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Viewing cable 06BRASILIA2465, BRAZIL 2006 INTERNATIONAL NARCOTICS CONTROL STRATEGY
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
06BRASILIA2465 | 2006-11-22 11:16 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia |
VZCZCXRO6303
OO RUEHRG
DE RUEHBR #2465/01 3261116
ZNR UUUUU ZZH
O 221116Z NOV 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7458
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHRI/AMCONSUL RIO DE JANEIRO 3391
RUEHSO/AMCONSUL SAO PAULO 8673
RUEHRG/AMCONSUL RECIFE 5904
RUEABND/DEA HQS WASHDC
UNCLAS SECTION 01 OF 06 BRASILIA 002465
SIPDIS
SIPDIS
DEPT FOR INL, WHA/BSC
DEPT PLEASE PASS TO AID: AA/LAC AND LAC/SAM
JUSTICE FOR OIA, AFMLS, NDDS
TREASURY FOR FINCEN
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL
E.O. 12958: N/A
TAGS: SNAR EFIN KSEP BR
SUBJECT: BRAZIL 2006 INTERNATIONAL NARCOTICS CONTROL STRATEGY
REPORT (INCSR)
REF: STATE 177294
¶1. Following is Brazil's 2006 INCSR. As requested in reftel, the
money laundering portion of the INCSR will be submitted separately.
BRAZIL
----------
¶I. SUMMARY
----------
¶2. The Brazilian Federal police (DPF) had a number of successes
this past year against foreign narcotrafficking organizations
operating within Brazilian territory, the biggest of which included
the arrest of a kingpin target in Sao Paulo and the confiscation of
millions of dollars of assets in a number of countries. Inroads are
also starting to be made against Mexican and Colombian groups
involved in sending heroin to the U.S. Attention is also now being
given to groups that illegally sell prescription drugs via the
internet. The DPF appears to be placing a higher priority on
interdiction capabilities along the Bolivian border, where there has
been a noticeable increase in the amount of cocaine paste that has
been seized over the last year. It is believed that the amounts
will continue to grow due to an increase in coca leaf production.
¶3. Brazil is a major transit country for illicit drugs shipped to
Europe and, to a lesser extent, to the United States. Brazil
continues to cooperate with its South American neighbors in an
attempt to control the remote and expansive border areas where
illicit drugs are transported. Brazil is a signatory of various
counternarcotics agreements and treaties, including the 1988 UN Drug
Convention, the 1995 bilateral U.S.-Brazil counternarcotics
agreement, and the annual Memorandum of Understanding (MOU) with the
U.S.
---------------------
II. STATUS OF COUNTRY
---------------------
¶4. While not a significant drug-producing country, Brazil is a
conduit for cocaine base and cocaine HCL moving from source
countries to Europe, the Middle East and Brazilian urban centers, as
well as a conduit for smaller amounts of heroin moving from source
countries to the U.S. and Europe. Cocaine and marijuana is used
among youths in the country's cities, particularly Sao Paulo and Rio
de Janeiro. Powerful and heavily-armed organized drug gangs,
located principally in Rio de Janeiro and Sao Paulo, are involved in
narcotics related arms trafficking.
------------------------------------------
III. COUNTRY ACTIONS AGAINST DRUGS IN 2006
------------------------------------------
POLICY INITIATIVES
¶5. Brazil has undertaken various bilateral and multilateral efforts
to meet all objectives of the 1988 UN Drug Convention, has
implemented adequate legal law enforcement measures, and achieved
significant progress in the fight against illegal drugs.
¶6. In 2005, the GOB drafted a bill to update its anti-money
laundering legislation. If passed, this bill, which has not yet
been presented to Congress, would facilitate greater law enforcement
access to financial and banking records during investigations,
criminalize illicit enrichment, allow administrative freezing of
assets, and facilitate prosecutions of money laundering cases by
amending the legal definition of money laundering and making it an
autonomous offense. The draft law also allows the Brazilian
Government's interagency financial crimes investigations unit (COAF)
to receive suspicious transaction reports directly from obligated
entities, without their first having to pass through the supervisory
bodies such as the Central Bank. COAF would also be able to request
additional information directly from the reporting entities. COAF
includes representatives from regulatory and law enforcement
agencies, including the Central Bank and Federal Police. COAF
regulates those financial sectors not already under the jurisdiction
of another supervising entity.
Brazil has established systems for identifying, tracing, freezing,
seizing, and forfeiting narcotics-related assets. COAF and the
Ministry of Justice manage these systems jointly. Police authorities
BRASILIA 00002465 002 OF 006
and the customs and revenue services are responsible for tracing and
seizing assets, and have adequate police powers and resources to
perform such activities. The GOB planned to introduce in 2006 a
computerized registry of all seized assets to improve tracking and
disbursal. The judicial system has the authority to forfeit seized
assets, and Brazilian law permits the sharing of forfeited assets
with other countries.
¶7. Brazil's first line of defense against drug smuggling commences
at the heavily transited border crossings that it shares with a
number of Latin American countries. Narcotraffickers also exploit
the expansive border in areas where Brazilian law enforcement only
has a minimal presence. In order to more effectively combat
trans-border trafficking organizations, Brazil is cooperating
closely with its' neighbors by establishing joint intelligence
centers (JIC) in strategic border towns. The JIC in Tabatinga near
Brazil's northern border with Colombia has been in operation for
four years and is staffed by the Brazilian Federal Police along with
Peruvian and Colombian National Police representatives.
The newest JIC is located near the Brazilian/ Bolivian/ Peruvian
border in the Brazilian town of Epitaciolandia. The JIC operates
out of the Federal Police offices and is staffed by Brazilian DPF
and a Bolivian law enforcement representative. Peru and Brazil are
now connected by a new highway that opened in 2006 thus providing a
much-needed outlet for Brazilian agricultural exports to the Far
East. The DPF believe that traffickers will undoubtedly try to take
advantage of the heavy flow of tractor-trailers and containers
across the border.
The JIC in the southern tri-border area at Foz do Iguazu is inching
closer to becoming reality. The Foz JIC is one of the principal
topics to be discussed at the three plus one meeting (between the
governments of Brazil, Argentina, Paraguay, and the U.S.) scheduled
for December 2006 in Buenos Aires.
¶8. Brazil's Unified Public Safety System (SUSP), which was
created in 2003, is now fully functional and showing results. SUSP,
which is administered by SENASP (Brazil's national public safety
secretariat), is a national system to integrate diverse state civil
SIPDIS
and military police forces. Collaboration between SENASP and the
USG/NAS was very good in 2006. A number of courses, to include
crisis management, training for counter-drug SWAT teams and training
for dog handlers, were sponsored by NAS and hosted by SENASP for
state law enforcement officials from throughout Brazil.
---------------
ACCOMPLISHMENTS
---------------
¶9. In 2006, the GOB exercised a regional counternarcotics
leadership role. The Federal Police play a major role in "Operation
Seis Fronteras." The main objective of this operation is the
disruption of the illegal flow of precursor chemicals in the region.
The GOB continued its support of "Operation Alliance" with
Brazilian and Paraguayan counterdrug interdiction forces in the
Paraguayan-Brazilian border area.
------------------------------
ILLICIT CULTIVATION/PRODUCTION
------------------------------
¶10. With the exception of some cannabis grown primarily for
domestic consumption in the interior of the northeast region, there
is no evidence of significant cultivation or production of illicit
drugs in Brazil. Drugs for domestic consumption or transshipment
originate in Colombia, Paraguay, or Bolivia.
------------
DISTRIBUTION
------------
¶11. As a result of improved intelligence capabilities, the
Brazilian Federal Police have enjoyed increased success against
international trafficking organizations that transship cocaine and
heroin to Europe, Africa, and the Middle East. The distribution of
drugs in Brazilian cities is carried out by domestic networks that
operate in the major urban areas of the country.
-----------------------------
BRASILIA 00002465 003 OF 006
SALE, TRANSPORT AND FINANCING
-----------------------------
¶12. Cocaine from Bolivia is primarily destined for domestic
consumption within Brazil, as is the case for marijuana smuggled in
from Paraguay. Organized groups based in Sao Paulo and Rio de
Janeiro arrange for the transport of the contraband through contacts
in the border areas. The drugs are purchased from criminal
organizations that operate on the other side of the borders.
Proceeds from the sale of narcotics are used to purchase weapons and
to strengthen the groups' control over the slums (favelas) of Rio
and Sao Paulo.
-------------
ASSET SEIZURE
-------------
¶13. Many assets, particularly motor vehicles, are seized during
narcotics raids and put into immediate use by the Federal Police
under a March 1999 Executive Decree. Other assets are auctioned and
proceeds distributed based on court decisions. Federal Police
records show that 2 airplanes, 634 motor vehicles, 58 motorcycles,
13 boats, 146 firearms, and 1,116 cell phones were seized in 2005
(2006 totals not yet available).
-----------
EXTRADITION
-----------
¶14. According to the Brazilian Constitution, no Brazilian shall be
extradited, except naturalized Brazilians in the case of a common
crime committed before naturalization or in cases where there is
sufficient evidence of participation in the illicit traffic of
narcotics and related drugs. Brazil cooperates with other countries
in the extradition of non-Brazilian nationals accused of
narcotics-related crimes. Brazil and the U.S. are parties to a
bilateral extradition treaty signed in 1961. No extraditions have
been carried out in 2006. Four extraditions were carried out during
2005, none in 2004 and three extraditions from Brazil to the U.S. in
2003, one of which was narcotics-related.
¶15. There are no pending narcotics-related extradition cases of
non-Brazilian citizens. There are currently two non-Brazilian
citizens (both AMCITS) that are incarcerated in Brazil and awaiting
extradition to the U.S., one for financial fraud and the other on
organized crime charges.
--------------------------------
MUTUAL LEGAL ASSISTANCE/TRAINING
--------------------------------
¶16. During 2006, various USG agencies and sections, including NAS,
Public Diplomacy, ECON, DHS, DEA, FBI, USSS and others have provided
training throughout Brazil in a wide variety of law enforcement
areas, including combating money laundering, airport interdiction,
community policing, container security, Counter-Drug SWAT operations
and demand reduction programs.
¶17. Brazilian Law Enforcement also eagerly accepted opportunities
to attend training programs in the United States. Money
laundering, Prevention Seminars, and the F.B.I. academy were some of
the more notable areas of interest.
---------------------------------------
LAW ENFORCEMENT AND TRANSIT COOPERATION
---------------------------------------
¶18. The Brazilian Federal Police (DPF) maintain excellent relations
with their counterparts in neighboring countries as well as U.S. law
enforcement. They are willing to share information as well as
participate in joint operations.
¶19. Brazil cooperates with authorities in neighboring countries,
particularly Colombia, Peru, and Bolivia, to enhance regional
counternarcotic efforts. Coordinated Intelligence Centers are
functioning or soon will be functioning on the borders with
Colombia, Bolivia, Paraguay, and Argentina. Each has or will have
law enforcement representatives from each respective country. Brazil
also actively participates in operations with their neighbors in
controlling pre-cursor chemicals. Brazil currently has Federal
BRASILIA 00002465 004 OF 006
Police Attaches in Argentina and Paraguay and looks to expand the
number of Attache positions to other countries in the future.
----------------
DEMAND REDUCTION
----------------
¶20. The National Anti-Drug Secretariat (SENAD), located within the
Presidency's Institutional Security Office, is charged with
oversight of demand reduction and treatment programs. Some of the
larger NAS supported programs include a nationwide 800 number for
counseling, a nationwide DARE program (Brazil has the largest DARE
program outside of the U.S.) and a national household survey of drug
use among teens. SENAD also supports drug councils that are located
in each of the state capitals. These councils coordinate treatment
and demand reduction programs throughout their respective states.
-----------------------
LAW ENFORCEMENT EFFORTS
-----------------------
¶21. In 2006, the Federal Police seized 11.5 metric tons of cocaine
HCl and 144 kilograms of crack. Marijuana (cannabis) seizures
totaled 135.0 metric tons in 2006. These numbers are incomplete,
since only those of the Federal Police, and not those of local
police forces, are reported on a national basis. Federal Police
sources estimate they record perhaps 75 percent of seizures and
detentions.
----------
CORRUPTION
----------
¶22. As a matter of government policy, Brazil does not condone,
encourage, or facilitate production, shipment, or distribution of
illicit drugs or laundering of drug money. The Federal Police have
carried out a number of high profile investigations of public
officials and State Police involved in money laundering and/or
narco-trafficking. The fight against corruption remains a high
priority for Brazilian law enforcement.
-----------------------
AGREEMENTS AND TREATIES
-----------------------
¶23. Brazil became a party to the 1988 UN Drug Convention in 1991.
Bilateral agreements based on the 1988 convention form the basis for
counternarcotics cooperation between the U.S. and Brazil. Brazil
also has a number of narcotics control agreements with its South
American neighbors, several European countries, and South Africa.
Brazil cooperates bilaterally with other countries and participates
in the UN Drug Control Program (UNDCP) and the Organization of
American States/Anti-drug Abuse Control Commission (OAS/CICAD).
-----------------
DRUG FLOW/TRANSIT
-----------------
¶24. Marijuana from Paraguay and cocaine from Bolivia are smuggled
into Brazil across remote border areas and are destined primarily
for domestic consumption. Higher quality cocaine from Colombia for
export to Europe, the Middle East, and Africa enters by boat and is
placed in ships departing from Brazil's northeastern ports.
Traffickers have reduced the number of long flights over Brazilian
territory due to Brazil's introduction of a lethal-force air
interdiction program in 2004. However, traffickers still make the
short flight over Brazil en route to Venezuela and Suriname.
Colombian cocaine smuggled out of Brazil's southern ports is first
flown to Paraguay and then transported across the border.
-----------------------
U.S. POLICY INITIATIVES
-----------------------
¶25. U.S. counternarcotics policy in Brazil focuses on liaison with
and assistance to Brazilian authorities in identifying and
dismantling international narcotics trafficking organizations,
reducing money laundering and increasing awareness of the dangers of
drug abuse and drug trafficking and related issues such as organized
crime and arms trafficking. Assisting Brazil to develop a strong
BRASILIA 00002465 005 OF 006
legal structure for narcotics and money laundering control and
enhancing cooperation at the policy level are key goals. Bilateral
agreements provide for cooperation between U.S. agencies, the
National Anti-drug Secretariat and the Ministry of Justice.
---------------------
BILATERAL COOPERATION
---------------------
¶26. In accordance with the bilateral U.S.-Brazil letter of
agreement (LOA) on counternarcotics, bilateral programs that took
place in 2006 included: support of the northern border interdiction
operation COBRA and the joint intelligence center located in
Tabatinga; the establishment of the joint intelligence center on the
Bolivian border; and training courses in airport interdiction and
container security to name but a few. Prevention and treatment
assistance included support for DARE and the toll free drug
counseling/information hotline as well as an ongoing national
household survey of drug usage. Brazil and the U.S. are seeking to
meet all goals set forth in the bilateral LOA.
¶27. Through the LOA, in 2006, the USG worked closely with the
Federal Police, SENASP, and SENAD. Various operations, such as the
annual Operation Alianza (Brazil, Paraguay) that involved marijuana
eradication/interdiction, Operation Seis Fronteras and operation
Twin Oceans were supported with LOA funds. With SENASP, the USG
worked with local state and military police forces throughout Brazil
to ensure such forces had basic law enforcement equipment and
training. Seminars and courses for State police representatives
from throughout Brazil consisted of SWAT training for anti-narcotics
police, in service training for drug dogs and their handlers, and
crisis management. These courses, held in Rio de Janeiro, will also
assist the Brazilian authorities with security preparations for the
2007 Pan American games.
¶28. Brazil continues to be actively involved in IDEC. Worldwide
conferences are held annually, and sub-regional conferences are held
approximately six months after the general conference. These
conferences, sponsored and supported by DEA, bring law enforcement
leaders from Western Hemisphere countries together to discuss the
counterdrug situations in their respective countries and to
formulate regional responses to the problems they face. Brazil is a
member of the Andean and Southern Cone Working Groups.
¶29. In 2006, Brazil participated in Operation Seis Fronteras (Six
Borders) Phase VIII that was held in Buenos Aires. Operation Seis
Fronteras is a DEA-sponsored international chemical enforcement
initiative, which targets the movement and diversion of chemicals
used in the production of cocaine and heroin in South America.
¶30. Bilateral cooperation between the Narcotics Affairs Section and
its' three principal Brazilian partners continued to be excellent
during 2006. Wide-ranging anti-narcotics programs involving a
number of USG Agencies were successfully carried out.
--------------
THE ROAD AHEAD
--------------
¶31. While 2006 proved to be a very productive year for Brazilian
Federal Police in their fight against narcotrafficking
organizations, there still remains a daunting challenge ahead for
Brazilian law enforcement. Increased attention must be given to the
expansive land border regions to stem the rise of cocaine being
smuggled into Brazil. Improving control of Brazil's immense land
borders became a significant political issue in the 2006
presidential race, and appears likely to remain in the public eye.
The Federal Police have started to focus their efforts at major
border crossings. The amount of heroin interdicted last year showed
that Brazil is increasingly being utilized as a trans-shipment route
to the U.S. Plans to beef up airport interdiction efforts and
target international trafficking networks should show positive
results over the next year.
------------------
Statistical tables
------------------
¶32. Calendar year 2006 2005 2004
BRASILIA 00002465 006 OF 006
Coca
Eradication (mt) - - -
Cocaine seizures (mt) 11.5 15.8 7.7
Crack cocaine (mt) .14 .13 .12
Cannabis
Eradication* .92 1.54 .69
Marijuana seizures (mt) 135.0 146.6 149.2
* .92 million plants destroyed. Conversion to metric tons not
given.
Heroin 57 kgs
Arrests 2,042 2,298 1,853
Note: All figures shown are those provided by the Federal Police
and do not include the activities of state, local and highway
police. No surveys were conducted; market for cannabis is
domestic.
--------------------------
PRECURSOR CHEMICAL CONTROL
--------------------------
¶33. The GOB's Justice Ministry issued a decree, Portaria
Ministerial No 1.274-MJ, in August 2004 to prevent the manufacture
of illegal drugs; this regulation made Brazil's law pertaining to
chemical control arguably the most stringent in South America. The
decree established the control of 146 chemical substances that can
be utilized in the production of drugs; Brazil previously controlled
12 chemical substances. All companies that handle, import, export,
manufacture, or distribute any of these 146 substances must be
registered with the Brazilian Federal Police. There are
approximately 25,000 companies, which handle controlled chemicals,
registered with the Brazilian Federal Police. These registered
companies are required to send a monthly report to the Brazilian
Federal Police of their usage, purchases, sales, and inventory of
any of these 146 substances that they handle. Any person or company
that is involved in the purchase, transportation, or use of these
products must have a certificate of approval of operation, real
estate registry, certificate, or special license; which are issued
by the Brazilian Federal Police. Companies that handle the 22
substances in List I, commonly referred to as precursors, of the
aforementioned decree are also regulated by Brazil's National
Sanitary Vigilance Agency (ANVISA).
¶34. The GOB has fulfilled the 1988 UN drug convention goals
relating to chemicals and is a party to international agreements on
a method for maintaining records of transactions of an established
list of precursor and essential chemicals. The GOB participates in
and supports multilateral chemical control initiatives. The
Brazilian Federal Police have agreed to work with the DEA to perform
a study on the use within Brazil and the exportation of Acetic
Anhydride from Brazil; this is in conjunction with Operation Topaz.
The Brazilian Federal Police respond to the DEA's Multilateral
Chemical Reporting Notifications (Pre-notifications of exports of
controlled chemicals) in a timely fashion. The Brazilian Federal
Police make records relating to chemical transactions available to
USG law enforcement officials when requested. In summary, the GOB
is interested and proactive in chemical control.
CHICOLA