Between US$339 million and US$413 million was taken in ransom from the hijacking of ships off the coast of Somalia and the Horn of Africa between 2005 and 2012, according to a report released today. The study – carried out by the World Bank, the United Nations Office on Drugs and Crime (UNODC) and INTERPOL – reveals that much of the ransom money was used to fuel a wide range of criminal activities on a global scale.
“Pirate Trails” – using data and evidence from interviews with former pirates, government officials, bankers and others involved in countering piracy – investigates the flow of ransom money paid out to Somali pirates operating in the Indian Ocean. The study examines the reach of the pirates into the stimulant “khat” trade, human trafficking and other illegal activities that hinder development.
Tracing a pattern that it calls “the pirate money model,” the study analyzes the investments made by a sample of 59 pirate “financiers” to reveal the range of sectors – including both legitimate businesses and criminal ventures – that were funded by the ransom money. Emphasizing the prominent position of pirate financiers, the report estimates that between 30 percent and 75 percent of the ransom money ends up with these financiers. The pirate “footsoldiers” aboard the ships receive just a fraction of the proceeds, amounting to less than 0.1% of the total.
Press release from World bank: click here
Link to the detailed report: click here
More information: click here