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August 2001
DEA-01019 CONTENTSThe Caribbean remains a major transit route for South American cocaine destined for the United States and other world markets. The Caribbean is also an important transit point for marijuana and heroin destined for the United States, and a major money laundering center for illicit drug proceeds. Furthermore, the shipment of synthetic drugs from Europe to the United States through the Caribbean is a growing threat. In the Caribbean, the ability to combat effectively drug trafficking varies from country to country. The Drug Enforcement Administration (DEA) seeks to aid the countries of the Caribbean in their efforts to prevent international drug traffickers from using the region for money laundering or as a transshipment area for illicit drugs destined for the United States and other international markets. In order to achieve this goal, the DEA strives to strengthen the region’s collective ability to track, interdict, arrest, and prosecute successfully money laundering and drug smuggling organizations that operate in the Caribbean. This assessment provides a broad overview of the Caribbean’s role in the drug trade.
Cocaine The primary drug threat to the United States from the Caribbean is the transshipment of large amounts of cocaine from South America. Cocaine is transported through the region to the United States using a wide variety of routes and methods. The key cocaine trafficking routes are through Jamaica and Haiti; and, to a lesser degree, through Puerto Rico, The Bahamas, and the Dominican Republic. Cocaine moving through the eastern Caribbean usually is en route to either Puerto Rico or Europe. The primary method for smuggling large quantities of cocaine through the Caribbean is via maritime vessels. Go-fast boats, bulk cargo freighters, and containerized cargo ships remain the most common conveyances for moving multihundred-kilogram quantities of cocaine through the region. Traffickers also routinely transport multihundred-kilogram quantities of cocaine from Colombia to the Caribbean by single or twin-engine aircraft to clandestine landing strips, or air drop cocaine loads to waiting land vehicles or maritime vessels. Couriers generally transport smaller quantities of cocaine on commercial flights from the Caribbean to the United States. Couriers conceal multikilogram quantities of cocaine on themselves or in their luggage. Also, couriers can carry up to a kilogram of cocaine internally. Caribbean drug trafficking groups primarily are involved in drug transportation and money laundering. The trend of Colombian drug trafficking organizations to pay Caribbean transportation groups with cocaine has led to increased distribution and consumption of cocaine in the Caribbean. Heroin Compared to cocaine, reports of heroin movement in the Caribbean are limited. Generally, heroin is not consumed in the Caribbean, but rather transshipped to Puerto Rico or the Continental United States (CONUS). Most of the heroin transiting the Caribbean originates in Colombia. Couriers generally transport kilogram quantities of Colombian heroin on commercial flights from South America to Puerto Rico or the CONUS. Couriers conceal the heroin on themselves, in their luggage, or internally. These couriers sometimes make one or two stops on various Caribbean islands to conceal their travel point of origin. Marijuana Jamaica is the only significant Caribbean source country for marijuana destined to the United States. However, marijuana is known to be produced on various Caribbean islands for local consumption. Go-fast boats from Jamaica often transport multihundred-kilogram quantities of marijuana through Cuban and Bahamian waters to Florida. Synthetic Drugs Seizures and anecdotal reporting indicate that traffickers are beginning to tap the potential of the Caribbean as a transit zone for moving synthetic drugs to the United States. The Caribbean provides an alternate route for European synthetic drugs into the United States by dispersing traffic and circumventing traditional synthetic drug routes monitored by U.S. law enforcement officials. The trafficking of synthetic drugs compounds the law enforcement challenge faced by Caribbean countries already threatened by cocaine, heroin, and marijuana trafficking. Also, if Caribbean transportation groups begin receiving a portion of the drugs as payment, as has occurred with cocaine, distribution and abuse of synthetic drugs in the Caribbean may soar. Since 1999, MDMA produced in Europe has been the most common synthetic drug detected transiting the Caribbean en route to the United States. Money Laundering The Caribbean plays an important role in drug-related money laundering. Many Caribbean countries have well-developed offshore banking systems and bank secrecy laws that facilitate money laundering. In countries with less developed banking systems, cash often is moved in bulk shipments through the Caribbean and South America. According to United Nations (UN) reporting from January 2000, approximately 42 percent of the world’s offshore banks and 38 percent of the world’s offshore corporate entities (also known as international business companies or IBCs) are in the Caribbean and Latin America. In early 2000, the Caribbean Financial Action Task Force (CFATF) estimated that US$60 billion in drug trafficking and organized crime proceeds are laundered through the Caribbean every year.1 Chemical Diversion Reporting on chemical diversion and seizures of diverted chemicals in the Caribbean is limited. However, due to the large amount of commercial maritime shipping, several large economic free-zones, and lack of effective regulations and oversight in many islands, traffickers likely use the Caribbean as a transit zone for chemicals legally shipped to South America and then diverted for illicit drug production.
The Royal Antigua and Barbuda Police Force Narcotics Squad and the Antigua and Barbuda Coast Guard (ABCG) are responsible for drug interdiction in Antigua and Barbuda. The ABCG was formed in 1995 and has limited assets for patrolling its coastal waters. Antigua and Barbuda also is a significant country for international money laundering. Antigua and Barbuda’s offshore banking sector was established in the mid-1980s and grew rapidly. This growth, along with limited regulatory capabilities, has made Antigua and Barbuda one of the more vulnerable financial centers in the Caribbean to money laundering. In addition Internet gambling in Antigua and Barbuda is used, to a smaller extent, for money laundering. According to the U.S. State Department, by the end of December 2000, the Government of Antigua and Barbuda (GOAB) reportedly had licensed more than 80 Internet gaming websites and about 26 offshore banks. Antigua and Barbuda has laws and regulations that criminalize money laundering and require financial institutions and other relevant institutions to report suspicious or unusual transactions to relevant authorities. There also are laws that authorize the freezing or seizure and forfeiture of assets related to money laundering. In April 1999, the U.S. Treasury Department issued an advisory to warn U.S. financial institutions about Antigua and Barbuda’s weak antimoney-laundering regime. In response, the GOAB repealed several money laundering amendments that originally had strengthened bank secrecy and hampered money laundering investigations. Antigua and Barbuda are not considered major transshipment points for essential chemicals that may be diverted for illicit drug production. Antigua and Barbuda has laws that criminalize the diversion of controlled chemical substances. However, there has been no recent report of their application. Like most other islands in the eastern Caribbean, cocaine and crack cocaine are available readily in Antigua and Barbuda. Small amounts of cannabis are grown in Antigua and Barbuda, primarily for local consumption. Marijuana also is imported from South America and St. Vincent. In October 1998, a 36-bed private drug rehabilitation center known as Crossroads opened in Antigua. In November 1981, Antigua and Barbuda became an independent state. Antigua and Barbuda has signed the major international antidrug agreements including the 1961 UN Single Convention and its 1972 Protocol, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention.2 However, Antigua and Barbuda has not signed the Inter-American Convention against Corruption.3 In 1996, Antigua and Barbuda signed extradition and mutual legal assistance treaties (MLAT) with the United States.4 Those treaties entered into effect in 1999. Antigua and Barbuda also has maritime drug law enforcement and overflight agreements with the United States, signed in 1995 and 1996 respectively. Antigua and Barbuda is a member of the CFATF.
Smugglers generally move large loads of cocaine into Aruba on fishing vessels, private yachts, and go-fast boats; and out of Aruba inside maritime containerized cargo and airfreights. Drug trafficking organizations continue to exploit Aruba’s air and sea links to the CONUS, South America, Europe, Puerto Rico, and other Caribbean nations. Most of the cocaine transiting Aruba is destined for European markets (primarily the Netherlands). Aruba has large free-zone facilities (areas that allow goods to be held and then re-shipped elsewhere without paying an import or duty tax) providing opportunities for bulk shipments of cocaine to transit the area without the scrutiny of local officials. Cocaine shipments in containerized shipping increasingly are transiting the area, specifically the free-zone. The free-zone facilities on Aruba are conducive to transshipments, not only of drugs, but also essential chemicals. In addition, some firms in the free-zone are suspected of involvement in money laundering activities. Couriers on commercial flights and cruise ships smuggle small (usually 1- to 10-kilogram) amounts of cocaine, and, to a lesser extent, heroin into and out of Aruba, either concealed in their luggage or taped to their bodies. Commercial air couriers, sometimes swallow up to 1 kilogram of cocaine or heroin per trip. Drug couriers easily blend into the hundreds of thousands of tourists who visit Aruba each year. The proximity of Aruba to South America, its high standard of living, and its underdeveloped law enforcement infrastructure make the country an attractive meeting place for South American, European, and U.S. drug traffickers. Colombian traffickers play a major role in the shipments of cocaine and heroin that transit the island, having forged trafficking relationships with local Arubans. Airline employees and cruise ship personnel also smuggle drugs through Aruba. Aruba plays a significant role as an offshore center for drug-related money laundering. Money laundering organizations are well established on Aruba and enjoy protection from considerable bank secrecy laws and a stable currency. The organizations use Aruba’s offshore banking and incorporation systems, free-zone areas, and resort/casino complexes, to transfer and to launder drug proceeds. Although money laundering was made illegal during 1999, the legislation requires a provable underlying crime with a penalty of at least 4 years. The Government of Aruba (GOA) also has an asset seizure law that allows for seizure at the time of arrest to prevent criminals from moving assets prior to conviction. In 2000, the GOA issued several decrees on money laundering that included increased oversight of casinos and insurance companies. These decrees were expected to take effect in 2001. The GOA also is in the process of instituting reporting requirements for cross-border currency movements in excess of 20,000 Aruban florins (approximately US$11,200). Aruba has a financial intelligence unit (FIU) known as the Meldpunt Ongebruikelijke Transacties (MOT), and is a member of the Egmont Group.5 Aruba is not a source country for any of the chemicals used in illicit drug production and has no specific legislation controlling essential chemicals. Difficulties abound when attempting to gauge the levels of chemical transshipment through Aruba as most chemicals legally pass through Aruba’s Free Trade Zone, an area in which local law enforcement has limited oversight due to local regulations and manpower shortages. The reporting of chemicals transiting the island is strictly voluntary. The Aruba Organized Crime Unit, a small investigative team of the Aruba Police (or Politie), has responsibility for large-scale drug trafficking crimes. The Coast Guard of the Netherlands Antilles and Aruba (CGNAA) is responsible for maritime drug interdictions around Aruba and the Netherlands Antilles. The Governments of the Netherlands Antilles and Aruba have agreed to work more closely with the other coast guards operating in the region in order to present a united front against drug trafficking. The CGNAA has its own Criminal Intelligence Division (CID) which is separate from the Politie. However, due to Dutch law, unless the CGNAA can demonstrate that a given vessel is either coming from or going to territorial waters of the Netherlands Antilles or Aruba, any drug law enforcement, other than an administrative boarding, is considered illegal. Dutch investigators also support law enforcement investigations in the Netherlands Antilles.
Cocaine, heroin, and marijuana are available readily in Aruba. Cocaine sells for about US$4,500 per kilogram, heroin sells for about US$27,000 per kilogram, and marijuana sells for about US$300 per kilogram. According to Aruban statistics, an estimated 14 percent of Arubans regularly use illicit drugs. Aruba serves as one of two forward operating locations (FOLs) in the Caribbean for U.S. counterdrug aircraft. The FOL, located at Queen Beatrix Airport near Oranjestad, provides a landing and servicing area for counterdrug detection and monitoring missions in the region. The United States and Aruba do not have a formal maritime law enforcement agreement. The Kingdom of the Netherlands, including Aruba, is party to the 1988 UN Drug Convention, a member of the FATF, and has an MLAT agreement with the United States. The United States–Netherlands extradition treaty of 1980 extends to the GOA, and provides for the extradition of nationals. In October 1997, the GOA adopted a new criminal procedure code that allows for the extradition of Aruban nationals, subject to their serving any sentences imposed in Aruba. In addition, Aruba is a member of the CFATF.
Traffickers smuggle large quantities of cocaine and marijuana via go-fast boats from Jamaica to The Bahamas. Colombian traffickers also fly small aircraft through Cuban air space and drop bales of cocaine in the general area of Guinchos Cay/Cay Lobos, in or near Cuban waters. The cocaine is usually retrieved by Bahamian go-fast boats that take the drugs to The Bahamas for further transshipment primarily to the United States, and occasionally to other world markets. In addition, traffickers have been noted smuggling cocaine via coastal freighter from Haiti through The Bahamas for further transshipment to the United States. Go-fast boats are believed to be the primary means used to smuggle cocaine into the United States from The Bahamas. Couriers are frequently arrested at Bahamian airports for possession of cocaine (including crack), marijuana, and other illicit drugs. The larger islands have numerous international flights to the United States, Canada, and Europe. Like many other Caribbean islands, traffickers have begun to use The Bahamas as an alternative transshipment location for European MDMA destined to the United States. During 2000, the Government of the Commonwealth of The Bahamas (GCOB) made two seizures of MDMA tablets, totaling about 63 kilograms, en route to the United States from the Netherlands. The Royal Bahamas Police Force (RBPF) has approximately 2,300 personnel, and is the main law enforcement entity in The Bahamas. The RBPF’s Drug Enforcement Unit (DEU) works closely with the DEA on drug investigations. In October 2000, The Bahamas established an FIU to receive suspicious transaction reports from financial institutions and to conduct analytical work formerly done by the DEU. The Royal Bahamas Defense Force (RBDF), a maritime force with coast guard duties, is the sole military unit in The Bahamas. Operation Bahamas and Turks and Caicos Islands (OPBAT) is a cooperative program in Nassau involving the DEA, the U.S. Department of State, the U.S. Department of Defense, the U.S. Coast Guard (USCG), the U.S. Customs Service, and the Governments of The Bahamas and the Turks and Caicos Islands. OPBAT uses a variety of radar and intelligence collection platforms to detect and monitor suspected drug smuggling operations. A joint U.S.–host-nation interdiction strike force operates from U.S.–funded helicopter bases to conduct patrols and interdiction missions. RBDF officers also are assigned to several USCG cutters to coordinate drug interdiction operations. OPBAT has been operational since 1982 and its activities have continued to result in large cocaine and marijuana seizures, dramatically reducing drug flow through The Bahamas since the peak years of the late 1980s. Cocaine and marijuana are readily available in The Bahamas. Cocaine sells from about US$5,000 to US$10,000 per kilogram, while marijuana sells for about US$300 to US$1,300 per pound. Jamaican and Colombian marijuana sometimes transits The Bahamas en route to the United States and Europe. Conversely, locally produced marijuana generally is consumed in The Bahamas.
The Bahamas is not a source country for any of the chemicals used in illicit drug production, and there is only limited reporting concerning the movement of illicit chemicals through The Bahamas. The Bahamian Ministry of Health is the government agency responsible for the control and prevention of the diversion of pharmaceuticals and controlled chemical substances. However, Bahamian law has no criminal, civil, or administrative sanctions for the diversion of pharmaceuticals or controlled chemical substances. The Bahamas is an attractive target for money launderers due to its status as an important financial center, and its estimated 400 offshore banks and 100,000 IBCs. In June 2000, the Financial Action Task Force (FATF) released a list of 15 countries that allegedly fail to cooperate fully in the international fight against money laundering, and urged a close watch on their financial activities.6 Several Caribbean nations were cited in the list that included The Bahamas. In July 2000, the U.S. Treasury Department issued an advisory to warn U.S. financial institutions about The Bahamas’ weak antimoney-laundering regime. Subsequently, the GCOB began passing money laundering legislation that was designed to remedy the deficiencies highlighted by the FATF and U.S. Treasury Department. In The Bahamas, money laundering is criminalized under the Proceeds of Crime Act 2000, with predicate offenses including drug trafficking, bribery, public corruption, and other serious crimes. Under Bahamian law, only those assets used in the perpetration of a crime or the proceeds from a crime can be confiscated by the state. These assets cannot be forfeited, until the defendant is tried and found guilty (a judicial process that often takes years to complete). The Attorney General’s Office has had little success in forfeiting drug trafficker assets. Bahamian law permits undercover investigative techniques, including electronic surveillance and controlled deliveries. In 2000, the GCOB enacted several important antimoney-laundering and antidrug laws. The cross-border currency law requires individuals to declare any currency in excess of US$10,000 when entering or leaving The Bahamas. The Financial Transactions Reporting Act sets the financial transaction reporting threshold at US$10,000, and details procedures for verifying the identities of customers and keeping records. The Criminal Justice (International Cooperation) Act 2000 establishes three classes of controlled drugs. During 2000, the GCOB also ratified the Inter-American Convention against Corruption, and successfully prosecuted two corrupt police officers for drug trafficking. In July 1973, The Bahamas became an independent state. The GCOB has signed the 1988 UN Drug Convention. The Bahamas has an MLAT agreement with the United States that includes collaboration in the investigation of criminal allegations within the offshore banking industry. The United States and The Bahamas have had an extradition treaty since 1994. In May 1996, the U.S. Government (USG) and the GCOB signed a maritime agreement that permits Bahamian law enforcement officers to act as shipriders on U.S. vessels operating in Bahamian waters. The agreement permits U.S. vessels to support these shipriders in Bahamian territorial seas to board, search, and, if evidence warrants, seize vessels suspected of involvement in drug trafficking and other criminal activities. This agreement also allows U.S. law enforcement aircraft to overfly Bahamian territory. The Bahamas is a member of the CFATF but has not yet joined the Egmont Group.
Drug traffickers use Barbados and the other islands of the Lesser Antilles as a staging area for airdrops and smuggling by small vessel. Most of the cocaine seized in Barbados comes from couriers that transit Barbados’ Grantley Adams International Airport. The airport is a major international hub that provides daily direct flights to the United States, Canada, and the United Kingdom (UK). Multihundred-kilogram quantities of cocaine are estimated to transit Barbados each year. Cocaine enters the country, primarily by way of go-fast boats and couriers arriving from Venezuela and Guyana, and the nearby islands of St. Lucia, St. Vincent, and Trinidad and Tobago. Traffickers sometimes use coastal freighters generally carrying 100- to 250-kilogram loads of cocaine from Guyana, Trinidad, and Venezuela, that are offloaded at night to small vessels near Barbados. The cocaine is then distributed to local traffickers who either distribute it locally or smuggle it by courier into the United States, Canada, or Europe. Cruise ships also have been used to smuggle small amounts of cocaine and heroin through Barbados to the U.S. Virgin Islands and Puerto Rico. Marijuana is grown for local consumption on a small scale; however, Barbados receives the bulk of its marijuana shipments from St. Vincent and the Grenadines via go-fast boats and fishing vessels. Marijuana is imported from Colombia as well. St. Vincent marijuana sells for US$700 per pound while the Colombia marijuana can sell for as much as US$2,000 per pound. Some local marijuana traffickers have received cocaine as payment for transportation expenses. The Royal Barbados Police Force and the Customs and Excise Department are the two main entities responsible for drug law enforcement in Barbados. The Royal Barbados Defense Force, which includes the Coast Guard, provides coastal defense and maritime drug interdiction in Barbados. Cocaine and crack cocaine continue to be available readily. Information received from the Royal Barbados Police Narcotics Unit indicates that the selling price of cocaine is US$7,000 to US$10,000 per kilogram, while crack cocaine sells for US$5 to US$10 per rock. In recent years, there also has been a noticeable increase in the amount of cocaine-related arrests on the island.
Barbados is a fairly important offshore banking and international business center. Money laundering is criminalized in Barbados. In August 2000, the Government of Barbados (GOB) established the Antimoney Laundering Authority (AMLA) to oversee financial institutions. In September 2000, the GOB established an FIU to analyze suspicious transactions received by the AMLA. Barbados also has asset seizure and forfeiture laws. Barbados is not considered a major transshipment point for essential chemicals that may be diverted for illicit drug production. The Barbados Drug Service, in collaboration with the Customs and Excise Department, is the agency responsible for controlling the diversion of pharmaceuticals and controlled chemical substances. The GOB requires pre-export notifications of controlled chemical shipments to Barbados. Barbadian law criminalizes the diversion of controlled chemical substances and pharmaceuticals. In November 1966, Barbados became an independent state. The GOB has signed the major international antidrug agreements including the 1961 UN Single Convention, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. However, the GOB has not signed the Inter-American Convention against Corruption. In 1996, Barbados signed extradition and MLAT treaties with the United States. Those treaties entered into effect in 2000. In 1997, the GOB signed a maritime agreement with the USG, but has no overflight agreement. Barbados is a member of the CFATF.
Although Cuba is not a major transit country for cocaine destined to the United States, drug traffickers continue to use Cuban waters and airspace to evade U.S. interdiction assets. Go-fast boats from Jamaica routinely travel just inside Cuban waters to avoid contact with U.S. vessels. Traffickers also fly small aircraft transporting cocaine from clandestine airfields on the Guajira Peninsula in Colombia through Cuban air space. Cocaine bales are dropped in the general area of Guinchos Cay/Cay Lobos, in or near Cuban waters. The cocaine usually is retrieved by Bahamian go-fast boats that take the drugs to The Bahamas for further transshipment to the United States. Compared to previous years, the number of suspected drug overflights of Cuban territory has declined since 1999. In December 1998, the Colombian National Police (CNP) seized 7.3 metric tons of cocaine from an outgoing containerized maritime shipment in Cartagena, Colombia. All available information indicated that the cocaine most likely was destined for Spain via Cuba. The seizure brought to light that Cuba’s role as a cocaine transshipment point, was greater than previously suspected, especially to Europe. Cuba experienced a surge in foreign tourist visits over the past decade, from a few thousand in 1990 to 1.4 million in 1998. The tourist traffic not only provides drug couriers with a means to disguise trafficking activities, but it also creates a potential market in Cuba for illegal drugs. Reportedly, Cuban law enforcement officials have made occasional arrests of drug couriers. The majority of couriers were transporting kilogram-quantities of cocaine to European countries, although occasional deliveries were to be made to traffickers operating in Cuba. Cuban authorities have reported only limited instances of heroin couriers traveling to Cuba from South America. Cuba’s Ministry of the Interior is responsible for drug law enforcement. The Cuban Border Guard (Tropas Guardas Fronteras or TGF) conducts maritime drug interdiction and maintains liaison with the USCG. The Government of Cuba (GOC) does not routinely release drug consumption statistics for the island. However, anecdotal reporting indicates a rise in drug consumption in Cuba over the past several years. The GOC claims that consumption primarily is limited to foreign tourists visiting Cuba. In 1998, Cubans reported for the first time the presence of crack cocaine on the island. Although reporting is limited, money laundering in Cuba most likely is minimal because Cuba does not offer conditions conducive to international money laundering. Cuba is not an important offshore financial center; the GOC strictly controls all financial institutions, and the Cuban peso is difficult to convert into other currencies. In 1999, the GOC enacted laws that criminalized money laundering and mandated cross-border currency reporting. In addition, the Cuban central bank issued regulations that encouraged banks to identify their customers, investigate unusual transactions, and identify the source of funds for large transactions. Reportedly, no cases have been prosecuted under Cuban money laundering laws. There is no available information on Cuban asset seizure laws. Cuba is not a known source country for precursor chemicals and there is no available reporting concerning the movement of illicit essential chemicals through Cuba. There also is no available reporting on chemical control laws in Cuba. The GOC signed the 1961 UN Single Convention Treaty and the 1972 protocol, the 1988 UN Drug Convention, and reportedly maintains bilateral antidrug agreements with 26 countries. The GOC and the USG have no formal, bilateral counterdrug treaties, but have worked together on an ad hoc basis. The LIMERICK seizure is the most notable case of drug law enforcement cooperation between the United States and Cuba. In 1996, Cuban authorities assisted U.S. law enforcement authorities in the seizure of 6.2 metric tons of cocaine from the M/V LIMERICK. Subsequently, Cuban law enforcement officials provided court testimony in the U.S. prosecution of the LIMERICK'S captain and crew. According to the U.S. State Department, the USG does not make formal extradition requests to the GOC, but considers the United States–Cuba extradition treaty of 1904 to be still in effect. Informal USG requests for the return of U.S. fugitives residing in Cuba have not been honored by the GOC. International criminals seeking to establish new bases of operations for illegal activities, including drug trafficking, will increasingly exploit Cuba’s territory as it opens to foreign nations.
Limited amounts of cannabis are cultivated in the mountainous areas of Dominica, primarily for local consumption. The mountainous terrain hampers eradication operations. Crack cocaine and marijuana are the two major drugs of abuse in Dominica. Dominica has no specialized drug rehabilitation centers, but Dominican hospitals usually run detoxification programs. In Dominica, money laundering is illegal, but believed to be growing due, in part, to a rapidly developing offshore financial sector. Limited money laundering also may occur through Dominica’s Internet gambling industry. The Government of the Commonwealth of Dominica (GCOD) has yet to prosecute anyone for money laundering. In June 2000, the FATF released a list of 15 countries that allegedly fail to cooperate fully in the international fight against money laundering, and urged a close watch on their financial activities. Several Caribbean nations were cited in the list including Dominica, largely for its unregulated offshore banking sector and outdated legislation. In July 2000, the U.S. Treasury Department issued an advisory to warn U.S. financial institutions about Dominica’s weak antimoney-laundering regime. Subsequently, the GCOD began passing money laundering legislation designed to remedy the deficiencies highlighted by the FATF and U.S. Treasury Department. The GCOD also began reviewing all offshore banks and improving offshore supervision. In 2000, the GCOD enacted the Money Laundering (Prevention) Act (MLPA), which expanded the predicate offenses for money laundering, and set up a regulatory body (including an FIU) to oversee offshore entities. Moreover, the MLPA requires persons to report to the FIU any cross-border currency movements that exceed US$10,000. Dominica allows foreign nationals to purchase economic citizenships. This practice allows international criminals to use their Dominican citizenship to establish businesses in Dominica that may participate in illegal activity, to avoid extradition to certain countries, and to enter the United States without a visa. According to the U.S. State Department, between 1996 and 2000, the GCOD issued approximately 500 economic citizenships. The Commonwealth of Dominica Police Force (CDPF) has responsibility for drug law enforcement and money laundering investigations. The CDPF lacks the resources to effectively investigate complex money laundering operations. Dominica has asset seizure laws; however, they generally are not applied.
Dominica is not considered a major transshipment point for essential chemicals that may be diverted for illicit drug production. Dominican law criminalizes the diversion of controlled chemical substances and pharmaceuticals, but regulation and enforcement is limited. In November 1978, Dominica became an independent state. Dominica has signed the major international antidrug agreements including the 1961 UN Single Convention, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. However, Dominica has not signed the Inter-American Convention against Corruption. In 1996, Dominica signed extradition and MLAT treaties with the United States. Those treaties entered into effect in 2000. Dominica also has a maritime drug law enforcement agreement with the United States, but not an overflight agreement. Dominica is a member of the CFATF.
One of the primary methods for smuggling cocaine into the Dominican Republic involves go-fast vessels that depart Colombia or Venezuela and arrive at remote areas along the southwest or southeast coast of the Dominican Republic. Dominican crews in wooden yola-type vessels sometimes take possession close to the shoreline. Although the quantity is difficult to assess, drug traffickers also likely transport large amounts of cocaine overland from Haiti. Other common methods used by traffickers include airdrops via general aviation aircraft; commercial vessels for transfer to go-fast boat or yolas; concealment in legitimate cargo; and couriers aboard commercial flights originating in Venezuela, Colombia, or Panama. Cocaine shipments from the Dominican Republic bound for Puerto Rico are transported via go-fast boat or yola departing the Dominican Republic’s eastern coast, and crossing the 70-nautical-mile stretch to Puerto Rico’s western shoreline. Multihundred-kilogram amounts of cocaine occasionally are shipped from the Dominican Republic to the United States via maritime containerized cargo. In recent years, heroin smuggling through the Dominican Republic has increased. Heroin is smuggled from Colombia or Panama into the country primarily by couriers on commercial airlines. These couriers hide heroin in their luggage or swallow up to 1 kilogram of the drug. Since mid-1999, DEA and other law enforcement agencies have reported increased MDMA trafficking through the Caribbean. This information also has revealed the important role of Dominican trafficking groups. While the Dominicans have a relatively limited role in international MDMA trafficking, they appear to be spearheading Caribbean MDMA trafficking. This trend may correspond to the leading role Dominican transportation groups play in the Caribbean drug trafficking effort. In 2000, the Government of the Dominican Republic (GODR) seized more than 107,000 MDMA tablets in at least six separate seizures.
Cocaine remains the drug of choice in the Dominican Republic, with the price ranging from US$9,300 to US$11,250 per kilogram. Heroin generally sells from US$50,000 to US$60,000 per kilogram in the Dominican Republic. Marijuana is produced in the Dominican Republic to a limited extent, primarily for local consumption. The country attracts many European and American tourists, who provide a steady customer base for drugs distributed in the Dominican Republic. There also have been some limited indications of MDMA use in the Dominican Republic. During 2000, according to GODR statistics, there were an estimated 50,000 users of cocaine and marijuana in the Dominican Republic. The Dominican National Drug Control Council (CND) has responsibility for demand reduction programs in the Dominican Republic. The Dominican Republic is not a source country for any precursor chemicals, and there is only limited reporting concerning the movement of illicit essential chemicals through the Dominican Republic. The Secretariat of Health has responsibility for the control of chemicals entering and departing the Dominican Republic. The CND prohibits the re-exportation of certain chemicals. In addition to serving as a transshipment point, the Dominican Republic also serves as a drug trafficking command and control center. Dominican nationals have become major players in the drug transportation business throughout Puerto Rico and the northeastern Caribbean, as well as the Eastern United States. They have not, however, reached the level of sophistication seen in Colombian or Mexican trafficking organizations. Initially, the role of Dominican drug traffickers was limited to couriers, runners, and as pick-up boat crewmembers under the supervision of a Puerto Rican or Colombian trafficker. As the drug trade flourished in the Caribbean, Dominican traffickers became more heavily involved in wholesale and retail drug distribution. Dominican traffickers control drug smuggling networks in Puerto Rico and the surrounding region, and have expanded their local drug distribution cells. Dominican organizations facilitate transportation for most of the smuggling ventures that occur within the Eastern Caribbean. The Dominican Republic also has become a safe haven for an ever-increasing number of Dominican nationals who are criminal fugitives from the United States. The GODR has criminalized drug-related money laundering and requires financial institutions to document currency transactions in excess of US$10,000 for inspection by law enforcement authorities. Financial institutions must also identify customers and report any suspicious financial transactions to the Dominican Superintendency of Banks. The Superintendency of Banks has an FIU that analyzes and disseminates suspicious transactions to Dominican law enforcement officials. The GODR also allows for seizure and forfeiture of drug-related assets and international cooperation in forfeiture cases. Most of the drug money entering the Dominican Republic from the United States and Puerto Rico passes through casa de cambios or remesadoras. These money exchange businesses facilitate the movement of money by Dominicans between the United States, Puerto Rico, and the Dominican Republic. These money exchange businesses are attractive to drug traffickers due to their large numbers (there are hundreds in the United States, Puerto Rico, and the Dominican Republic), their flexibility in transferring large amounts of currency, and their disregard for U.S. reporting requirements. Another incentive for drug traffickers, is that these businesses are used by thousands of legitimate companies and individuals. Therefore, these businesses provide a legitimate cover to conduct drug-related financial transactions. The National Directorate for Drug Control (DNCD) is the lead agency for combating drug trafficking and drug-related money laundering in the Dominican Republic. The DNCD is made up of personnel from the National Police, the armed forces, and the National Department of Investigations. The Dominican Navy also participates in maritime drug interdiction. The GODR has signed the major international antidrug agreements, including the 1961 UN Single Convention, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. Also, the GODR is party to the Inter-American Convention against Corruption. The USG and the GODR have had a bilateral extradition treaty since 1910. In 1998, the GODR enacted legislation allowing the extradition of Dominican nationals. During 2000, the GODR extradited 4 Dominicans and expelled/deported 14 U.S. citizens and third-country nationals to the United States. The GODR does not have a formal MLAT with the USG, but generally cooperates with USG agencies in counterdrug and fugitive cases. In 1995, the USG and GODR signed a maritime law enforcement cooperation agreement. In November 2000, the USG and the GODR concluded a 4-year, overflight agreement that permits USG aircraft to fly through Dominican Republic airspace in pursuit of drug smugglers’ aircraft. The GODR is a member of the CFATF and the Egmont Group. The French West Indies (Martinique, Guadeloupe, and French Guiana) are overseas departments of France, and thus subject to French law. The French West Indies, through France, are party to the major international antidrug agreements including the 1961 UN Single Convention and its 1972 Protocol, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. In 1993, France adopted the European Union’s (EU) chemical regulation, which in turn applied to the French West Indies. The United States–France extradition treaty also covers the French West Indies, although France generally does not extradite French nationals. The United States and France do not have a formal MLAT agreement, although there has been an arrangement since 1928 for the direct exchange of some drug trafficking-related information. Also, the United States and France do not have formal overflight and maritime law enforcement treaties covering the French West Indies. The French West Indies, through France, are part of the FATF.
Like other islands of the eastern Caribbean, drug traffickers use Guadeloupe as a transit point and stash location for multihundred-kilogram amounts of cocaine moving via maritime vessels up the Lesser Antilles Island chain towards Puerto Rico and Europe. In addition, Guadeloupe’s air connections to Europe and tourist industry promote the trafficking of small amounts of cocaine to Europe via commercial air courier. Like many other Caribbean islands, traffickers have begun to use Guadeloupe as an alternate transshipment location for European MDMA destined for the United States. On December 24, 2000, French Customs at Pointe-a-Pitre Airport seized more than 16,000 MDMA pills weighing nearly 5 kilograms. The MDMA was to be transported via commercial air to Puerto Rico. The MDMA seizure was the largest in Guadeloupe to date. Money launderers are active in the Department of Guadeloupe, especially on the French side of St. Martin and on St. Barthelemy. St. Martin’s offshore banking and tourist industries make it susceptible to money laundering.
Like other islands of the eastern Caribbean, drug traffickers use Martinique as a transit point and stash location. Cocaine is later moved via maritime vessel up the Lesser Antilles Island chain towards Puerto Rico and Europe. For example, in June 2000, French authorities assisted in the seizure of 2.3 metric tons of cocaine from the fishing vessel Paul and go-fast boat ADRIANA, which had been transferring bales of cocaine to the Paul for later transport to Portugal. Besides its prime trafficking location, Martinique’s air connections to Europe and tourist industry help promote the trafficking of small amounts of cocaine to Europe via commercial air courier.
Maritime smuggling is the primary method drug traffickers use to smuggle cocaine and marijuana into Grenada. Drugs are smuggled into and out of Grenada aboard a variety of maritime vessels including go-fast boats, fishing boats, pleasure craft, small merchant vessels and commercial containerized cargo ships. Primarily small fishing vessels and pleasure craft carry cocaine from Venezuela north to Grenada (sometimes via Trinidad) where the cocaine is stashed pending transportation to primary markets in the United States and Europe. The outlying Grenadian islands of Carriacou, Petite Martinique, and Hog have been used as stash points for maritime drug shipments. Cocaine arrives in relatively large shipments, but often is broken down into smaller parcels for onward movement north. Cannabis is cultivated on a small scale in Grenada, particularly on the western side of the island. However, the majority of marijuana found in Grenada is smuggled in from neighboring islands (primarily St. Vincent) and Venezuela, usually for local consumption. Both cocaine and marijuana are readily available in Grenada. Smuggled cocaine is sometimes converted into crack cocaine for local consumption. In recent years, there has been a large increase in the level of crack cocaine trafficking. As a result, there has been an increase in crime, primarily property crime, and the majority of cocaine arrests involve crack cocaine. Grenada has a small, government-funded drug and alcohol treatment center and a psychiatric hospital that provides drug detoxification. Grenada has an emergent offshore banking sector and an Internet gambling industry. Some money laundering likely occurs through these areas due to lack of strict regulation. Money laundering in Grenada is criminalized if connected to drug trafficking or any other crime that is punishable in Grenada by at least 5 years in prison. The Government of Grenada (GOG) also requires that individuals must declare the exportation of currency greater than US$37,000. However, no prosecutions have taken place under these laws. The Supervisory Authority and the Financial Services Authority are tasked to oversee compliance with money laundering laws and the offshore sector. The GOG allows for asset seizure and forfeiture; however, a conviction is required prior to forfeiture. The GOG allows foreign nationals to purchase economic citizenships. This practice allows international criminals to use their Grenadan citizenship to establish businesses in Grenada that may participate in illegal activity, to avoid extradition to certain countries, and to enter the United States without a visa.
The Royal Grenada Police Force and Coast Guard provide all coastal defense and law enforcement functions in Grenada. Grenada is not considered a major transshipment point for essential chemicals that may be diverted for illicit drug production. Grenadan law criminalizes the diversion of controlled chemical substances and pharmaceuticals, but regulation and enforcement is limited. In February 1974, Grenada became an independent state. Grenada is a signatory to the 1961 UN Single Convention and its 1972 Protocol, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. However, Grenada has not signed the Inter-American Convention against Corruption. The GOG and the USG signed a maritime law enforcement cooperation agreement in 1995 and an overflight agreement in 1996. The United States–Grenada extradition and MLAT agreements signed in 1996, entered into effect in January 2001. Grenada is a member of the CFATF.
Although some cannabis is grown in heavily forested and riverine areas, Guyana is not considered to be a major producer of marijuana. Because the cannabis growing areas often are inaccessible by vehicle, it is difficult to assess the amount of cannabis cultivation. Regardless, most of the cannabis cultivated in Guyana likely is consumed locally. Cocaine, crack, and marijuana are readily available in Guyana. Cocaine sells for from US$4,000 to US$7,000 per kilogram, crack is about US$34 per vial, and marijuana sells for about US$37 per pound. The Guyana Police Force (GPF), Defense Force, Coast Guard and Border Patrol, and the Customs Anti-Narcotic Unit (CANU) are responsible for law enforcement in Guyana. Furthermore, the GPF and CANU have responsibilities to conduct cannabis eradication missions in Guyana. Guyana is not an important regional financial center, and the Government of the Republic of Guyana (GROG) does not allow offshore banking. However, some money laundering likely occurs in Guyana through purchase price inflation, the sale of gold and diamonds purchased with illicit funds, independent currency exchanges, and account manipulation in unregulated Guyanese banks. In February 2000, the GROG passed the Money Laundering (Prevention) Bill, which criminalized money laundering in Guyana. The predicate offenses include drug trafficking and other serious crimes. The Bank of Guyana holds responsibility for overseeing Guyanese financial institutions. Guyanese law requires that cross-border currency transactions over US$10,000 be reported to the Bank of Guyana. However, Guyanese financial institutions are not required to report suspicious transactions. Guyana also has asset seizure and forfeiture laws. Guyana is not a source country for chemicals used in illicit drug production and thus, only limited reporting is available concerning the movement of illicit chemicals through Guyana. Guyanese law criminalizes the diversion of pharmaceuticals and controlled chemical substances; however, regulation and enforcement are limited. In May 1966, Guyana became an independent state. The GROG signed the 1971 UN Convention on Psychotropic Substances and the 1988 UN Drug Convention. In November 2000, the GROG ratified the Inter-American Convention against Corruption. Guyana is a former British colony, and USG extradition requests to the GROG continue to be covered under the 1931 United States–United Kingdom extradition treaty. The United States and Guyana do not have formal overflight and maritime law enforcement treaties. In January 2001, however, the USG and GROG preliminarily agreed to a maritime law enforcement agreement. Guyana is not a member of the CFATF.
The primary method for smuggling cocaine into Haiti is via maritime vessels. Go-fast boats from Colombia remain the most common maritime trafficking method—usually transiting from the Guajira Peninsula to arrival locations along the poorly guarded southern coast of Haiti. Traffickers also routinely transport cocaine from Colombia to Haiti by single or twin-engine aircraft to clandestine landing strips, or airdrop cocaine loads to waiting land vehicles or maritime vessels. Other common conveyances for smuggling cocaine into Haiti include bulk cargo freighters, containerized cargo vessels, fishing vessels, and couriers on commercial aircraft. As cocaine enters Haiti, it is usually stored locally until it can be shipped to the United States or other international markets. Cocaine often is smuggled out of Haiti in containerized cargo or on bulk cargo freighters directly to Miami. The cocaine shipments aboard cargo freighters are occasionally offloaded to smaller vessels prior to arrival in the CONUS. Cocaine also is sometimes transferred overland from Haiti to the Dominican Republic for further transshipment to Puerto Rico, the CONUS, Europe, and Canada. Marijuana destined for Haiti usually is transported from Jamaica via go-fast boats and other maritime vessels. Anecdotal reporting indicates some small-scale marijuana production in Haiti, primarily for local consumption. Haiti’s lack of implemented currency regulations and money laundering laws continue to facilitate money laundering. Most of the detected money laundering in Haiti involves transporting cash via courier, from the United States though Haiti to Panama. However, some money laundering likely takes place through Haiti’s poorly regulated banks and currency exchanges. In January 2001, the Haitian Parliament approved a money laundering law drafted in 1997. In August 2000, Haiti’s Central Bank published a circular directing Haitian financial institutions to report to the Government of Haiti (GOH) currency transactions at or above 20,000 gourdes (approximately US$10,000). Haiti does not currently possess any asset seizure or forfeiture laws. The Haitian legal code does not allow for conspiracy in drug cases. A suspect must be arrested in possession of drugs in order to be prosecuted on drug-related offenses.
Currently, there is little reporting of chemical diversion activities in Haiti. The country has no essential chemical control law. In Haiti, cocaine and marijuana are available readily, but are not widely consumed due mainly to poor economic conditions. Cocaine sells from US$6,000 to US$7,500 per kilogram and crack sells for about US$5 per rock. The GOH does not finance any demand reduction programs. The Association for Alcohol Prevention and Chemical Dependency, a private, nongovernmental institution, remains the only established organization with treatment programs for substance abuse in Haiti. The Bureau of the War against Drug Trafficking (Bureau de la Lutte Contre le Trafic des Stupefiants or BLTS) is the Haitian National Police counterdrug unit. The Haitian Coast Guard and Haitian Customs also have drug law enforcement responsibilities. Haiti has signed the 1961 UN Single Convention and its 1972 Protocol, the 1988 UN Drug Convention, and the Inter-American Convention against Corruption. However, Haiti has not signed the 1971 UN Convention on Psychotropic Substances. A 1904 bilateral extradition treaty between the USG and GOH remains in force; however, the 1987 Haitian Constitution prohibits the extradition of Haitian nationals. Haiti has expelled third country nationals to the United States on occasion. Haiti honors the terms of a 1997 maritime and overflight agreement with the United States. Haiti is not a member of the CFATF.
Jamaica is the largest producer and exporter of marijuana in the Caribbean, and the only significant Caribbean source for marijuana consumed in the United States. Jamaican marijuana and hashish also are consumed in the Caribbean, Canada, and Western Europe. Furthermore, Jamaica’s proximity to air and maritime routes from South and Central America, the Yucatan Channel, and Windward Passage makes the island a key transshipment point for cocaine destined for The Bahamas, the United States, Canada, and Europe. Traffickers smuggle cocaine through Jamaica primarily via go-fast boats, commercial airlines, and commercial maritime vessels. Cocaine trafficking via private aircraft from Colombia to Jamaica has declined in recent years in favor of flights to Haiti, where law enforcement presence is less concentrated. Small amounts of cocaine and South American heroin sometimes are smuggled to the United States on commercial flights transiting Jamaica. According to U.S. Customs in 2000, more than 63 percent of all arrests for cocaine possession at U.S. airports involved flights that originated in Jamaica. Bahamian traffickers often work in concert with Jamaican traffickers to smuggle multikilogram shipments of cocaine and marijuana to The Bahamas and into the United States. In 2000, certain Colombian trafficking groups reportedly became more directly involved in trafficking cocaine through Jamaica—in some cases even discontinuing the use of Jamaican middlemen. This unconfirmed development may be a result of conflicts in the working relationship between certain Colombian and Jamaican trafficking groups. Jamaican traffickers frequently use maritime containerized cargo and concealed compartments on maritime vessels to smuggle large marijuana shipments (i.e., 3,000- to 10,000-pound loads). Marijuana is concealed inside container walls, floors, roofs, and tires. Refrigerated units often are used to conceal the drug by replacing the inside insulation with marijuana. Hashish oil7, a by-product of cannabis, also is produced in Jamaica. Jamaica’s north coast appears to be the center of activity for hashish oil production. Most of Jamaica’s exported hashish oil is destined for Canada. On December 11, 2000, USCS in Miami seized 250,000 tablets of MDMA from a mailed package destined for Jamaica. It should be noted that, as of March 2001, Jamaica had no laws against the possession or distribution of MDMA. Following the seizure, however, the Government of Jamaica (GOJ) began efforts to modify their Dangerous Drug Act to incorporate MDMA into the existing regulations. The Jamaica Constabulary Force (JCF) is the country’s national police force. The JCF’s Narcotics Division is responsible for drug enforcement operations in Jamaica. The Jamaica Defense Force (JDF) supports police efforts to monitor ports and airstrips. In February 1999, the GOJ created a three-officer fugitive apprehension team to locate and apprehend known fugitives. In Jamaica, cannabis eradication is accomplished by manual cutting rather than herbicides. In 2000, the JCF assumed cannabis eradication responsibilities formerly handled by the JDF, due to a prison guards strike forcing the JDF to run Jamaica’s prisons. In 2000, the GOJ eradicated 517 hectares of cannabis, falling short of its goal of 1,200 hectares set out in a prior agreement with the USG. Three hashish oil laboratories also were destroyed during 2000. During 2000, the GOJ arrested two significant drug traffickers. One was extradited to The Bahamas, while the other escaped from JCF custody. During 2000, the GOJ arrested 8,659 drug offenders, including 855 on cocaine-related charges. The GOJ extradited 10 people to the United States in 2000, while 46 other cases were active and pending extradition. While Jamaica is not a major source country for any of the chemicals used in illicit drug production, chemical diversion still occurs. Illicitly obtained isopropyl alcohol is used to distill hashish oil. In April 2000, the Jamaican Parliament enacted the Precursor Chemicals Act that bans the unlawful production, manufacture, importation, distribution, and diversion of chemical substances used in manufacturing illegal drugs. The Ministry of Health, Pharmaceutical Division, was designated the competent authority for enforcing the legislation and was given authority to search business establishments without obtaining a warrant. DEA has provided training to Jamaican chemical control personnel. Because Jamaica is not an important regional financial center, tax haven, or offshore banking center, drug money is most often laundered through the acquisition of real assets such as cars and real estate. The U.S. dollar is legal tender in Jamaica—increasing opportunities for drug traffickers to expand their money laundering efforts. In December 1998, the GOJ amended its antimoney-laundering law, by raising the required reporting of cash transactions from US$10,000 to US$50,000 or more. In addition, the law now requires financial institutions to report all “suspicious” transactions, not merely ones above US$50,000. In 2000, Jamaica passed legislation increasing the predicate offenses under the money laundering law to include arms trafficking, fraud, and corruption. In April 2000, Jamaica established an FIU to receive and analyze suspicious activity reports. The majority of asset forfeiture cases in Jamaica fall under amendments to the Dangerous Drugs Act of 1984. This Act provides for the forfeiture of vehicles used to convey drugs. The Drug Offenses and Forfeiture of Proceeds Act of 1994 allows for post-conviction forfeiture and pre-conviction restraint of all types of property. However, the 1994 Act is difficult for prosecutors to apply, requiring a separate hearing and published public notice of the GOJ’s intent to forfeit the property. In February 1998, for the first time, a Jamaican trial court judge ordered the forfeiture of a home belonging to a convicted drug dealer. The Jamaican National Council on Drug Abuse consists of 58 agencies that discuss national initiatives and focus on national supply and demand for drugs in Jamaica. The Drug Abuse Secretariat, a secondary agency within the National Council on Drug Abuse, focuses on demand reduction. The Drug Abuse Secretariat also is responsible for collecting and maintaining trends relating to drugs including pharmaceutical products and illicit drugs. An annual report is generated outlining the trends based on data received from various health and social organizations. Cocaine and marijuana are readily available in Jamaica. Cocaine sells from US$5,500 to US$7,000 per kilogram. Low-grade marijuana sells from US$23 to US$35 per pound while high-grade marijuana sells from US$66 to US$178 per pound. In September 2000, the Jamaica Drug Abuse Secretariat reported that the number one illicit drug of abuse in Jamaica is marijuana, followed by crack cocaine. The Drug Abuse Secretariat also informed the DEA of several reports from resort personnel in Negril, Jamaica, about tourists inquiring about the purchase of MDMA. Heroin use in Jamaica is primarily limited to the tourist areas on the north coast. Marijuana possession and use is currently illegal in Jamaica. According to the Jamaican press, fines for possessing marijuana are about US$2.50 and fines for smoking marijuana are about US$5. Individuals caught with more than 8 ounces of marijuana can be charged with drug trafficking and imprisoned for up to 18 months. Individuals possessing large quantities of marijuana for distribution can receive prison sentences of 3 or more years. In August 1962, Jamaica became a fully independent member of the British Commonwealth. Jamaica has signed the major international antidrug agreements including the 1961 UN Single Convention and its 1972 Protocol, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. The GOJ has signed but not ratified the Inter-American Convention against Corruption. In 1983, the USG and GOJ signed an extradition treaty. The USG and GOJ have had an MLAT since July 1995, and a maritime law enforcement cooperation agreement since April 1998. Jamaica is a member of the CFATF.
Curaçao and St. Maarten have large free-zone facilities (an area that allows goods to be held and then re-shipped elsewhere without paying an import or duty-tax) providing opportunity for bulk shipments of cocaine to transit the area without the scrutiny of local officials. The free-zone facilities on Curaçao and St. Maarten are conducive to transshipments of not only drugs but also essential chemicals. Some firms in the free-zone also are suspected of involvement in money laundering activities. Like many other Caribbean countries, high levels of tourism in the Netherlands Antilles provide a cover under which drug traffickers can operate. Couriers on commercial flights and cruise ship passengers also smuggle small (usually 1- to 10-kilogram) amounts of cocaine and heroin into and out of the Netherlands Antilles. The Netherlands Antilles’ political, economic, and cultural ties to the Kingdom of the Netherlands create an environment suitable for increased illicit drug trafficking to the Netherlands and the rest of Europe. There are daily flights from the Netherlands Antilles to Amsterdam; where the street price of cocaine is often twice what it is in Miami and sentences for drug traffickers are much lighter than in the United States. Although cocaine is the principal illicit drug trafficked through their islands, Netherlands Antillean law enforcement officials have periodically arrested Colombian heroin couriers. Heroin is transshipped from Colombia through Bonaire, Curaçao, or St. Maarten via commercial airlines and cruise ships. Most of the heroin is destined for the CONUS via Puerto Rico. St. Maarten also is used as a stash location for Colombian heroin. Marijuana is smuggled into the islands both by local and South American drug traffickers but it usually is for local use and is not transshipped.
The Curaçao Police (or Politie) has an antidrug unit known as the Curaçao Politie Narcotics Bureau. The Curaçao Politie CID develops drug-related criminal intelligence for passage to the Curaçao Politie Narcotics Bureau. The Dutch legal system prohibits the use of some basic law enforcement tools such as undercover operations and electrical surveillance/monitoring. The CGNAA is responsible for maritime drug interdictions around Aruba and the Netherlands Antilles. The Governments of the Netherlands Antilles and Aruba have agreed to work more closely with other coast guards operating in the region in order to present a united front against drug trafficking. The CGNAA has its own CID, which is separate from the Politie. However, under Dutch law, unless the CGNAA can demonstrate that a given vessel is either coming from or going to territorial waters of the Netherlands Antilles or Aruba, any drug law enforcement action, other than an administrative boarding, is considered illegal. Dutch investigators also support law enforcement investigations in the Netherlands Antilles.
Money laundering organizations are well established in the Netherlands Antilles due in part to the country’s high per capita income and well-developed infrastructure. The Netherlands Antilles’ large offshore financial sector, bank secrecy, casino/resort complexes, high volume of American and Dutch tourism, and stable currencies make the country conducive to money laundering. Money laundering is a criminal offense in the Netherlands Antilles and no longer requires a separate and provable underlying crime. According to the U.S. State Department, Antillean courts convicted 14 individuals of money laundering during 2000. The Netherlands Antilles has an FIU known as the Meldpunt Ongebruikelijke Transacties (MOT). In August 2000, the Government of the Netherlands Antilles (GONA) enacted an asset seizure law, which allows the GONA to seize the proceeds of any crime once the crime is proven in a court of law.
Curaçao serves as one of two FOLs in the Caribbean for U.S. counterdrug aircraft. The FOL, located at Hato Airport near Willemstad, provides a landing and servicing area for counterdrug detection and monitoring missions in the region. The Netherlands Antilles and the United States do not have a formal maritime law enforcement agreement. The Kingdom of the Netherlands, including the Netherlands Antilles, is party to the 1988 UN Drug Convention, a member of the FATF, and has an MLAT agreement with the United States. The United States–Netherlands extradition treaty of 1980 extends to the GONA, and provides for the extradition of nationals. In October 1997, the GONA approved its own legislation affirming the extradition of nationals from the Netherlands Antilles. In addition, the Netherlands Antilles is a member of the CFATF and the Egmont Group.
In recent years, traffickers have made less use of go-fast boats and air drops directly from South America to Puerto Rico due largely to law enforcement efforts. Instead, much of the cocaine entering Puerto Rico is smuggled through nearby Caribbean islands. Go-fast boats and small maritime vessels carrying multihundred-ton quantities of cocaine enter Puerto Rico from islands to the east such as St. Maarten and the Virgin Islands. Cocaine also continues to enter Puerto Rico in small maritime vessels from the Dominican Republic across the Mona Passage. In addition, anecdotal reporting indicates that coastal freighters transport cocaine into Puerto Rico from Haiti. Cocaine smuggled into Puerto Rico often is stored locally until transportation to the CONUS can be arranged. Cocaine leaves Puerto Rico via maritime bulk freighters and on commercial airlines either in the possession of couriers or concealed in cargo. Traffickers also use commercial maritime containers to smuggle metric-ton quantities of cocaine. Puerto Rico is a major transshipment point for Colombian heroin destined for the northeastern United States, principally New York City. Heroin is smuggled into Puerto Rico by commercial air couriers and cruise ship passengers. The couriers often conceal heroin internally, in luggage, or underneath clothes. Heroin often is moved from Puerto Rico to the northeastern United States via commercial airlines. Airports in Puerto Rico are principal entry points for marijuana shipments. Marijuana often is seized in 1- and 15-kilogram-size packages, and is typically concealed inside checked suitcases or hand-carried items. Traffickers have been known to route large quantities of marijuana, often with cocaine, from Mexican and Colombian sources through the eastern Caribbean and Puerto Rico to destinations in Florida and along the U.S. East Coast. Some small-scale marijuana production also occurs in Puerto Rico. Like many other Caribbean islands, traffickers have begun to use Puerto Rico as an alternate transshipment location for European MDMA destined to the United States. However, Puerto Rico is not yet believed to be a major MDMA transshipment location. Couriers transport small amounts of MDMA from the Netherlands to Puerto Rico, sometimes via the Dominican Republic, and likely via other Caribbean Islands as well. Some MDMA remains in Puerto Rico for local consumption. Cocaine, crack, heroin, and marijuana are readily available in Puerto Rico, and prices vary throughout the island. Cocaine prices range from US$13,000 to US$18,000 per kilogram and crack sells from US$5 to US$6 per rock. Marijuana sells for from US$1,200 to US$1,500 per pound. Heroin sells for from US$80,000 to US$100,000 per kilogram. The DEA’s Caribbean Field Division has noted temporary increases in drug prices in Puerto Rico due to the disruption of trafficker activities during regional law enforcement surge operations. Due to its well-developed financial infrastructure and U.S. connection, Puerto Rico is an important center for money laundering in the Caribbean. Bulk currency is moved through Puerto Rico en route to Latin America. Drug money also enters the Dominican Republic from Puerto Rico through casa de cambios or remesadoras.
Like most other islands in the eastern Caribbean, cocaine and crack cocaine are available readily in St. Kitts and Nevis. Cannabis also is grown locally and imported from St. Vincent for local consumption. The Government of St. Kitts and Nevis (GOSKN) conducts cannabis eradication missions; during 2000, GOSKN officials eradicated about 34,000 cannabis plants. The St. Kittitian Police Force antinarcotics unit and the St. Kittitian Defense Force are responsible for counterdrug efforts in St. Kitts and Nevis. In 2000, of the 12 foreign nationals designated for foreign sanctions under the U.S. 1999 Kingpin Designation Act, only two—Noel Timothy Heath and Glenroy Vingrove Matthews, both from St. Kitts—were from the Caribbean.
St. Kitts and Nevis has a banking system conducive to money laundering. Although money laundering is illegal, the only punishment is a fine. Financial institutions in St. Kitts and Nevis maintain strict bank secrecy, and are not required to report suspicious transactions. Most of the financial activity in the country is concentrated on Nevis, which has over 19,000 offshore companies, a number greater than the total population of the island. St. Kitts and Nevis also have opened up to various enterprises such as internet gambling and hotels/resorts, which are sometimes gateways to money laundering. St. Kittitian law allows for seizure and forfeiture of assets connected with money laundering. In June 2000, the FATF released a list of 15 countries that allegedly failed to cooperate fully in the international fight against money laundering, and urged a close watch on their financial activities. Several Caribbean nations were cited in the list, including St. Kitts. In July 2000, the U.S. Treasury Department issued an advisory warning U.S. financial institutions about St. Kitts and Nevis’ weak antimoney-laundering regime. Since 1984, the GOSKN has allowed foreign nationals to purchase economic citizenships. This practice allows international criminals to use their St. Kittitian citizenship to establish businesses in St. Kitts and Nevis that may participate in illegal activity; to avoid extradition to certain countries; and to enter the United States without a visa. St. Kitts and Nevis is not considered a major transshipment point for essential chemicals that could otherwise be diverted for illicit drug production. St. Kittitian law criminalizes the diversion of controlled chemical substances, but regulation and enforcement is limited. In September 1983, St. Kitts and Nevis became an independent state. St. Kitts and Nevis has signed the major international antidrug agreements including the 1961 UN Single Convention, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. However, the GOSKN has not signed the Inter-American Convention against Corruption. In 1996, the GOSKN signed extradition and MLAT treaties with the United States. Those treaties entered into effect in 2000. In 1995, the GOSKN signed a maritime law enforcement agreement with the United States, and an overflight amendment to the maritime agreement in 1996. St. Kitts and Nevis is a member of the CFATF.
Most of the cocaine enters St.Lucia via Trinidad and Tobago and, to a lesser extent, St. Vincent and the Grenadines. Noncommercial vessels have replaced airdrops as the primary method of smuggling cocaine into St. Lucia. Traffickers also use couriers to smuggle small amounts of cocaine and heroin through St. Lucia. The drugs are concealed either on the couriers, in their luggage, or carried internally. The Royal St. Lucia Police Drug Squad and the Customs and Excise Department hold primary responsibility for antidrug law enforcement in St. Lucia. The Substance Abuse Advisory Council Secretariat handles demand reduction issues. Also, the Government of St. Lucia (GOSL) Ministry of Health runs a drug treatment and rehabilitation facility known as Turning Point. Marijuana, which is both grown locally and imported from St. Vincent, is the primary drug of abuse on the island. The GOSL conducts eradication operations and, in 2000, eradicated 134,250 cannabis plants. Compared to many of its eastern Caribbean neighbors, St. Lucia is not a regional financial center. However, St. Lucia has an emergent offshore financial sector that could become vulnerable to money laundering if not properly regulated. Currently, St. Lucian law criminalizes money laundering related to drug trafficking and other serious offenses, and mandates suspicious transaction reporting by financial institutions. St. Lucian law also allows for asset forfeiture after a conviction for drug trafficking; however, there were no significant asset forfeitures in 2000.
Like other islands in the eastern Caribbean, drug traffickers use St. Vincent and the Grenadines as a transshipment point for cocaine from Colombia and Venezuela to the United States, Canada, and Europe. Small maritime vessels are the primary conveyance used to smuggle cocaine to St. Vincent and the Grenadines. Traffickers sometimes use St. Vincent and the Grenadines for cocaine storage until further transshipment can be arranged. In the past, the Government of St. Vincent and the Grenadines (GOSVG) participated in regionally supported cannabis eradication operations. In 2000, no such regional operations took place in St. Vincent; however, the GOSVG unilaterally eradicated 28,375 cannabis plants. St. Vincent’s Police Force, Customs, and Coast Guard hold shared responsibility for antidrug law enforcement in St. Vincent and the Grenadines. Marijuana is available readily in St. Vincent and the Grenadines and is the local drug of choice. As with much of the Caribbean, cocaine and crack are readily available in St. Vincent and the Grenadines as well. The government psychiatric hospital provides drug detoxification, but no actual drug rehabilitation facilities exist. St. Vincentian law criminalizes money laundering and authorizes the seizure of assets related to drug trafficking and money laundering. St. Vincent and the Grenadines has a small, but growing, offshore financial services sector, which is largely unregulated. St. Vincent and the Grenadines also has strict bank secrecy laws. In June 2000, the FATF released a list of 15 countries that allegedly fail to cooperate fully in the international fight against money laundering, and urged a close watch on their financial activities. Several Caribbean nations were cited in the list including St. Vincent, largely for its lack of regulation, lack of customer identification or record keeping, and rudimentary licensing requirements for financial institutions. In July 2000, the U.S. Treasury Department issued an advisory to warn U.S. financial institutions about St. Vincent and the Grenadines’ weak antimoney-laundering regime. The GOSVG allows foreign nationals to purchase economic citizenships. This practice allows international criminals to use their St. Vincentian citizenship to establish businesses in St. Vincent that may participate in illegal activity, to avoid extradition to certain countries, and to enter the United States without a visa. St. Vincent and the Grenadines is not considered a major transshipment point for essential chemicals that may be diverted for illicit drug production. Although St. Vincentian law criminalizes the diversion of pharmaceuticals and controlled chemical substances, regulation and enforcement are limited. In October 1979, St. Vincent and the Grenadines became an independent state. The GOSVG has signed the 1988 UN Drug Convention. However, the GOSVG has not signed the Inter-American Convention against Corruption, the 1961 UN Single Convention, or the 1971 UN Convention on Psychotropic Substances. In 1996, St. Vincent signed extradition and MLAT treaties with the United States. Those treaties entered into effect in 1999. In 1995, the GOSVG signed a maritime law enforcement agreement with the USG, but has no overflight agreement. St. Vincent is a member of the CFATF.
The vast jungles of Suriname, coupled with limited law enforcement resources, make for a situation rife for exploitation by various trafficking concerns. Cocaine, the primary drug transiting Suriname, is shipped into Suriname via ships from Brazil and small aircraft arriving from Colombia, Venezuela, and Brazil. The small aircraft are able to land with impunity at clandestine airstrips in the jungle, unpatrolled municipal airports, and even on wide public roads. The lack of proper border controls and the lack of infrastructure in the interior are major obstacles in the detection of illicit drug and weapon shipments into and out of Suriname. Drug trafficking organizations use Suriname as a base for sending cocaine couriers to Europe. In addition, cocaine continues to be sent from Suriname to Europe in bulk (and occasionally containerized) shipments of shrimp, fruit, vegetables, rice, and lumber. Drug traffickers also, to a lesser extent, send cocaine and MDMA couriers from Suriname to the United States via commercial airlines and cruise ships. Since 1999, seizures of MDMA have become more common in Suriname. In 2000, Surinamese Customs reportedly arrested 95 couriers who were attempting to transit Suriname with cocaine or MDMA. MDMA produced in Europe and destined for the United States is predominately transported directly via airfreight and express mail or carried by couriers traveling on commercial airlines. However, because of historic ties between the Netherlands and Suriname, and because the Netherlands is an important source country for MDMA, Suriname may represent an alternative transshipment point for European MDMA destined for the United States.
There have been reports of large-scale cultivation of cannabis in Suriname; however, the interior of the country is beyond the effective control of law enforcement officials so these reports are difficult to confirm. In 2000, the Government of Suriname (GOS) eradicated 75,000 cannabis plants. The antidrug brigade of the Korps Politie Suriname (KPS), Suriname’s police force and Surinamese Customs hold primary responsibility for counterdrug law enforcement. The KPS also has a financial unit in charge of money laundering investigations. Cocaine, marijuana, and heroin are available readily in the Suriname. Marijuana is the main drug of abuse followed by cocaine. Sometimes cocaine base is combined with heroin into a substance, known locally as Blakadjonko, and smoked. Cocaine sells for about US$4,000 per kilogram, marijuana sells for about US$285 per kilogram, and heroin sells from US$10,600 to US$13,500 per kilogram. Suriname is not considered an important offshore financial center because the instability of Suriname’s currency, the guilder, makes it unattractive to money launderers. Furthermore, local banks enforce strict currency controls limiting the amount of currency individuals and businesses are permitted to withdraw from banks per day. However, the U.S. dollar trades freely on the black market, and limited reporting indicates that some money laundering occurs in Suriname through over-valuation of purchase prices, the sale of gold purchased with illicit funds, and manipulation of accounts in commercial and state-controlled banks. Money laundering, if drug-related, is criminalized in Suriname. Surinamese law allows for the seizure and forfeiture of assets connected to drug trafficking and money laundering. The extent of the chemical diversion in Suriname is unknown. However, limited DEA reporting indicates that traffickers have diverted essential chemicals for use at clandestine cocaine processing laboratories in the interior of Suriname. Surinamese law enforcement officials continue to have difficulty in verifying these reports due to ongoing guerrilla activity in the Surinamese interior, and the lack of law enforcement manpower and equipment. There are no laws governing the importation and exportation of essential chemicals in Suriname. In November 1975, Suriname became an independent state. Suriname has signed the major international antidrug agreements including the 1961 UN Single Convention and its 1972 Protocol, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. The GOS has signed but not ratified the Inter-American Convention against Corruption. In 1998, the GOS signed a maritime law enforcement agreement with the USG, but has no overflight agreement. Suriname is a former Dutch colony, and USG extradition requests to the GOS continue to be covered under the 1904 United States–Netherlands Extradition Treaty. However, there have been no extraditions between the United States and Suriname since Suriname’s independence in 1975. Suriname is a member of the CFATF.
Thousands of small boats (pirogues) travel between Trinidad and Venezuela without inspection because of a shortage of serviceable local coast guard boats. Once cocaine enters Trinidad, it is smuggled out on cargo vessels, in air cargo, and by couriers who conceal it on their person or in their luggage. Cannabis is grown in the forest and jungle areas of northern, eastern, and southern Trinidad and, to a minor extent, Tobago. This cannabis is primarily grown for local consumption and is usually not transshipped, except in occasional small amounts. In Trinidad and Tobago, cannabis eradication is conducted by manual cutting rather than herbicides. From January through September 2000, the Government of Trinidad and Tobago (GOTT) eradicated over 7.2 million cannabis plants and seedlings. In recent years, local eradication efforts supported by the USG have resulted in the importation of marijuana from South America and nearby islands to meet local demand. In December 2000, the GOTT seized approximately 5 kilograms of heroin—the largest single seizure of heroin to date in Trinidad and Tobago. This seizure, combined with separate anecdotal reporting, may signal an increased use of Trinidad and Tobago as a transit country for South American heroin destined for the United States. The Trinidad Police Organized Crime and Narcotics Unit (OCNU) and the Trinidad Coast Guard hold primary responsibility for drug law enforcement in Trinidad and Tobago. From January through September 2000, the GOTT seized 203 kilograms of cocaine. Cocaine, crack, and marijuana are available readily in the Trinidad and Tobago. Cocaine sells from US$4,000 to US$5,000 per kilogram, crack sells from US$.79 to US$3.97 per “hit,” and marijuana sells for about US$224 per kilogram. Cocaine and crack use is prevalent in Trinidad and Tobago. Trinidad and Tobago is not an important regional or offshore financial center. However, drug traffickers reportedly have laundered money using overvalued purchase prices, real estate, casinos, stockbrokers, insurance companies, and other nonfinancial establishments. In Trinidad and Tobago, money laundering is illegal and predicate offenses include drug trafficking and other serious crimes. The money laundering laws include suspicious reporting requirements and provisions allowing seizure of proceeds for serious crimes. Trinidad and Tobago is not a source country for chemicals used in illicit drug production; however, some essential chemicals imported for Trinidad and Tobago’s petrochemical industry potentially may be diverted for illicit drug production in South America. Trinidadian law criminalizes the diversion of pharmaceuticals and controlled chemical substances. The Chemistry, Food, and Drug Division of the Ministry of Health holds responsibility for oversight of the diversion of controlled chemical substances. In August 1962, Trinidad became an independent state. Trinidad and Tobago has signed the major international antidrug agreements including the 1961 UN Single Convention and its 1972 Protocol, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention. The GOTT is party to the Inter-American Convention against Corruption. The GOTT has an MLAT agreement, a maritime law enforcement agreement, and an extradition treaty with the United States. Trinidad and Tobago is a member of the CFATF. UNITED KINGDOM'S CARIBBEAN OVERSEAS TERRITORIES Anguilla, the British Virgin Islands, the Cayman Islands, Montserrat, and Turks and Caicos are part of the United Kingdom’s (U.K.) Caribbean Overseas Territories (COTs). Bermuda is a self-governing overseas territory of the U.K. The COTs and Bermuda, through the U.K., are parties to the major international antidrug agreements including the 1971 UN Convention on Psychotropic Substances and the 1988 UN Drug Convention. In 1994, legislation was adopted in the U.K. that enabled the COTs to comply with the requirements of the 1988 UN Drug Convention, including asset seizure and forfeiture, and control of precursor and essential chemicals. The COTs–(but not Bermuda)–are subject to the U.S.–U.K. MLAT and asset sharing agreements. The U.S.–U.K. extradition treaty also covers the COTs and Bermuda. The United States and the U.K. also have several maritime cooperation and overflight agreements covering the Caribbean.
Anguilla’s economy is heavily dependent on offshore banking and specialized luxury tourism. The potential for money laundering exists in Anguilla, based on bank secrecy laws and a small, but growing, offshore financial sector. In 1994, Anguilla’s Government assisted in the seizure of approximately US$4 million from Cali Cartel bank accounts in Anguilla. Anguillan law criminalizes money laundering and defines predicate offenses as any indictable offense. Anguilla requires suspicious transaction reporting. Anguilla does not distinguish between local and offshore companies. Anguillan law allows companies to incorporate quickly with minimal cost. Anguilla allows certain types of companies a great deal of secrecy, not enforcing audits or accounting practices, and not requiring some types of companies to publish a list of shareholders or directors. Anguilla is a member of the CFATF.
Bermuda is an important offshore financial and business center and maintains a fixed exchange rate with the U.S. dollar. In 1997, a Proceeds of Crime Act was passed that imposed strict reporting requirements on financial institutions. Bermuda has an FIU and is a member of the Egmont Group and the CFATF. Bermudan law, which criminalizes money laundering, includes drug trafficking and several other crimes as predicate offenses. The law also requires suspicious transaction reporting.
The Cayman Islands are known for bank secrecy laws. The Caymans was once a haven for investing drug profits, and money laundering reportedly still occurs. However, this trend has decreased with increased currency seizures from the banking system. In June 2000, the FATF released a list of 15 countries that allegedly fail to cooperate fully in the international fight against money laundering, and urged a close watch on their financial activities. Several Caribbean nations were cited in the list including the Cayman Islands. The FATF report noted that in the Cayman Islands there are no legal requirements for customer identification or record keeping, no mandatory regimen for reporting suspicious transactions, and a large group of management companies are unregulated. However, the FATF also noted that the Cayman Islands is considered a leader in developing antimoney-laundering programs in the Caribbean. In July 2000, the U.S. Treasury Department issued an advisory to warn U.S. financial institutions about the weak antimoney-laundering regime of the Cayman Islands. The Cayman Islands is a member of the CFATF.
Some money laundering may continue to occur through Montserrat’s offshore financial sector. Montserratian law criminalizes money laundering connected to any indictable offense and requires suspicious transactions reporting. Montserrat is a member of the CFATF.
Anecdotal reporting and past seizures indicate that traffickers occasionally move multihundred-kilogram quantities of cocaine though Turks and Caicos via commercial maritime means. As stated previously, Turks and Caicos, along with The Bahamas and various USG agencies, participates in OPBAT. Drug traffickers launder illicit drugs proceeds in Turks and Caicos primarily through the offshore financial sector and construction industry. In 1998, Turks and Caicos passed the Proceeds of Crime Ordinance, criminalizing money laundering related to any crime and established asset forfeiture provisions. However, no reporting authority has been established. Turks & Caicos is a member of the CFATF.
The offshore financial sector of the BVI is considered to be a haven for money laundering. BVI law criminalizes money laundering and defines all criminal conduct as predicate offenses. The law also requires suspicious activity reporting. The BVI has an FIU and is a member of the Egmont Group and the CFATF.
The USVI is an unincorporated territory of the United States and is subject to U.S. federal laws. Traffickers use the USVI as a transshipment point and a temporary storage location for drug shipments—primarily cocaine—destined for Puerto Rico and the CONUS. These drug shipments often are smuggled into the USVI via maritime vessels from the BVI and the Lesser Antilles. Traffickers have staged numerous cocaine smuggling operations using go-fast boats from the nearby island of St. Maarten. In addition Tortola (part of the BVI) is a major transit area for drugs entering St. Thomas (part of the USVI). Traffickers smuggle cocaine from the USVI to the CONUS and Puerto Rico via maritime vessels and commercial airlines. Cocaine, crack, and marijuana are available readily in the USVI. Cocaine sells for from US$9,000 to US$14,000 per kilogram, crack sells for from US$20 per rock, and marijuana sells for from US$250 to US$1250 per pound. Crack cocaine tends to be the drug of choice, followed by marijuana. Some cannabis is locally grown in the USVI.
Y Party to the
agreement/treaty or has applicable laws 1The CFATF is a regional body developed to advance antimoney laundering initiatives within the Caribbean. Its 25 members include: Anguilla, Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, Costa Rica, Dominica, the Dominican Republic, Grenada, Jamaica, Montserrat, the Netherlands Antilles, Nicaragua, Panama, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Turks and Caicos, Trinidad and Tobago, and Venezuela. 2The 1961 UN Convention codified internationally applicable control measures in order to ensure the availability of drugs and psychotropic substances for medical and scientific purposes, and to prevent their diversion into illicit channels. It also included general provisions on illicit trafficking and drug abuse. The 1971 UN Convention established an international control system for psychotropic substances. The Convention was in response to the diversification and expansion of the spectrum of drugs of abuse, and introduced controls over a number of synthetic drugs. The 1988 UN Convention established comprehensive measures against drug trafficking, including provisions against money laundering and the diversion of chemicals used in illicit drug production. It helped establish international cooperation regarding the extradition of drug traffickers, controlled deliveries, and the transfer of case proceedings. 3The Inter-American Convention against Corruption requires signatory countries to criminalize solicitation or acceptance of bribes and other corrupt acts, and to eliminate bank secrecy or political grounds as a basis for refusal to cooperate in criminal investigations. Signatories also are encouraged to take important preventive measures to reduce their vulnerability to corruption. The Convention is limited to members of the Inter-American Drug Abuse Commission (CICAD). CICAD Caribbean member-states include: Antigua and Barbuda, The Bahamas, Barbados, Dominica, the Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago. 4MLATs allow generally for the exchange of evidence and information in criminal investigations. 5The Egmont Group, created in 1995, is an international group of FIUs that meets annually to exchange information and expertise about financial crimes. According to the Egmont Group, FIUs are centralized agencies that, at a minimum, receive, analyze, and disclose to competent authorities information provided by financial institutions (and other mandated entities), concerning possible money laundering and other financial crimes. 6The Financial Action Task Force was created in 1989 and has 29 member nations, including the United States, and two regional organizations. One of the goals of the FATF is to develop standards of openness in banking to discourage money laundering. 7Hashish oil is a thick derivative of boiled marijuana that is usually smoked in conjunction with other substances, such as tobacco. Traffickers generally use lower quality marijuana to derive hashish oil. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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ANTIGUA
AND BARBUDA
ARUBA
THE
BAHAMAS
BARBADOS
CUBA
DOMINICA
DOMINICAN
REPUBLIC
FRENCH
GUIANA
GUADELOUPE
MARTINIQUE
GRENADA
GUYANA
HAITI
JAMAICA
NETHERLANDS
ANTILLES
The
Netherlands Antilles’ principal role in the international drug trade
is as a cocaine transshipment point. The larger loads of cocaine entering
these islands usually come from ocean-bound vessels and go-fast boats
originating in Colombia; small fishing vessels from Venezuela; and small
planes that land on unattended airstrips strategically located on the
islands. Also, cocaine occasionally is airdropped into the waters around
St. Maarten for pickup by waiting go-fast boats. The majority of cocaine
entering St. Maarten is destined for Puerto Rico via go-fast boats. Traffickers
occasionally store cocaine at secret locations on the islands until it
is ready for further transshipment. 
Colombian
traffickers use St. Maarten as a regional command and control center. Dominican
nationals also control many of the drug transportation networks on the island.
St. Maarten, with its free port and proximity to Puerto Rico and the U.S. Virgin
Islands, is generally considered an important staging ground for moving cocaine
into the U.S. market. 
Cocaine
and marijuana are available readily in the Netherlands Antilles. In Curaçao
cocaine sells for about US$3,500 per kilogram, marijuana sells for about US$280
per kilogram, and heroin sells for about US$23,000 per kilogram. 
The
Netherlands Antilles is not a source country for any of the chemicals used in
illicit drug production and has no specific legislation controlling essential
chemicals. However, the existence of a free trade zone on Curaçao, coupled
by the absence of stringent legislation controlling the importation and exportation
of essential chemicals, has provided traffickers with opportunities to ship
essential chemicals through the islands. The Bureau of Pharmaceutical Affairs
in Curaçao, in concert with Antillean Customs, has instituted a voluntary
program requiring that importers of exploitable chemicals register their imports.
This has met with some success; however, the importation and transshipment of
these chemicals is not illegal and, therefore, difficult to control.
PUERTO
RICO
ST.
KITTS AND NEVIS
ST.
LUCIA
ST.
VINCENT AND THE GRENADINES
SURINAME
TRINIDAD
AND TOBAGO 
ANGUILLA
BERMUDA
CAYMAN
ISLANDS
MONTSERRAT
TURKS
AND CAICOS
BRITISH
VIRGIN ISLANDS