Japanese yakuza crime syndicates pose a threat to the United States, according to a U.S. government report on crime released Friday.
The International Crime Threat Assessment said the yakuza are among "the world's largest and most powerful criminal confederations."
One of the most significant threats posed by Japanese crime groups is their investment in legitimate businesses in the U.S. and other nations to launder proceeds from their criminal operations in Japan, the report said.
Yakuza have laundered criminal proceeds by investing heavily in U.S. and Canadian real estate, including golf courses and hotels, and making stock investments through U.S. financial institutions, the report said.
The Inagawa-kai group, which is allegedly involved in drug and arms trafficking, extortion, investment frauds and money laundering, has invested heavily in Hawaii and U.S. West Coast states, it said.
The report, ordered by President Bill Clinton two years ago, said organized crime groups from Russia, China, Italy, Nigeria and Japan have increased their international presence since the end of the Cold War.
These groups have strengthened worldwide networks or have become involved in more transnational criminal activities, with most of them present in the U.S., it said.
Crime groups' operations have become more global in line with technological development and rapid integration of the world economy, it said.
"Advances in computer and financial technology will increase the anonymity and speed of commercial and financial transactions, offering criminals more efficient and secure ways to smuggle illicit drugs and contraband, penetrate legitimate business and launder and move money," the report said.
By 2010, international criminal groups are more likely to be proficient at exploiting computer networks upon which financial services will depend, it said.