KIDNAP BRIEFING MONTHLY

Transcription

1 MONTHLY KIDNAP BRIEFING ISSUE 124 June 2016 TABLE OF CONTENTS Americas 1 Africa 2 Asia 3 Middle East 3 in Buenos Aires 5 Flashpoints 5 Development of tactics 5 Outlook 6 southern Philippines 7 New targeting tactics 7 Executions 7 Recent releases 8 Post-election prospects 8 Control Risks 9 Hiscox 9 This is the 124th issue in a series of kidnap-focused reports prepared by Control Risks on behalf of Hiscox. The Monthly Kidnap Briefing is distributed to select clients in order to keep you inmed of the trends in kidnapping worldwide and assess the risk of kidnapping to your business. This issue includes an overview of kidnapping--ransom trends in May 2016, a brief on the increase in kidnapping in Buenos Aires and a focus on the kidnap risks to eign nationals in the Philippines. or inm us of your interest in a specific Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

2 Americas COLOMBIA: DETENTION AND RELEASE OF JOURNALISTS UNDERSCORES HIGH RISK IN NORTE DE SANTANDER A renowned Spanish journalist and two Colombian journalists on 27 May were released by the National Liberation Army (ELN) after they were detained in Catatumbo (Norte de Santander department). The Spaniard had been detained on 22 May in El Tarra municipality. The Colombians were detained on 24 May after they travelled to the area to cover her disappearance. According to media sources, the Colombians were in a group of five who were detained, though the three others were released shortly afterwards. In its online magazine, Insurrección, published on 30 May, the guerrilla group stated that the detentions were not planned or premeditated, and added that the journalists had been imprudent in entering their territory. The article also stated that as soon as the Central Command was able to verify that the journalists were being held by the ELN, it ordered their release. Despite the release of the victims and the fact that no ransom was demanded, the group as a whole has refused to abandon kidnapping--ransom. On 8 May, it released a statement that the government s demands that it cease its involvement in the crime were impeding the prospects peace. Although it will be wary of irreparably damaging these prospects by beginning a widespread kidnapping campaign, the group has remained actively involved in kidnapping in recent months and these incidents further demonstrate the autonomy with which its fronts operate. Even prior to these events, Caracol Radio on 12 May published an article detailing statements from individuals in the public and private sectors about rising kidnapping levels in the border department. The article cited an interview with the department s Government Secretary Yebrail Haddad, who stated that the situation merits intervention by the national government. The article also quoted the president of the Cúcuta Chamber of Commerce, Carlos Luna, who stated that the situation is not favourable investment. The latest detentions and official statements underscore the high risk in Norte de Santander. Since January 2014, Control Risks has recorded more kidnaps in the department than any other in the country. The trend has become increasingly pronounced since the start of 2016, with a series of incidents recorded involving criminal gangs and armed groups. Although a wider range of victims face a threat from low-level criminal gangs, employees whose jobs take them to remote rural areas, and northern municipalities in and around the Catatumbo area in particular, remain favoured targets the ELN. Traditionally victims have included local ranchers and employees in the extractive industries, though the detention of the Spanish expatriate highlights the threat faced by eign nationals in the high-risk border region. US: RARE TEXAS KIDNAP HIGHLIGHTS CROSS-BORDER KIDNAP THREAT or inm us of your interest in a specific Mexican authorities on 16 May rescued a US citizen in Matamoros (Tamaulipas state, Mexico) after he had been kidnapped in McAllen (Texas state) on 12 May. Two kidnappers, both US citizens, transferred the victim across an international bridge and into Reynosa (Tamaulipas state), bee transferring him to a safe house in Matamoros, from where they contacted his family and demanded a ransom. Mexican media sources reported that while transporting the victim they had to pass a federal police and army checkpoint on the highway. 1 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

3 Cross-border abductions remain uncommon in US border cities. Nevertheless, states bordering Mexico continue to account the majority of kidnaps--ransom recorded in the US. According to Control Risks records, 48% of kidnaps in the US since 2010 have taken place in Calinia, Arizona and Texas. Perpetrators occasionally have links to criminal networks south of the border, and splinter cells of organised criminal group the Gulf Cartel have been reported to carry out smash and grab kidnaps in Texas. However, the vast majority of kidnapping cells focus their operations south of the border, as incursions into US territory are likely to elicit a significant response from law encement. As such, kidnapping--ransom is highly unlikely to become a serious problem in the US in either the short or long term. Residents and businesses in border cities are more likely to fall victim to virtual kidnaps than kidnaps--ransom. A virtual kidnap involves an extortionist telephoning an individual and erroneously claiming to have abducted one of their loved ones or colleagues to demand a ransom. Many such extortionists operate in Tamaulipas state and some target individuals in the US. The Laredo Police Department (Texas state) recorded at least five virtual kidnaps over three days during the week of 11 April, according to local media sources. A police spokesperson stated that these scams had targeted the business community. In some instances, those targeted by virtual kidnappers were instructed to cross the border into Nuevo Laredo (Tamaulipas state) to pay a ransom. Africa LIBYA: SERBIAN OIL WORKER KIDNAPPED IN EASTERN LIBYA BY CRIMINAL GANG A Serbian national kidnapped on 23 April in Libya has been freed, the Serbian Foreign Ministry confirmed on 27 April. The man, an engineer, was taken hostage while en route to an oil field owned by a German multinational in eastern Libya, about 750 miles (1,200km) south of the capital Tripoli. The kidnappers were identified as local bandits, who targeted the victim with the intent of stealing his vehicle bee releasing him in the desert near the Egyptian border, where he was subsequently found with minor injuries by a search party. Although the withdrawal of most expatriate oil workers from Libya has shrunk the potential target pool kidnappers, eign nationals are regularly kidnapped in most areas of the country. The list of eign nationals kidnapped in Libya contains a disproportionate number of Serbians, with one kidnapped in March 2015 and two others in November The latter occurred when the Serbian ambassador s convoy came under attack in Sabratha (Zawiya district), west of Tripoli. The identification of local bandits as the perpetrators of the kidnap reinces the presence of myriad actors engaged in the practice. Politically motivated militias, Islamist militants (including Islamic State), and local criminal networks all operate freely in Libya s permissive security environment. All have a history of using kidnap--ransom to achieve their local goals or make money. However, the kidnap risk in Libya remains most severe along the coastal strip and in major urban areas. or inm us of your interest in a specific Oil and gas infrastructure and personnel in Libya remain at risk of attack by armed groups. Oil exports are key sources of income several different actors vying authority in Libya. In particular, the Islamic State contingent in Sirte has made concerted efts to drive eastwards to capture the terminals at Ras Lanuf, Sidra and Marsa al-brega. The perception that oil and gas multinationals are willing to pay ransoms sustains the severe kidnap risk faced by all personnel associated with these operations. A breakdown in law and order, coupled with rising militant and terrorist activity, has resulted in a significant increase in the kidnap threat throughout Libya in recent years. Foreign nationals are most likely to be directly targeted in the central and north-western areas, owing to the greater concentration of Islamist militias with anti-western agendas in the region, and the 2 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

4 Tripoli area and the central coast around Sirte are currently the highest risk areas. The threat in these areas has eclipsed that historically present in the north-east, though the area near the Egyptian border is also a high-risk zone. Asia HONG KONG: NEW CASE OF VIRTUAL KIDNAP HIGHLIGHTS PERSISTENT THREAT An elderly couple, both in their eighties, living in the Shau Kei Wan area of Hong Kong were on 17 May victims of a virtual kidnap scam. The extortionist telephoned the couple claiming to have kidnapped their son. During the call, the couple could hear someone in distress in the background calling help and shouting don t hit me. The caller demanded HKD 100,000 (USD 13,000) and, when the couple could not reach their son, they agreed to meet the extortionist at a local branch of HSBC bank. As they were leaving the bank, a man grabbed the bag full of cash, pushing the elderly man to the ground in the ensuing struggle. The majority of recorded virtual kidnaps in Hong Kong affect local nationals, but extortionists are indiscriminate and may also target businesspeople, including expatriates. Although some virtual kidnappers take the time to investigate their targets, many will adopt a more opportunistic approach by dialling consecutive numbers taken from the telephone directory in the hope that a fraction of those called will believe the scam and part with cash or other valuables. Law encement in Hong Kong is effective and crime rates are low. The remote nature of virtual kidnapping (targeting victims by telephone) theree makes it a viable option criminals looking to make money. If the scam fails, the extortionist usually does not come into contact with the intended victim and is theree difficult police to trace and arrest. Virtual kidnapping is unlikely to become an entrenched crime in Hong Kong, but incidents occur quite regularly. A similar incident was reported in March, and others are likely to have gone unreported in the meantime. A 77-year-old woman received a telephone call from an extortionist claiming to have abducted her grandson and demanding that she pay a ransom of HKD 150,000 (USD 19,000), threatening to hurt the young man if not. The grandmother agreed to pay the ransom and deliver it in a bag at an agreed meeting point on Junction Road, Kowloon City. Suspecting that something was wrong, the woman s domestic helper decided to follow her employer as she left the house. When the extortionist came to collect the money, the domestic helper confronted him and scared him off. Middle East SYRIA: REPORTED USD 11M RANSOM PAYMENT SECURES RELEASE OF THREE SPANISH JOURNALISTS or inm us of your interest in a specific Three Spanish journalists kidnapped by the al-qaida affiliated Jabhat al-nusra (al-nusra Front) in July 2015 were released in May. The initial ransom demand was reportedly equivalent to USD 28.5m. Reports in Turkish media subsequent to the release claimed that a payment of EUR 9.75 (USD 11m) was made their release following negotiations aided by both Qatar and Turkey. The journalists were reportedly handed over to Qatari officials in Syria. Foreign nationals should avoid travel to northern Syria. Although the EXTREME risk of kidnap covers the whole of Syria, the north is particularly dangerous and few eigners arrive in the area and are not kidnapped. 3 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

5 There are significant repercussions to being kidnapped in the north. Kidnaps involving Jabhat al-nusra will be lengthy, as in the case of the Spanish journalists who spent ten months in captivity. The group both demands and expects very high ransoms, which accounts the long periods that victims spend in detention. Throughout that time, victims are often held in base conditions and many have spoken of beatings and torture following release. Victims held by rival group Islamic State (IS) will also suffer long periods in captivity in base conditions and will be subject to torture, but IS s current strategy means the likelihood of safe release is low. or inm us of your interest in a specific 4 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

6 RISE IN SHORT-DURATION KIDNAPS IN BUENOS AIRES Foreign criminal groups have gained a foothold in Argentina in recent years as it has become an increasingly important drug-trafficking route and its domestic drug market has expanded. Unease has grown about levels of criminal violence and, as a result, new President Mauricio Macri pledged to combat drug trafficking during his 2015 election campaign. Despite these changing perceptions of crime, kidnapping levels prior to 2016 remained well below those reached in the early 2000s. However, there has been a sharp rise in kidnapping in the capital Buenos Aires in the first months of By 9 May, Control Risks had recorded more kidnaps in the city and province than in any year since According to national media sources, more gangs are also involving themselves in the crime. FLASHPOINTS Kidnapping rings operate throughout Buenos Aires, though most operate in lower-income areas, many of which also have some of the highest rates of other crimes. Thus far in 2016, the greatest proportion have operated in western parts of the city and province. According to media sources, the highest number of incidents in the first four months of the year were recorded in the corredor del oeste, including Morón, Ituzaingó and Merlo. Other flashpoints the crime in 2016 have included the area of San Martín, as well as southern areas such as La Matanza and Lomas de Zamora. After a spate of incidents in March, a police spokesperson stated that the Ciudadela area in Tres de Febrero had become the kidnappers cash machine, as it is a favoured location carrying out the drop the delivery of ransom payments. DEVELOPMENT OF TACTICS In 2015, reports began to emerge of the growing sophistication of kidnapping gangs operating in Argentina. Concern rose following a high-profile incident involving a businessman who was kidnapped in Morón. The victim was held nine days bee he was released following the payment of ARS 1.8m (USD 202,000). The case received significant attention because of the large ransom demand of USD 2m and the organised nature of the gang responsible which, according to an investigator cited by La Nación, included police officers and mer members of the Peruvian leftist guerrilla group the Shining Path. However, this isolated incident did not presage a dramatic change in tactics among the majority of kidnapping gangs in either Buenos Aires or Argentina more generally. In fact, according to Control Risks records, it remains the longest running case in the capital since December The vast majority of kidnaps in the capital continue to be short in duration, with most lasting under 24 hours. For this reason, in the local and national press they are frequently confused with express kidnaps, or secuestros al paso. During a typical express kidnap, victims are ced to withdraw funds from automated teller machines (ATMs). Kidnaps--ransom differ from express kidnaps in that they usually involve a negotiation with a third party, such as a family member of the victim. or inm us of your interest in a specific Kidnaps are short in duration because, lacking safe houses, most gangs hold their victims captive in a vehicle and negotiate a ransom payment quickly bee they are apprehended. In one case recorded on 22 May, the victim was held captive approximately six hours bee he was released in the early hours of the following day. The kidnappers contacted the victim s family constantly, reportedly telephoning them at intervals of two, five or ten minutes to ce a quick payment. In recent months, there has been evidence of gangs developing new tactics to elicit ransom payments. National media sources in March reported the emergence of a new tactic in the 5 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

7 province involving multiple victims and an autopago, or self-payment. In these cases, one of the victims is often released to collect a ransom payment. In one such case, a 35-year-old used car salesman, his 30-year-old wife, and their two-year-old son were kidnapped by armed men on 21 March in Vélez Sarsfield (Buenos Aires province). The perpetrators demanded a ransom of ARS 1m (USD 68,000) and then released the husband to collect it. They let his wife go several hours later, bee finally releasing the son in Tres de Febrero, following the payment of ARS 170,000 (USD 11,600). Many kidnapping gangs take precautions to evade capture. Some are reported to listen to police radio frequencies this purpose. Others rely on a degree of stealth to throw the police off the scent by keeping their victims on the move. A gang that was dismantled on 5 February and was accused of carrying out some 20 kidnaps in the hotspot western areas of Morón, Ituzaingó and Merlo, reportedly hired a skilful driver nicknamed the Transporter, who was charged with avoiding the police at the drop. OUTLOOK With more criminal gangs involving themselves in kidnapping and developing new tactics to elicit ransom payments while avoiding arrest, kidnapping levels are likely to remain elevated in the coming months. Nevertheless, despite perceptions of rising levels of criminal violence, a long-term increase in kidnapping levels is not guaranteed. This is likely to depend partly on whether the new government s stated commitment to tackling drug trafficking and organised crime also extends to lower-level criminal groups engaged in kidnapping in the capital. or inm us of your interest in a specific 6 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

8 HIGH RISK TO FOREIGN NATIONALS IN SOUTHERN PHILIPPINES The Abu Sayyaf Group (ASG) s beheading of a Canadian national, coupled with its recent maritime abductions, highlight the ever-growing threat to eign nationals in the southern Philippines. NEW TARGETING TACTICS In search of lucrative eign nationals, the ASG has shown itself willing and capable of adapting its targeting tactics. The night-time security measures brought into ce in Malaysian waters in July 2014 put an end to the ASG s run of five successful abductions along the Sabah coast that had begun in November Thereafter, the group only managed one successful abduction along the Sabah coast, in May Undeterred, the ASG adapted its tactics, and in September 2015 pushed the boundaries of its known operational zone, sailing east to Samal (Davao del Norte) where it kidnapped two Canadians, a Norwegian and a Filipina from a resort. The following month, it stretched its boundaries again, but this time to the north, abducting an Italian restaurateur in Dipolog City (Zamboanga del Norte). In mid-march 2016, the group adopted another new tactic. The ASG turned to maritime abduction, carrying out three successful kidnaps of eign nationals in as many weeks. The first incident involved ten Indonesian sailors, the second four Malaysians, and the third a further four Indonesian crewmen. All the vessels had a low-freeboard and were abandoned at sea. The group had only used the tactic one other time against eigners in recent years two German tourists were in 2014 held six months bee the reported payment of USD 5.6m facilitated their release. Their private yacht had been found adrift offshore Palawan province. Figure 1: Map showing usual ASG area of operation and new tactics Dipolog City Usual ASG operating areas PHILIPPINES Samal MALAYSIA 100 km INDONESIA Maritime abduction Land-based abduction or inm us of your interest in a specific Given the group s propensity creative targeting, individuals who previously believed themselves to be just outside the ASG s operational capability now find themselves at risk. Foreign nationals who congregate along the coast line of Mindanao or who sail in low freeboard vessels in the Sulu Sea may be targeted. EXECUTIONS Foreign nationals held by the ASG are no longer guaranteed a safe release. In the past, the ASG has held eign nationals several years while attempting to pursue 7 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

9 negotiations. A Dutch birdwatcher kidnapped by the group in February 2012 is still in captivity. The beheading of a Canadian tourist in April 2016 after seven months in captivity has highlighted a more extreme alternative, one designed to attract publicity, fighters and funding. The tourist was the third victim to be beheaded since the first occurred in August 2015, and the second eign national to lose his life in this manner. The remaining victims in the Canadian s group (a second Canadian, a Norwegian and a Filipina) face a similar fate unless a substantial payment is made, according to recent propaganda videos released by the ASG. The most recent demand issued by the group was PHP 600m (USD 13m). Where negotiations stall or the group loses faith in a financial resolution, victims now face the very real threat of beheading. RECENT RELEASES Unlike the Syria- and Iraq-based Sunni Islamist extremist group Islamic State (IS), the ASG s move towards beheading is not wholesale. Several victims have been released over the past few weeks, including the Italian restaurateur taken in Dipolog in October 2015 and all of the 14 Indonesian and four Malaysian crew men kidnapped in March and April. The ASG s initial motivation in all cases is likely to remain financial. However, the decision to negotiate with the ASG is not straightward. The payment of financial concessions to the group is in most cases prohibited by terrorist-financing laws. POST-ELECTION PROSPECTS President-elect Rodrigo Duterte will be inaugurated on 30 June. He has made several controversial statements about his plans to tackle crime, including his desire to reintroduce the death penalty, and provide law encement officers with the ability to shoot to kill anyone attempting to evade arrest. His track record on crime in Davao, where he was merly mayor, is positive, but he may struggle to introduce such extreme measures at a national level. The risk posed by the ASG is unlikely to diminish in the next six months the period within which Duterte claims he will have abolished crime. Although Duterte is seen as a positive figure in terms of the Mindanao peace agreement with the Moro Islamic Liberation Fighters (MILF), the ASG is not involved in the process and has not expressed any interest in laying down its arms. or inm us of your interest in a specific 8 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.

10 Control Risks services are exclusively retained by Hiscox. In the event of a kidnap, detention or extortion incident covered by Hiscox, clients will benefit from Control Risks services as part of their insurance policy. CONTROL RISKS Control Risks is a leading international business risk consultancy. It offers a range of integrated political risk, investigative, security and crisis management services to corporate, government and private clients worldwide. Since its foundation in 1975, Control Risks has advised clients on the resolution of 2,914 kidnap and extortion cases in 135 different countries, with 48,408 person-days aggregate duration. Cases have ranged from traditional kidnaps--ransom, express kidnaps, hostage takings, ship and aircraft hijacks to political detentions, product extortion and contamination and other threat extortions. Control Risks has a full-time team of Response Consultants, available immediate deployment in response to a crisis anywhere in the world. Response Consultants will advise on negotiation strategies and on how to manage the various interests of the victim, family, employers, the media, the government and local law encement agencies. The Response Division has its own dedicated team of research analysts. As well as supporting consultants deployed on cases, they maintain the International Kidnap Online Service (IKOS) which follows the trends in kidnapping worldwide and allows clients to assess the risk to their business. In addition to IKOS, Response Research produces commissioned kidnap and extortion analysis of any country or sector. If you are interested in any of these services, please write to response_research@controlrisks.com For more inmation about Control Risks, please visit our website at HISCOX Hiscox is the world s largest provider of specialist kidnap, detention and extortion insurance, with a market share of 60-70% by premium income. We cover companies and individuals against all ms of extortion and can protect your assets from illegal demands and the consequential associated expenses. Our clients include multinational companies operating in high risk regions of the world, key executives working in commercially sensitive positions and individuals whose wealth or fame may attract the attention of criminals. Hiscox kidnap and ransom underwriters are the most experienced in the field. Our knowledge of the sector enables us to make quick decisions on cover, no matter how unusual the request. We are highly skilled in handling what may be a very difficult and sensitive emergency. Our specialist policies can be tailored to suit individual needs and circumstances. We have underwriting teams based in Guernsey, Paris, Cologne, New York, Los Angeles, Chicago, San Francisco and at Lloyd s of London. or inm us of your interest in a specific For further inmation, please contact us at kr.guernsey@hiscox.com 9 Note: Hiscox and Control Risks request that recipients do not ward the contents outside the distribution list. Any breach of this will lead to removal from the distribution list.