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CANADAI. Summary Canada, like the United States, is primarily a drug-consuming country and also produces large amounts of marijuana. Much of the Canadian-produced marijuana is shipped to the U.S. International drug traffickers frequently attempt to route drug shipments, primarily heroin, through Canada to the U.S., taking advantage of the long and open Canada-U.S. border, the massive flow of legitimate commerce, and the lower risk of long prison terms or forfeiture of assets if caught in Canada compared with the U.S. Money laundering and chemical diversion are also problems. Legislation is being drafted to strengthen Canada's ability to control money laundering. With approximately 1,000,000 drug users in Canada, including some 250,000 cocaine addicts and 40,000 heroin addicts, The Government of Canada's (GOC) drug control strategy emphasizes drug abuse prevention and treatment. The law enforcement component emphasizes action against organized crime. Canadian law enforcement officials cooperate closely with their U.S. counterparts on narcotics investigations and interdiction efforts. Canada is a party to the 1988 UN Drug Convention and participates actively in international drug control efforts. II. Status of Country Narcotics production, distribution, and use are illegal in Canada. Drugs are smuggled into Canada for domestic use and for transshipment to the U.S. While the level of illicit drug transshipment through Canada to the U.S. is not known, Canadian and U.S. law enforcement agencies are taking the problem very seriously, particularly with respect to Asian-sourced heroin. Southeast Asian heroin continues to enter North America predominantly by sea containers, but also by air and overland. Major ports of entry include Vancouver, Montreal, and Halifax. Given the long and open U.S.-Canada border, Canada will continue to be targeted by smugglers for potential transit points to and from the U.S. market. U.S. and Canadian law enforcement coordinate closely at all levels to curb trafficking, but recognize that constant vigilance is required. Money laundering and chemical diversion are also problems in Canada. Canada has a relatively low crime rate compared with most countries in the Western Hemisphere, but organized crime and drug trafficking are becoming more serious problems. Toronto, Canada's largest city, has experienced growing problems with organized criminals from Asia and Russia. Asian ethnic groups, particularly gangs from China, dominate the heroin trade, alien smuggling, and credit card fraud, much of which is aimed at the United States. Vancouver, which also has significant Asian gang activity, now suffers from epidemic drug abuse with nearly one death per day from heroin overdoses. There have also been reports that outlaw motorcycle gang activities are on the rise nationwide, including methamphetamine trafficking. Arrests in Europe have also indicated that Romanian and other criminal groups have smuggled Turkish-origin heroin to Vancouver as well. Canadian-based cocaine traffickers once relied primarily on U.S.-based suppliers, but are increasingly going directly to Colombia, according to the RCMP. Shipments arrive via mothership, marine containers, and occasionally by clandestine flights. Colombian organizations dominate the cocaine trade in eastern and central Canada. Italian organized crime is also involved in drug trafficking. The RCMP estimates that between 50-100 tons of foreign marijuana, 100 tons of hashish (plus 6 tons of liquid hashish), 15 tons of cocaine and at least one ton of heroin are imported into Canada each year, producing up to CAN$4 billion in wholesale profits and CAN$18 billion in street-level profits. Canada's drug strategy, the third in a series of five-year plans, was issued in 1998. While the strategy is comprehensive, addressing all of the foregoing problems, it focuses most of its counternarcotics efforts, and resources (approximately 70%), on domestic demand reduction. Building on stronger anti-drug legislation passed in 1997, the Canadian drug strategy calls for a new targeting imperative on organized crime by the Solicitor General's Office. III. Country Actions Against Drugs in 1999 Policy Initiatives. Canada's large and diverse financial sector, and lack of mandatory reporting requirements for suspicious transactions, has become an attractive venue for international money launderers. Recognizing this increasing threat, and responding to recommendations made to Canada by the Financial Action Task Force (FATF), the GOC promulgated control legislation in 1999. It has also taken steps to increase the capabilities of Canadian law enforcement authorities to detect suspicious transactions and to conduct money laundering investigations. Canada also added ten new integrated proceeds-of-crime law enforcement units, based on pilot projects in three cities. Accomplishments. In 1999 (as of September), Canadian authorities made 12,541 drug-related arrests (compared with 7,531 in 1998). As of September 1999, GOC authorities had seized 500 kilograms of cocaine (down from 1.22 metric tons during the same period in 1998), 51 kilograms of heroin (down from 121 kilograms for this period in 1998), 4.289 metric tons of marijuana (down from 5.955 metric tons for this period in 1998), and 3.35 metric tons of hashish (down from 819 kilograms as of September 1998). Canadian law enforcement operations, often in cooperation with U.S. agencies, resulted in the interdiction of numerous large-scale narcotics shipments and disruption of trafficking organizations. After a two-year investigation, Royal Canadian Mounted Police (RCMP) arrested Alfonso Caruana, reputed leader of the Caruana/Contreara organized crime family. This organization was responsible for the acquisition of cocaine in Mexico, which was ultimately shipped to the U.S., Canada and Italy. As part of this investigation, 200 kilograms of cocaine were seized in Houston, Texas. The RCMP cooperated with the Hong Kong Narcotics Bureau in January to arrest members of a heroin ring operating between China and Canada. There were simultaneous arrests in Hong Kong, Vancouver and Toronto, along with seizures of large amounts of heroin and drug proceeds. Canadian customs inspectors arrested two Hong Kong traffickers who arrived in Toronto from Vancouver in possession of 43 kilograms of heroin; they were en route to London. In June, after a three-year investigation, the RCMP launched a full-scale operation against a major international heroin ring that had been smuggling large amounts of Burmese-origin heroin into Vancouver for distribution in Canada and the U.S. Over 30 suspects were arrested and 56 kilograms (120 pounds) of heroin seized. According to the RCMP, the group moved enough heroin that it could occasionally stockpile supplies in Canada and drive up prices in North American markets. Parallel raids and arrests were conducted by the FBI in New York and Puerto Rico, and by Thai and Hong Kong authorities. This exceptional investigative work and international coordination dismantled the organization. Law Enforcement Efforts. During 1999, Canadian authorities continued to implement the five-year anti-drug strategy issued in 1998. The strategy recognizes the growing threat from transnational organized crime, particularly narcotics traffickers, and directs a concerted effort against it. In addition to creating proceeds of crime units, the offensive focuses law enforcement resources on criminal organizations and money laundering operations. These efforts will be enhanced once expected suspicious transaction reporting requirements legislation is passed next year and a new financial investigation unit is created. After five years of consecutive budget cuts to law enforcement, the improving national budget situation permitted an increase in funding in 1999. While the RCMP has mounted effective operations against narcotics and other criminal organizations, the impact of these efforts have been undermined in numerous cases by court decisions. Canadian courts have been reluctant to impose tough prison sentences, often opting for fines, reflecting a widespread view that drugs are a "victimless" crime or simply a health issue, not a criminal or public safety concern. For example, one court dismissed charges against an individual arrested for snorting crack in a public restroom, calling it an invasion of his privacy. The Supreme Court has questioned the legality of police involvement in "sting"-type operations, undercover "buys" and other techniques now commonly used around the world in drug investigations, largely on privacy grounds, as a potential violation of the 1982 Canadian Charter of Rights and Freedoms. Canadian press reports indicate that only about 20% of those convicted of growing marijuana in Vancouver receive jail terms, and that British Colombia has the highest rate of acquittal rates in the nation. In January, a judge ruled that a convicted criminal, who had already been deported by the GOC, must be retur


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