World BankUnited Nations Office on Drugs and CrimeInterpol2013-10-242013-10-242013-11-04978-0-8213-9963-710.1596/978-0-8213-9963-7https://hdl.handle.net/10986/16196It is estimated that US$339 million to US$413 million was claimed in ransoms between April 2005 and December 2012 for pirate acts off the Horn of Africa. Twenty-first century piracy in this region has developed as a violent criminal act, which not only affects the victims but also has an impact on the region and the global economy. Chapter two describes the context and audience for the study; explains the study's methodological framework, including information on what data sources were available; and identifies the challenges in undertaking the study. Chapter three provides background on the issues of pirate activities off the coast of Somalia and the Horn of Africa, and defines the problem of piracy and its origins. Section two then focuses on understanding the financial flows with respect to piracy activities. Chapter four looks at the ransoms paid to pirates, starting with negotiations of the ransoms and the volume of money involved. Then chapter five focuses on the distribution of proceeds from piracy to the various actors involved in supporting or carrying out pirate activities. Chapter six explores the ways in which proceeds are moved in and out of Somalia. Chapter seven looks at how the financiers invest their proceeds. Following this analysis, chapter eight focuses specifically on investment by piracy financiers in the khat business and real estate. In the final section three, chapter nine of the study concludes with suggested areas for policy and operational engagement within the region and beyond.en-USCC BY 3.0 IGOAbuseabusesaccess to informationaccountabilityadministrative capacityaid effectivenessanti-corruptionanti-money launderingarmed forcesAssetsavailability of databank accountbank officialsbanking systembanksbasic servicesborrowingboundariesboundaryBusiness ActivitiesBusiness Modelbusiness modelsbusinessesbusinessmencapabilitycapacity buildingCCChamber of Commercecivil warcollapsecommercial bankingcommodityCommon MarketConflictConventioncorruptioncounterpartsCriminalcriminal enterprisecriminal groupscriminalscustomcustomsdepositDevelopment BankDistribution Networkdrugdrug traffickingDrugse-maileconomic activitieseconomic resourceselectronic transactionembassiesenforcement agenciesexchange of goodsexpendituresfamiliesfarmersfederal governmentfightingfinancial capacityfinancial crimeFinancial CrimesFINANCIAL FLOWSfinancial institutionsfinancial intelligencefinancial intelligence unitfinancial intelligence unitsFinancial Marketfinancial operationsfinancial supportfinancial transactionsflow of fundsflow of goodsFraudfraudsgangsglobal economygovernment officialshostagehostageshuman capacityhumanitarian assistanceidentification numberidentity moduleill-gotten moneyIMFinformation sharingInitiativeInsurance premiumsIntegrityinternational actorsInternational Bankinternational communityinternational investigationsinternational securityinternational shippinginternational tradeinvestigationinvestment opportunitiesjob opportunitiesjoint venturesJusticelaw enforcementLaw of the Sealawslawyersleadershiplegal issueslicenselicensesMaritime Piracymarket pricemarketingmaterialmember statesmercenariesministermissing valueMoney Launderingmoney transfermoney transfersmonitoring mechanismmonopolymovement of goodsNationsnegotiationsnegotiatorNetworksnew technologynongovernmental organizationnongovernmental organizationsoffenseoffensesorganized crimeoutreachpayment cardpayment methodsPeacephone numbersphotoPiracyPolicePrivate SectorPrivate Sector Developmentprivate sectorsProsecutionProsecutionsprostitutesqueriesReal EstatereceiptreconciliationReconstructionRefugeesRegional Cooperationregulatory frameworkreliabilityremittanceremittancesresultresultsSoldierssource of informationTelephoneTerrorismtorturetranslationtransparencytrialUNDPUnionUnited Nations Security Councilunregulated financial institutionsusesvictimsviolencewarwar economiesweaponWire TransfersWorld Developmentworld tradeWorld Bank10.1596/978-0-8213-9963-7