Pirates' share of loot - just 1-2.5%

[WASHINGTON] Pirates off the Horn of Africa pocket as little as one to 2.5 per cent of ransom money collected, which they tend to spend on alcohol, expensive cars and prostitutes, while financiers keep as much as three-quarters of the loot.

A 129-page joint report by the World Bank, Interpol and the United Nations' crime unit opens a window into their operating rules and lifestyle. It also shows the crime has evolved from locally funded operations to transnational networks, costing the global economy about US$18 billion in increased trade expenses.

Piracy has resurfaced in recent years as a menace that's disrupting international shipping and hurting the region's economy. Groups using rocket-propelled grenades, AK-47s and tracking devices collected about US$400 million from 179 ships hijacked from April 2005 to December 2012, the report said.