Bosnia and Herzegovina
minor transit point for marijuana and opiate
trafficking routes to Western Europe; remains highly vulnerable to
money laundering activity given a primarily cash-based and
unregulated economy, weak law enforcement and instances of corruption
Brazil
illicit producer of cannabis; minor 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 and the US; 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 earned in Brazil are often laundered through the
financial system; significant illicit financial activity in the
Tri-Border Area
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; some money
laundering of drug-related proceeds through financial institutions
Burma
world's second largest producer of illicit opium (potential
production in 2003 - 484 metric tons, down 23% due to eradication
efforts and alternate development; cultivation in 2003 - 47,130
hectares, a 39% decline from 2002); surrender of drug warlord KHUN
SA's Mong Tai Army in January 1996 was hailed by Rangoon as a major
counternarcotics success, but lack of government will and ability 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; currently under Financial Action Task Force
countermeasures due to continued failure to address its inadequate
money-laundering controls
Cambodia
narcotics-related corruption reportedly involving some in
the government, military, and police; possible small-scale opium,
heroin, and amphetamine production; large producer of cannabis for
the international market; 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; transit point
for heroin and cocaine entering the US market; vulnerable to
narcotics money laundering because of its mature financial services
sector
Cape Verde
used as a transshipment point for illicit drugs moving
from Latin America and Asia destined for Western Europe; the lack of
a well-developed financial system limits the country's utility as a
money-laundering center
Cayman Islands
offshore financial center; vulnerable to drug
transshipment to the US and Europe