y to South Africa;
significant potential for money-laundering activity given the
country's status as a regional financial center; massive corruption,
and relatively high levels of narcotics-associated activities

Korea, North
for years, from the 1970's into the 2000's, citizens of
the Democratic People's Republic of (North) Korea (DPRK), many of
them diplomatic employees of the government, were apprehended abroad
while trafficking in narcotics, including two in Turkey in December
2004; in recent years, police investigations in Taiwan and Japan
have linked North Korea to large illicit shipments of heroin and
methamphetamine, including an attempt by the North Korean merchant
ship Pong Su to deliver 150 kg of heroin to Australia in April 2003;
all indications point to North Korea emerging as an important
regional source of illicit drugs targeting markets in Japan, Taiwan,
the Russian Far East, and China

Kyrgyzstan
limited illicit cultivation of cannabis and opium poppy
for CIS markets; limited government eradication of illicit crops;
transit point for Southwest Asian narcotics bound for Russia and the
rest of Europe

Laos
estimated cultivation in 2004 - 10,000 hectares, a 45% decrease
from 2003; estimated potential production in 2004 - 49 metric tons,
a significant decrease from 200 metric tons in 2003 (2005)

Latvia
transshipment point for opiates and cannabis from Central and
Southwest Asia to Western Europe and Scandinavia and Latin American
cocaine and some synthetics from Western Europe to CIS; vulnerable
to money laundering despite improved legislation due to nascent
enforcement capabilities and comparatively weak regulation of
offshore companies and the gaming industry; organized crime
(including counterfeiting, corruption, extortion, stolen cars, and
prostitution) accounts for most laundered proceeds

Lebanon
cannabis cultivation dramatically reduced to 2,500 hectares
in 2002; opium poppy cultivation minimal; small amounts of Latin
American cocaine and Southwest Asian heroin transit country on way
to European markets and for Middle Eastern consumption

Liberia
transshipment point for Southeast and Southwest Asian heroin
and South American cocaine for the European and US markets;
corruption, criminal activity, arms-dealing, and diamond trade
provide significant potential for money laundering, but the lack of
well-developed fina