Korea, North
for years, from the 1970's into the 2000's, 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; in recent years, police investigations in Taiwan and Japan
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;
all indications point to North Korea emerging as an important
regional source of illicit drugs targeting markets in Japan, Taiwan,
the Russian Far East, and China
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 2003 - 18,900 hectares, a 19% decrease over 2002;
estimated potential production in 2003 - 200 metric tons, a 11%
increase from 2002); 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; vulnerable
to money laundering despite improved legislation due to nascent
enforcement capabilities and comparatively weak regulation of
offshore companies, exchange firms, and the gaming industry;
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; 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
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 sophisticated
offshore financial services sector
Lithuania
transshipment point for opiates and other illicit drugs
from Southwest Asia, Latin America, and Western Europe to Western
Europe and Scandinavia; limited production of methamphetamine and
ecstasy; susceptible to money laundering despite changes to banking
legislation
Macedonia
major transshipment point for Southwest Asian heroin and
hashish; minor transit point for South American cocaine destined for
Europe; although most criminal activity is thought to be domestic
and not a financial center, money laundering is a problem due to a
mostly cash-based economy and weak enforcement (no arrests or
prosecutions for money laundering to date)
Madagascar
illicit producer of cannabis (cultivated and wild
varieties) used mostly for domestic consumption; transshipment point
for heroin