St. Maarten Private Eye

Organised crime and law enforcement on St. Maarten

Nature of study: background, research questions and collection of data

Background
Organised crime on the islands of the Netherlands Antilles is a matter of
concern for local government and society alike. The bulk of the research
carried out to date into crime in the Netherlands Antilles however relates
to Curaçao. As a result of this, there was, until recently, no detailed
knowledge of the nature, seriousness or the scope of organised crime
on St. Maarten, nor of the law enforcement approaches being used to
combat it.

As far as the level and quality of law enforcement in the Netherlands
Antilles is concerned, the then Minister of Justice of the Netherlands
Antilles and the Dutch government gained the impression in 2002 that
the law enforcement system in the Netherlands Antilles was suffering
the effects of a shortage of personnel and a lack of equipment, amongst
other things, and that it therefore was insufficient to combat the rise in
criminality, particularly in the field of drugs-related offences. Joint efforts
in relation to law enforcement within the Kingdom of the Netherlands
were subsequently strengthened. In that regard, agreements were made
during the tripartite consultation in September 2002 that a crime analysis
would be carried out in relation to St. Maarten. In 2004, the then Minister
of Justice of the Netherlands Antilles commissioned a study that aimed
to chart the types of organised crime taking place in the Leeward Islands
(St. Maarten, Saba and St. Eustatius) and the methods that were being
used to combat such crime.

Questions that formed part of the study:
The main issue that the study attempted to address was as follows:
What is the nature, seriousness and scope of organised crime on the
Leeward Islands that form part of the Netherlands Antilles and on
St. Maarten in particular and to what extent are the relevant (law
enforcement) bodies equipped to combat this form of crime effectively?
The following research questions were formulated:
1 What is the nature, seriousness and scope of organised crime on the
Leeward Islands?
a Which forms of organised crime were encountered?
b Is any information available as to the manner in which these forms
of organised crime are prepared and committed?
2. To what extent are the relevant law enforcement bodies equipped to
combat organised crime effectively?
a. Which bodies are involved in the prevention and combating of
organised crime?
b. How well are these bodies equipped to prevent and combat
organised crime?
c. Are these resources sufficient?
d. What recommendations for combating organised crime emerge
from the study (in terms of prevention, regulation, detection and
prosecution)?

Collection of data:
The study was undertaken during the period from 2004 to 2007. A total
of 89 semi-structured interviews were conducted with representatives of
various organisations in the Netherlands Antilles, the Netherlands and
the United States/Puerto Rico. A total of 15 criminal investigation files and
53 requests for legal assistance were studied at the Criminal Investigation
Task Force (RST) and the Public Prosecutor’s office on St. Maarten and
Curaçao. Of the 15 criminal cases, four related to human trafficking and
11 related to drugs smuggling. Of the 53 requests for legal assistance, 24
related to the trade in drugs, 22 to financial or economic crimes (four
requests related both to drugs trading and to financial economic crime),
2 to murder and 9 to other offences. Use was also made of earlier studies,
dossiers and reports during the study. Briefings organised by the US
Homeland Security especially for this project were also attended.
Although the study was intended to relate to the Leeward Islands, hardly
any information was found regarding organised crime on Saba and
St. Eustatius. For this reason, the study was largely devoted to St. Maarten.

The findings of the study:
A key characteristic of St. Maarten (and of the other two Leeward Islands)
is its small size. The economy of St. Maarten is a prime illustration of
this, in that it focuses on and is therefore dependent upon a single sector,
namely tourism. Not only does the island form an attractive destination
for tourists, but workers and other migrants are relocating to St. Maarten.
Another important feature of the island is that it is located in a transit
area between drug-producing and drug-consuming countries. Its small
size and its location amidst a multitude of international frontiers has, in
many respects, caused the island to have an international character. The
island’s links to other countries within the Kingdom of the Netherlands
also play an important role in this regard. When portraying the
circumstances in which this group of islands now finds itself, it is also
important to be aware that difficulties currently exist in the areas of
government finances and debts. In order to promote economic activity,
St. Maarten is a free trade area. In addition, investments are now being
made in the island’s infrastructure (its port and airport) and foreign
investors are being attracted to invest in the island. The island’s location
and infrastructure, combined with law enforcement systems that are
still limited in scope, form an ideal opportunity for the development of
criminal activities.

The study then goes on to paint a picture of a considerable problem
with regard to crime on St. Maarten. Very limited information regarding
organised crime on the other two Leeward Islands (Saba and St. Eustatius)
is included however and this does not give the reader any grounds with
which to refer to a considerable and ‘ongoing’ problem on those islands.

What forms of organised crime were encountered, how are these forms
of (organised) crime committed and how serious are these?
Crime on St. Maarten is characterised to a large extent by its transitory
nature. One of the most clear-cut forms of crime on the island is drugrelated
crime. The reason for this is that St. Maarten plays an important
and varied role within the (international) drugs trade. St. Maarten also
plays an important role in the transportation of various types of drugs,
such as cocaine, heroin, marijuana and, to a lesser extent, of synthetic
drugs. People of a number of different nationalities or origins on the
island are involved in this activity and work together in such contexts and
the trading in drugs is carried out in a more or less organised manner.
What this means is that the transportation of drugs is arranged and that
this can sometimes cover large distances, thereby requiring a significant
amount of coordination. This manifests itself both in the form of prearranged
meetings between boats and the transfer of smuggled goods on
the open sea, as well as in the remarkably large group of couriers that was
arrested at the Prinses Juliana Airport. Drug smuggling that is planned
on a more ad hoc basis, sometimes on a short-term basis, is also being
observed. This type of smuggling depends on more practical factors.
Confiscations are not centrally recorded, as a result of which it is not
possible to gain an overview of the seriousness of the situation. The
first reason for this is that confiscations that take place on St. Maarten
are not clearly and centrally recorded. The second reason is that there
is a significant dark number of drug consignments that go undetected.
This information has been gleaned from information obtained during
investigations. The third reason is that the authorities are not always
informed when drugs are confiscated elsewhere that were destined for
St. Maarten or that had originated there.

Finally, it can be established that drug smugglers are making use of a
multitude of alternative routes and methods. They are also using aircraft
and all manner of ocean-going craft in order to transport drugs to an
equally large number of different destinations. The sheer diversity of this
186 Georganiseerde criminaliteit en rechtshandhaving op St. Maarten
situation conjures up an image that the drugs market is freely accessible
and a lack of checks carried out upon the flow of goods and individuals
only works in favour of such drug smuggling activities.

A problematic situation also applies in relation to financial and economic
crime. However, the unsatisfactory involvement of investigative and law
enforcement agencies has created a situation in which it is difficult to
establish precisely the scope of such activities and their links to organised
crime. The absence of stringent checks into money and monetary flows
means that elaborate constructs are not required in order to transfer and
launder the proceeds (of criminal acts). What is known is that part of the
proceeds from the various forms of criminal activity described above
arrive on St. Maarten by some means or other in the form of investments
and payments for (transportation) services. Another part of the proceeds
finds its way, via St. Maarten, to those who commissioned the smuggling
activities. In some cases, only small amounts of money are involved and
these are transferred and laundered in a fairly primitive manner. One
example of this is the payments made to couriers, which are paid by
means of money transfers. Consignments of cash have also been observed
arriving in or departing from St. Maarten by boat or by air in the hands of
couriers.

There are also indications that point to the transfer or investment of large
amounts of money that are the proceeds of criminal acts. This has been
established due to the fact that financial investigations being carried out
in other countries that involve large amounts of money being smuggled
frequently generate a trail with a branch that leads to St. Maarten. It
goes without saying that the frequency with which (criminal) funds are
transferred is also an important factor.
Investigations have revealed a number of forms of financial and economic
crime. The authorities that were interviewed for the purpose of the
study expressed their concerns about this. The overall picture that
emerges is that fraudulent investments are being made, certain groups of
entrepreneurs (of specific ethnic backgrounds) are under suspicion and
that the economic growth and prosperity of St. Maarten does, at the very
least, raise a number of questions. At the same time, no-one has managed
to gain an overview of the various forms of (organised) financial and
economic crime, with the result that it is impossible to verify the picture
that seems to be emerging. The financial aspects of crime have not
formed a sufficiently major part of criminal investigations to date.
In addition to drugs and financial and economic crimes, people smuggling
and trafficking in human beings were also examined during the course
of this study. However, even less information about these activities has
been forthcoming from criminal investigations. St. Maarten forms an
attractive destination for migrants, but opportunities to migrate have
now been reduced as the result of a tightening of migration policy.
Some illegal migration still takes place, however. The flows of illegal
migrants are currently a major factor on St. Maarten. People smugglers
take advantage of this and make money by facilitating illegal migration.
People are transported or provided with false documents. Smuggling from
St. Maarten by boat predominantly takes place to the US Virgin Islands
or Puerto Rico. St. Maarten is particularly involved in the smuggling of
migrants from Haiti and the Dominican Republic, but is also involved
in the smuggling of Chinese migrants. The routes are selected in such a
way that they pass through places in which checks by law enforcement
agencies are least likely to be carried out. As far as human trafficking is
concerned, only one investigation had been carried out at the time our
study was underway. Signs have been observed that point to a number
of irregularities (in relation to exploitation) in specific sectors, including
the prostitution and domestic service sectors. Despite such indications,
enforcement and checking of compliance with prostitution policy is still
minimal.

No investigations were carried out during 2006 into the trade in weapons.
Nevertheless, a number of concerns exist with regard to the availability
of weapons and the increasing prevalence of crimes involving firearms
that are being committed on the island. With regard to terrorism, the data
gathered for the purposes of this study do not seem to indicate an acute
threat of terrorist attack. There are indications however that money flows
are passing through the island to organisations in the Middle East that
may be linked to activities associated with terrorism.

Not only did our study attempt to chart the overall picture and the
significance of organised crime on St. Maarten, but it also explicitly
examined the issue as to whether current efforts in the field of
investigation and enforcement are actually sufficient. This particular
issue was analysed on the basis of four criteria.

It can be stated that as far as legislation and regulation and law
enforcement policy are concerned, progress has been made. As the Penal
Code of the Netherlands Antilles and associated national ordinances
and decrees had become severely outdated, work began in 2003 on a
revision of the Penal Code. In early December 2006, the new draft version
of the Code was submitted to the Minister of Justice. During the past
few years, a number of policy proposals have been compiled with the
intention of calling a halt to (organised) crime. Whilst our study was
underway, however, the impact of these measures was hardly apparent
on St. Maarten. The necessary steps still need to be taken with regard to
making policy choices, such as those relating to the question whether
investment should primarily be focused upon controls or upon more
188 Georganiseerde criminaliteit en rechtshandhaving op St. Maarten
active investigative activities and regarding the setting of priorities (for
example areas of organised crime deserving particular attention).
The following observations were made with regard to the individual
authorities and the collaboration between authorities for the purpose of
the prevention and combating of organised crime. A total of twenty five
authorities were active on a local level, within the Netherlands Antilles
and on an international level. Collaboration between these authorities
takes place whenever they take part in joint investigations, exchange
information or whenever one authority avails itself of the expertise of
another authority. Organising effective collaboration of this type appears
to be a simple matter, due to the small size of St. Maarten. A number of
authorities did actually state that they found that the short lines were in
fact conducive to effective collaboration. Collaborations do however prove
problematic when different organisations are active in the same field and
when each one is working from its own angle. Such situations can give
rise to problems with regard to the sharing of information. A reticence
with regard to the sharing of information may also exist as the result
of a fear of such information being leaked. A lack of trust, or an active
mistrust, also has a part to play in this. Such fears have a negative effect
on the various forms of collaboration. The less than ideal situation that
exists between the RST (Criminal Investigation Task Force) and the KPSSS
(the local police) is reflected in the limited collaboration that takes place
between these two organisations. The different tasks each organisation is
required to fulfil are also partly to blame for this. Whilst the RST mainly
focuses upon organised crime, the KPSSS is primarily involved in local
crime. However, this does not alter the fact that collaboration and a
sharing of information remain important factors. In the field of financial
and economic crime, less collaboration takes place with authorities that
do not have a local office on St. Maarten. International collaboration is
generally effective, however the island lacks a satisfactory treaty that
enables collaboration between the police forces on the French side of
the island with those on the Dutch side. To summarise, we can say that
intentions are now in place to work effectively together, but that this is not
always the case in practice. This is partly due to the organisational and
practical circumstances and partly due to cultural (mistrust) and ‘inside
bureaucracy’ factors. Another contributory factor lies in the fact that
objectives that must be achieved as a result of a joint effort are generally
not formalised, thereby providing scope for an individual approach to be
adopted. With regard to law enforcement on an island that is as small and
densely networked as St. Maarten, objectives and collaboration policy
should be set out in a manner that is clear to all those involved. This
would then reduce the likelihood that aspects of policy implementation
are fulfilled in an idiosyncratic manner, as is the case with the granting of
permits.

If a satisfactory level of law enforcement is to be achieved, an effective
level of knowledge and expertise will be required and it will be necessary
to share the available knowledge expertise, so as to fill any gaps in the
knowledge and expertise of those authorities that are currently operating
in their own specific manner. On a general level, it is true to say that in
a number of areas, there exists a discrepancy between the knowledge
that is currently available and the knowledge that is required in order to
combat organised crime. The area with the greatest level of knowledge is
that of drugs and in that regard, the level of knowledge, which is partly
the result of international contacts, is generally deemed to be sufficient.
A lack of knowledge in relation to the extent to which people smuggling
and trafficking is taking place in an organised manner is related to the
priorities that are established during the investigation stage (priority is
predominantly given to drugs). Other factors are that these crimes are
difficult to investigate and that the responsibility (tasks) with regard
to the investigation of these is also less than well-defined. As far as
financial and economic crime is concerned, there is a lack of sufficiently
specialised staff to gain an insight into money laundering schemes,
financial flows and dubious investments. As a result of a general lack of
structural mechanisms for the control of flows of persons, money and
goods, only limited information and knowledge are available that enable
criminal activities that form part of such flows to be detected.

In addition to knowledge and expertise, what is needed are sufficient
personnel and the necessary tools, in other words, a suitable operational
infrastructure to ensure effective enforcement of the law. The multiplicity
of circumstances, arising from the logistical (harbour and airport) and
the economic infrastructure (banking system) that are available on
St. Maarten and which provide opportunities for drug smuggling, people
smuggling and illegal financial transactions are being addressed using
controls and powers that do not reflect, or hardly reflect, the scope of
the problems. During the period in which the study was carried out
the competent authorities in the field of customs, coastguard or Aliens
Police, nor the bodies charged with the supervision of (illegal) financial
transactions were well-matched in terms of personnel, structure or
computerisation to the flows of goods, services and persons that passed
through St. Maarten. Several authorities, such as the Public Prosecutor’s
Office, Customs, the Aliens Police, the Central Intelligence Service (CID),
the RST, the Coastguard and authorities involved in financial tracking
marked a shortage of personnel and a lack of personnel with the requisite
skills. The result of this was that checks and investigations could not
be carried out effectively. It was also the case that very few registration
or information systems were in use, which meant that knowledge
could not easily be accessed and that difficulties then ensued with
regard to exchanging information between authorities. The policy of
190 Georganiseerde criminaliteit en rechtshandhaving op St. Maarten
employing staff on temporary secondment would require that measures
be implemented to embed knowledge, so as to prevent both knowledge
and expertise from being loSt. In addition, online links between different
authorities that enable them to consult details of particular investigations
are not yet operational.

Whenever any reference is made to a lack of personnel, the question then
arises as to the areas which must receive priority in the face of a shortage.
Up to the present time, the highest priority has been allocated to drugs,
with the result that knowledge of other types of organised crime has
remained limited. This situation is something of a vicious cycle. The lack
of focus on investigation means that the ‘information position’ is and
remains poor and this, in turn, gives rise to a situation in which the input
of information into investigations then begins to dry up. This situation
is already occurring in areas such as people smuggling and human
trafficking, as well in the area of financial and economic crime. At this
point, it should be pointed out that there is an intention to remedy this
situation.

Criticisms have been expressed as to a lack of checks and balances, which
has resulted in a system in which neglecting to act in accordance with
procedures has become firmly embedded at all levels. This has acted in
favour of certain economic interests and, intentionally or unintentionally,
has facilitated certain forms of (organised) crime. In this instance also, the
lack of investigation is continuing to feed such suspicions, in a similar way
to the stories that are circulating amongst the population of St. Maarten.
This too is yet another reason why greater clarity and transparency in
these areas would benefit both the government and the population itself.
If someone were to pose the question: “Does organised crime occur
on St. Maarten?”, then the answer would quite simply be: “Yes!”. The
important role played by St. Maarten in the smuggling of drugs is evident
to all and investigations and confiscations of drugs both at home and
abroad bear witness to this. The link with organised crime is then a logical
step, given the need to launder the proceeds of drugs transactions, which,
of course, falls within the realm of financial or economic crime. A number
of investigations have provided convincing evidence of this.

Other forms of crime also exist, however, which depending on the context
in which the crimes are committed, may also come under the heading of
organised crime. Hardly any concrete investigations have been carried
out, into these types of crime, however, despite the fact that suspicions
that such crimes are being committed already exist or have existed for
some time. The types of crime being referred to here include people
smuggling and human trafficking and certain forms of financial or
economic offences. As a result of this study, a number of recommendations
have been made and these are listed in the final paragraph of this report.