increasingly a transit point for heroin being
trafficked to Western Europe; minor transit point for marijuana;
remains highly vulnerable to money-laundering activity given a
primarily cash-based and unregulated economy, weak law enforcement,
and instances of corruption
Brazil
second-largest consumer of cocaine in the world; illicit
producer of cannabis; trace amounts of coca cultivation in the
Amazon region, used for domestic consumption; government has a
large-scale eradication program to control cannabis; important
transshipment country for Bolivian, Colombian, and Peruvian cocaine
headed for Europe; also used by traffickers as a way station for
narcotics air transshipments between Peru and Colombia; upsurge in
drug-related violence and weapons smuggling; important market for
Colombian, Bolivian, and Peruvian cocaine; illicit narcotics
proceeds are often laundered through the financial system;
significant illicit financial activity in the Tri-Border Area (2008)
British Virgin Islands
transshipment point for South American
narcotics destined for the US and Europe; large offshore financial
center makes it vulnerable to money laundering
Brunei
drug trafficking and illegally importing controlled
substances are serious offenses in Brunei and carry a mandatory
death penalty
Bulgaria
major European transshipment point for Southwest Asian
heroin and, to a lesser degree, South American cocaine for the
European market; limited producer of precursor chemicals; vulnerable
to money laundering because of corruption, organized crime; some
money laundering of drug-related proceeds through financial
institutions (2008)
Burma
remains world's second largest producer of illicit opium with
an estimated production in 2008 of 340 metric tons, an increase of
26%, and poppy cultivation in 2008 totaled 22,500 hectares, a 4%
increase from 2007; production in the United Wa State Army's areas
of greatest control remains low; Shan state is the source of 94% of
Burma's poppy cultivation; lack of government will to take on major
narcotrafficking groups and lack of serious commitment against money
laundering continues to hinder the overall antidrug effort; major
source of methamphetamine and heroin for regional consumption (2008)
Cambodia
narcotics-related corruption reportedly involving some in
the government, military, and police; limited methamphetamine
production; vulnerable to money laundering due to its cash-based
economy and porous borders
Canada
illicit producer of cannabis for the domestic drug market and
export to US; use of hydroponics technology permits growers to plant
large quantities of high-quality marijuana indoors; increasing
ecstasy production, some of which is destined for the US; vulnerable
to narcotics money laundering because of its mature financial
services sector
Cape Verde
used as a transshipment point for Latin American cocaine
destined for Western Europe, particularly because of Lusophone links
to Brazil, Portugal, and Guinea-Bissau; has taken steps to deter
drug money laundering, including a 2002 anti-money laundering reform
that criminalizes laundering the proceeds of narcotics trafficking
and other crimes and the establishment in 2008 of a Financial
Intelligence Unit (2008)
Cayman Islands
major offshore financial center; vulnerable to drug
transshipment to the US and Europe (2008)
Chile
transshipment country for cocaine destined for Europe and the
region; some money laundering activity, especially through the
Iquique Free Trade Zone; imported precursors passed on to Bolivia;
domestic cocaine consumption is rising, making Chile a significant
consumer of cocaine (2008)
China
major transshipment point for heroin produced in the Golden
Triangle region of Southeast Asia; growing domestic consumption of
synthetic drugs, and heroin from Southeast and Southwest Asia;
source country for methamphetamine and heroin chemical precursors,
despite new regulations on its large chemical industry (2008)
Colombia
illicit producer of coca, opium poppy, and cannabis;
world's leading coca cultivator with 167,000 hectares in coca
cultivation in 2007, a 6% increase over 2006, producing a potential
of 535 mt of pure cocaine; the world's largest producer of coca
derivatives; supplies cocaine to nearly all of the US market and the
great majority of other international drug markets; in 2005, aerial
eradication dispensed herbicide to treat over 130,000 hectares but
aggressive replanting on the part of coca growers means Colombia
remains a key producer; a significant portion of narcotics proceeds
are either laundered or invested in Colombia through the black
market peso exchange; important supplier of heroin to the US market;
opium poppy cultivation is estimated to have fallen 25% between 2006
and 2007; most Colombian heroin is destined for the US market (2008)
Congo, Democratic Republic of the
one of Africa's biggest producers
of cannabis, but mostly for domestic consumption; traffickers
exploit lax shipping controls to transit pseudoephedrine through the
capital; while rampant corruption and inadequate supervision leaves
the banking system vulnerable to money laundering, the lack of a
well-developed financial system limits the country's utility as a
money-laundering center (2008)
Costa Rica
transshipment country for cocaine and heroin from South
America; illicit production of cannabis in remote areas; domestic
cocaine consumption, particularly crack cocaine, is rising;
significant consumption of amphetamines; seizures of smuggled cash
in Costa Rica and at the main border crossing to enter Costa Rica
from Nicaragua have risen in recent years (2008)
Cote d'Ivoire
illicit producer of cannabis, mostly for local
consumption; utility as a narcotic transshipment point to Europe
reduced by ongoing political instability; while rampant corruption
and inadequate supervision leave the banking system vulnerable to
money laundering, the lack of a developed financial system limits
the country's utility as a major money-laundering center (2008)
Croatia
transit point along the Balkan route for Southwest Asian
heroin to Western Europe; has been used as a transit point for
maritime shipments of South American cocaine bound for Western
Europe (2008)
Cuba
territorial waters and air space serve as transshipment zone
for US- and European-bound drugs; established the death penalty for
certain drug-related crimes in 1999 (2008)
Cyprus
minor transit point for heroin and hashish via air routes and
container traffic to Europe, especially from Lebanon and Turkey;
some cocaine transits as well; despite a strengthening of
anti-money-laundering legislation, remains vulnerable to money
laundering; reporting of suspicious transactions in offshore sector
remains weak (2008)
Czech Republic
transshipment point for Southwest Asian heroin and
minor transit point for Latin American cocaine to Western Europe;
producer of synthetic drugs for local and regional markets;
susceptible to money laundering related to drug trafficking,
organized crime; significant consumer of ecstasy (2008)
Dominica
transshipment point for narcotics bound for the US and
Europe; minor cannabis producer (2008)
Dominican Republic
transshipment point for South American drugs
destined for the US and Europe; has become a transshipment point for
ecstasy from the Netherlands and Belgium destined for US and Canada;
substantial money laundering activity in particular by Colombian
narcotics traffickers; significant amphetamine consumption (2008)
Ecuador
significant transit country for cocaine originating in
Colombia and Peru, with much of the US-bound cocaine passing through
Ecuadorian Pacific waters; importer of precursor chemicals used in
production of illicit narcotics; attractive location for
cash-placement by drug traffickers laundering money because of
dollarization and weak anti-money-laundering regime; increased
activity on the northern frontier by trafficking groups and
Colombian insurgents (2008)
Egypt
transit point for cannabis, heroin, and opium moving to
Europe, Israel, and North Africa; transit stop for Nigerian drug
couriers; concern as money laundering site due to lax enforcement of
financial regulations
El Salvador
transshipment point for cocaine; small amounts of
marijuana produced for local consumption; significant use of cocaine
Estonia
growing producer of synthetic drugs; increasingly important
transshipment zone for cannabis, cocaine, opiates, and synthetic
drugs since joining the European Union and the Schengen Accord;
potential money laundering related to organized crime and drug
trafficking is a concern, as is possible use of the gambling sector
to launder funds; major use of opiates and ecstasy
Ethiopia
transit hub for heroin originating in Southwest and
Southeast Asia and destined for Europe, as well as cocaine destined
for markets in southern Africa; cultivates qat (khat) for local use
and regional export, principally to Djibouti and Somalia (legal in
all three countries); the lack of a well-developed financial system
limits the country's utility as a money laundering center
France
metropolitan France: transshipment point for South American
cocaine, Southwest Asian heroin, and European synthetics
French Guiana: small amount of marijuana grown for local
consumption; minor transshipment point to Europe
Martinique: transshipment point for cocaine and marijuana bound for
the US and Europe
Georgia
limited cultivation of cannabis and opium poppy, mostly for
domestic consumption; used as transshipment point for opiates via
Central Asia to Western Europe and Russia
Germany
source of precursor chemicals for South American cocaine
processors; transshipment point for and consumer of Southwest Asian
heroin, Latin American cocaine, and European-produced synthetic
drugs; major financial center
Ghana
illicit producer of cannabis for the international drug trade;
major transit hub for Southwest and Southeast Asian heroin and, to a
lesser extent, South American cocaine destined for Europe and the
US; widespread crime and money laundering problem, but the lack of a
well developed financial infrastructure limits the country's utility
as a money laundering center; significant domestic cocaine and
cannabis use
Greece
a gateway to Europe for traffickers smuggling cannabis and
heroin from the Middle East and Southwest Asia to the West and
precursor chemicals to the East; some South American cocaine
transits or is consumed in Greece; money laundering related to drug
trafficking and organized crime
Grenada
small-scale cannabis cultivation; lesser transshipment point
for marijuana and cocaine to US
Guatemala
major transit country for cocaine and heroin; in 2005,
cultivated 100 hectares of opium poppy after reemerging as a
potential source of opium in 2004; potential production of less than
1 metric ton of pure heroin; marijuana cultivation for mostly
domestic consumption; proximity to Mexico makes Guatemala a major
staging area for drugs (particularly for cocaine); money laundering
is a serious problem; corruption is a major problem
Guinea-Bissau
increasingly important transit country for South
American cocaine enroute to Europe; enabling environment for
trafficker operations thanks to pervasive corruption;
archipelago-like geography around the capital facilitates drug
smuggling
Guyana
transshipment point for narcotics from South America -
primarily Venezuela - to Europe and the US; producer of cannabis;
rising money laundering related to drug trafficking and human
smuggling
Haiti
Caribbean transshipment point for cocaine en route to the US
and Europe; substantial bulk cash smuggling activity; Colombian
narcotics traffickers favor Haiti for illicit financial
transactions; pervasive corruption; significant consumer of cannabis
Honduras
transshipment point for drugs and narcotics; illicit
producer of cannabis, cultivated on small plots and used principally
for local consumption; corruption is a major problem; some
money-laundering activity
Hong Kong
despite strenuous law enforcement efforts, faces difficult
challenges in controlling transit of heroin and methamphetamine to
regional and world markets; modern banking system provides conduit
for money laundering; rising indigenous use of synthetic drugs,
especially among young people
Hungary
transshipment point for Southwest Asian heroin and cannabis
and for South American cocaine destined for Western Europe; limited
producer of precursor chemicals, particularly for amphetamine and
methamphetamine; efforts to counter money laundering, related to
organized crime and drug trafficking, are improving, but remain
vulnerable; significant consumer of ecstasy
India
world's largest producer of licit opium for the pharmaceutical
trade, but an undetermined quantity of opium is diverted to illicit
international drug markets; transit point for illicit narcotics
produced in neighboring countries and throughout Southwest Asia;
illicit producer of methaqualone; vulnerable to narcotics money
laundering through the hawala system; licit ketamine and precursor
production
Indonesia
illicit producer of cannabis largely for domestic use;
producer of methamphetamine and ecstasy
Iran
despite substantial interdiction efforts and considerable
control measures along the border with Afghanistan, Iran remains one
of the primary transshipment routes for Southwest Asian heroin to
Europe; suffers one of the highest opiate addiction rates in the
world, and has an increasing problem with synthetic drugs; lacks
anti-money laundering laws; has reached out to neighboring countries
to share counter-drug intelligence
Ireland
transshipment point for and consumer of hashish from North
Africa to the UK and Netherlands and of European-produced synthetic
drugs; increasing consumption of South American cocaine; minor
transshipment point for heroin and cocaine destined for Western
Europe; despite recent legislation, narcotics-related money
laundering - using bureaux de change, trusts, and shell companies
involving the offshore financial community - remains a concern
Israel
increasingly concerned about ecstasy, cocaine, and heroin
abuse; drugs arrive in country from Lebanon and, increasingly, from
Jordan; money-laundering center
Italy
important gateway for and consumer of Latin American cocaine
and Southwest Asian heroin entering the European market; money
laundering by organized crime and from smuggling
Jamaica
transshipment point for cocaine from South America to North
America and Europe; illicit cultivation and consumption of cannabis;
government has an active manual cannabis eradication program;
corruption is a major concern; substantial money-laundering
activity; Colombian narcotics traffickers favor Jamaica for illicit
financial transactions
Kazakhstan
significant illicit cultivation of cannabis for CIS
markets, as well as limited cultivation of opium poppy and ephedra
(for the drug ephedrine); limited government eradication of illicit
crops; transit point for Southwest Asian narcotics bound for Russia
and the rest of Europe; significant consumer of opiates
Kenya
widespread harvesting of small plots of marijuana; transit
country for South Asian heroin destined for Europe and North
America; Indian methaqualone also transits on way to South Africa;
significant potential for money-laundering activity given the
country's status as a regional financial center; massive corruption,
and relatively high levels of narcotics-associated activities
Korea, North
for years, from the 1970s into the 2000s, citizens of
the Democratic People's Republic of (North) Korea (DPRK), many of
them diplomatic employees of the government, were apprehended abroad
while trafficking in narcotics, including two in Turkey in December
2004; police investigations in Taiwan and Japan in recent years have
linked North Korea to large illicit shipments of heroin and
methamphetamine, including an attempt by the North Korean merchant
ship Pong Su to deliver 150 kg of heroin to Australia in April 2003
Kyrgyzstan
limited illicit cultivation of cannabis and opium poppy
for CIS markets; limited government eradication of illicit crops;
transit point for Southwest Asian narcotics bound for Russia and the
rest of Europe; major consumer of opiates
Laos
estimated opium poppy cultivation in 2008 was 1,900 hectares,
about a 73% increase from 2007; estimated potential opium production
in 2008 more than tripled to 17 metric tons; unsubstantiated reports
of domestic methamphetamine production; growing domestic
methamphetamine problem (2007)
Latvia
transshipment and destination point for cocaine, synthetic
drugs, opiates, and cannabis from Southwest Asia, Western Europe,
Latin America, and neighboring Balkan countries; despite improved
legislation, vulnerable to money laundering due to nascent
enforcement capabilities and comparatively weak regulation of
offshore companies and the gaming industry; CIS organized crime
(including counterfeiting, corruption, extortion, stolen cars, and
prostitution) accounts for most laundered proceeds
Lebanon
cannabis cultivation dramatically reduced to 2,500 hectares
in 2002 despite continued significant cannabis consumption; opium
poppy cultivation minimal; small amounts of Latin American cocaine
and Southwest Asian heroin transit country on way to European
markets and for Middle Eastern consumption; money laundering of drug
proceeds fuels concern that extremists are benefiting from drug
trafficking
Liberia
transshipment point for Southeast and Southwest Asian heroin
and South American cocaine for the European and US markets;
corruption, criminal activity, arms-dealing, and diamond trade
provide significant potential for money laundering, but the lack of
well-developed financial system limits the country's utility as a
major money-laundering center
Liechtenstein
has strengthened money laundering controls, but money
laundering remains a concern due to Liechtenstein's sophisticated
offshore financial services sector
Lithuania
transshipment and destination point for cannabis, cocaine,
ecstasy, and opiates from Southwest Asia, Latin America, Western
Europe, and neighboring Baltic countries; growing production of
high-quality amphetamines, but limited production of cannabis,
methamphetamines; susceptible to money laundering despite changes to
banking legislation
Macau
transshipment point for drugs going into mainland China;
consumer of opiates and amphetamines
Macedonia
major transshipment point for Southwest Asian heroin and
hashish; minor transit point for South American cocaine destined for
Europe; although not a financial center and most criminal activity
is thought to be domestic, money laundering is a problem due to a
mostly cash-based economy and weak enforcement
Madagascar
illicit producer of cannabis (cultivated and wild
varieties) used mostly for domestic consumption; transshipment point
for heroin
Malaysia
drug trafficking prosecuted vigorously and carries severe
penalties; heroin still primary drug of abuse, but synthetic drug
demand remains strong; continued ecstasy and methamphetamine
producer for domestic users and, to a lesser extent, the regional
drug market
Malta
minor transshipment point for hashish from North Africa to
Western Europe
Mauritius
consumer and transshipment point for heroin from South
Asia; small amounts of cannabis produced and consumed locally;
significant offshore financial industry creates potential for money
laundering, but corruption levels are relatively low and the
government appears generally to be committed to regulating its
banking industry
Mexico
major drug-producing nation; cultivation of opium poppy in
2007 rose to 6,900 hectares yielding a potential production of 18
metric tons of pure heroin, or 50 metric tons of "black tar" heroin,
the dominant form of Mexican heroin in the western United States;
marijuana cultivation increased to 8,900 hectares in 2007 and
yielded a potential production of 15,800 metric tons; government
conducts the largest independent illicit-crop eradication program in
the world; continues as the primary transshipment country for
US-bound cocaine from South America, with an estimated 90% of annual
cocaine movements toward the US stopping in Mexico; major drug
syndicates control the majority of drug trafficking throughout the
country; producer and distributor of ecstasy; significant
money-laundering center; major supplier of heroin and largest
foreign supplier of marijuana and methamphetamine to the US market
(2007)
Micronesia, Federated States of
major consumer of cannabis
Moldova
limited cultivation of opium poppy and cannabis, mostly for
CIS consumption; transshipment point for illicit drugs from
Southwest Asia via Central Asia to Russia, Western Europe, and
possibly the US; widespread crime and underground economic activity
Montserrat
transshipment point for South American narcotics destined
for the US and Europe
Morocco
one of the world's largest producers of illicit hashish;
shipments of hashish mostly directed to Western Europe; transit
point for cocaine from South America destined for Western Europe;
significant consumer of cannabis
Mozambique
southern African transit point for South Asian hashish
and heroin, and South American cocaine probably destined for the
European and South African markets; producer of cannabis (for local
consumption) and methaqualone (for export to South Africa);
corruption and poor regulatory capability makes the banking system
vulnerable to money laundering, but the lack of a well-developed
financial infrastructure limits the country's utility as a
money-laundering center
Nepal
illicit producer of cannabis and hashish for the domestic and
international drug markets; transit point for opiates from Southeast
Asia to the West
Netherlands
major European producer of synthetic drugs, including
ecstasy, and cannabis cultivator; important gateway for cocaine,
heroin, and hashish entering Europe; major source of US-bound
ecstasy; large financial sector vulnerable to money laundering;
significant consumer of ecstasy
Netherlands Antilles
transshipment point for South American drugs
bound for the US and Europe; money-laundering center
New Zealand
significant consumer of amphetamines
Nicaragua
transshipment point for cocaine destined for the US and
transshipment point for arms-for-drugs dealing
Nigeria
a transit point for heroin and cocaine intended for
European, East Asian, and North American markets; consumer of
amphetamines; safe haven for Nigerian narcotraffickers operating
worldwide; major money-laundering center; massive corruption and
criminal activity; Nigeria has improved some anti-money-laundering
controls, resulting in its removal from the Financial Action Task
Force's (FATF's) Noncooperative Countries and Territories List in
June 2006; Nigeria's anti-money-laundering regime continues to be
monitored by FATF