The Italian Mafia

crime
Written by John De Knock

In 1991, the Italian Mafia was involved in 400 murders in Italy. In 2024 the number was only 21 so recently there have been many newspaper articles about the new business structure of the Italian Mafia.


Traditionally how did the Mafia (in Italy or Japan) make money?


In the past the main sources of Italian Mafia income was:

1) Drugs

The main source of income was from selling or exporting drugs. They imported materials from the Middle East, made the drugs in Italy then sold them across Europe and the U.S.

2) Extortion (Pizzo)

extortion (Crime), extort (verb) = Force someone to give you something (money, services, property) by threatening them

threaten (verb) = say: “Do this or I will hurt/kill you”

Almost all businesses in an area had to pay “protection money” to the Mafia. What would happen if you didn’t pay?

Do you think businesses in Japan still pay protection money to the Yakuza?

Yes. This system still exists in Japan, especially for entertainment businesses like restaurants, bars, hostess clubes. Usually the mafia will provide overpriced services such as:

  • garbage disposal

  • fire extinguishers

  • alcohol

  • wet towels, cutlery

  • ice deliveries

  • indoor plants

  • flower arrangements




3) Government contracts

Using bribes or threats, mafia controlled companies (construction, garbage removal) would win government contracts to provide services

4) Loan Sharking

This is when the mafia provides loans to people at very high interest rates. If the person can’t pay back the loan, the mafia would take the person’s assets (house, business)




The Yakuza had special ways they made money:

 

  • Selling goods or “stall spaces” at festivals

  • Underground Casinos

  • In the 80’s and 90’s real estate companies hired Yakuza to force people to move out of their homes

  • Corporate Blackmail 総会屋 (そうかいや)
    The Yakuza bought stock in some companies and tried to learn secrets about the company. Then they blackmailed the company into paying money so they would keep quiet.

    Blackmail (noun/verb) = say: “Do this or I will tell everyone your secret)




How do you think the Italian Mafia makes money these days?

These days the Italian Mafia focuses on White Collar Crime.

Cleaning drug money

They still make lots of money from drugs but they need to clean their money. They do this by buying real struggling businesses.

For example they will buy a hotel or restaurant that’s in trouble and lie to say they have many more customers. They put the money they make from drugs into that business and the money is now “clean.”

Tax avoidance

They use complicated financial schemes to avoid paying tax and act as advisors for rich people who also want to avoid tax. In Italy this has much lighter punishments than selling drugs. The head of Milan’s anti-mafia team said: "In Italy, there is no social stigma for those who issue false invoices or evade taxes" so it’s normal for people to try to do this.


social stigma = society thinks something is bad (e.g. “Tattoos have a social stigma in Japan”)

Online Gambling

The mafia makes fake and real online gambling sites. The fake sites are for stealing your money or data. The real sites make lots of profit


Q: In your opinion, which type of crime is more dangerous to society, the traditional Mafia crimes or the modern-day crimes?

Q: If you were a struggling business owner during an economic crisis, and an investor offers you cash with no questions asked, would you take the money?

Sources

John De Knock
Next

Man City cheated