Background – The New Breed of PIs
The world of investigations have always had an element of mystery, excitement and glamour – thanks to movies such as James Bond and TV series such as Magnum PI, Las Vegas, and CSI.
However, generally in Asia till today, private investigators have always been perceived to be only doing unglamorous work – “snoops” who are paid to take photographs of cheating spouses. They are perceived to be mainly retired police officers who have entered the sensational world of PI as their second career to keep themselves occupied productively.
Too little is still known about the new breed of private investigators that have emerged with the advancement in technology, the globalisation process and the dynamic changes shaping the world economy and its key players – the corporate and industrial sectors,
Today, the internationalization of world economies have heralded the emergence of a new group of private investigators that focusing on commercial investigations. These new age “crime busters” are graduates from various disciplines such as psychology, law, business, and science. They become research analysts, scoring over pores of data from primary and secondary sources to analyse crime patterns or simply to process information that can be used to make effective business decisions.
Today, private investigators, especially from the West are involved with law enforcement agencies as partners to combat transnational crime. As businesses become borderless, the world has become one big marketplace. Many criminal activities have also kept up with the international wave – which makes it harder to combat due to sovereignty issues, and also differences in language, culture, legal and social environments between countries.
Combating International Crime
International crime is not new but of the late, its intensity is felt more today due to developing Asian economies. Furthermore, the trend has been that most act of violence in the world is traced back to Asia, and its impact – socially, economically and politically, is faced by the Asians.
Hence, there is a need to recognize and acknowledge this problem in international crime which permeates at all levels of social fabric in Asia’s society, and there is a need to eradicate the problem from the roots. It is true that the West may be the biggest culprits and perpetrators, but they seek the loopholes in Asia fragile and volatile systems to spread the growth of crime. The criminal act is being executed in Asia due to the lack of legal control and education, the vicious poverty cycle and the general tolerance of crime as a way of life.
Private investigators in Asia play a role in combating international crime – though they may not even have heard of it!
This recognition from the international community is reflected in my invitation to a Regional roundtable conference that was held in New Delhi from 26 to 28 October 2005. The event themed “International Crime: Its Diverse Impact on the Development of Asian Countries” was the result of joint efforts by:
- Friedrich Ebert Stiftung (FES) – a private non- profit German organization that works to achieve the fundamental values of democracy, social justice, and peaceful international understanding.
- South Asian Association For Regional Co-operation in Law (SAARCLAW) – is an association of the legal communities of the SAARC countries comprising judges, lawyers, academicians, law teachers, public officers and a host of other law-related persons, duly registered with the SAARC Secretariat at Katmandu and has been given the status of a Regional Apex Body Of SAARC. It owes its origin to the desire of the members of the legal community to establish an association within the SAARC region to disseminate information and to promote an understanding of the concerns and developments of the region.
- Kaden Boriss Consulting Pvt. Ltd. – is a legal consultant/legal BPO and service provider engaged in undertaking consulting assignments for clients seeking to outsource their legal, para-legal and strategic advisory, regulatory and compliance work.
- New Scotland Yard – London Metropolitan Police.
Over the past 30 years, as one of the pioneers in the security and private investigations business, I have evolved the business to move from the domestic to the international scene.
Today, we represent corporate clients from the USA and Europe on a range of investigations covering corporate and personal due diligence, fraud investigations, pre-employment screening, insurance claims verification, intellectual property breaches throughout the Asia-Pacific region in countries such as Malaysia, Thailand, Philippines, India, China, Indonesia and others.
Hence, I was invited to the Regional roundtable conference to provide input to the forum because of my understanding on ground situation in various countries through my work in Asia.
Below are my insights on the nature of international crime that is a cause of concern for the world, and how we are playing a part as private investigators to provide commercial intelligence to law enforcement agencies to stamp out criminal activities.
International Crime Concerns in Asia
Terrorism
Since 11 September 2001, the world changed with the emergence of a most hideous crime that took away over 3000 lives in co-ordinated attacks at the World Trade Center in New York and The Pentagon in Washington.
The terrorist attacks are the first among a series of suicide bombings that have robbed lives at tourist destinations in Bali, the Marriot Hotel in Jakarta, the railways stations in London and Madrid, and recently the hotel blasts in Jordan, and the shopping area in New Delhi.
Suicide bombing and terrorism is not new to Asia, but it is worsening and a bleak future awaits Asia if the terrorist threat is not well contained and controlled:
- For decades, Sri Lanka has been fighting the Liberation of the Tamil Tigers Eelam LTTE – Sri Lanka
- India has been battling with the Kashmiri separatists in the Himalayans,
- Indonesia has been the worst hit with the two bomb blasts at its tourist spots in Bali, blast at Marriot hotel in Jakarta and other incidences in its provinces.
- Southern Thailand has been facing its own share of insurgency situations.
- Philippines has the occasional bombs in Manila. Kidnappings in Mindanao by the rebel group Abu Sayaf have drastically affected tourism in the Mindanao province
- Malaysia has had threat of bomb attacks at the foreign embassies in Kuala Lumpur, but there have been no major incidences yet.
- Singapore has been vigilant so far to recognize the threats posed by the homegrown JI members. No major incidences but the threat is very real – from the arrests made so far.
What is new and frightening is the global face of terrorism with the Al-Qaeda international network and its related organizations such as the Jamiah Islamiah (JI) in Asia.
JI is dangerous as they are faceless and formless with cells throughout South East Asian countries and they are bent on creating disunity. JI is dangerous because they are a group not formed to fight territorial or political rights or a fight against oppression. They are focused on changing the social fabric and ideology of economic, political and legal systems.
JI is known to be actively thriving in Indonesia because of sympathy towards Muslims, as Indonesia is the world’s largest Muslim nation. JI has a brand of Islam different from the moderate Muslims which dominate the South East Asian region.
There is no specific profile of a JI terrorist. On surface, they lead ordinary lives in ordinary residential areas. They have education, they go to work, they pay taxes but they lead a deadly double life, shrouded in secrecy.
Asian governments have a mutual understanding to cooperate and break the terrorist web through information sharing at government intelligence level. However, more needs to be done at legal and social level, and at private sector level. This is where private investigators can play a part – as we have the skills and network of contacts to gather intelligence required.
In Asia, there is still a parent-child approach between government and private sector. Government feels a sense of responsibility to be the figure head that provides the direction first. However with today’s modern technology and information age, the private sector may have the advantage to resources and timely information not even available to government machinery due to red tape and budget constraints. For instance, private companies are free to network and exchange contacts. Government organizations are restricted by policies which must be adhered to.
Flesh Trade
Flesh trade is rampant in Asia’s growing economies. Thailand remains a hot spot for pedophiles and foreign men seeking for pleasures of the flesh. Philippines is also known for its go-go dancers – mainly exported to Japan.
Mail order brides, sex tours, find-a-bride tours are all not uncommon in the more urban countries in Asia.
Over the years, non-profit organizations have devoted to the cause of combating human trafficking in Asia. Private investigators have been engaged to obtain evidence of trafficking so that rescue efforts can be put in place. The US Customs and Enforcement agency officers (ICE) are also active in monitoring the events in South East Asia.
Laws in USA and Canada are now being shaped to prosecute their citizens who are found engaging in lewd acts with young children. Similar laws are being introduced in the more urbanized Asian countries.
Support from local governments of respective countries needs to be harnessed and extradition treaties binding the prosecution of transnational crimes will need to be reviewed for timely and effective action.
Product Counterfeits
Counterfeits are a major problem for Asian countries due to available technology and cheaper labour in Asia.
China has been often portrayed as the counterfeit haven in Asia. Multinational companies have been setting up manufacturing plants in China to benefit from lower production and labour costs. In the process of setting up factories, they have brought into China their proprietory technology, training and expertise.
Taiwan and Korea are also other manufacturing bases for counterfeit products, especially for electronic and computing products. They have long been established as competitors to US and European multinationals in consumer electronics and semi-conductors for the industrial sector.
South-east Asian countries have an abundance of counterfeit items from consumer goods, industrial to commercial items on sale due to its price-sensitive marketplace. There seems to be a general high tolerance for quality counterfeits in Asian countries.
Private investigators are being engaged by multinational companies to monitor the sale of counterfeit items of their products in the marketplace. The business loss to companies due to counterfeits can run to millions of dollars. Hence, there are niche private investigators who specialize in working for companies selling high end brands. They obtain the evidence which is then used to conduct raids and prosecute sellers of counterfeit items, or obtain information on shipment of counterfeit products for the cargo to be seized at port. The enforcement action will be passed on to the Commercial Affairs section in the Police force of each respective country.
Document Counterfeits
A more serious area of counterfeits is the production of identification documents such as identity cards, passports and also currency.
In the past, there have been allegations that US dollar counterfeiters from countries such as Nigeria and East African countries (Tanzania, Kenya, Zambia) have been manufacturing counterfeit notes in some countries in South East Asia where the policing of such activities is poor. This is due to the printing machinery, skills and paper quality available.
The lack of centralization of databases for official records in most Asian countries has made it difficult to trace authenticity of a person’s identity and the identity documents. Many records are being stored at provincial level and in some cases, manual searches will have to be done.
As part of due diligence assignments, this verification process is conducted by private investigators who will have to visit various offices at national and provincial levels, and necessary site inspections to confirm the authenticity of the information provided.
Breach of Intellectual Property (IP)
The lax of intellectual property laws generally in Asia has made it possible for many counterfeits and copy cats to thrive.
Singapore has a intellectual property watchdog called the Intellectual Property Office of Singapore and an Intellectual Property department within the commercial crimes division that specializes in IP raids. Most countries in Asia do not have such an established system to promote IP protection.
Since China joined the World Trade Organisation in 2001, it has improved its IP laws to protect its reputation and also encourage investments. There is still recognition that IP laws are insufficient in China but the process to prosecute offending parties and close down factories of infringing parties have become simpler. There is no need to apply to the criminal courts for search warrants. Evidence can be gathered by the plaintiff (the multinational company), who can then visit the administration bodies in their respective provinces. The administration bodies can then conduct the raids. The value of seizure of counterfeit items in China have come up to millions of US dollars, and in a year, over tens of thousands premises have been raided.
Law enforcement agencies and multinational clients seek the assistance of private investigators to obtain evidence of intellectual breaches and monitor the marketplace.
The breach of intellectual property is not just a commercial crime that affects the client’s business. Its implications spread far wider, as millions of dollars can be earned by organized syndicates and terrorist cells from the breach of intellectual property due to the abundance of markets in places like Philippines, Thailand and Malaysia.
Product Diversion
Product diversion is another avenue for organized crime groups to make money through “legal” channels to fund their illegal activities. Legal channels can include parallel import permits.
There has been no evidence to show the correlation but through product diversion, it would be possible to export weapons, and dangerous chemicals. Even basic petro-chemicals such as Naptha, Bezene, Hydrochlorine or commodity such as sugar can be dangerous if it falls into the wrong hands as they can be explosive with the right chemical mixture.
Product diversion can include the bill of lading being switched at ports and then they are re-exported again. Product diversion and parallel imports are closely related to legitimate means of money laundering through under-invoicing, and sale of expensive genuine items at cheap rates to benefit high profits. None of these activities are criminal offences as they are part and parcel of business.
Once these products cross borders, they are covered by the laws of different jurisdictions which make them even harder to track. It is believed that terrorists today have started using legitimate businesses to launder funds across countries.
Hence, commercial intelligence is crucial to support the role of the Customs Department in port monitoring. Unlike law enforcement agencies that can only act when there is sufficient evidence, private investigators can act on a reliable piece of information and verifying it, which will provide the solid evidence required by courts for prosecution.
Identity Theft and Fraud
Identity theft and fraud is common in Asia due to petty theft. Wallets are being stolen with personal identity cards. These identity documents are then being sold.
From the stolen identity documents, transactions can be executed and applications for phones, credit cards and even passports can be made – taking advantage of lax due diligence.
Again most countries and government departments in Asia are lax in terms of corporate security policies. Bribery is also common to speed up application processes. Until the social system improves to discourage bribery, and there are mandatory laws to place checks and balances on security procedures in work processes, identity theft will continue to thrive in Asia.
Foreign institutions such as banks and insurance firms, and prospective employers should engage private investigators to verify information provided by candidates from high risk countries where document forgery is common. Terrorists have been able to penetrate into countries and organizations, gaining legitimate status as a result of identity fraud.
Conclusion
With the global terrorist threat that is unlikely to disappear overnight, private investigators are now moving into the arena of international crime busters.
From surveillance sleuths to economic crime analysts, the private investigations industry worldwide has evolved significantly.
In the West, there is increasing partnership between the private investigations and government sector. The “Private Interpol” is formed through international associations such as the Council of International Investigators that has a network of members in over 40 countries, the World Association of Detectives that has been in existence for over 80 years and a few others. Nevertheless, – just like in any marriage, there is always room for continuous improvement in partnership.
In Asia, private investigations are a dynamic and growth sector that is gaining increasing recognition from the law enforcement authorities on its contribution to national security issues. As crime transcends international borders and cyberspace, both private investigations and the government organizations need to continually keep abreast of developments and work together for the betterment of the society from the volatile world that we live in today.
| WITH COMPLIMENTS YOUR EAST WEST CONNECTION IN INFORMATION SHARINGMainguard International (S) Pte Ltd 5001 Beach Road #08-09, Golden Mile Complex Singapore 199588 Tel: +65-62965881, Fax: +65-62961171 Email: [email protected] Contact: P. Kalastree, Managing Director |
Maj (ret) Ponno Kalastree is the Managing Director of Mainguard Security Services (S) Pte Ltd and Mainguard International (S) Pte Ltd – a licensed security and private investigations firm which he established over 30 years ago when he left the Singapore Armed Forces.
Today, Mainguard is a leading player in the private security and investigations industry, specializing in corporate investigations in the South East Asia region. His clientele include some of the largest insurance companies, law firms and multinationals from the USA and Europe.
Ponno was Chairman (2002-2003) and President (2001-2002) of the Council of International Investigators (CII), which is an elite organization comprising of top investigators from over 40 countries. He was formerly a recipient of the International Investigators of the Year Award.
Maj (ret) Ponno Kalastree can be reached at:
Tel: +65-6296 5881
Fax: +65-6296 1171 or
Email: [email protected]