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
major transshipment point for cocaine from South America to
North America and Europe; illicit cultivation 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
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
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
Laos
world's third-largest illicit opium producer (estimated
cultivation in 2002 - 23,200 hectares, a 5% increase over 2001;
estimated potential production in 2002 - 180 metric tons, a 10%
decrease from 2001); potential heroin producer; transshipment point
for heroin and methamphetamine produced in Burma; illicit producer
of cannabis; growing methamphetamine abuse problem
Latvia
transshipment point for opiates and cannabis from Central and
Southwest Asia to Western Europe and Scandinavia and Latin American
cocaine and some synthetics from Western Europe to CIS; money
laundering remains a concern despite changes to banking legislation
Lebanon
cannabis cultivation dramatically reduced to 2,500 hectares
in 2002; opium poppy cultivation minimal; small amounts of Latin
American cocaine and Southwest Asian heroin transit country on way
to US and European markets
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
multilateral organizations engaged in issuing
international guidelines for financial sector oversight found gaps
in Liechtenstein's financial services controls that made it
vulnerable to money laundering, but Liechtenstein has become less
attractive as a haven for illicit funds, based on implementation in
2001 of new anti-money-laundering legislation and improved mutual
legal assistance cooperation with other countries