Pakistan
opium poppy cultivation declined 58% to 3,147 hectares in
2005; federal and provincial authorities continue to conduct
anti-poppy campaigns that force eradication - fines and arrests will
take place if the ban on poppy cultivation is not observed; key
transit point for Afghan drugs, including heroin, opium, morphine,
and hashish, bound for Western markets, the Gulf States, and Africa;
financial crimes related to drug trafficking, terrorism, corruption,
and smuggling remain problems
Panama
major cocaine transshipment point and primary
money-laundering center for narcotics revenue; money-laundering
activity is especially heavy in the Colon Free Zone; offshore
financial center; negligible signs of coca cultivation; monitoring
of financial transactions is improving; official corruption remains
a major problem
Paraguay
major illicit producer of cannabis, most or all of which is
consumed in Brazil, Argentina, and Chile; transshipment country for
Andean cocaine headed for Brazil, other Southern Cone markets, and
Europe; corruption and some money-laundering activity, especially in
the Tri-Border Area; weak anti-money-laundering laws and enforcement
Peru
until 1996 the world's largest coca leaf producer; cultivation
of coca in Peru fell 15% to 31,150 hectares between 2002 and the end
of 2003; much of the cocaine base is shipped to neighboring Colombia
for processing into cocaine, while finished cocaine is shipped out
from Pacific ports to the international drug market; increasing
amounts of base and finished cocaine, however, are being moved to
Brazil and Bolivia for use in the Southern Cone or transshipped to
Europe and Africa
Philippines
domestic methamphetamine production has been a growing
problem in recent years; longstanding marijuana producer
Poland
major illicit producer of synthetic drugs for the
international market; minor transshipment point for Asian and Latin
American illicit drugs to Western Europe
Portugal
gateway country for Latin American cocaine and Southwest
Asian heroin entering the European market (especially from Brazil);
transshipment point for hashish from North Africa to Europe;
consumer of Southwest Asian heroin
Romania
major transshipment point for Southwest Asian heroin
transiting the Balkan route and small amounts of Latin American
cocaine bound for Western Europe; although not a significant
financial center, role as a narcotics conduit leaves it vulnerable
to laundering which occurs via the banking system, currency exchange
houses, and casinos
Russia
limited cultivation of illicit cannabis and opium poppy and
producer of methamphetamine, mostly for domestic consumption;
government has active illicit crop eradication program; used as
transshipment point for Asian opiates, cannabis, and Latin American
cocaine bound for growing domestic markets, to a lesser extent
Western and Central Europe, and occasionally to the US; major source
of heroin precursor chemicals; corruption and organized crime are
key concerns; heroin increasingly popular in domestic market
Saint Kitts and Nevis
transshipment point for South American drugs
destined for the US and Europe; some money-laundering activity