The Japanese Yakuza Organised Crime Syndicate

The Japanese Yakuza Organised Crime Syndicate

Introduction

Defining the concept of organised crime has proven continuously difficult because of the differences in approach by different countries and even persons regarding the issue. However, there has been a need for an indisputable, universal definition of organised crime due to the fact that this crime has taken a cross-border shape and would need cooperation among different countries (Holmes, L. 2016). Therefore, the major characteristic of the term “organised crime” is that it refers to a method or process of committing crime lacking a particular nature of crime in itself nor even a specific criminal type. Thus, a good definition should involve primary aspects of the “process” in that certain criminals increasingly perform criminal activities over the transnational area. Organised crime is a serious crime coordinated, planned, and conducted by people who are continuously working together with the aim of financial gain (HM Government, 2013). In the United States, the Omnibus Crime Control and Safe Streets Act of 1968 states that “Organised crime means the unlawful activities of members of a highly organised, disciplined association engaged in supplying illegal goods and services, including but not limited to gambling, prostitution, loan sharking, narcotics, labour racketeering, and other unlawful activities of members of such associations” (Gragert, B. 1997, 148). This report uses the Japanese Yakuza as a case study to examine the nature, organisational structure of the Yakuza, and later suggest ways in which it can effectively be curtailed using counter-measures such as law enforcement and civil society.

Origin of the Japanese Yakuza

Yakuza is the name assigned to the organised crime syndicate in Japan. There are several theories as to their origin because the Yakuza is composed of many groups, although several groups have claimed to be the original organisation, even the Yakuza of today do not agree on their roots. However, it is alleged that they arose from the Tokugawa Shogunate (1603 – 1868) with two divided outcast groups

The first group was the tekiya, who were wondering peddlers that travelled from one village to another selling sub-standard goods at markets and festivals. Most of the tekiya belonged below of the four-layered social feudal class of Japan; they were regarded as non-humans or outcasts. From the beginning of the 1700s, the tekiya began organising themselves around bosses and underbosses, who led them as close-knit groups (Szczepaski, K., 2019). Backed up by renegades from the higher social classes, the tekiya began to take part in organised criminal activities such as protection rackets and turf wars. The tekiya provided security during the Shinto festivals, and this tradition continues until today.

The Second group that led to the rise of the Yakuza was referred to as the bakuto or gamblers. During the Tokugawa times, gambling was strictly prohibited and remains illegal. The bakuto often duped unsuspecting people with hanafuda card games and dice games. Colourful full-body tattoos were a common phenomenon among the bakuto and this lead to the culture of full-body tattoo among the current Yakuza. Drawing from their first business venture as gamblers, they diversified into areas such as loan sharking, including several other illegal activities.

After the Second World War came to a close, the Yakuza remerged in popularity after a period of inactivity during the war period. As of 2007, it was estimated by the Japanese government that there were more than one hundred and two thousand yakuza members active both in Japan and abroad in two thousand five hundred different families (Mani, S. 2018). In spite of the official termination of discrimination Japan in 1861, many of today’s Yakuza are descendants of the Barakumin, the outcast class, one hundred and fifty years later. Additionally, ethnic Koreans also make up the Yakuza because of the discrimination they face in Japanese society.

The largest Yakuza syndicated in operation today is the Yamaguchi-Kumi, who are Kobe-based, and they entail almost half of all active Yakuza in Japan and includes Osaka originated Sumiyoshi-Kai and Tokyo, and Yokohama originated Inagawa-Kai. Everyday criminal activities by the gangs include; international arms smuggling, human trafficking, and drug smuggling. Although, they own large stocks in legitimate corporations and maintain close ties with the Japanese, real estate market, banking sector and the business world in general.

Organisational structure

The organisational structure of the Yakuza is very complex. Initially each gang was grouped according to their historical backgrounds such as the tekiya, bakuto or the gurentai gang. Moreover, there is an absence of a centrally placed administering body overseeing the operations of all the Yakuza groups. Theoretically, every yakuza gang is usually autonomous; however, most gangs join up to create a syndicate controlled by the largest most powerful gangs at the top. Additionally, the syndicate is not only composed of one and but a collaboration between the tekiya, bakuto and the gurentai gangs (Gragert, B. 1997). However, there exist two organisational structural types within the Yakuza gangs; these include the pyramidal power structure adhered to by the two largest syndicates in Japan: Inagawa-Kai and the Yamaguchi-Kumi. The second type of structure is the conglomerate or federation structure adhered to by the Sumiyoshi-rendo syndicate.

1. Pyramidal Structure

The pyramidal structure type is the traditional Yakuza power structure and is based on the feudal power structures; a lot of power rests on the syndicate’s godfather. The top of the pyramid is represented by the godfather or the kumicho, syndicate’s supreme chief. Under the kumicho or godfather, is a group of four brothers called the shatei. The four brothers are then followed by a group of eight directors referred to as the wakashira-hosa or young assistant leaders (Dubro, A. 2003). One of the young assistant leaders will be appointed a young leader or a wakashira in the future.

The board of directors is made up of the wakashira-hosa, wakashira and shantei who meet every month to decide on policies about the syndicate and accordingly divide up income from the syndicate’s activities. There also exists a group referred to as the sanro-kai, which is a senior consultative group which gives advice depending on matters directed to it. There exist several lesser offices below this such as executive or kambuatsi-kai, including various young men or wakashu who each have the responsibility of commanding their groups of children or kobun or enlisted men or kumi-in.

Individual gangs within the syndicate are obliged to send monthly payments to the headquarters of the syndicate and issue annual financial reports. Moreover, each individual gang also has a similar model of tribute payments where the oyabun expects monthly payments from their kobun. Payments are also issues when a member is released from prisons, during funerals and as New Years gifts.

1. Federation Structure

The federation structure is a new administrative structure used by the Sumiyoshi-rengo syndicate as part of their corporate management system. Power distribution is characterised by several gang bosses (federation) equally sharing power and authority, and choose a kumicho from the available members of the group (Dubro, A. 2003). As much as the Federal kumicho serves as a unifying factor, he has a lesser absolute power compared to a pyramid syndicate kumicho such as the Yamaguchi-Kumi. Thus more autonomy rests with individuals within the federation.

Just like in a structured pyramid syndicate, individual gangs in a federal syndicate are also required to pay tributes every month to the syndicate, although it is lesser because each boss has equal authority within the federation syndicate. Similarly, in each individual gang, the oyabun must receive monthly payments from their kobun. Also, just like in the pyramid structure, syndicates make payments to individual members for being released from prison, for funerals, as New Year’s gifts.

The Yakuza Business Operations

The Yakuza syndicate take part in several “business” operations where others are legitimate, and others are criminal. The Yakuza have an estimated income of about ten to seventy-one billion dollars (Baradel, M., 2019, pg. 15-17). The Yakuza run both legitimate and illegitimate businesses.

1. Legitimate Businesses

There have been several legitimate enterprise investments by the Yakuza since the 1980s both in Japan and abroad. According to the National Police Agency, it is estimated that the Yakuza own about twenty-five thousand legitimate businesses in Japan, including several other illegitimate ones. The Yakuza have invested in travel agencies, waste disposal, pachinko parlours, hotels, hospitals, security services, theatres, restaurants, bars, banks, real estate firms, the stock market, and golf courses including many more (Hill, P. 2004). However, as much as these businesses may be legal with legitimate incomes, the Yakuza only use them as bases for their criminal operations. Moreover, money from their criminal operations is usually laundered through these legitimate businesses. Therefore, though the Yakuza take part in the legitimate business operation where legal income is accrued, they earn a significant portion of their incomes from illegitimate means.

2. Illegitimate Operations

Historically, the Yakuza have been involved in traditional types of organised crime such as labour racketeering, narcotics, loansharking, extortion, illegal gambling, prostitution, and street stall operators (Shelley, L. 2019). The 1940s saw the Yakuza expanded their operations to include practices such as landowners intimidation, corporate extortion, insurance fraud, smuggling of immigrant workers, whale meat, guns and drugs, sex slave trade, currency counterfeiting, controlling of the entertainment and the construction industry. Almost all crime committed in Jpan can be traced back to the Yakuza. Their operations affect the legitimate businesses and industry not only in Japan but around the world.

1. Sarakin

Sarakin refers to loansharks. Loansharking involves the lending of a particular amount of money at usurious interest rates, and the borrower has to pay back the money in relatively short amounts of time. Late payments may lead to one being beaten up; however, the threat of sarakin does not lie in violence but through its ability to cause the borrower to lose face or being shamed. This concept is far too important in Japan and has caused people to abandon their families, quit work, and commit murder and even suicide.

1. Intimidation and extortion

The Japanese attitude of striving to save face creates a particular climate for extortionist crime to take place. This practice makes the Japanese especially vulnerable to intimidation and blackmail. Historically extortion has been a popular method used by the Yakuza because it is a simple procedure used to gain control over the streets, thereby enabling them to amass a lot of wealth and power. Protection money was the simplest form of extortion employed by the Yakuza whereby they required business owners to pay them to protect their businesses. If they refused, the Yakuza would perform an oreimairi meaning destroying the individual’s business premise.

1. Insurance Fraud

The Yakuza also takes part in murder for insurance schemes. A Japanse national will be intimidated into taking a life insurance policy and naming a Yakuza member a beneficiary. The Yakuza will organise for the murder of the victim through assassins.

1. Gambling

Gambling is one major revenue source for the Yakuza. The Yakuza control casinos, high-stakes card games, and street-level number rackets and occasionally organise gambling tours. The Yakuza are also involved in pachinko parlours. Being that it is prohibited to give out cash prizes in the pachinko parlours, winners get merchandise where they are later exchanged for cash at a nearby location. The Yakuza keep part of the profits from the pachinko parlours. And also the exchange location for merchandise for cash.

1. Smuggling

The Yakuza syndicate run smuggling operations that bring into Japan whale meat, migrant workers, sex slaves, drugs, and guns. People are being smuggled from China, Brazil, Philippines and Thailand by the Yakuza. In collaboration with the Chinese Triad organised crime syndicates from Taiwan, Hong Kong and China, Chinese workers are smuggled into Japan through several means such as forged passports, and in a boat full of one hundred to one hundred and fifty Chinese. Most of these illegal workers go-ahead to work in hotel kitchens, printing, the construction industry. Restaurant and bars. Such people come to Japan for a better life but end up working in poor conditions and spend the rest of their lives, paying the twenty-five thousand dollars that were used to smuggle them into the country.

Curtailing the Yakuza

The future of the Yakuza will be determined by the actions of law enforcement officials, especially in Japan. The ratification of the Japanese Anti-gang Law in 1992 was a step in the right direction into controlling and even preventing the activities of the Yakuza (Gragert, B. 1997, 201). The law allowed a crackdown on the syndicate activities such as illicit gambling including non-violent crimes such as intervening in civil suits, loansharking, and extortion. Moreover, the law mandates the authorities to confiscate drug trafficking profits while putting in place heftier penalties for persons involved in weapon smuggling. Although the law has had some positive impacts in reducing the number of Yakuza members, the law still has some loopholes where it has not fully illegalised the Yakuza or deal directly with problems brought about by companies used as bases for Yakuza operations (Reilly Jr, E. 2014).

To curtail the activities and operations of the Yakuza, public opinion has to be changed. Traditionally the Japanese have long tolerated the Yakuza in an extent that as long as they remained within their boundaries of extortion, prostitution, robbery and gambling as long as they did not bring harm to the ordinary citizen. (Gragert, B. 1997, 205). This idea is disintegrating as today’s syndicates are becoming more violent and increasingly haunting the common citizens. The new members of the syndicate appear to be only interested in money and not holding a long-standing tradition of not touching the common people. However, several Japanese still hold on to the romanticised image of the Yakuza as feudal Robin Hoods who follow virtues of justice and humanity. The Japanese police need the assistance of the public if it reduces the grip of the Yakuza. However, the police will have a difficult time if the public continues to hold the Yakuza as respectable outlaws.

Conclusion

The Yakuza organised crime syndicates have established their footholds within the Japanese communities and around the world. The Yakuza is an extraordinary criminal syndicate that has amassed a lot of power and wealth that has enabled then penetrate the highest level of Japanese institutions, be it financial institutions or even Japanese politics. Traditionally, the Yakuza has always won in the court of public opinion; however, these ideas is disintegrating as they syndicates continue to perform violent acts against ordinary citizens. Organised crime both in Japan and overseas can only be contained through ratification of new laws, international cooperation, the assistance of concerned citizens and law enforcement that is corrupt free. This will not be easy being that the organisation has survived for three hundred years meaning they are good at adapting to changes and finding protection.

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