Average Ransom Payment and Total Earnings for Somali Pirates

in Business Risk, Transnational Crime

According to a report released by Interpol, the United Nations and the World Bank, the average ransom payment received by pirates in Somalia between 2005 and 2012 was $2.7 Million. The total haul in ransom payments made to the pirates during that time period was estimated to be between $339 Million and $413 Million.

The average pirate working on the crew was paid between $30,000 to $75,000 per person. If the pirate was the first to board a ship, or brought their own ladder or weapon, then the pirate would receive a $10,000 bonus.

(More income from the underground economy.)

Operating costs such as food was also deducted from the pirates total payment. When a pirate used a mobile phone while at sea, the rate for the airtime was $20.

Many of the pirate crews had outside investors who would help finance the attack. According to the study, a typical pirate attack had three to five investors.

(Additional money laundering cases.)

Source:  “Somali piracy: More sophisticated than you though,” Economist, November 2, 2013.

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