argest illicit opium producer (estimated
cultivation in 2003 - 18,900 hectares, a 19% decrease over 2002;
estimated potential production in 2003 - 200 metric tons, a 11%
increase from 2002); potential heroin producer; transshipment point
for heroin and methamphetamine produced in Burma; illicit producer
of cannabis; growing methamphetamine abuse problem

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, exchange firms, 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 financial system limits the country's utility as a
major money-laundering center

Liechtenstein
has strengthened money-laundering controls, but money
laundering remains a concern due to Liechtenstein sophisticated
offshore financial services sector

Lithuania
transshipment point for opiates and other illicit drugs
from Southwest Asia, Latin America, and Western Europe to Western
Europe and Scandinavia; limited production of methamphetamine and
ecstasy; susceptible to money laundering despite changes to banking
legislation

Macedonia
major transshipment point for Southwest Asian heroin and
hashish; minor transit point for South American cocaine destined for
Europe; although most criminal activity is thought to be domestic
and not a financial center, money laundering is a problem due to a
mostly cash-based economy and weak enforcement (no arrests or
prosecutions for money laundering to date)

Madagascar
illicit producer of cannabis (cultivated an