Supply Chain Vulnerabilities to Illicit Trade

Exposing Supply Chain Vulnerabilities to Illicit Trade

The TRACIT report, Exposing Supply Chain Vulnerabilities to Illicit Trade: A global report on dynamics, hotspots and responses across 10 sectors, investigates two observable patterns of commonality.

Illicit trade in all its forms thrives on systemic weaknesses in complex supply chains. Consequently, the report investigates supply chain vulnerabilities in transportation modalities and hotspots that traffickers exploit to advance illicit trade: (i) online platforms, (ii) free trade zones and (iii) postal systems/express couriers.

The poly-criminal nature of illicit trade finds that counterfeiting, smuggling, money laundering and forced labor are often undertaken in tandem. Consequently, the report investigates the knock-on effects of illicit trade on (i) organized crime, (ii) corruption, (iii) money laundering and (iv) forced labor.

Featured Report

Illicit Trade in Free Trade Zones – Focus on Central and South America
TRACIT's latest report shines a spotlight on how Free Trade Zones (FTZs) in Central and South America are being misused to facilitate illicit trade. With a focus on five key zones—Aruba, Belize, Chile, Curaçao, and Panama—the report identifies regulatory loopholes, weak enforcement, and lack of transparency as major vulnerabilities. It also offers concrete policy recommendations to help governments and zone authorities close these gaps and restore integrity to legitimate trade.

Illicit Trade in Free Trade Zones – Focus on Central and South America [EN]

El comercio ilícito en las zonas francas: Un enfoque en cinco zonas clave de América Central y del Sur [Versión en español]

Featured Event

TRACIT presents report to EMEA Security Conference

8 November 2023, Dubai, UAE - The Transnational Alliance to Combat Illicit Trade (TRACIT) today published its latest report, Exposing Supply Chain Vulnerabilities to Illicit Trade: A global report on dynamics, hotspots and responses across 10 sectors, at the EMEA Security Conference & Exhibition.
The multidimensional report examines systemic weaknesses in complex supply chains to expose vulnerabilities in transportation modalities and hotspots that traffickers exploit to advance illicit trade, including e-commerce platforms, free trade zones and postal systems. The report also accounts for the poly-criminal nature of illicit trade and appraises the knock-on effects on organized crime, corruption, money laundering and forced labor.
“The supply chain is the engine that drives the global economy,” said Stefano Betti, TRACIT Deputy Director-General. “But every additional layer of complexity or fragility creates new opportunities to divert goods from legitimate distribution networks or to disguise the illicit nature of an operation.”

KEY FINDINGS

MEDIA CENTER

Supporting materials

TRACIT Media Release
Executive Summary (english)
Full report: Exposing Supply Chain Vulnerabilities to Illicit Trade