Illegal activity carried out next to Rio (9)

I believe the answer is:

extortion

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'illegal activity carried' is the definition.
I can't judge whether this definition defines the answer.

'out next to rio' is the wordplay.
'out' indicates an anagram.
'next'+'to'+'rio'='nexttorio'
'nexttorio' is an anagram of 'EXTORTION'.

Can you help me to learn more?

(Other definitions for extortion that I've seen before include "Extraction of money with menaces" , "The obtaining of money by force or threat" , "Blackmail" .)

I've seen this clue in The Irish Independent.

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