
their goals. However, these are secondary to the organization’s main money-
making activity. These actions occur infrequently, since they are generally
not worth the risk. However, the significance of these actions relates to
gaining and maintaining support.

MUTUAL INTERESTS
6-62. When mutual interests exist, drug and criminal organizations may
combine efforts with insurgent and/or terrorist organizations controlling or
operating in the same area. Such allies can provide security and
protection or other support to the drug or criminal organization’s
activities in exchange for financial assistance, arms, and protection from
government forces or other common enemies. The amount of mutual
protection depends on the size and sophistication of each organization
(drug/criminal or insurgent/terrorist) and the respective level of influence
with the government and/or local population. Terrorist or insurgent
groups can create diversionary actions or conduct reconnaissance and
early warning, money laundering, smuggling, transportation, and civic
actions on behalf of the drug or criminal organization.
6-63. The congruence of interests can also result in drug and criminal
organizations having a close relationship with an established government. In
some cases, the government may be the covert sponsor of these organizations.
The government’s main motivation for this may be for financial gain, but it
could also intend on using these organizations against insurgent or terrorist
groups or against a neighboring state in support of a broader strategy.

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