What Is Transnational Crime? Understanding the Threat

By Dr. Matthew Loux and Bryce Loux  |  10/27/2025

Transnational crimes breach borders and create consequences that stretch beyond a country’s borders. But what is transnational crime in practice? Unlike domestic crimes, transnational crimes sprawl across more than one country and multiple jurisdictions.

For example, a drug cartel may set up a narcotics manufacturing plant in one country and traffic illegal substances into a second country. Then, the drugs are distributed to two additional countries. As a result, investigation and enforcement is complex because transnational crime requires the involvement of multiple governments and criminal justice systems, making investigation and prosecution far more difficult.

Transnational crimes are an important aspect of international relations as they pose a threat to:

• Global security
• Economic stability around the world
• The protection of human rights

The rapid advancement of globalization and new technologies has increased the scale and sophistication of cross-border crimes.                       

Transnational crimes also violate the sovereignty of a nation. They often involve bribing corrupt public officials and exploiting the most defenseless members of society around the world.

Types of Transnational Organized Crimes

Transnational syndicates, cartels, and organized crime group dominate the drug trade, extortion, and illegitimate product markets. Many of these organized criminal groups coordinate with other organized crime groups to expand their drug routes and profits.

Transnational crimes typically include:

• Drug and other illegal product trafficking – This crime typically involves smuggling illegal drugs, stolen artifacts that are cultural property, fake products, and products made from endangered species.
• Human trafficking and smuggling – Criminals explore people for financial gain by the exploitation of people for forced labor or sexual exploitation. Criminal networks and traffickers typically target vulnerable populations.
• Cybercrime – Cybercrime encompasses fraud schemes and technological tools that enable other crimes to be committed across borders. Digital tools, cryptocurrencies, and encryption allow criminals to operate under the radar.
• Money laundering and other financial crimes – Activities such as money laundering, evasion of taxes, counterfeiting, and global fraud generate illicit proceeds that sustain criminal enterprises.
• Arms smuggling – This crime involves the trade and distribution of guns and other weaponry.
• Terrorism – Terrorists groups often work in partnership with organized crime groups around the world to commit acts of violence against their targets.

The Causes of Transnational Crime

Understanding transnational crime involves gaining an understanding of various interconnecting issues. These issues include:

• Economic factors – Global supply and demand for illicit goods and services create profitable markets. Poverty and marginalization in developing countries often compel people to rely on criminal syndicates as a means of survival. Competition over natural resources can also intensify incentives for illegal mining and related offenses. High-profit illicit trading further enhances the development of black markets.
• Political and governance issues – Corruption, the weak enforcement of prosecuting criminal acts, and a lack of stability allow crime to flourish. Limited assistance capacity and fragile institutions also make sustained prevention difficult.
• Technology – The growth of digital tools has led to faster, more covert criminal activities across international borders.
• Social and cultural factors – Social tensions and the global demand for inexpensive labor contribute to the increasing problem of human trafficking and smuggling.

The complexity of transnational crimes isn’t simply a legal issue. It also requires a knowledge of socio-economic and political problems.

The Biggest Types of Transnational Crime

While transnational crime covers a broad spectrum, several types of transnational crimes stand out for their global scale, financial impact, and human cost. They include:

• Illegal drug trafficking
• Human trafficking
• Arms trafficking
• Environmental crimes

Illegal Drug Trafficking

Multiple cartels operate in many countries, producing synthesized forms of meth, heroin, and cocaine. These drugs fuel most crimes involving violent acts and corruption. With lucrative profits and trade deals in the market, a cartel such as the Sinaloa Cartel in Mexico alone can put local economies in peril. Entire cities across the United States and undeveloped portions of Europe struggle with addiction and violence, straining law enforcement resources.

Human Trafficking

Human trafficking spans the globe, and it often involves kidnapping and exploiting victims through involuntary servitude and sexual slavery. This crime is driven by sophisticated syndicates who target the people of economically disadvantaged and politically unstable regions. Traffickers earn profits that run into hundreds of billions of dollars and can destabilize entire communities.

Arms Trafficking

Arms trafficking is characterized by the clandestine commerce and circulation of guns, rockets, and other arms across international borders. This crime promotes violent acts, terrorism, and syndicate crime by providing firepower to criminal organizations in conflict zones.

Environmental Crimes

Transnational crime also includes offenses such as environmental crimes, such as illegal mining, deforestation, and illegal wildlife trade. These crimes worsen environmental issues and may contribute to climate change.

Impacts of Transnational Crime 

Transnational crime has multiple impacts, such as:

• Economic impact – The global economy suffers due to illicit trading and fraud. Legitimate businesses are undercut by counterfeit products, and financial systems are weakened by illicit financial flows and money laundering. That reduces investment and productivity and cuts into a country’s gross domestic product (GDP). 
• Political and security impacts – Public officials may be corrupted by organized crime networks and weak governance, and they may even sponsor insurgencies. These activities eviscerate the rule of law and imperil national security.
• Humanitarian and social impacts – With transnational crimes, the rights of people are devastated. Vulnerable communities suffer violations due to human trafficking and an uncontrolled spread of drugs. The trust in institutions erodes, and the most at-risk populations bear the greatest harm.

The Challenges in Combating Transnational Crime 

Because transnational organized crime involves law enforcement in more than one country, it is inherently difficult to address due to:

• Jurisdictional issues – The lack of cohesive global governance benefits criminals in organized crime since transnational law is often a patchwork of individual legal systems across entire regions. As a result, prosecuting offenders for their criminal activity is complex.
• Resource limitations – Inadequate funding, a lack of advanced technology, and a limited trained workforce put effective responses to crimes beyond the reach of many governments. 
• Corruption – Criminals escape criminal sentences or other punishments by paying off law enforcement or government officials. 
• Technological evolution – Law enforcement efforts are outpaced by the rapid adaptation of criminals through encrypted communications and the dark web. Technological tools evolve quickly, increasing the risks for investigators working in more than one country. 
• Balancing civil liberties – The threat of potential criminal behavior pushes nations to expand their monitoring over private cities, which raises privacy concerns. 

The growing need to invest in anti-crime systems and increase law enforcement resources to fight transnational organized crime is apparent. Clearly, these challenges are a clear indication of the absence of a unified international approach to preventing transnational crimes.

International Cooperation: Vital to Combat Transnational Organized Crime

International cooperation is central to the fight against transnational crime, and several important organizations are involved in this effort. They include:

• The United Nations Office on Drugs and Crime (UNODC) – This organization plays an important role in the administration of the Palermo Convention (otherwise known as the UN Convention against Transnational Organized Crime). It supports the legal framework for achieving cross-border policing collaboration and provides assistance to law enforcement officials.
• INTERPOL and Europol – These organizations provide cross-border assistance in sharing, training, and analysis of intelligence, as well as in the execution of joint operations.

Significant treaties and conventions have concentrated on preventing money laundering, counter-terrorism financing, and anti-trafficking. One example of good collaboration is Operation Trojan Shield. This initiative allowed multiple law enforcement agencies to capture hundreds of suspects that were using encrypted communication devices for global criminal networks.

The Private Sector’s Role in Stopping Transnational Crime

The private sector, alongside governments and international organizations, is equally important in the fight against transnational crime. Financial institutions are often the first to detect abnormal transactions that suggest money laundering, counterfeiting or the financing of terrorist acts.

In many jurisdictions, banks are legally required to adopt cursory Know Your Customer (KYC) measures and file Suspicious Activity Reports (SARs). They are also required to follow the international standards of the Financial Action Task Force (FATF).

Companies with user-uploaded content and communication platforms are increasingly required to monitor and police illicit activities on their networks. The tech industry’s collaboration with law enforcement, through the sharing of metadata and access under certain legal frameworks, has become critical to criminal investigations.

Supply chain compliance audits and ethical business practices help to mitigate the demand for illegal and counterfeit goods. The economic incentives that fuel transnational criminal networks can be disrupted when companies exercise corporate social responsibility. These private-sector actions help to reduce illegal trade.

The most daunting aspect of transnational crime is its continually evolving nature. The flexibility of criminal networks to integrate innovative approaches is disconcerting. A good example is the use of sophisticated technologies that increase the complexity and elusiveness of cybercrimes, such as:

• Artificial intelligence (AI)
• Blockchain and other cryptocurrencies
• Deepfakes

Deepfakes have been particularly effective in recent years for blackmail, misinformation, and the covert impersonation of officials to bypass security. Transactions involving cryptocurrencies are yet another emerging trend.

Though blockchain is designed to be transparent, criminals use mixing services, privacy coins, and other evasive techniques to hide their tracks. To keep pace, law enforcement is rushing to develop blockchain analytics and hire personnel who can follow the money in this new field.

Meeting the Challenge of Transnational Crime

Governments, together with organizations, should tackle transnational crimes through multiple approaches, including: 

• Strengthening international cooperation – Increasing the scope of treaties and extradition and expanding information sharing among countries 
• Investing in technology – Improving the detection of cybercrimes, the analysis of blockchain data, and the use of digital forensic investigations 
• Building institutional capacity – Training developing nations to combat crime, including technical assistance, financing, and targeted resources 
• Reducing demand – Using public information campaigns to combat drug use, the purchase of counterfeits, and the trafficking of adults and children for sexual exploitation
• Respecting human rights – Respecting due process and privacy with law enforcement measures

To achieve long-term success, a balanced approach is crucial. It should address both supply and demand, as well as civil liberty protections.

Transnational crime has many facets. However, tackling criminals, networks, and activities. The evolution of criminal networks requires an evolution of response on a global scale.

No nation in a globalized society can combat transnational crime in isolation. A unified strategy must incorporate private-sector vigilance, regional collaboration, civil society involvement, and innovative civil investigative methods.

The Master’s in Criminal Justice at AMU

For students interested in studying criminal justice topics such as transnational crime and narcotics, counterterrorism, and drug cartels, American Military University (AMU) offers an online Master of Arts in Criminal Justice. In this degree program, students can take courses in police administration, criminology, and criminal justice ethics.

This master’s program has three concentrations to allow students to take courses that match their professional interests and goals:

• Business administration
• Emergency management and disaster management
• General

For more details, visit AMU’s criminal justice degree program page.

Note: This criminal justice program is not designed to meet the educational requirements for professional licensure or certification in any state. This program has not been approved by any state professional licensing body and does not lead to any state-issued professional license.