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Tag: syndicate

  • Poland Dismantles Armenian Crime Gang Running Illegal Cigarette Factories

    Poland Dismantles Armenian Crime Gang Running Illegal Cigarette Factories

    Polish police and border guards said they dismantled a major organized crime group running three illegal cigarette factories in the Mazowieckie and Łódzkie regions. The coordinated raids led to the arrest of nine Armenian citizens and six others, with authorities seizing more than 12.7 million counterfeit cigarettes, 25 tons of tobacco, and a complete production line. Officials estimate the illicit goods were worth over 28 million zloty ($7.6 million).

    Prosecutors in Łódź charged 14 suspects with operating an organized criminal group, producing illegal tobacco products, and committing tax crimes. Four face additional charges for storing or transporting cigarettes without excise stamps. While one suspect was released under police supervision, the remaining 14 were remanded in custody for three months as the investigation continues.

    Authorities say the operation prevented an estimated €12.5 million in lost excise and VAT revenue. The crackdown comes amid growing concerns over Poland’s black market for tobacco, which accounted for 4.3% of total cigarette consumption in 2024, costing the state €312 million in lost tax revenue, according to a report commissioned by Philip Morris International.

  • Malaysian Teens Recruited by Syndicate to Sell Vapes

    Malaysian Teens Recruited by Syndicate to Sell Vapes

    Authorities and parents in Malaysia are being warned about unscrupulous syndicates recruiting teenagers to sell vapes at schools for lucrative commissions, reported China Press. Students are allegedly being hired as “runners,” and then encouraged to get their peers addicted so they can sell them devices. One independent Chinese school reportedly took action against a student caught selling vapes on campus, and staff “members were shocked when a syndicate member boldly called the school board pleading for leniency on behalf of the student.” Educational sources urged parents to monitor their children closely.

  • SA’s Cigarette Market ‘Captured by Criminals’

    SA’s Cigarette Market ‘Captured by Criminals’

    South Africa’s cigarette trade has been “captured by criminal syndicates,” with three-fourths of all cigarettes now sold coming from illicit sources, the South African Revenue Service (SARS) said this week. Speaking to Parliament’s health committee on October 22, SARS Commissioner Edward Kieswetter said the illegal trade has drained billions in tax revenue and poses a growing threat to the economy. Research from the University of Cape Town, Ipsos, and Tax Justice SA shows the illicit tobacco market has ballooned from 19% in 2014 to 75% in 2025, costing the state roughly R84 billion ($4.9 billion) in excise losses between 2020 and 2022.

    Kieswetter described the trade as “industrial-scale criminality,” involving money laundering through gold refineries, property schemes, and offshore investments. He linked the rise of illicit tobacco to weakened enforcement between 2014 and 2018, during the Zuma era, which saw oversight dismantled and revenue stagnate despite steady consumption.

    The South African Police Service (SAPS) confirmed that the illicit cigarette trade has become a “national priority threat” linked to organized crime, saying the trade now operates through five-tiered syndicates spanning financiers, smugglers, and distributors connected to drug trafficking and human smuggling networks. Most contraband enters through Zimbabwe, Mozambique, and Botswana, it said.

  • Malaysia: With Rising Illicits and Looming Ban, Vape Sellers Told to Switch Businesses

    Malaysia: With Rising Illicits and Looming Ban, Vape Sellers Told to Switch Businesses

    Vape sellers in Sarawak, Malaysia, have been told to shift into other lines of business as the state government moves toward a full ban on the sale and use of electronic cigarettes. Deputy Minister for Youth, Sports and Entrepreneur Development Ripin Lamat said businesses should “gradually transform and venture into more promising industries” such as food and beverage or agribusiness, warning that vape products “will destroy our young generation and ultimately undermine the values of future generations.”

    The Sarawak government is preparing legislation to formalize the ban, including a Cabinet paper that is currently under review with input from the state attorney general, secretary, and financial officer. The move follows earlier remarks from state officials linking vape use to drug abuse risks, and aligns Sarawak with several other Malaysian states.

    Similar bans have led to rising black market trade in other markets, and business officials worry the results will be similar in Malaysia, where illicit products are already becoming a problem. A Nielsen survey from May found that 55% of cigarettes sold in Malaysia are illicit, mostly smuggled from Vietnam, China, and Indonesia via ship-to-ship transfers along the east coast, costing the government RM2 billion ($480 million) in lost tax revenue each year.

    Customs has stepped up enforcement with AI scanners, body cameras, and tighter port controls, raising revenue collection by 19% in 2024. However, syndicates remain entrenched, aided by corruption and weak penalties, and officials warn that without stronger naval patrols, tougher laws, and better resources, the black market will continue draining state funds.