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U.S. Department of State
1996 International Narcotics Control Strategy Report, March 1997
United States Department of State
Bureau for International Narcotics and Law Enforcement Affairs
LATVIA
I. Summary
Latvia is increasingly vulnerable to the illicit drug trade. Drug trafficking
networks exploit increased trade and transportation networks, as well as
ineffective customs and border control services. Moreover, the production of
amphetamines and other synthetic illicit drugs appears to be on the rise,
according to Government of Latvia (GOL) authorities. Drug control is not a
high priority in Latvia; in 1996, as in most previous years, drug seizures
were insignificant. The absence of money laundering legislation and foreign
exchange controls facilitates the use of banks and non-bank financial
institutions for laundering narcotics proceeds. Latvia made progress in
chemical control with the adoption in May of new legislation to control the
export and import of precursor chemicals. Moreover, the GOL is in the process
of developing anti-money laundering legislation. Latvia is a party to the
1988 UN Convention.
II. Status of Country
Latvia is ideally positioned to serve as a conduit for illicit narcotics
traffic with three major ports and numerous non-controlled small ports, and
excellent rail and road connections to Russia and other parts of the CIS.
Traffickers can easily exploit lax border controls with Russia and Belarus.
Authorities believe that hashish and poppy straw originating in the Caucasus
and Central Asia increasingly enter Latvia by road and rail through Russia and
Lithuania. Additionally, opium is often smuggled from Central Asia in cotton
shipments.
Interior Ministry and police officials confirm that the drug trade and
transshipment of illegal narcotics are controlled by Latvian and Russian
organized crime groups.
While most of the heroin and cocaine that transits Latvia is destined for
markets in Western Europe, particularly Sweden, health authorities believe
that domestic drug use is rising. Official statistics, however, report less
than 1,000 users, but the recent increase in the number of teen-age drug users
is of particular concern. While Latvia is primarily a transit country, there
is also limited domestic cultivation of opium poppy. Most poppy cultivation
is for cooking purposes, but criminal police indicate that some cultivation
may be for local illicit consumption.
Latvia is a regional banking center and officials fear it could become a major
drug money laundering center. There are still no currency reporting
requirements to inhibit money laundering. Moreover, the lack of money
laundering legislation, the absence of strict banking accountability, and the
number of banks formed under very loose regulations, make the banking industry
increasingly vulnerable.
III. Country Action Against Drugs in 1996
Policy Initiatives. Government efforts to develop a national drug
strategy are still slow. The inter-ministerial commission, which has not met
over the past year, has been revived under the new Minister of Interior. He
has also recently created a working group under the commission.
As a party to the 1961, 1971 and 1988 UN conventions, Latvia has begun to
develop the necessary implementation legislation. In May, the Latvian
Parliament passed a law on control of trade and sale of pharmaceuticals with
opiate and psychotropic bases. The 22 precursors under international control
have been placed in Schedule IV of the national list of controlled drugs.
Although Latvia passed legislation requiring that creditors know their
depositors and outlawing anonymous accounts, new money laundering legislation
is expected in 1997. The Latvian Government already has established an
inter-ministerial group to draft the legislation to meet the requirements of
the 1988 UN Convention and the EU convention.
Law Enforcement. Hampered by bureaucratic problems, low salaries, and
limited training and equipment, law enforcement officials were unable to make
any major drug seizures during the year. The Drug Enforcement Bureau (DEB),
with a staff of 38 officers, is seeking to increase its efforts and is
investigating several large amphetamine production cases.
Corruption. The USG is unaware of any reports of official narcotics-related
corruption in Latvia, and there were no drug-related corruption cases of
senior officials in 1996. However, high-level corruption is considered a
problem in Latvia; the Prime Minister recently announced that he has asked the
World Bank for technical assistance in rooting out government corruption.
Agreements and Treaties. In February 1994, the GOL acceded to the 1988 UN
Convention. In July 1993, the GOL acceded to the 1961 UN Single Convention on
Narcotic Drugs and its 1972 Protocol, and the 1971 UN Convention on
Psychotropic Substances. However, the GOL's domestic antidrug law must be
modified to implement the 1988 UN Convention.
U.S.- Latvian extradition relations are governed by a treaty signed in 1923.
Latvia and the US negotiated a multilateral legal assistance treaty (MLAT) in
1996. The substance of the treaty is completed; only conformity of the two
language texts is pending.
Cultivation and Production. Cultivation of poppy is illegal in Latvia.
Nevertheless, law enforcement officials believe that there is poppy
cultivation for cooking purposes as well as limited production of illicit
opium poppy straw extract. Although cannabis also grows wild in Latvia, there
have been few cases of illicit cultivation.
During the Soviet occupation Latvia developed a strong technical base for the
production of pharmaceuticals. After the loss of markets in the former Soviet
Union, the surplus of unemployed chemists and under utilized production
facilities have become vulnerable to the illicit amphetamine production.
Domestic Programs. The GOL continues to run five substance abuse centers
and to finance the work of several non-governmental organizations in demand
reduction treatment centers. Moreover, a number of rehabilitation centers
have been established with assistance from Western and Nordic European
countries. The GOL has approved a new national demand reduction plan and
allocated funds for prevention, education and information activities, with an
emphasis on treatment and rehabilitation. Optional drug prevention programs
have been introduced in 40 elementary schools.
IV. US Policy Initiatives and Programs
Policy Initiatives and Bilateral Cooperation. The USG promotes
increased attention to the drug problem by the Baltic States. In 1996, the
USG urged the GOL to identify drug problems and possible areas for assistance.
Latvian police and customs officials have received training and drug test
kits from the USG. The USG worked with other donor nations, through the
Mini-Dublin group in Tallinn and bilaterally in Riga and Vilnius, to promote
increased assistance from West Europeans and the UNDCP to the Baltic nations.
Following USG/UNDCP sponsorship of two money laundering seminars, the three
Baltic prime ministers signed the Riga Declaration against money laundering.
The USG will continue to work with UNDCP to design an assistance program to
enable the Latvian government to implement legislation and build necessary
institutions. The Department of Justice is expected to assign a Regional Law
Advisor to Latvia who will coordinate a more comprehensive assistance program
related to law enforcement and rule of law.
The Road Ahead. Over the next year, the USG will continue to encourage
Latvia to expand its drug control activities and establish legislative and
institutional antidrug capabilities. The USG will encourage increased
coordination with the other Baltic countries. The USG plans to provide law
enforcement training for customs and law enforcement officials including
border guards, as well as training to target financial crimes. The USG also
will encourage support from UNDCP to assist Latvian customs and police
officials by providing detection equipment and training.
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