vity related to narcotics trade, especially along the borders
with Brazil and Paraguay

Bosnia and Herzegovina
minor transit point for marijuana and opiate
trafficking routes to Western Europe; remains highly vulnerable to
money-laundering activity given a primarily cash-based and
unregulated economy, weak law enforcement and instances of corruption

Brazil
illicit producer of cannabis; minor coca cultivation in the
Amazon region, used for domestic consumption; government has a
large-scale eradication program to control cannabis; important
transshipment country for Bolivian, Colombian, and Peruvian cocaine
headed for Europe and the US; also used by traffickers as a way
station for narcotics air transshipments between Peru and Colombia;
upsurge in drug-related violence and weapons smuggling; important
market for Colombian, Bolivian, and Peruvian cocaine; illicit
narcotics proceeds earned in Brazil are often laundered through the
financial system; significant illicit financial activity in the
Tri-Border Area

British Virgin Islands
transshipment point for South American
narcotics destined for the US and Europe; large offshore financial
center makes it vulnerable to money laundering

Brunei
drug trafficking and illegally importing controlled
substances are serious offenses in Brunei and carry a mandatory
death penalty

Bulgaria
major European transshipment point for Southwest Asian
heroin and, to a lesser degree, South American cocaine for the
European market; limited producer of precursor chemicals; some money
laundering of drug-related proceeds through financial institutions

Burma
remains world's second largest producer of illicit opium
(estimated production in 2004 - 292 metric tons, down 40% from 2003
due to eradication efforts and drought; cultivation in 2004 - 30,900
hectares, a 34% decline from 2003); lack of government will and
ability to take on major narcotrafficking groups and lack of serious
commitment against money laundering continues to hinder the overall
antidrug effort; major source of methamphetamine and heroin for
regional consumption; currently under Financial Action Task Force
countermeasures due to continued failure to address its inadequate
money-laundering controls (2005)

Cambodia
narcotics-related corruption reportedly involving some in
the government, military, and police; possible small-scale opium,
he