Hungary
transshipment point for Southwest Asian heroin and cannabis
and for South American cocaine destined for Western Europe; limited
producer of precursor chemicals, particularly for amphetamine and
methamphetamine; efforts to counter money laundering, related to
organized crime and drug trafficking are improving but remain
vulnerable; significant consumer of ecstasy
India
world's largest producer of licit opium for the pharmaceutical
trade, but an undetermined quantity of opium is diverted to illicit
international drug markets; transit point for illicit narcotics
produced in neighboring countries and throughout Southwest Asia;
illicit producer of methaqualone; vulnerable to narcotics money
laundering through the hawala system; licit ketamine and precursor
production
Indonesia
illicit producer of cannabis largely for domestic use;
producer of methamphetamine and ecstasy
Iran
despite substantial interdiction efforts and considerable
control measures along the border with Afghanistan, Iran remains one
of the primary transshipment routes for Southwest Asian heroin to
Europe; suffers one of the highest opiate addiction rates in the
world, and has an increasing problem with synthetic drugs; lacks
anti-money laundering laws; has reached out to neighboring countries
to share counter-drug intelligence
Ireland
transshipment point for and consumer of hashish from North
Africa to the UK and Netherlands and of European-produced synthetic
drugs; increasing consumption of South American cocaine; minor
transshipment point for heroin and cocaine destined for Western
Europe; despite recent legislation, narcotics-related money
laundering - using bureaux de change, trusts, and shell companies
involving the offshore financial community - remains a concern
Israel
increasingly concerned about ecstasy, cocaine, and heroin
abuse; drugs arrive in country from Lebanon and, increasingly, from
Jordan; money-laundering center
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
transshipment point for cocaine from South America to North
America and Europe; illicit cultivation and consumption 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; significant consumer of opiates
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