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International Narcotics Control Strategy Report, 1998
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BELIZE
I. Summary
The proximity of Belize to Mexico makes it an attractive transshipment point for drugs destined for the United States. The Government of Belize (GOB) recognizes this problem and works closely with the United States on narcotics control and other international crime issues primarily through the efforts of the Belize Police Force (BPF) and the Belize Defense Force (BDF). Over the past year, improved equipment and training combined with solid leadership within the GOB have improved the overall performance in the area of counternarcotics. In August 1998 a new government was elected and took power. The new administration is committed to launching a rigorous campaign against drugs and other criminal activity. Work is underway with the new government to sign an overflight amendment to the existing shiprider agreement and to establish an international asset-sharing program. Belize in 1996 acceded to the 1988 UN Drug Convention.
II. Status of Country
Belize is a significant transshipment point for cocaine and marijuana because of its contiguous borders with Guatemala and Mexico, large tracts of forested land, a long unprotected coastline, thousand or more cays and numerous inland waterways, large unpopulated jungle areas and rudimentary infrastructure for combating drug trafficking and drug abuse.
III. Country Actions Against Drugs
Policy Initiatives. Belize's new government created a national drug abuse control council, which is developing a comprehensive drug control strategy. With U.S. assistance, the GOB is upgrading the professionalism and readiness of the Belizean police by providing extensive training and equipment, particularly to the police's elite anti-drug "Dragon Unit." The GOB supported efforts to reduce drug trafficking through its borders and to combat the crime associated with such trafficking. The GOB has continued its support of regional counternarcotics efforts.
Though the GOB does not allow aerial spraying -- because of environmental concerns -- for the eradication of marijuana, it actively encouraged aerial reconnaissance missions. Police and BDF personnel manually eradicate plantings revealed by reconnaissance. This proactive approach resulted in a decrease in 1998 of marijuana cultivation. These excellent results, however, resulted in few arrests.
Accomplishments. INL assistance was focused on reestablishing the police canine unit, enhancing computer networks and communications for the Joint Intelligence Coordinating Center (JICC) and the police, supplying equipment and training for the rapid response force (the Dragon Unit), and improving the BDF Maritime fleet with materials and equipment necessary for more intensive patrols of Belizean waters. In addition, a new financial investigations unit is being created with U.S. assistance. The GOB has also expressed a desire to create a Counternarcotics Task Force, which would include DEA oversight. Implementation of an international asset sharing program (soon to be signed) and progress on the overflight and order to land amendments to the maritime treaty (which the GOB has agreed to in principle) are further examples of Belize's commitment to work jointly with the U.S. Government and to increase the effectiveness of its counternarcotics efforts.
The most significant seizure of the year occurred in June when 3 metric tons of compressed marijuana was found in a 40-foot container.
Illicit Cultivation/Production. Illicit cultivation of marijuana continues to occur in Belize, but at reduced levels from a decade ago when Belize ranked fourth in worldwide production. In 1998 the GOB eradicated 202,719 marijuana plants. The BDF routinely conducts manual eradication efforts involving fields ranging from 500 to several thousand plants.
Though Belize does not allow aerial spray missions for the eradication of marijuana fields based upon environmental concerns, it readily cooperates in aerial reconnaissance operations. In conjunction with Belizean requests, the Embassy has solicited additional aerial reconnaissance support. Although there is no evidence of traffic in precursor chemicals in Belize, the GOB, in support of the UN convention on psychotropic drugs, developed a precursor chemical program. There is no evidence of production of drugs other than marijuana in Belize.
Money Laundering. Money laundering remains a potential threat in Belize. Two pieces of legislation, namely the Offshore Banking Act and the Money Laundering Prevention Act, came into force simultaneously on August 1, 1996. The latter criminalizes money laundering and allows for international cooperation as well as freezing and forfeiture of assets. However, Belizean law enforcement authorities have yet to seize any assets or try a single case using this law. There is little evidence at this point that Belize is an active money-laundering center. A better assessment of Belize's money laundering activity and potential may emerge when the new Belizean money-laundering unit starts its fieldwork.
Belize began building an offshore services sector in Belize with the passage of the 1990 International Business Companies Act in 1990 and the 1992 Trusts Act. There are 8,000 registered international business companies (IBCs) in Belize, whose records are maintained by Belize International Services Limited, a subsidiary of BHI Corporation. BHI is traded on the NASDAQ and was formerly known as Belize Holdings. The Central Bank of Belize (CBB) has already received numerous inquiries about offshore banking licenses, and CBB officials have on several occasions contacted the U.S. Embassy for assistance in their due diligence investigations when American companies or individuals are involved.
Although the total amount of all IBC account holdings must reported regularly, individual accounts are not seen by any CBB authorities unless specifically ordered. The chairman of the offshore practitioners association noted that no registry at all is kept on offshore trusts and that the secrecy protections built into the offshore services laws have, in the case of offshore trusts, led to no record-keeping at all.
In October 1996, Belize joined 19 other Caribbean and Central American countries signing a Memorandum of Understanding (MOU) on the prevention and control of money laundering. By signing the MOU, Belize formalized its membership in the Caribbean Financial Action Task force (CFATF).
Asset Seizure. The GOB is becoming more aggressive in its seizure of drug-derived assets. Joint investigations between the Belize Defense Force and the DEA country office targeting assets are currently being planned for 1999. Negotiations to implement an international asset-sharing program in Belize are nearing completion.
Law Enforcement and Transit Cooperation. Belize actively cooperates with both Mexican and Guatemalan authorities when necessary to combat drug trafficking or other serious crime. The GOB participated with Mexico and other Central American countries on border activities. GOB has hosted operational meetings and shared case-specific information of ongoing investigations with Mexico, Colombia, and Guatemala. The GOB was a partner with the USG in the joint counternarcotics exercise, "Allies Strength II." Police commissioner Brooks was elected once again as the president for the International Association of Chiefs of Police. Belize sent two high-ranking officials to the ONDCP Caribbean Regional Drug control Conference. Belize consistently participates in a variety of international law enforcement training initiatives. In 1998, Belize sent eight officers to the international law enforcement academy's advanced financial investigations conference in San Jose, Costa Rica. Belize hosted teams from the FBI and U.S. Customs, which trained approximately 60 Belizeans in counternarcotics and investigative techniques.
Demand Reduction. Demand reduction is coordinated by the National Drug Abuse Control Council (NDCC) which provides drug abuse education, information, counseling, rehabilitation and outreach. NDCC is actively developing its six regional offices in the corresponding districts of Belize. NDACC is taking a leadership role in developing Belize's national drug strategy.
Law Enforcement Efforts. The GOB considers traffic in crack cocaine to be the biggest major internal drug problem primarily because of the criminal activities associated with hard drug use. Although the Ministry of National Security has demonstrated increased attention to anti-narcotics matters, securing convictions remains a difficult challenge. The Belizean judiciary and prosecutor offices are understaffed, poorly equipped and trained, and historically have been ineffective.
Corruption. The Belize police commissioner has demonstrated his lack of tolerance of corruption with a series of suspensions and dismissals of officers believed to be involved with corruption. Concern about corruption remains; however, there is a strong commitment by the new government's leaders to rid their institutions of corruption.
Agreements and Treaties. In October 1996, Belize acceded to the 1988 UN Drug Convention. The GOB continues to extradite Belizean nationals indicted in the U.S. under the 1972 U.S.-U.K. treaty. Although Belize is only one of two countries in the region that extradites its nationals, they have interposed serious obstacles to conclusion of a new treaty. In March 1997 Belize ratified a stolen car treaty with the USG In September 1997 the GOB signed the National Crime Information Center pilot project assessment agreement which allows the sharing of information between the U.S. and Belize. In 1992 Belize signed a partial Maritime Counternarcotics agreement with the USG with provisions for a shiprider program. An overflight/order-to-land amendment to this treaty is now being negotiated.
IV. U.S. Policy Initiatives and Programs
The U.S. strategy in Belize has been to provide support to assist the GOB in developing a sustainable infrastructure, which will allow it to combat its drug problems effectively. Support includes equipment and training for the JICC, police, BDF, and the anti-drug "Dragon Unit". The GOB has also requested and received the support of elements of the U.S. Coast Guard and the U.S. military for counternarcotics activities and training.
Road Ahead. As pressure on other avenues of drug transit increases, traffickers may attempt to increase transshipment of cocaine and marijuana through Belize. Marijuana cultivation continues to require monitoring and periodic eradication. Support from the new government of Belize for counternarcotics operations appears to be strong. However, the government's ability to follow through with its stated commitment over the next five years will be critical. The U.S. must continue to support these efforts or cede the ground to the international drug criminals.
Belize Statistical Tables [Excel file 31.5KB]
CANADA
I. Summary
The Government of Canada actively participates in international anti-narcotics fora and continues to discourage the abuse of narcotics. Canadian law enforcement officials cooperate closely with their U.S. counterparts on narcotics investigations and interdiction efforts. Canada is a party to the 1988 UN Drug Convention and participates in the Financial Action Task Force (FATF). Legislation is currently being drafted to bring Canada's money laundering laws in compliance with FATF recommendations. In 1998, Canada refocused its law enforcement efforts on organized crime in order to better combat narcotics trafficking and more aggressively investigate, prosecute, and seize the assets of criminal organizations.
II. Status of Country
Canada has a long history of stable democratic government served by able law enforcement agencies. Narcotics production, distribution and use are illegal, and there is widespread public respect for the law. Canada focuses its counternarcotics efforts on domestic demand reduction, while devoting considerable resources to supply interdiction.
Given the long and open U.S.-Canada border, Canada will continue to be targeted by smugglers for potential transit points to and from the U.S. market. U.S. and Canadian law enforcement coordinate on numerous levels to curb transit trafficking, but constant vigilance is required. Canada is expected to enact legislation implementing Financial Action Task Force (FATF) recommendations in 1999, and has moved in 1998 to enhance law enforcement capacities to curb money-laundering activities strongly associated with organized crime and drug trafficking.
III. Country Actions Against Drugs in 1998
Policy Initiatives. Canada adopted a drug strategy in 1998 to coordinate national and international actions in response to the UN International Drug Control Program. This drug strategy is an outgrowth from two prior consecutive five-year national strategies begun in 1987. This effort also focuses law enforcement energies following the enactment of the tougher controlled drugs and substances act in May 1997. The drug strategy strives for a balance between supply reduction and demand reduction, with approximately 70 percent of resources devoted to demand reduction. The new effort targets organized criminal enterprises in particular, and is accompanied by a targeting imperative on organized crime from the Solicitor General.
In 1998, work also began on drafting new legislation to meet Financial Action Task Force (FATF) recommendations on countering money laundering. Canada also added ten new integrated proceeds of crime law enforcement units [Define these here.] from pilot projects in three cities.
Accomplishments. Law enforcement, often in cooperation with U.S. agencies, has scored successes consistent with prior years in interdicting narcotics shipments. For example, in a two-year investigation concluded in July, Royal Canadian Mounted Police (RCMP) arrested Alfonso Caruana, reputed leader of the Caruana/Contreara traditional organized crime family. This organization was responsible for the acquisition of cocaine in Mexico, which was ultimately shipped to the U.S., Canada and Italy. As part of this investigation, 200 kilograms of cocaine were seized in Houston, Texas.
Law Enforcement Efforts. Recognizing the growing threat from organized narcotics traffickers in particular, Canada launched a new offensive against organized crime in 1998. In addition to creating the new integrated proceeds of crime units mentioned above, the offensive aims to focus law enforcement resources on organized criminals and money laundering operations. These efforts will be enhanced once expected suspicious transaction reporting requirements legislation is passed next year and a new financial investigation unit is created.
Corruption. The GOC does not tolerate drug trafficking or money laundering among its officials and will continue to prosecute those who do break the law.
Agreements and Treaties. Canada is a party to the 1988 UN Drug Convention. The U.S. and Canada have long-standing agreements on law enforcement cooperation, including Extradition and Mutual Legal Assistance Treaties. In 1998, the RCMP became the first foreign organization to obtain limited access to EPIC, a U.S. drug law enforcement database.
Canada actively participates in international anti-drug fora including: the Dublin Group, Financial Action Task Force, the Inter-American Drug Abuse Control Commission of the Organization of American States (CICAD), and the United Nations International Drug Control Program (UNDCP). Canada provided $650,000 to UNDCP for 1998. It also contributed $246,900 cash and $132,000 in kind directly to CICAD, in addition to approximately $160,000 as its share of the OAS regular fund contribution.
Cultivation and Production. Marijuana is grown throughout the country and is particularly abundant in the Provinces of Quebec and British Columbia. According to Canadian intelligence, marijuana cultivation in British Columbia is a sophisticated, one billion dollar a year growth industry, with about 60 percent of the harvest being smuggled in to the U.S. RCMP investigations suggest that high THC content, hydroponically-grown marijuana is occasionally exchanged pound-for-pound with cocaine from the U.S.
Drug Flow/Transit. Drugs are smuggled into Canada for domestic use and for transshipment to the U.S. Southeast Asian heroin continues to enter North America predominantly by sea containers, followed by air and land routes. Major ports of entry include Vancouver, Montreal, and Halifax.
Domestic Programs. The GOC emphasizes demand reduction in its drug control strategy and, along with non-governmental organizations, offers drug abuse educational programs. The newly adopted national drug strategy focuses on prevention as the more cost-effective intervention. There are substantial regional differences in the patterns of drug abuse. In 1998, Vancouver suffered a wave of heroin overdose deaths, while native American communities in the prairie provinces continue to be plagued with propane and glue-sniffing and an injected combination of two legal drugs (over-the-counter Talwin and prescription Ritalin) known popularly as "poor-man's heroin."
IV. U.S. Policy Initiatives
US law enforcement agencies maintain broad, deep, and highly productive cooperation with their Canadian counterparts. In this context our goals are to:
Bilateral Cooperation. In addition to the extensive cooperation described elsewhere in this report, the U.S. and Canada established the cross-border crime forum in 1997 to regularize and institutionalize at a high level ongoing cooperative projects. The forum met twice in 1998, and is actively working on establishing a mechanism to enhance intelligence sharing and develop priorities for joint targeting of criminal groups involved in drug trafficking.
The Road Ahead. The United States looks forward to continuing its already excellent law enforcement cooperation with Canada and will encourage GOC support and participation in international drug fora.
Canada Statistical Tables [Excel file 31.0KB]
COSTA RICA
I. Summary
Costa Rica is an important transshipment country for the smuggling of cocaine from South America to the United States, as demonstrated by record seizures during both 1997 and 1998. In May 1998, the Legislative Assembly enacted legal reforms that strengthened controls within the banking sector against drug money laundering. The GOCR established a Financial Investigations Unit within the Joint Counternarcotics Intelligence Center. In December 1998, the United States and Costa Rica signed an important, comprehensive bilateral Maritime Counterdrug Agreement. This accord awaits ratification by the Legislative Assembly. Costa Rica is a Party to the 1988 United Nations Drug Convention.
II. Status of Country
Costa Rica's location on the Central American isthmus makes it important as a transshipment country and temporary storage area for cocaine being smuggled to the United States and Europe, although we do not yet have evidence of sufficient quantities to have a significant effect on the U.S. During the first eleven months of 1998, authorities seized record amounts of cocaine--over eight metric tons--as well as eighteen kilograms of heroin. In December, President Clinton designated Costa Rica and three other Central American nations as "countries of concern" because of the flow of illicit drugs through the region and the increased vulnerability caused by Hurricane Mitch. Faced with enhanced interdiction capabilities by Costa Rican officials, traffickers have used diverse methods, including tractor-trailers, smaller land vehicles, go- fast boats, commercial ships, human couriers, and small aircraft. Costa Ricans have become increasingly concerned over local consumption of crack cocaine and violent crimes associated with drug use and trafficking. The GOCR has attempted to meet the serious threats posed by drug smuggling by adopting strict anti-drug measures. Nonetheless, resource constraints continue to limit enforcement.
III. Country Actions Against Drugs In 1998
Policy Initiatives. The Rodriguez Administration, which assumed office in May 1998, continued efforts by the previous Government to professionalize executive branch police forces under the National Police Code enacted in 1994. All new recruits must undergo training at the Public Security Ministry's National Police School. The Judicial Investigative Organization and the Public Prosecutor's Office enacted a new Criminal Procedures Code, beginning in January 1998, that requires police investigators and prosecutors to work closely in all criminal cases. In May 1998, the Legislative Assembly approved major legal reforms that established strict controls within the banking sector against drug money laundering. In June, the GOCR established a Financial Investigations Unit within the Joint Counternarcotics Intelligence Center to identify possible instances of drug money laundering. In December, the USG and the GOCR signed a comprehensive bilateral Maritime Counternarcotics Agreement that incorporates all six operational procedures from the model text for such accords. This agreement awaits ratification by the Costa Rican Legislative Assembly.
Accomplishments. Bilateral cooperation against drug trafficking resulted in another consecutive year of record seizures. Relations among U.S. law enforcement agencies and GOCR counternarcotics police officials, including the Narcotics Section of the Judicial Investigative Organization and the Drug Control Police of the Public Security Ministry, remain close and productive. In March, the Drug Enforcement Administration (DEA) and the Costa Rican Government hosted the annual International Drug Enforcement Conference (IDEC) in San Jose. U.S. and GOCR law enforcement entities routinely share information and conduct joint operations. Members of the Public Security Ministry's Special Support Police (PAE), also known as the "Mountain Police," search for and manually destroy marijuana fields in the mountainous regions of northern and southern Costa Rica. In June, this unit destroyed over 510,000 marijuana plants, some measuring twelve feet high, in the Talamanca Mountains with transportation support from helicopters and aircrews of Joint Task Force Bravo deployed from Soto Cano Air Base, Honduras. In October the GOCR arrested major money laundering suspect Josef Mordok, who later effected his escape through bribery of low level prison officials while awaiting extradition to the U.S. GOCR authorities are investigating the circumstances of his escape. The National Drug Prevention Council (CENADRO)--formerly known as the National Drug Council (CONADRO)--supervises demand reduction efforts throughout the country and serves as the custodian for assets seized from drug traffickers. The Drug Department of the Public Health Ministry operates an effective program to license the import and distribution of precursor chemicals and prescription medicines.
Law Enforcement Efforts. The Judicial Investigative Organization operates a small, but highly professional, Narcotics Section that specializes in investigating international drug trafficking. This unit routinely conducts complex investigations of drug smuggling organizations, resulting in the arrests of many drug traffickers and the confiscation of cocaine. The Narcotics Section uses the full range of investigative techniques permitted under the country's progressive anti-drug statutes, including use of wiretaps, controlled deliveries, and undercover agents. The Drug Control Police of the Public Security Ministry investigates both domestic and international drug smuggling and distribution. Most of the eighteen kilograms of heroin seized during 1998 resulted from the detection efforts of Drug Control Police officials at the Juan Santamaria International Airport.
Corruption. President Rodriguez has worked energetically to deter corruption among public officials. One of his first acts involved the issuance of an executive order designed to reduce conflicts of interest among public officials. He also requested that National Consultation Committees discuss measures to deter corruption, among other issues. On August 31, 1998, a three-judge panel announced a guilty verdict against former Legislative Assembly Deputy Leonel Villalobos for his participation in international trafficking of cocaine to the United States and later sentenced him to twelve years in prison. This court also sentenced a drug supplier to a five-year jail term.
Agreements And Treaties. The U.S. and Costa Rica extradition treaty is in force. The Costa Rica and U.S. are also parties to bilateral narcotics drug agreements dating from 1975 and 1976. Costs Rica is party to the 1988 UN Drug convention and all other UN narcotics agreements. In December, the United States and Costa Rica signed a bilateral Maritime Counterdrug Agreement, designed to promote closer cooperation in the interdiction of maritime smuggling. This important accord awaits ratification by the Legislative Assembly. At the same time, both countries signed a bilateral Memorandum of Understanding on Maritime Cooperation and Assistance, under which the United States agreed to take steps toward securing technical and training assistance for the Costa Rican Maritime Surveillance Service. The GOCR also signed an agreement with the Spanish Government for the provision of technical assistance and training to Public Security Ministry police officials.
Cultivation and Production. PAE personnel destroyed marijuana cultivations found in the remote mountainous areas of Costa Rica near the Panama border, in the Caribbean region near Limon and Talamanca, and in the Guanacaste Province of northwestern Costa Rica. Such cultivations are usually small and sometimes intermixed with legitimate crops. As previously mentioned, PAE personnel destroyed over 510,000 plants during a two-week period. They also discovered implements for packing the marijuana--a possible indication that cultivators have begun to export this drug crop. Costa Rica does not produce other illicit drug crops.
Drug Flow And Transit. Costa Rica has become an important transshipment and temporary storage area for cocaine being smuggled from South America to the United States and Europe. As a result, President Clinton designated Costa Rica and three other Central American nations in early December as a "country of concern" for the transit of illicit drugs to the United States and we are monitoring t if such drugs have a significant effect on the U.S.. Smugglers periodically use Costa Rica as a temporary storage area for cocaine before repackaging and sending it onward in containers transported by tractor-trailers and commercial ships. Costa Rican officials have themselves condemned this activity as a primary threat to their natural security and social stability.
Domestic Programs (Demand Reduction). Costa Ricans have become increasingly concerned over local consumption, especially of crack cocaine. Abuse appears highest in the Central Valley (including the major cities of San Jose, Alajuela, Cartago, and Heredia), the port cities of Limon and Puntarenas, the north near Barro del Colorado, and along the southern border. CENADRO oversees drug prevention committees throughout the country. The Costa Rican Drug Abuse Resistance Education (DARE) Foundation, modeled after its U.S. counterpart, conducts drug awareness programs at public and private schools.
IV. U.S. Policy Initiatives And Programs
U.S. Policy Initiatives. U.S. Government goals include. enhancing drug detection and interdiction capabilities; supporting efforts to locate and destroy marijuana fields; supporting drug awareness programs; enhancing the effectiveness of the criminal justice system; and strengthening money-laundering controls. Specific objectives include. enhancing interdiction of drug shipments in tractor-trailers; improving maritime interdiction, including through the signing and ratification of a bilateral agreement; providing specialized training and equipment to counterdrug police personnel; supporting efforts to professionalize Public Security Ministry police; and improving the operational capabilities of the Public Security Ministry's Air and Maritime Surveillance Sections.
Bilateral Cooperation. The U.S. State Department's Bureau of International Narcotics and Law Enforcement (INL) sponsored numerous training programs in which Costa Rican officials participated during 1998. In May, fifteen Costa Rican officials attended a special U.S. Customs Regional Overseas Enforcement Training in Vulcan, Panama along with Panamanian law enforcement personnel. Twice during 1998, in July and in August, the State Department sponsored two-week, regional Advanced Drug and Financial Investigations Training (ADFIT) Courses in San Jose. Staff from the International Law Enforcement Academy ran these in-residence courses. Keynote speakers included President Rodriguez and Public Security Minister Lizano. Four Costa Rican officers attended an INL-sponsored Mid-Level Management Course conducted by the U.S. Customs Service in Miami, Florida, in December. The United States and Costa Rica also signed a case-specific asset-sharing agreement to permit the sharing of proceeds from the successful prosecution of U.S. drug trafficker Chula.
The Embassy used counterdrug funds to provide firearms training to thirteen Drug Control Police Officers in April. We also paid part of the costs of a U.S. Coast Guard Curriculum Infusion Course for the Maritime Surveillance Section in July. This training will enable Costa Rican officials to develop and conduct their own boarding courses. The Embassy also provided partial scholarships for English language training for several police officers involved as instructors in the DARE drug awareness program.
Other U.S. federal agencies also sponsored seminars in Costa Rica. In January 1998, the U.S. Internal Revenue Service representatives conducted a five-day money-laundering seminar. In September, the U.S. Justice Department hosted a regional conference on Asset Forfeiture and Money Laundering in San Jose from September 14 to 17. President Rodriguez served as the keynote speaker at this conference.
The USG's counternarcotics program also sponsored the attendance of GOCR officials at various counternarcotics conferences, including the June 30 to July 1 meeting of the Egmont Group to discuss money laundering controls; the September meeting of the OAS Group of Experts on Precursor Chemical Controls in Santa Cruz de la Sierra, Bolivia; the October meeting of the Inter-American Drug Abuse Control Commission in Tegucigalpa, Honduras, to discuss a multilateral evaluation mechanism; the October 20 to 22 meeting of the Group of Experts on Money Laundering Controls at Buenos Aires, Argentina, and the November 17 to 20 Plenary Meeting of the Caribbean Financial Action Task Force at Grand Cayman, Cayman Islands. In June, the USG counternarcotics program sponsored a visit by two officials to the Defense Reutilization Marketing Office in Panama to inspect excess defense articles.
In May, the USG delivered a twenty-two foot patrol boat and a two hundred horsepower outboard motor to the GOCR. The Maritime Section uses this vessel to conduct patrols near the Caribbean coast and along inland waterways. Also in May, the USG delivered some 28,000 dollars worth of computer equipment, including a powerful server and personal computers, to the Joint Counternarcotics Intelligence Center. In June, the Embassy bought two 18-foot inflatable craft for the Maritime Section. The USG also purchased paints and other supplies for the Maritime Section in August. In November, the USG delivered nearly 40,000 dollars worth of secure radio equipment, purchased through the State Department, to the Narcotics Section of the Judicial Investigative Organization. The USG also contributed the first month's rent for the rental of a warehouse by the National Drug Prevention Council to store assets seized from traffickers. Additionally, we provided some funds to the Joint Counternarcotics Intelligence Center to facilitate the purchase of new cars through a trade-in of used vehicles.
The Road Ahead. The United States seeks to improve GOCR capabilities to curtail the use of Costa Rica as a drug transshipment and temporary storage area, discourage drug consumption, and fight money laundering. The USG will cooperate with the GOCR in its efforts to professionalize its police forces and implement recently approved controls against money laundering. Once the recently signed the bilateral Maritime Counternarcotics Agreement is approved by the Costa Rican Legislature, USG/GOCR will intensify as we cooperate to increase the GOCR's capabilities to implement the Maritime Agreement.
Costa Rica Statistical Tables [Excel file 23.0KB]
EL SALVADOR
I. Summary
El Salvador is a transshipment country for narcotics, mainly cocaine, destined for the U.S. Local consumption is a growing problem. In the annual designation of "major drug producing and transit countries" President Clinton designated El Salvador as a "country of concern" because of increased drug flows through Central America and its increased vulnerability caused by Hurricane Mich. President Calderon has sought to coordinate an inter-agency counter-drug policy. The technical expertise of the anti-narcotics division (DAN) of the National Civilian Police (PNC) has improved, reflecting U.S. assistance. However, the performance of the DAN, and of the PNC as a whole, has suffered from the confusion, which followed the entry into force of new criminal codes. El Salvador produces limited amounts of cannabis for domestic consumption. The emerging threat of money laundering is being addressed by the passage in December 1998, of new, well-regarded money laundering legislation. The U.S. will assist El Salvador in the development of an implementing mechanism. El Salvador is a party to the 1988 UN drug convention.
II. Status of Country
The level of cocaine seizures in El Salvador does not match that in neighboring countries, and likely does not reflect the magnitude of the problem. Most transshipments are by land, along the Pan American highway. The seaport of Acajutla is also a staging point for the shipment of cocaine and other narcotics along the Pacific Coast to the United States. The Salvadoran legislative assembly, working with U.S. assistance, passed legislation that promises to be effective in attacking the problem of money laundering. The assembly is also working on comprehensive legislation to reform and regulate the financial system as a whole. The problem of precursor chemicals remains, and U.S. experts have provided training to Salvadoran authorities to control the trade in such chemicals.
III. Country Actions Against Drugs in 1998
Policy Initiatives. El Salvador's counternarcotics task force has primary responsibility at the policy level for coordinating efforts to combat the drug problem. The task force includes representatives from the police, the ministry of justice (including the prison system), the attorney general's office, and non-governmental organizations involved in drug demand reduction. The GOES efforts were hampered during 1998 by confusion surrounding the implementation of broad reforms to the criminal justice system, which went into effect in April. These reforms promise a more effective system in the long run. However, their entry into force led to confusion concerning the legal and operational relationship among law enforcement officers, prosecutors, and judges. U.S.-sponsored training programs are designed to address this problem.
Accomplishments. Late in the year, the Salvadoran legislative assembly passed broad, modern money laundering legislation. This legislation will take effect after a six-month implementation phase, during which the U.S. will provide resources and training for the establishment of a Salvadoran Financial Investigation Unit (FIU). The U.S. is now working with the GOES on asset seizure legislation.
Salvadoran authorities participated in U.S.-sponsored chemical precursor training. The DAN's new chemical control unit has had success in penalizing firms for failing to account properly for chemicals and solvents.
Law Enforcement Efforts. At 52 kilograms, cocaine seizures for 1998 were far short of the 232 kilograms reported seized in 1997. The levels of cocaine transiting El Salvador are believed to be much greater than those reflected by seizure figures. In 1998, 262.4 kilograms of cannabis were seized, compared to 947.7 kilograms in 1997. The decrease in drug seizures is likely the result of the confusion surrounding the implementation phase of the new criminal justice system. Specifically, a GOES interpretation of the new criminal code to prohibit undercover police operations has inhibited counternarcotics efforts. The police do not have resources to pursue major maritime interdiction operations, although a third-country donation of boats could, with appropriate training, meet some of these needs. The GOES also lacks the capacity for air interdiction. The PNC air wing has focused on the eradication of local cannabis fields, destroying 7,338 plants in 1998 (up from 3,776 plants destroyed in 1997). The canine program has benefited from the acquisition of non-aggressive narcotics detection dogs for the passenger terminal of El Salvador's international airport, which is a growing regional air hub.
Corruption. Individual cases of corruption have occasionally arisen in the criminal justice system. There is no evidence that official corruption is deeply rooted or wide spread. An active attorney general's office and an increasingly aggressive press have had success in rooting out many such cases.
Agreements and Treaties. The Salvadoran legislative assembly followed up its ratification of the Central American Convention Against Money-laundering by passing, late in the year, a national money laundering law. During the six-month implementation phase, the U.S. will provide technical and material assistance to El Salvador for the establishment of a Financial Investigation Unit (FIU) and for the training of the elements of the criminal justice system involved in prosecuting money-laundering cases. The GOES and the USG now hope to proceed with cooperation on a financial information exchange agreement, and other bilateral instruments used in the fight against narcotics trafficking and organized crime. While the GOES has expressed a willingness to negotiate a more modern and comprehensive extradition treaty to replace an agreement dating to 1911, any such treaty must include extradition of nationals. The Salvadoran constitution currently bans the extradition of Salvadoran nationals. A constitutional amendment addressing this issue was introduced in 1997, and was passed by the outgoing legislature. In order to take effect, however, the constitutional amendment must be ratified by two successive legislatures. The current legislature has not yet considered the amendment. Ratification this year is uncertain. The GOES is a party to the 1988 UN Drug Convention.
Drug Flow/Transit. Although local consumption has been growing over the past several years, most of the illegal narcotics, which enter El Salvador, are destined for the U.S. We do not, however, have evidence that the quantities of drugs transiting to the U.S. have a significant effect on the U.S. The bulk of the narcotics traffic appears to move by land, along the Pan American highway. There is evidence that small boats are being used for regional trafficking, and that large shipments are transiting the seaport of Acajutla. There is now evidence of an increasing use of small planes for trafficking operations through Salvadoran airspace.
Domestic Programs/Demand Reduction. Members of the President's counternarcotics task force participated in the inaugural drug demand reduction academy course in New Mexico. Drawing from that experience, they crafted a new national drug demand reduction plan, which will form the basis for a public-private partnership on this issue.
The Drug Abuse Resistance Education (DARE) program is now in its third year, and operates through the DAN's demand reduction unit. The premier, locally based demand reduction and rehabilitation program, "FUNDASALVA," is represented on the President's task force.
IV. U.S. Policy Initiatives and Programs
U.S. Policy Initiatives. U.S. counternarcotics assistance efforts are dedicated toward making the DAN effective and self-sufficient, and developing the counternarcotics component of El Salvador's criminal justice system.
Bilateral Cooperation. U.S. assistance goes primarily toward training DAN agents, especially in "train the trainer" programs. Other elements of the assistance program provide seed money for port security programs, bridge temporary gaps in local capabilities to support programs such as the canine unit and Joint Information Coordinating Center (JICC), and bring technical experts to help to channel local efforts to address transnational problems such as money laundering. In 1998, a total of 24 Salvadoran officials attended two core programs and two advanced drug and financial crimes investigations courses at the International Law Enforcement Academy (ILEA) south in Panama and Cost Rica. In addition two customs advisors traveled to El Salvador in May 1998 to provide DEA funded on-the-job training in cargo inspection at air, sea and land ports of entry to DAN agents.
Road Ahead. El Salvador continues to advance in the war against drugs. Final passage of legislation against money laundering is a significant step, and U.S. assistance in the implementation phase will be critical to bringing this effort to fruition. The adjustment of the law enforcement community to a new criminal justice system has had a temporary negative impact on the counternarcotics effort. Nevertheless, the long-term benefits of the new system will be evident as cases are concluded more speedily and resources are committed in a more focused manner to serious threats to society, such as that from illegal narcotics. In the light of the region's continuing lack of an air interdiction capability, air shipments will likely increase. Evidence from active cases seems to corroborate suspicions that money laundering is on the rise. During 1999, the U.S. assistance program will continue to focus on the development of a self-sufficient PNC. In addition, the 1999 program will include a major, one-time commitment of resources to the development of El Salvador's money laundering enforcement mechanism. This will have direct benefits for the United States, as it closes an important gap heretofore available to those who benefit from the proceeds of the illicit drug trade. The USG will encourage the GOES to aggressively pursue passage of a constitutional amendment to allow extradition of its own citizens. This will pave the way for negotiation of a new, more modern treaty, which encompasses more offences than the present 88-year-old "list" treaty.
El Salvador Statistical Tables [Excel file 25.5KB]
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