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; 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; 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's 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 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 (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
Malaysia
regional transit point for some illicit drugs; drug
trafficking prosecuted vigorously and carries severe penalties
Malta
minor transshipment point for hashish from North Africa to
Western Europe
Mauritius
minor 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