Summary

Illicit drug production and trafficking are global problems transcending national borders. Profits from drug trafficking are pegged at hundreds of billions of dollars annually--far exceeding what the international community spends on counternarcotics programs. Manufacturers of illegal drugs often rely on chemicals that have been diverted from legitimate commercial uses. The United Nations and two international task forces have suggested ways to control the production and trafficking of illicit drugs and their proceeds. This report identifies the 88 signatories to a 1988 U.N. convention against illegal drug trafficking and discusses the extent to which the international community has adopted an international task force recommendation on chemical diversion and money laundering.

GAO found that: (1) the United Nations and two task forces have focused international efforts on controlling illicit drug production and trafficking and gained political endorsements to criminalize money laundering and legislate chemical and financial controls; (2) these controls are not globally enforced because countries have varying drug control policies, fear that controls will impede their financial and chemical commerce, and lack the resources necessary to implement controls; (3) although many countries have adopted laws and regulations governing chemical control, some countries have not established the needed infrastructure or international data exchange mechanisms to control drugs; (4) the international community lacks the ability to exchange drug data because countries fail to comply with reporting requirements and are reluctant to provide data on their citizens and commerce; (5) although most of the Financial Action Task Force (FATF) member countries have criminalized money laundering and legislated financial controls, the scope of their laws, financial reporting requirements, intercountry cooperation, and seizure and forfeiture of illicitly-derived assets vary; and (6) FATF will continue to assess money-laundering techniques, seek implementation of its recommendations, seek members' cooperation in persuading nonmembers to control money laundering, and develop training programs.