This also leads to the direct effect of having a "living" city with a desire to protect its community from excessive harm. The city itself would put a stop to any attempts at organized crime if said crime affected the inhabitants in such a way that they would want to leave and cause people to avoid it. Hence, any major crime rings are either going mad, consist of outsiders who only venture into town occasionally, or would be aimed toward crimes that wouldn't hurt the city of the inhabitants in a fashion that would cause it to discipline them. Money laundering, illegal gambling and the sort would be okay, as it is part of life in the city, after all, whereas forcing people to pay protection money or systematically driving people from their homes would cause the city to act.
This means that the city still has a strong support among the majority of its inhabitants. After all, it does help protect them, and it only wants what is best for them. Besides, why would they want to leave it in the first place? This is where everything happens, this is where the jobs are, this is where civilization is at.