iddle Eastern consumption; money laundering of drug
proceeds fuels concern that extremists are benefiting from drug
trafficking

Liberia
transshipment point for Southeast and Southwest Asian heroin
and South American cocaine for the European and US markets;
corruption, criminal activity, arms-dealing, and diamond trade
provide significant potential for money laundering, but the lack of
well-developed financial system limits the country's utility as a
major money-laundering center

Liechtenstein
has strengthened money laundering controls, but money
laundering remains a concern due to Liechtenstein's sophisticated
offshore financial services sector

Lithuania
transshipment and destination point for cannabis, cocaine,
ecstasy, and opiates from Southwest Asia, Latin America, Western
Europe, and neighboring Baltic countries; growing production of
high-quality amphetamines, but limited production of cannabis,
methamphetamines; susceptible to money laundering despite changes to
banking legislation

Macau
transshipment point for drugs going into mainland China;
consumer of opiates and amphetamines

Macedonia
major transshipment point for Southwest Asian heroin and
hashish; minor transit point for South American cocaine destined for
Europe; although not a financial center and most criminal activity
is thought to be domestic, money laundering is a problem due to a
mostly cash-based economy and weak enforcement

Madagascar
illicit producer of cannabis (cultivated and wild
varieties) used mostly for domestic consumption; transshipment point
for heroin

Malaysia
drug trafficking prosecuted vigorously and carries severe
penalties; heroin still primary drug of abuse, but synthetic drug
demand remains strong; continued ecstasy and methamphetamine
producer for domestic users and, to a lesser extent, the regional
drug market

Malta
minor transshipment point for hashish from North Africa to
Western Europe

Mauritius
consumer and transshipment point for heroin from South
Asia; small amounts of cannabis produced and consumed locally;
significant offshore financial industry creates potential for money
laundering, but corruption levels are relatively low and the
government appears generally to be committed to regulating its
banking industry

Mexico
major drug-producing nation; cultivation of opium poppy in
2007 rose to 6,900 hectares y