COMMISSION ON NARCOTIC DRUGS HEARS PROPOSALS ON COMBATING MONEY LAUNDERING, TRACING AND CONFISCATING DRUG TRAFFICKING PROCEEDS
Press Release
SOC/NAR/732
COMMISSION ON NARCOTIC DRUGS HEARS PROPOSALS ON COMBATING MONEY LAUNDERING, TRACING AND CONFISCATING DRUG TRAFFICKING PROCEEDS
19960423 Commission Discusses INCB Reports, Hears 24 Speakers; Report on Draft Medium-Term Plan for 1988-2001 Introduced(Reproduced as received from UN Information Service.)
VIENNA, 19 April -- Removing the profit motive through strong anti- money-laundering and confiscation laws was one of the most effective ways of dealing with drug trafficking, many speakers agreed this afternoon as the Commission on Narcotic Drugs considered reports of the International Narcotics Control Board (INCB). There was also consensus on the need to establish an international framework that would coordinate cooperation among countries in tracing, freezing and confiscating drug trafficking proceeds.
With the measures to counter money-laundering practices the main focus of the INCB annual report, the representative of the United States said that every member State had a role to play in ensuring that criminal enterprises were thwarted in their efforts to move vast sums of ill-gotten gains through the financial systems. The United Kingdom delegate echoed many speakers when he called for countries to criminalize drug-related money laundering.
Concerning the INCB report on action taken by States to prevent the diversion of precursor chemicals, many speakers called for improved systems of cooperation between governments to facilitate the exchange of information. Among them, Iran called for the establishment of systems that would monitor precursor transactions by all governments, regardless of whether they were exporting, transit or importing countries.
Also taking part in the discussion were the representatives of the Netherlands, Egypt, Morocco, Japan, Germany, Poland, Sweden, Republic of Korea, Bahamas, Indonesia, Cuba, Tunisia, Madagascar, Syria, Lebanon, Pakistan, China and Nigeria. A representative of the World Health Organization (WHO) also made a statement.
The President of the INCB, Oskar Schroeder, responded to the comments made.
In other action this afternoon, Francesco Bastagli, Director, Office for External Relations, Strategic Planning and Evaluation, introduced a report on the draft medium-term plan for the period 1998-2001, on international drug control.
The representative of the United States paid tribute to Robert Angarola who died on 4 March. Mr. Angarola was remembered for his anti-narcotics work, including his service as a legal adviser to the INCB.
INCB Report
ROBERT S. GELBARD (United States) said he supported the Board's emphasis on stopping money launderers in their tracks. Every member State must ensure that criminal enterprises were thwarted in their efforts to move vast sums of ill-gotten gains. All States should bring their banking and financial systems into conformity with international anti-money-laundering standards.
The Board's role in monitoring licit opiate industry was increasingly important, and he welcomed the study on the availability of opiates for medical needs. He encouraged the INCB to review the present level of opiate reserves. He also urged members to support the Board's recommendations to institute appropriate control measures to avoid diversion of licit opiates. Governments should increase the vigilance of precursors ephedrine and pseudoephedrine because of their increasing use in the illicit manufacture of methamphetamine. All governments should provide the reports required under the 1971 and 1988 Conventions and share information on chemical diversion practices in their geographic areas.
He expressed concern about the abuse of Ritalin, but stressed that it was important in the treatment of attention deficit hyperactivity disorders (ADHD). Its use remained below that of other stimulants. In light of its increased availability and use by adolescents, however, the National Institute of Mental Health and the National Institute on Drug Abuse would convene a national conference next year to review the use and abuse of stimulants in the treatment of ADHD. Additionally, the Drug Enforcement Administration (DEA) had had extensive discussions with parent support groups and the manufacturer referenced in the INCB report. They had been made aware of the concerns of the DEA and the INCB and had begun educational campaigns to address drug abuse issues and promote proper diagnosis of ADHD and the use of methylphenidate in treatment. The United States encouraged cooperative efforts with parent groups, physicians and pharmaceutical companies to address the appropriate use of methylphenidate.
J.G.S.T.M. VAN HELLENBERG HUBAR (Netherlands) referred to the recent attention given to his country's drug policy and explained that the collection and analysis of facts and statistics were always made public, even if they related to the darker side of society. Openness allowed a fair dialogue
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between all parties involved and would lead to a better understanding of the different facets of the problem.
The Netherlands' policy had yielded good results with respect to the health of drug abusers, he said. Relatively, few people had died as a consequence of drug abuse, and the rate of infection from human immunodeficiency virus (HIV) and other diseases was low compared to other countries as a result of the country's open and realistic approach.
No one was prosecuted for consuming small amounts of soft drugs, although it was certainly not the objective of the Government to stimulate the demand for drugs, he said. In that context, it was useful to maintain an optimum balance between the number of coffee-shops (that sell soft drugs) and the consumer demand. The number of coffee-shops should always lag behind the level of domestic demand; if not, the existence of those shops would, in themselves, create demand and traffic, which would counter the objectives of the international agreements and Dutch policy.
FAROUK HELMY ABOU ELATA (Egypt), commenting on the successful efforts in his country to stop drug traffickers, said that in 1995 the Government had arrested 23 major drug smugglers with assets of 196 million Egyptian pounds. He appreciated the Board's references to Egypt's continuing efforts to eradicate plantations of cannabis and poppy. Unfortunately, the level of cultivation had grown to 51 million plants. The Government had launched an intense operation that had resulted in the eradication of a large quantity of cannabis plants. It was currently studying ways to cultivate alternative crops on the huge tracts of land previously used to grow cannabis.
Egypt had adopted a national strategy for drug demand control and had constructed hospitals to handle drug addiction. He welcomed the Board's readiness to contribute to the rapid assessment surveys to clarify forms of abuse in the African continent. As for regional cooperation, Egypt had hosted a meeting with Jordan and Israel to strengthen the controls against drug abuse.
ABDERRAHIM BENMOUSSA (Morocco) said the INCB report mentioned that cannabis cultivation continued on a large scale in the mountainous region of Morocco. His country was already taking on its share of the responsibility in combating illicit drugs, at considerable cost. It was not short of the will to fight the problem, but was handicapped by a shortage of resources. In addition to concerted national efforts to strengthen controls over illicit drugs, Moroccan authorities were cooperating with their counterparts in European countries and all work was done on a transparent basis.
He challenged the INCB allegation that 70 per cent of the cannabis in Europe came from Morocco. His country had been cooperative in sharing information with European nations on the confiscated goods, and it expected to
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receive information about caches of cannabis which were presumed to have originated in Morocco. It was no secret that the European market was supplied from countries other than Morocco. The Board should consider matters more carefully and take into account information he could provide.
He suggested that the report should use absolute figures rather than percentages. If Morocco was the main supplier of cannabis to Europe, all the arable land in the country would have to be used for its cultivation. While he could surmise that the report was tendentious, biased or deliberately mistaken, or challenge the INCB to give specific proof that Morocco was the major supplier of cannabis to Europe, he preferred an approach of concerted action. Together, they could cooperate in a way in which Morocco could acknowledge its responsibility for drugs control on its territory and the international community could recognize the necessity for shared responsibility. The next report should be helpful for those wishing to fight drugs abuse and foster positive action rather than engaging in sterile accusations.
HIROKAZU URATA (Japan), referring to the INCB report which suggested the establishment of a new comprehensive framework to coordinate anti-money- laundering strategies at the global level, said the first priority should be the full application of existing initiatives and avoidance of unnecessary duplication.
As to the creation of specialized units to investigate and prosecute money laundering in each country, their effectiveness depended primarily on the arrangements and structures of law enforcement and prosecutorial agencies within each country. Therefore, it might not always be advisable to establish such uniformed units.
The Third Money-Laundering Symposium, held in Tokyo in 1995, established the Asian Steering Group to enhance anti-money-laundering strategies in the region. Observing that many key countries had still not adhered to the 1988 Convention, he suggested increasing international pressure aimed at its universal ratification before further discussion on any new instruments.
CAROLA LANDER (Germany) congratulated the INCB for its comprehensive report. Concerning the recommendation to establish regulations preventing the abuse of codeine preparations at the national consumption level, and with respect to import and transit procedures, she said some countries had already taken steps to that effect. However, if such measures were to be implemented by exporting countries, the latter must first become familiar with them; it was most important that those measures which went further than what the Convention required, were made known to all member States as soon as possible.
The increase in methylphenidate prescriptions in Germany was in part due to deviant prescribing practices by a few primary care physicians who
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prescribed daily doses far beyond the recommended maximum dose of 60 milligrams. It was unclear whether high doses of the drug would make the young patients prone to abuse later in life. Another reason for the increase could be abuse of the medicine among family members and friends of the hyperactive children being treated, who might have access to that medication. For that reason, the German authorities monitored closely the methylphenidate consumption.
TADEUSZ CHRUSCIEL (Poland) said he supported the view that additional substances not covered by the existing treaties should be added to those lists of substances on which governments must report. Steps were being taken to counteract the illicit production of drugs in his country, including collaboration with the International Criminal Police Organization (Interpol). The pace of health care in Poland was quickening, but addiction services had not been well linked to primary health care services and the role of the family physician in treating addicts had not been clearly established. Poland intended to increase the quality and effectiveness of health care and to provide the financing for the care of addicts.
Poland considered INCB's monitoring of the implementation of article 12 of the 1988 Convention to be a very important element in the fight against drug dependence. It supported the proposal to convene an expert group meeting to address the issue of terminology and definitions used in the drug Conventions, and wanted to participate in the meeting.
JAKOB LINDBERG (Sweden) agreed with the INCB report that efforts to combat money laundering were strategic for the purpose of counteracting both large-scale drug crimes and widespread corruption which had often been linked to them. Because of the lack of coordination and of concrete measures by the international community, a comprehensive framework should be established to more effectively coordinate action against money laundering throughout the world.
The fact that some countries had not yet ratified the Conventions was not the only problem, he said. Far more serious was the fact that countries which had acceded to the Conventions often did not apply them with adequate force and consistency. And while some countries might lack the personnel and technical and economic resources for forceful implementation, others with substantial resources chose not to conform to the requirements. Explaining the relative success of the Swedish drug policy, he underscored the balanced approach between a strict control policy and a strong emphasis on measures to reduce demand.
SUNG-JOO CHOI (Republic of Korea) endorsed the priority given to combat money laundering, which was a multi-billion dollar operation per year. Given the complex and multidisciplinary nature of anti-money-laundering activities, an international response was all the more essential. An international legal
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instrument that effectively combated money laundering should be adopted, as suggested in the INCB report.
The Republic of Korea had enacted the Special Law against Illicit Drug Trafficking which contained provisions on anti-money-laundering, asset forfeiture and international legal assistance. All financial transactions were conducted under real names, contributing substantially to anti-money- laundering efforts. All countries in East Asia should accede to the three international drug treaties, he said, adding that his country would accede to the 1988 Convention this year.
PETER DEVEAUX-ISAACS (Bahamas) said he appreciated INCB's recognition of the success of his country's efforts in limiting the transit of drugs through its territory. The Bahamas had worked hard over the years to deal with the vexing problem. The drug strategy had reflected a balanced approach, addressing both demand and supply, and included cooperation at the subregional, regional and international levels. Money-laundering legislation had been adopted recently, and the 1987 tracing and forfeiture legislation had further frustrated the efforts of those with criminal intent to use financial institutions. The Bahamas would intensify its vigilance to ensure greater success in that area.
STEPHEN PIKE (United Kingdom) welcomed the focus of the INCB report on the importance of international action to combat money laundering. Removing the profit motive through strong anti-money-laundering and confiscation laws was one of the most effective ways to deal with drug trafficking. It was essential that all countries should criminalize drug-related money laundering, and that bank secrecy laws should not obstruct legitimate investigations undertaken by law enforcement and prosecuting authorities. Reporting of suspicious transactions by financial institutions must be an integral part of a country's anti-money-laundering strategy. The Financial Action Task Force on Money Laundering continued to be the lead body on the subject.
The United Kingdom shared the Board's concern over the number of countries that had still not become parties to the three main Conventions, and encouraged them to ratify. But ratification was in itself not sufficient; the treaties must also be implemented effectively at the national level. He congratulated the Board on the article 12 report on precursors, noting that the recommendations formed a sound basis for action by countries which had not yet put in place the appropriate measures to monitor and control the trade in precursor chemicals.
BUCHARI EFFENDI (Indonesia) pointed out that while Indonesia had not ratified the 1988 Convention, it had adopted necessary measures to implement its provisions. That had enabled the Government to investigate money- laundering offences and to confiscate assets derived from illicit drug trafficking. Great importance was also attached to article 5, on the seizure
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of assets; article 6, on extradition; and article 17, on cooperation against illicit traffic by sea. Laws and regulations prohibited the importation, production and utilization of narcotic drugs. Most drug abuse in Indonesia involved cannabis; heroin abuses occurred only among foreign tourists.
BASILIA LAHENS ESPINOSA (Cuba) said the Ministry for Public Health had done intensive work to maintain its successes in international drug control. Despite limited resources, Cuba had adhered to the international treaties. It had worked closely with the medical and other professions to ensure that drugs used for therapeutic purposes were not diverted to illicit channel. There was no evidence of undue use of flunitrazepam. The national drug administration was revising and updating drug control rules. There were now computers in all the provinces, thus allowing for more effective control of prescription, production, distribution, consumption and everything related to international trade.
GHODRATOLLAH ASSADI (Iran) described his country as a drug transit nation because of its location between the drug-producing countries of Pakistan and Afghanistan in the east, and the drug-consuming countries in Europe. The organizers of trafficking groups were well established in drug-producing areas, while their financiers were in consuming countries. Iran's drug seizures ranked first in the world, and more than 50 per cent of all prisoners there were drug traffickers. However, while the drug seizures were substantial, they caused limited losses to the traffickers, who could quickly compensate a loss by increasing shipments. Proceeds derived from drug crimes were used to fund drug abuse prevention programmes, treatment and rehabilitation facilities, and to improve the capacity of law enforcement agencies.
Precursors required the utmost attention, he said, including the development of control systems to monitor transactions of precursors by all governments, regardless of their status as an exporting, transit or importing country. He highlighted the illicit cultivation of poppy in Afghanistan and called for a regional and international focus on the problem. Iran offered to play an active role, both technically and financially, to support activities of the United Nations International Drug Control Programme (UNDCP) aimed at crop replacement in Afghanistan.
HANS EMBLAD, of the World Health Organization (WHO), drew attention to the difficulties that could be experienced when transporting narcotic drugs and psychotropic substances needed for humanitarian medical care during emergencies. He commended the Board for its proposal which could lead to practical solutions to the problem.
The WHO concurred with the Board that the transportation and provision of controlled drugs needed in emergencies constituted a genuine justification for the application of simplified control procedures. An explicit endorsement
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by the Commission of that suggestion would be highly appreciated, not only by the WHO, but by all international agencies and non-governmental organizations providing humanitarian medical assistance to disaster-stricken peoples.
NAZIHA CHEIKH (Tunisia) said that in order to reduce demand, her Government had just set up a system to strengthen its detection capabilities and to coordinate activities to stop the introduction of narcotic drugs and psychotropic substances for any use other than scientific or medical purposes. In conformity with intentional Conventions, it had undertaken programmes under the auspices of the Ministries of Public Health and Industry, to control the importation of chemical substances.
Tunisia had set up controls for five pharmaceutical substances which were used illicitly by young people. Moreover, the Government had banned the import of amphetamines and anabolic steroids. It would cooperate with other governments and would support regional cooperation programmes in the struggle against the scourge of drugs.
MAURICE RANDRIANAME (Madagascar) said his Government had undertaken an epidemiological survey to evaluate trends in drug abuse. The results indicated of the existence of the problem, which was a source of concern. Further resources were needed to continue and to expand the survey throughout the territory. It had been proposed that a rapid assessment evaluation be made of the problem to facilitate the development of a rational programme against drug trafficking and drug abuse.
Madagascar had become a transit country for illicit opiates. The current legislation was not adequate to counter illicit traffickers. His country wished to draw on the experience of others. It condemned any policy to legalize the non-medical use of drugs. The substances included in the Tables in the Conventions should be used strictly for medical and scientific purposes. Since 1994, Madagascar had engaged in talks with the Council of Europe and had acceded to European Conventions against the illicit use of drugs. Taking due account of the financial difficulties affecting the whole United Nations, he did not favour a second international conference on drugs, but endorsed the proposal for a special session of the General Assembly.
ALI DARBULI (Syria) said the drug problem was becoming more and more complex. Together with terrorism and arms trafficking, they threatened civilization itself. He questioned the sources of the Board's information. When it made allegations about certain crops, trade and industries involving drugs, had the sources been verified? he asked. If those sources were not clearly defined, that would influence the report. Following its mission to Lebanon to examine the destruction of drug crops in the Bekaa Valley, the Board had declared the programme a success. There were, however, other reports that contradicted those findings.
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ELIAS DAOUD (Lebanon) said terrorism brought great suffering to the world. International terrorism had struck tourists in Egypt yesterday, and in Lebanon there was an artillery attack against a United Nations position which killed 100 old people, in addition to several United Nations peace-keepers. The village in question was where Jesus Christ had delivered his first sermon.
Regarding the allegation in the INCB report about heroin-producing laboratories in Lebanon which sent drugs to Europe and the rest of the world, he repeated that there were no laboratories, but rather a number of people who, using primitive equipment, knew how to make drugs. He called for help to the Lebanese authorities in apprehending those individuals.
MOTOYUKI FUJII (Japan) said the INCB report was full of valuable data, particularly with reference to measures to strengthen cooperation against the diversion of pharmaceutical substances. That data was an indispensable information source in implementing Japan's drug control policy. He noted that the data on the demand for opiates might need correcting. Member States should supply reliable and precise data as soon as possible.
MUHAMMAD AFZAL KAHUT (Pakistan) highlighted the cooperation between law enforcement agencies of Pakistan and India, which had resulted in traffickers seeking alternate routes for smuggling drugs into India from South-West Asia. Because of that successful working arrangement, Pakistan did not consider interdiction on its eastern borders with India to be a serious problem. However, Pakistan was actively striving, within the framework of bilateral and regional agreements with its neighbours on its western borders and beyond, to plug the smuggling trails. South-West Asia was a vast region and because of Pakistan's location in it, significant quantities of drugs were smuggled across its sprawling western borders. He reported that elaborate arrangements for the coordination of appropriate laws for the control of licit trade in psychotropic substances and precursors were in place.
WANG QIANRONG (China) said his Government had made great progress in preventing the diversion of narcotic drugs into illicit channels. It had been able to exchange information with other countries and to stop the transfer of illicit chemicals. His Government attached great significance to cooperation with the INCB and would continue to implement the international Conventions. The fight against money laundering was important. China did not have specific laws against money laundering but other laws contained relevant clauses. With the gradual improvement of its legal system, Chinese regulations to control money laundering would be intensified.
MUSA BAMAIYI (Nigeria) commended the Board for a comprehensive report. He appreciated the effort that had drastically reduced the transit of drugs through his country. He drew attention to the report's comments about Nigeria's 1995 law on money laundering. The INCB team had not perused or examined the contents of the decree which gave wide power to the operating
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agency. That decree made it mandatory for the banks to monitor accounts when there were deposits over a certain amount for both individuals and corporations, and there had been considerable progress. The decree provided for stringent punishment.
OSKAR SCHROEDER, President of the INCB, responding to the comments made, said the work of the Board was to be seen as a permanent dialogue. It was meant to be a constructive effort to achieve common goals. Constructive criticism was a meaningful way to move ahead. He was confident that all governments would interpret the Board's work in that sense. The INCB received wide media attention, but sometimes the coverage was counter-productive. On some occasions, that was due to misunderstanding; at other times, it was politically motivated.
The INCB did not invent the figures in the report; they were collected from the governments themselves and from other sources. It tried to cross- check information with the respective governmental bodies. Some of the comments made today needed to be discussed further with the Board. In other cases, he would take up the comments directly with the delegate.
Draft Medium-Term Plan
FRANCESCO BASTAGLI, Director of the Office for External Relations, Strategic Planning and Evaluation, introduced the draft medium-term plan for the period 1998-2001 (document E/CN.7/1996/18). That was the first time since the inception of the UNDCP five years ago that the Commission would consider an entirely new plan for the Programme, he said. The plan was prepared under guidelines agreed by the General Assembly. Emphasis should be placed on objectives rather than activities, and outputs and the structure of the plan should be linked to the organizational structure of the programmes and departments responsible for its implementation.
Since issuing the document in February, it had been decided to merge subprogrammes 3, 4 and 5 into a single subprogramme on prevention and reduction of drug abuse, elimination of illicit crops and reduction of drug trafficking.
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