tan Province has rebounded
since it was nearly eliminated in 2001; key transit point for Afghan
drugs, including heroin, opium, morphine, and hashish, bound for
Western markets, the Gulf States, and Africa; financial crimes
related to drug trafficking, terrorism, corruption, and smuggling
remain problems

Panama
major cocaine transshipment point and primary
money-laundering center for narcotics revenue; money-laundering
activity is especially heavy in the Colon Free Zone; offshore
financial center; negligible signs of coca cultivation; monitoring
of financial transactions is improving; official corruption remains
a major problem

Paraguay
major illicit producer of cannabis, most or all of which is
consumed in Brazil, Argentina, and Chile; transshipment country for
Andean cocaine headed for Brazil, other Southern Cone markets,
Europe, and US; corruption and some money-laundering activity,
especially in the Tri-Border Area

Peru
until 1996 the world's largest coca leaf producer; emerging
opium producer; cultivation of coca in Peru fell 15 percent to
31,150 hectares between 2002 and the end of 2003; much of the
cocaine base is shipped to neighboring Colombia for processing into
cocaine, while finished cocaine is shipped out from Pacific ports to
the international drug market; increasing amounts of base and
finished cocaine, however, are being moved to Brazil and Bolivia for
use in the Southern Cone or transshipped to Europe and Africa

Philippines
exports locally-produced marijuana and hashish to East
Asia, the US, and other Western markets; serves as a transit point
for heroin and crystal methamphetamine; domestic methamphetamine
production is a growing problem; remains on Financial Action Task
Force Non-Cooperative Countries and Territories List for continued
failure to address deficiencies in money-laundering control regime

Poland
major illicit producer of synthetic drugs for the
international market; minor transshipment point for Asian and Latin
American illicit drugs to Western Europe

Portugal
gateway country for Latin American cocaine and Southwest
Asian heroin entering the European market (especially from Brazil);
transshipment point for hashish from North Africa to Europe;
consumer of Southwest Asian heroin

Romania
major transshipment point for Southwest Asian heroin
transiting the Balkan route and small amounts of Lati