Extent of Organized Crime in Poland

According to Darko Arsov, Director of the Directorate for Money Laundering Prevention with the Macedonian Ministry of Finance, "[o]rganized crime is a big issue in Poland" (Macedonia Dec. 2001). The International Crime Threat Assessment, released by the Clinton administration in 2000, reported that the multilateral Financial Action Task Force estimated that "money laundering in Poland alone has grown from $2 billion to $8 billion per year during the 1990s" (US 15 Dec. 2000).

A report on the recruitment of members by criminal gangs in Poland, published in the Polish political weekly Polityka, provided the following statistics, which were obtained from the main police headquarters:

... in 1999 in Poland there operated 423 organized criminal groups associating nearly 5,000 members, and in 2000, 405 groups with more than 4,000 members. ... in 2000, the Central Bureau of Investigation [CBS] charged 643 persons with membership in organized criminal groups (Article 258, Penal Code) and a year later, as many as 968 persons. In the first half of 2002 the CBS charged 621 persons with such membership. Some of the gangs were broken up and that is doubtless a success for the police, but they have been supplanted by new ones ... (14 Dec. 2002).

Reporting on findings contained in Atlas Przestepczosci (Atlas of Crime), which was prepared by the Institute for the Administration of Justice, the Warsaw-based newspaper, Rzeczpospolita, indicated that one in every four persons in Poland is "the victim of a consumer fraud, a car theft, corruption, beating, robbery, or burglary" (23 June 2003). The biggest increase in the growing national crime rate has been in white-collar crime (Rzeczpospolita 23 June 2003). In Warsaw, "corruption is three times as frequent as elsewhere in the country" (ibid.). Similarly, Polityka reported in May 2003 that foreign criminals, who "slip through" and "among" tourists and small traders, "most frequently reside in the vicinity of Warsaw and along the western border" (17 May 2003).

Extent of Russian Organized Crime in Poland

At a press conference in Kuwait in April 2001, the Polish Ambassador, Wojeciech Bozek, addressing the issue of security problems facing Poland, admitted that the country has experienced "'some problems with the presence of the Russian mafia'" (Kuwait Times 11 Apr. 2001). But he also pointed out that the Polish authorities were "'actively taking part to solve these problems'" (ibid.).

In its 2001 report, The Threat of Russian Organized Crime, the United States Department of Justice examined the Uralmash group, which it describes the most dangerous of the three most powerful criminal networks operating in Yekaterinburg, Russia (US 18). According to the report, the Uralmarsh group is

... well-organized both vertically (having a hierarchical command structure) and horizontally (across various criminal enterprises), with a clear delineation of functions. They are also especially well connected to the political authorities and to law enforcement. ...

It is estimated that the Uralmash group controls some 140 commercial enterprises, including a network of banking and lending institutions. They are heavily engaged in exporting raw materials, rare and precious metals, weapons, medicines, and, from time to time, radioactive materials. Their international connections [include] Poland ... (US June 2001, 18).

In a recent report on the operations of foreign criminals in Poland, Polityka declared that

Our country is resided in by dangerous foreigners, organized gangsters, mafia triggermen, and brutal outlaws. They squeeze through the holes of the country's security system, corrupt police officers, and take advantage of the public prosecutor office's naivete or lack of imagination (17 May 2003).

With reference to "Russian-speaking gangsters," Polityka reported that in Poland

[t]hey have an established division of influence. Belarusians, Ukrainians, and Russians mainly attack their own countrymen; they do not deal in distributing drugs, but do take part in delivering them to Poland. They also supply weapons and explosives to our country (17 May 2003).

In addition, there are approximately 200 criminal rings in Russia involved in the prostitution and trafficking of women and children that are also active in 58 other countries, including Poland (IPS 5 July 2002).

Additional information on the extent of Russian organized crime in Poland could not be found among the sources consulted by the Research Directorate within time constraints.

Activities of Organized Crime Groups

Elaborating on his claim that organized crime is a problem in Poland, Darko Arsov added that Poland has become

... a transit country for trafficking in drugs [in] Western Europe. [A] [v]ery large number of crime groups that operate [in Poland] are involved in money laundering, especially with crime revenues acquired abroad, but also in the country (Macedonia Dec. 2001).

According to a September 2002 article in Warsaw Voice,

Over the past several months, the overall number of crimes has dropped in Poland, but this has been accompanied by a 24-percent increase, over the first half of 2001, in financial scams. Financial schemes and finagling linked with trans-border crimes such as smuggling have become the hallmark of the largest gangs.

At the same time, for several years, criminal groups have made visible efforts to launder their money by putting it into legally prospering companies. There has been talk of colossal gang investments in stocks, real estate, shopping centers and land-especially in areas along prospective freeways (15 Sept. 2002).

In October 2002, the Polish Press Agency (PAP) reported that laundered funds in Poland "usually come from organized crime and tax evasion" (30 Oct. 2002).

Organized crime groups are also active in what is known as the "Russian market," Europe's largest outdoor market, in Warsaw (Financial Times 4 Jan. 2003). The market is housed in what used to be a sports stadium, and, through the years, organized crime has turned it into "one of eastern Europe's leading sources of counterfeit CDs, computer software, and brand-name clothes" (ibid.). According to the Financial Times,

Most of the contraband is made in Ukraine, packaged in Poland, and sold by Armenian traders on the stadium's upper tier. It radiates to Poland's provinces, and beyond, via "wholesale" trade [that begins] at 3am [and is] closed to the general public (ibid.).

In November 2002, the Polish News Bulletin reported that "it is commonly known that sex services are controlled by organized crime and are closely tied to narcotics, smuggling and other offenses" (13 Nov. 2002). According to the United Nations Office on Drugs and Crime (UNODC), "[i]n Poland, organized criminals 'import' young women from other Central and Eastern European countries and 'export' Polish and other forced prostitutes to the West" (2003). A recent trend, however, has been to replace the "Polish middlemen" in the smuggling trade of girls and women from the former Soviet republics, who are transported through Poland to the West, with organized crime groups from Ukraine and Belarus (UNODC 2003). For additional information on the trafficking of women from Poland to Europe, please refer to POL41647.E of 12 June 2003.

In 2002, professional car insurance fraud in Poland was at its highest in three years (Warsaw Business Journal 7 Oct. 2002a). Usually controlled by organized crime groups, car insurance fraud involves "corrupt garage operators, who collude with vehicle owners to inflate the cost of damage done to vehicles involved in accidents" (ibid.). The Polish Chamber of Insurance, the industry's regulatory authority, estimated in late 2002 that "up to 50% of all insurance claims made on cars are fraudulent, and of these only 1% can be pinned down as fraudulent because of difficulties in tying down proof" (ibid.).

Enforcement

At the same time that the incidence of whit collar crime has been increasing, Polish courts have been meting out "a growing number of short prison sentences and, as before, a small number of life sentences (Rzeczpospolita 23 June 2003). Citing the Atlas of Crime, Rzeczpospolita reported that though "the courts are more lenient to the perpetrators of certain major crimes (robbery), ... into others they are more severe as well" (ibid.).

Poland's border controls are weak (US 15 Dec. 2000; AP 20 Feb. 2001). This, together with its location, enable Poland to serve as an effective transit route for vehicles stolen in Western Europe and destined for the East; for South American cocaine destined for all of Europe; for the illegal transport of women and children into Western Europe and elsewhere and as a "gateway" for organized crime into northern Europe (US 15 Dec. 2000).

The increase in organized crime activity is also affected by what the Warsaw Business Journal described as a police force that is "understaffed and demoralized" and a judicial system that is "inefficient and in many cases corrupt" (1 Apr. 2002).

A Financial Times report on the "Russian market" in Warsaw indicated that the economic crime unit of the Warsaw city police patrol the stadium daily and stage one or two big raids per month (4 Jan. 2003). Unfortunately, "by some strange coincidence the big fish happen to disappear from the stadium just then, and it is only the small fry that are caught" (Polityka 17 May 2003).

On one particular raid, which was accompanied by the author of the Financial Times report, the following took place:

The traders were all released within 48 hours pending presentation of charges and setting a court date, which in Warsaw's overburdened system can take up to two years. Because of cumbersome police procedures-preparing a case against one vendor ties up an officer, typically, for three days. Most of the cases are later dropped ... after the foreigners fail to appear in court. Some continue working at the stadium on new passports acquired in Armania or Ukraine.

Police put some of the blame on Poland's customs service, which is seemingly powerless to stop the flow of contraband. The trains from Kiev are riddled with hidden compartments (Financial Times 4 Jan. 2003).

Closing down the stadium would affect the livelihood of the thousands of legitimate Polish traders who operate there (ibid.).

In respect of the sex trade, the Polish News Bulletin wrote that "[l]aw enforcement bodies find it difficult to gather evidence of human trafficking and other related crimes at escort agency premises" in part because those who live near such agencies "fear reprisals following any complaints or other action" (13 Nov. 2002).

On car insurance fraud, the Warsaw Business Journal cites a representative of a large Polish insurance company who indicated that Poland's inability to stop car insurance fraud is a result of its laws on personal data, which prohibit insurance companies from sharing industry information (7 Oct. 2002a). The insurance company representative added that "'[w]e simply cannot check if our customer is insured with other insurance companies, if they have previously committed insurance fraud, or if they are what we would deem to be risky customers'" (Warsaw Business Journal 7 Oct. 2002a).

Government Measures to Combat Organized Crime (General)

In April 2000, the Central Bureau of Investigations (CBS) was established to combat organized crime (Warsaw Voice 1 Sept. 2002). The CBS operates throughout Poland, independently of provincial police headquarters (ibid.). It is "directly subordinate to the national chief of police" (ibid.).

During the past year, Poland has entered into several agreements with other countries to cooperate in the fight against organized crime. These include Uzbekistan (Tashkent 21 Oct. 2002), India (Doordarshan Television 18 Feb. 2003), Turkey (PAP 3 Apr. 2003) and Russia (Itar-Tass 9 June 2003).

The Polish government has also recently entered into an agreement on law enforcement cooperation with the United States, which outlines several projects that will be implemented to "address critical needs and allow Americans and Poles to work collaboratively" (M2 Communications 14 Nov. 2002). Among these projects is the Combating International Organized Crime project, which will "procure computer equipment for the Polish National Police Headquarters' Central Bureau of Investigation to support investigations and case management" (ibid.). In addition, the International Training Division of the Federal Bureau of Investigations (FBI) will "provide expert advisory assistance in the area of investigating specific organized criminal activity to compliment the equipment procurement" (ibid.).

In addition, a two-year Police Modernization and Training project will "include a needs assessment and subsequent work to develop a training and assistance strategy, analyze existing internal control mechanisms, and develop applicable codes of ethics" (ibid.).

In May 2003, the Polish government presented a proposal for the development and implementation of information technology software that would facilitate the collection, processing and transfer of data between prisons and other relevant government agencies involved in combating organized crime (such as the prosecution service, police, border authorities, etc.) (Tenders Electronic Daily 13 May 2003). Information on whether the Polish government was successful in obtaining the necessary financing for the implementation of this project could not be found by the Research Directorate within time constraints.

Government Measures to Combat Organized Crime (Economic Crime)

On 28 August 2002, the Polish government approved the "Safe Poland" plan, which is aimed at combating organized economic crime, corruption and tax evasion (AP 28 Aug. 2002). The plan involves making amendments to the penal code, the penal executive code, banking law and tax law (Warsaw Voice 15 Sept. 2002). The amendments to the criminal code will "make it easier for courts to confiscate property that results from wrongdoing, shifting to the accused the burden of proving that their assets were acquired legally," which, at the time of the plan's approval, lag with the courts (AP 28 Aug. 2002). These amendments will also include "harsher penalties for the most serious crimes such as murder, rape, kidnapping, extortion, assault and drug and weapon trafficking" (Warsaw Voice 15 Sept. 2002).

In its efforts to break the economic and financial base of organized crime groups, the government will also introduce a bill on tax amnesty and property declarations that, among other things, will require all citizens who own property valued at approximately $90,000 US, or more, to submit information on their financial status (ibid.).

To combat money laundering, the government made several legislative amendments in September 2002 (PAP 30 Oct. 2002). The new provisions, which apply to, among others, auctioneers, antique and coloured metal dealers and commercial agents, require "all transactions above 15,000 euros [to] be reported to a special inspectorate" (ibid.).

Government Measures to Combat Organized Crime (Sex Trade)

In 1998, a new penal code regarding the trafficking of women and children within and outside Poland was implemented (UNODC 2003). Under the new law, enticing or abducting a person for the purposes of prostitution abroad is punishable by a prison term of up to three years and, in the case of minors, up to ten years (ibid.); trafficking in persons is punishable by a prison term of at least three years; and organizing adoptions for profit is punishable by a prison term of between three months to five years (ibid.).

However, according to the Polish News Bulletin, "[l]ocal self-governments have thus far failed to undertake any vigorous action" against escort agency activity (13 Nov. 2002).

Government Measures to Combat Organized Crime (Car Insurance Fraud)

To combat car insurance fraud, the Polish parliament was to make a decision on four new laws entailing the creation of two databases (Warsaw Business Journal 7 Oct. 2002a). One database was to list holders of compulsory car insurance policies and the other to list insurance brokers and agents (ibid.). The purpose of the databases was to "allow ready access to important industry statistics, not only in Poland, but also in the European Union and [to] help insurance companies weed out fraud" (ibid.). However, the Warsaw Business Journal reported that, according to one industry source, "it will be at least five years before the market starts seeing fraud-fighting results from these databases" (ibid.).

Information on whether these laws were implemented and whether the databases were created could not be found among the sources consulted by the Research Directorate within time constraints.

Government Measures to Combat Organized Crime (Corruption)

As a result of the creation of a High-Level Anti-Corruption Group in May 2001, "an anti-corruption strategy was published and distributed to decision makers," but, according to the Global Corruption Report 2003 by Transparency International, "like a previous strategy initiated by the government, only parts of the recommendations have been translated into policies" (2003, 181).

State Protection to Those Victimized by Members of Organized Crime Groups

For information on the protection available to individuals required to give testimony in criminal trials, please consult POL40626.E of 18 December 2002. Information on the protection available to business people who are victims of extortion by organized crime groups is available in POL40718.E of 28 March 2003.

Under the "Safe Poland" plan to combat crime discussed above, "[w]itnesses and crime victims will receive better protection" (Warsaw Voice 15 Sept. 2002). However, Warsaw Voice, in reporting on the government's initiative, does not specify in what ways such protection will be improved (ibid.).

In its report on the trafficking of persons, the UNODC describes "a number of possibilities" available to victims and witnesses in Poland for their protection (2003). These include anonymous testimony, which is "permitted but seldom used," and for witnesses, being sent to a protection center (UNODC 2003). However, the report also indicates that there are no special shelters for trafficked women (ibid.).

Success in Combating Organized Crime in Poland

As a result of the establishment of the CBS, 36 suspected members of the Krakowiak gang went on trial in February 2001 "on charges related to four murders, numerous robberies, extortion, kidnapping, arms and drug trafficking" (AP 20 Feb. 2001; see also Warsaw Voice 18 Feb. 2001). Information on this trial and whether it has concluded could not be found among the sources consulted by the Research Directorate within time constraints.

Also due to CBS operations,

240 organized criminal gangs were broken up last year [2001], including 53 with international connections. In effect, during 1,800 operations, 3,218 offenders were detained and faced charges. The estimated value of recovered property, including cars, audio-visual equipment, household appliances, gold and works of art, exceeded zl. 1.5 billion [approximately US $374 billion (XE 5 Sept. 2003)].

CBS functionaries also detected losses to the Treasury amounting to zl. 1,265,332,466 [approximately US $315 billion (XE 5 Sept. 2003)] ... The best known of CBS's numerous operations were those connected with combating corruption, often involving high-raking officials. ...

The CBS also reported successes in fighting drug trafficking, including intercepting 195 kilograms of amphetamines, 208 kg of heroin, 45 kg of cocaine, 75 kg of marijuana and 9 kg of hashish. Twelve large drug-labs were liquidated. In [January] 2002 ... Wroc'aw police, together with CBS officers, confiscated a record load of 400 kg of cocaine ... (Warsaw Voice 1 Sept. 2002).

On 18 September 2002, the trial of 14 men accused of establishing and running the Pruszkow gang, reportedly the largest organized crime group in Poland, began (ibid. 29 Sept. 2002; Warsaw Business Journal 7 Oct. 2002b). The Pruszkow gang apparently operated a large car theft ring, extorted large sums of money from small businesses, engaged in large-scale alcohol and drug smuggling operations (Polish News Bulletin 21 Mar. 2002; Warsaw Business Journal 7 Oct. 2002b), and committed murder and armed robbery (ibid.). The trial also revealed connections between the gang and various politicians (ibid.; Warsaw Voice 5 June 2003). The trial ended on 29 May 2003, resulting in convictions for founding and running an organized group and for "several other minor offenses like forgery," but the "prosecutors failed to prove [that] they were guilty of serious crimes like murder, robbery, extortion and drug trafficking" (ibid.).

This Response was prepared after researching publicly accessible information currently available to the Research Directorate within time constraints. This Response is not, and does not purport to be, conclusive as to the merit of any particular claim to refugee status or asylum. Please find below the list of additional sources consulted in researching this Information Request.

References

Associated Press (AP). 28 August 2002. "Polish Government Outlines Plan to Crack Down on Crime and Corruption, Claw Back Missing Tax Revenue." (Dialog)

_____. 20 February 2001. "Thirty-Six Suspected Members of Polish Criminal Gang Go on Trial." (NEXIS)

Doordarshan Television [New Delhi]. 18 February 2003. "India, Poland Sign Defence, Extradition Agreements." (BBC Monitoring/Dialog)

Financial Times [London, UK]. 4 January 2003. John Reed. "FT Weekend - The Front Line: Shadow of the 'Evil Empire': Warsaw's Massive Outdoor Market Is a Must for Tourists but Failure to Deal with Pirates Is Storing Up Trouble with the EU for Poland, Says John Reed." (Dialog)

Inter Press Service (IPS). 5 July 2002. Gustavo Capdevila. "Rights: Russian Women Trafficked for Global Sex Trade." (NEXIS)

Itar-Tass. 9 June 2003. "Firm Legal Basis for Russia-Poland Enforcement Cooperation Necessary." (Dialog)

Kuwait Times. 11 April 2001. "Kuwait: Poland Aims to Woo Tourism and Business." (Dialog).

M2 Communications. 14 November 2002. "US Dept of State: US/Poland Letter of Agreement." (Dialog)

Macedonia. December 2001. Ministry of Finance. Bulletin. No. 12. "Money Laundering - The Most Sophisticated Form of Organized Crime." http://www.finance.gov.mk/gb/bulletins/12-01/darko.pdf [Accessed 2 Sept. 2003]

Polish News Bulletin [Warsaw]. 13 November 2002. "Troublesome Neighbors." (Dialog)

_____. 21 March 2002. "Rechoning Day Arrives for Polish Mafia Supergang." (NEXIS)

Polish Press Agency (PAP). 3 April 2003. "Polish Premier to Visit Turkey." (Dialog)

_____. 30 October 2002. "Polish Government Wants to Step Up Fight Against Money Laundering." (Dialog)

Polityka [Warsaw, in Polish]. 17 May 2003. Piotr Pytlakowski and Mariusz Urbanek. "Report Views Operations of Foreign Criminals, Police Collaborators in Poland." (WNC/Dialog)

_____. 14 December 2002. Piotr Pytlakowski. "Report Discusses Generation Change in Polish Underworld." (WNC/Dialog)

Rzeczpospolita [Warsaw, in Polish, Internet version]. 23 June 2003. Agata Lukasiewicz. "Poland: 'Atlas of Crime' Publication Shows Crime Rising." (FBIS-EEU-2003-0623 25 June 2003/Dialog)

Tashkent [Uzbek television, in Uzbek]. 21 October 2002. "Uzbek President for Boosting Relations with Poland." (BBC International 22 Oct. 2002/Dialog)

Tenders Electronic Daily [Glasglow]. 13 May 2003. "PL-Warsaw: Phare - PL0103.10.01 Justice - Organized Crime and International Cooperation - Development and Implementation of IT Software, Poland." (Dialog)

Transparency International. 2003. Martin Brusis, Iris Kempe and Wim van Meurs. "Central and Eastern Europe and the Baltic States." Global Corruption Report 2003. http://www.globalcorruptionreport.org/download/gcr2003/17_CEE_Baltic_(Brusis_et_al).pdf [Accessed 2 Sept. 2003]

United Nations Office on Drugs and Crime (UNODC). 2003. "The Case of Poland." http://www.unodc.org/unodc/es/trafficking_projects_poland.html [Accessed 2 Sept. 2003]

United States (US). June 2001. United States Department of Justice. James O. Finckenauer and Yuri A. Voronin. The Threat of Russian Organized Crime. http://www.ncjrs.org/pdffiles1/nij/187085.pdf [Accessed 2 Sept. 2003]

_____. 15 December 2000. The Whit House, President Clinton. "Eastern and Central Europe." International Crime Threat Assessment. http://www.fas.org/irp/threat/pub45270chap3.html [Accessed 2 Sept. 2003]

Warsaw Business Journal. 7 October 2002b. Greg Goodale."People Behind Glass Panes Throwing Stones. Greg Goodale Looks in on the 'Pruszkow Trial'." (Dialog)

_____. 7 October 2002a. Celia Barnes. "Car Insurance Fraud is Epidemic." (Dialog)

_____. 1 April 2002. Marek Matraszek. "Crime and Punishment." (Dialog)

Warsaw Voice. 5 June 2003. "A Slap on the Wrist?" http://www.warsawvoice.pl/view/2493 [Accessed 2 Sept. 2003]

_____. 29 September 2002. "Pruszkow Gang - The Mob on Trial." (Dialog)

_____. 15 September 2002. "Crime: Safety First." (Dialog)

_____. 1 September 2002. "The Thin Blue Line." (Dialog)

_____. 18 February 2001. "A Year of the 'Polish FBI'." http://www.warsawvoice.pl/old/v643/News03.html [Accessed 4 Sept. 2003]

XE Corporation. 5 September 2003. "Universal Currency Converter Results." http://www.xe.com/ucc/convert.cgi [Accessed 5 Sept. 2003]

Additional Sources Consulted

IRB databases

Internet sites, including:

The Global Intelligence News Portal

Organized Crime Registry

Transnational Crime and Corruption Centre

Search engine:

Google