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### Viewing cable 05BRASILIA61, BRAZIL 2004-2005 INTERNATIONAL NARCOTICS CONTROL

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05BRASILIA61 | 2005-01-06 13:43 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 07 BRASILIA 000061

    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 NAS
    SUBJECT:  BRAZIL 2004-2005 INTERNATIONAL NARCOTICS CONTROL
    STRATEGY REPORT (INCSR)

    REF:  STATE 248987

    ¶1.  Following is Brazil's 2004-2005 INCSR. As requested in
    reftel, the money laundering portion of the INCSR will be
    submitted separately.

    BRAZIL

    ----------
    ¶I. SUMMARY
    ----------
    ¶2.   The principal event of 2004 in Brazil's anti-narcotics
    effort was the long awaited implementation of a shoot down
    law that the Brazilian Congress passed years earlier but
    was only put into effect on October 17 after President Lula
    signed the necessary implementing decree.  The GOB adopted
    a new national strategy document for combating money
    laundering.  A principle aim of the 32 goals articulated in
    the strategy document is to better coordinate disparate
    federal and state level anti-money laundering efforts.
    Operation COBRA (Colombia  Brazil) based in Tabatinga,
    Brazil has now been functioning for almost four years and
    is showing positive results.  Similar operations on the
    Venezuelan and Peruvian borders are now up and running.

    ¶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.  Brazil is a conduit for cocaine base and cocaine HCL
    moving from source countries to Europe and Brazilian urban
    centers, as well as a conduit for smaller amounts of heroin
    moving from source countries to the U.S. and Europe.  Crack
    cocaine is used among youths in the country's cities,
    particularly Sao Paulo and Rio de Janeiro.  Brazil is not a
    significant drug-producing country.  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 2004
    ------------------------------------------

    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.  The GoB adopted at end-2003 a new national strategy
    document for combating money laundering.  A principle aim
    of the 32 goals articulated in the strategy document is to
    better coordinate disparate federal and state level anti-
    money laundering efforts, and to that end a high-level
    coordination council was created, led by the Ministry of
    Justice's Office for Asset Seizure and International
    Juridical Cooperation.  The council oversees the financial
    intelligence work of Brazil's Council for the Monitoring of
    Financial Activities (COAF), which has been strengthened
    with additional analysts.  In addition to its strategic
    coordination role, the council may assign specific cases to
    law enforcement task forces for investigation.

    Implementation of much of the strategy is ongoing, with
    task forces set up to draft legislative changes necessary
    to facilitate law enforcement access to financial
    information during investigations, to refine existing
    legislation to facilitate prosecutions of money laundering
    and terrorism finance cases, as well as to study the
    criminalization of illicit enrichment.  Creation of a
    unified database of all money laundering investigations and
    a national level registry of real estate, steps which would
    aid investigators, is also contemplated.

    ¶7.  After a year of intensive negotiations with the USG to
    successfully secure a Presidential Determination addressing
    liability issues under U.S. law, the GOB implemented its
    air bridge denial ("shootdown") law on 17 October 2004.
    Brazil's law and program permit the Brazilian air force to
    use lethal force interdiction against civil aircraft
    suspected to be engaged in aerial narcotrafficking flights.
    The USG considered that the threat to Brazil's national
    security, as well as its operational safety procedures for
    the program, were sufficiently strong to justify the U.S.
    Presidential Determination, which is similar to the
    determination in place for Colombia's ABD program. (Under
    certain circumstances, U.S. law criminalizes actions that
    lead to shooting down a civil aircraft, hence a special
    determination from the President based on compelling and
    extraordinary circumstances was required to address U.S.
    legal issues.) The determination is subject to annual
    review and renewal by the USG.  The GOB indicates it has
    seen a substantial decrease in suspect aerial activity
    since the law went into force.  There have been no
    shootdown or warning shot incidents thus far.

    ¶8.  Brazil has forged closer ties with its neighbors in the
    war against drugs as a result of the "joint commission"
    (CM) the GOB formed in 2003.   The Brazilian Foreign
    Ministry, with representatives from the Federal Police,
    SENAD, SENASP (National Public Safety Secretariat), ANVISA
    (National Agency of Health Monitoring), Health Ministry,
    and ABIN (National Intelligence Agency) make up the CM.
    The CM along with the creation of an intelligence center in
    the Tri-Border area and the various border operations have
    increased cooperation between Brazil and its neighbors.

    ¶9.    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, is a
    national system to integrate diverse state civil and
    military police forces.  Each state has formulated its own
    public safety plan, in accordance with SENASP's national
    plan.  SUSP assists the GOB in ensuring a unified approach
    to law enforcement and statistical crime and narcotics
    seizures reporting.

    ---------------
    ACCOMPLISHMENTS
    ---------------

    ¶10.  In 2004, the GOB exercised a regional counternarcotics
    leadership role.  In June "Operation Seis Fronteiras" (see
    para 30) was carried out with the intention of disrupting
    the illegal flow of precursor chemicals in the region.  GOB
    continued its support of "Operation Alliance" with
    Brazilian and Paraguayan counterdrug interdiction forces in
    the Paraguayan-Brazilian border area.  In August, the GOB
    in partnership with UNODC hosted a seminar on money
    laundering that drew participants from all over Brazil and
    also included the presence of President Lula.

    ------------------------------
    ILLICIT CULTIVATION/PRODUCTION
    ------------------------------

    ¶11.  With the exception of some cannabis grown primarily
    for domestic consumption in the interior of the northeast
    region, there is no significant evidence of the cultivation
    of illicit drugs in Brazil.  Brazilian Federal Police
    analysts believe that international narcotics trafficking
    organizations could increase numbers of cocaine processing
    laboratories in Brazilian territory however a steady supply
    from Bolivia and to a lesser extent Colombia, have not made
    it necessary.

    ------------
    DISTRIBUTION
    ------------

    ¶12.  Federal Counternarcotics Police and state authorities
    are investigating the extensive domestic distribution
    networks in major and secondary cities in Brazil.
    -----------------------------
    SALE, TRANSPORT AND FINANCING
    -----------------------------
    ¶13.  The Federal Police took measures to identify
    significant drug trafficking trends, patterns, and
    traffickers throughout Brazil in 2004.  Although one or two
    monthly deliveries of large amounts of Colombian cocaine
    may be shipped to Brazil's urban centers of Rio de Janeiro
    and Sao Paulo, Federal Police analysis indicates that
    Bolivian cocaine and Paraguayan marijuana generally tend to
    dominate in those markets.

    -------------
    ASSET SEIZURE
    -------------
    ¶14.  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 one
    airplane, 554 motor vehicles, 39 motorcycles, 4 boats, 253
    firearms, and 984 cell phones were seized in 2004.

    -----------
    EXTRADITION
    -----------

    ¶15.  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 the case where there is sufficient evidence of
    participation in the illicit traffic of narcotics and
    related drugs, under the terms of the law. 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 were carried out
    during 2004.  There were three extraditions from Brazil to
    the U.S. in 2003, one of which was narcotics-related.

    ¶16.  There are no pending narcotics-related extradition
    cases of non-Brazilian citizens.  There are five other
    cases of non-Brazilian citizens (all U.S. citizens) who are
    currently incarcerated in Brazil and are pending
    extradition to the U.S. on financial/white collar (non-
    narcotics) charges.  Two were arrested in 2004 and 2003 and
    one was arrested in 2002.

    -----------------------
    MUTUAL LEGAL ASSISTANCE
    -----------------------

    ¶17.  During 2003, various USG agencies and sections,
    including NAS, State Department Public Diplomacy Section,
    DHS, DEA, FBI, and others have provided training throughout
    Brazil in a wide variety of law enforcement areas,
    including combating money laundering, cyber-crime,
    community policing, port security, crisis management and
    demand reduction programs.

    ¶18.   Brazilian Law Enforcement also eagerly accepted
    opportunities to attend training programs in the United
    States.   Money laundering, drug courts, and the F.B.I.
    academy were some of the more notable areas of interest.

    ---------------------------------------
    LAW ENFORCEMENT AND TRANSIT COOPERATION
    ---------------------------------------

    ¶19.  The DPF, SENAD and SENASP continued to express their
    interest in active cooperation, particularly intelligence
    sharing, and coordination with the U.S. in drug control
    activities.

    ¶20.  Brazil cooperates with authorities in neighboring
    countries, particularly Colombia, Peru and Bolivia, to
    enhance regional counternarcotic efforts.  In June 2004, 13
    law enforcement officers attended specialized training in
    Bolivia.  Brazilian authorities maintain good working
    relationships with their neighboring counterparts.  A head
    of the training section of the Brazilian Federal Police
    academy attended a high level planning meeting in Panama
    City for the planned International Law Enforcement Academy
    (ILEA).  In January 2004, a group of 12 Brazilian police
    officers (9 Federal, 2 state military, and one civilian)
    attended the ILEA advanced management course in New Mexico.
    Seven policemen from the state of Minas Gerais participated
    in a community policing exchange in Austin, Texas.  This
    program also gave the same opportunity for police from
    Texas to visit Brazil.

    ----------------
    DEMAND REDUCTION
    ----------------

    ¶21. The DARE (Drug Abuse Resistance and Education) program
    (known as PROERD in Brazil) is now active in all 26 states
    of Brazil and the Federal District.  Through the Brazilian
    National Public Safety Secretariat (SENASP) and the
    National Antidrug Secretariat (SENAD), NAS assisted in
    financing and logistics, and NAS personnel visited several
    of the training sessions.  Brazil has the largest DARE
    program outside of the U.S.  The DARE program reinforces a
    positive image of local police forces, while providing a
    strong message concerning demand reduction.  NAS, along
    with several NGOs and the U.S. Consulate in Sao Paulo, is
    working to establish the 40 Assets Program in Sao Paulo.
    The program should be functioning by early 2005.  NAS
    provided funding for SENAD and the Ministry of Education to
    provide training to thousands of school teachers nationwide
    via the educational television network.  The programs
    provide the teachers with an anti-drug curriculum.  The
    SENAD toll-free number on drug information is in the
    process of be upgraded to be able to handle more calls and
    provide medical counseling.

    -----------------------
    LAW ENFORCEMENT EFFORTS
    -----------------------

    ¶22.  In 2004, the Federal Police seized 7.7 metric tons of
    cocaine HCl and 120 kilograms of crack.  Marijuana
    (cannabis) seizures totaled 149.2 metric tons in 2004.
    Three cocaine drug laboratories were dismantled in 2004.
    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
    ----------

    ¶23.  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
    -----------------------

    ¶24.  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
    -----------------

    ¶25.  Marijuana from Paraguay and cocaine from Bolivia are
    smuggled into Brazil across remote border areas and are
    destined primarily for domestic consumption.  Federal
    Police officials indicate that cocaine leaving Colombia and
    entering Brazil by air is destined for international
    markets in Europe hidden in containerized cargo.  Brazil's
    recently enacted shootdown law has had an effect on
    clandestine flights.  Sources [and the press] indicate that
    flights are down by 35 percent.  It is too soon to tell
    what real impact the law will have in the long run.
    According to Federal Police, smaller amounts of cocaine
    leave Colombia via Brazil's waterway networks in the Amazon
    region and are mainly destined for the Brazilian domestic
    market.  In addition, smaller quantities of heroin have
    been detected moving through Brazil from source countries
    to the U.S. and Europe.

    -----------------------
    U.S. POLICY INITIATIVES
    -----------------------

    ¶26.  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
    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
    ---------------------

    ¶27.  In accordance with the bilateral U.S.-Brazil letter of
    agreement (LOA) on counternarcotics, bilateral programs
    that took place in 2004 included:  cooperation with the
    Regional Intelligence Center of Operation COBRA; expansion
    of COBRA prototype to other areas of the country, a
    country-wide conference on money laundering in Brasilia;
    and a SENAD project that involves a partnership with the
    Ministry of Education to provide long distance drug
    prevention training to over 5,000 teachers nation wide via
    the educational television network.  Brazil and the U.S.
    are seeking to meet all goals set forth in the bilateral
    LOA.

    ¶28.  Through the LOA, in 2004, the USG worked closely with
    the Federal Police, SENASP (Brazilian National Public
    Safety Secretariat), and SENAD.  Various operations, such
    as Operation Alianza (Brazil, Paraguay) that involved
    marijuana eradication/interdiction, Operation Six Frontiers
    and a chemical control task force in the port of Santos
    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.  The USG worked closely with SENAD
    in 2004 on programs such as DARE, the implementation of a
    nation-wide drug use survey and a toll free counseling
    hotline.

    ¶29.  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.

    ¶30.  Operation Seis Fronteiras VI is part of a continuing
    regional exercise involving Brazil, Bolivia, Colombia,
    Ecuador, Peru, Venezuela, and U.S. DEA to concentrate
    antidrug law enforcement efforts in the area of precursor
    chemicals, and has been successful.

    ¶31.  Bilateral cooperation between the USG/NAS and Brazil
    has never been better.  A number of conferences exchange,
    training programs and seminars took place during the last
    year.  Brazilian Federal and State Police were sent for
    training to the United States on various occasions.
    Representatives from U.S. Agencies such as DEA, DHS, FBI,
    U.S. Coast Guard among others came to Brazil to train anti-
    drug units and give presentations at conferences.  This
    relationship is expected to expand during the coming year
    due to the excellent relationship between the two countries
    and an increase in funding under the LOA.

    --------------
    THE ROAD AHEAD
    --------------

    ¶32.  The biggest challenge for Brazil in the war against
    narcotrafficking is to secure its frontiers by increasing
    interdiction efforts against criminal organizations that
    are able to exploit a vast border area to smuggle their
    goods.  Fully functional border operations like COBRA
    (Colombia) located in northern Brazil and others still in
    their initial start-up phase such as; Vebra (Venezuela),
    PEBRA (Peru), and BRABO (Bolivia) are one of the keys to
    obtaining this goal.  The planned opening of a joint
    intelligence center in early 2005 in the southern Tri-
    Border area will be a step forward in the fight against
    narcotrafficking and other illegal activities in the
    region.  The center will include representatives from
    Argentina and Paraguay thus ensuring better cooperation
    among the three countries.  Another crucial development
    last year was the implementation of Brazil's shootdown law.
    This law should assist in reducing the number of illegal
    flights over the country's expansive borders.

    ------------------
    Statistical tables
    ------------------

    ¶33.  Calendar year         2004         2003       2002

    Coca
       Eradication (mt)          -             -          -
       Cocaine seizures (mt)      7.7           7.3       7.5
       Crack cocaine (mt)          .12           .13       .15

    Cannabis
       Eradication*                .69       1.8          1.6
       Marijuana seizures (mt) 149.2      157.7        173.3

    * .96 million plants destroyed.  Conversion to metric tons
    not given.

    Arrests                    1,853        1,840      1,621

    Labs destroyed
    Cocaine HCL                   3           1          2

    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
    --------------------------

    ¶34.  Brazil requires registration with Federal Narcotics
    Police for all production, transport and distribution of
    precursor chemicals. In August 2003, the GOB Justice
    Ministry issued a regulation to prevent the manufacture of
    illegal drugs, which requires the control, and inspection
    of approximately 150 chemical substances.  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. These documents must be issued by the
    Federal Police.

    ¶35.  The Federal Police have organized precursor chemical
    training and initiated interdiction operations of chemical
    precursors, including cyclical audits and investigations of
    Brazilian chemical firms.  Brazil is compliant with the
    agreements to establish a method for maintaining records of
    transactions of the established list of precursor and
    essential chemicals and has established procedures under
    which such records can be made available to other
    countries' law enforcement authorities.
    Danilovich

`