CONFIDENTIAL
XCCI(92)1
History of Triad Activities
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As at February 1992, there were 64 triad societies on Police records, of which 57 are actively engaged in criminal enterprises in Hong Kong. The active societies are listed at Annex A.
Structure of Triad Societies
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As triad societies are secret fraternities, it has been difficult to assess their organizational structure and membership. Modern-day triad structure has grown out of expediency rather than any planned organization, and may now be described as horizontal rather than hierarchical. In essence, this means that whilst office-bearers holding the triad ranks of 489 (Dragon Head), 432 (Straw Sandal), 426 (Red Pole) or 415 (Incense Master) still retain titular positions, their levels of influence within the society are dictated by their number of followers and the monies which they can generate from illegal activities. However, the Sun Yee On, perhaps Hong Kong's most notorious triad society, does appear to be managed on more formal lines with an element of central control.
Triad Activities
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Twenty-one prominent activities in which triads are currently engaged, and the monies that can be generated, are summarised at Annex B. Twenty other activities which have revealed triad participation to a lesser degree are listed at Annex C.
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Some of these activities net regular although comparatively small amounts of money. Others such as trafficking in drugs, gambling, money lending, prostitution, extortion from places of public entertainment and smuggling provide enormous revenues.
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With the substantial wealth that triads have amassed, two phenomena have evolved. The first is the diversification into legitimate business enterprises, for example, restaurants, film studios and places of public entertainment. The second phenomenon is the evolution of more sophisticated members, referred to as second-generation triads, who have received the highest education paid for by monies generated through illegal means. Such persons are now involved in white-collar activities, such as
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