Mexico, a hub for money laundering, still the main foreign supplier of drugs to the U.S.

March 3rd, 2010 - 4:23 pm ICT by BNO News  

WASHINGTON, D.C. (BNO NEWS) — Mexico is still a big hub for money laundering and the main foreign supplier of drugs to the U.S., a report from the U.S. State Department revealed.

The 2010 International Narcotics Control Strategy Report (INCSR) stated that approximately 90 percent of cocaine destined for the U.S. flows through Mexico from its origins in South America.

Mexico also remains a hub for money laundering. It is estimated that annual gross revenue ranges between $15-30 billion from illicit drug sales in the U.S. Most of these proceeds are returned from the U.S. primarily through bulk currency shipments and laundered through legitimate Mexican businesses.

It is estimated that 3.5 million Mexicans have used narcotics and that nearly 600,000 have become dependent drug consumers, according to the U.S. report.

CARTELS WELL-ARMED

The report says the drug cartels are well-armed and well-funded. They employ advanced military tactics and utilize sophisticated weaponry such as sniper rifles, grenades, rocket-propelled grenades and even mortars in attacks on security personnel.

Mexican cartels combine threats of violence with promises of financial gain (“plata o plomo”) to influence law enforcement and government officials.

THERE WERE “SUCCESS” IN 2009

In 2009, Mexican law enforcement saw a number of successes during the year in methamphetamine seizures and drug-related arrests, according to the report.

Mexican law enforcement arrested or detained 36,332 persons (versus 28,650 in 2008). This total included a number of high-profile members of the Mexican cartels including Arturo Beltran Leyva, Carlos Beltran Leyva, Miguel Angel Soto Parra, Vicente Carrillo Leyva, Vicente Zambada Niebla, and others.

DRUG CULTIVATION INCREMENT

Drug cultivation rose significantly in 2009 according to U.S. government agencies’ estimates. Opium poppy cultivation more than doubled to 15,000 hectareas as of September 2009 from 6,900 in 2008—the highest level of production ever estimated in Mexico and all of Latin America combined.

Cannabis production increased 35 percent to 12,000 hectareas from 8,900 in 2008—the highest level since 1992 as drug cartels are intended to diminish reliance on foreign suppliers of product.

The report says drugs are produced in remote areas of Mexico where detection and eradication are difficult because the government of President Felipe Calderon has a minimal presence there.

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