2005 INCSR SUBMISSION FOR ITALY (PART I)

UNCLAS SECTION 01 OF 04 ROME 004029

SIPDIS

DEPT FOR INL AND EUR/WE
JUSTICE FOR OIA, AFMLS, AND NDDS
TREASURY FOR FINCEN
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL

E.O. 12958: N/A
TAGS: SNAR IT EUN
SUBJECT: 2005 INCSR SUBMISSION FOR ITALY (PART I)

REF: STATE 209561


1. Summary. The Government of Italy (GOI) is firmly
committed to the fight against drug trafficking domestically
and internationally. The Berlusconi government continues its
strong counternarcotics stand with capable and effective
Italian law enforcement agencies. Italy is a consumer
country and a major transit point for heroin coming from the
Near East and southwest Asia through the Balkans, as well as,
for cocaine originating from South America enroute to
western/central Europe. Domestic and Italy-based foreign
organized crime groups are heavily involved in international
drug trafficking. GOI cooperation with U.S. law enforcement
agencies continues to be exemplary. Italy is a party to the
1988 UN Drug Convention. End summary.

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Status of Country
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2. Italy is mainly a narcotics transit and consumption
country. Law enforcement officials focus their efforts on
heroin, cocaine, and hashish. Possession of small amounts of
illegal drugs is an administrative, not a criminal, offense,
but drug traffickers are subject to stringent penalties.
Although Italy produces some precursor chemicals, they are
well controlled in accordance with international norms, and
not known to have been diverted to any significant extent.
Law enforcement agencies with a counternarcotics mandate are
highly professional.

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Country Actions Against Drugs in 2005
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3. Policy Initiatives. Italy continues to combat narcotics
aggressively and effectively. The Berlusconi government has
made combating drug abuse a high priority, although its focus
is more on prevention, improved treatment, and rehabilitation
than criminalization. A draft law submitted to Parliament in
late 2003 would change this approach, eliminating the legal
distinction between hard and soft drug use as well as
decreasing the tolerance for possession of a "moderate
quantity" of drugs, making possession and personal use of
drugs illegal. At a minimum, drug users would be compelled
to enter treatment or face administrative penalties such as
suspension of driving licenses or passports. Above certain
prescribed levels, violators would face criminal charges,
including 6-20 years in prison, and fines ranging from
$22,000 to over $220,000. The Senate Justice Committee began
deliberations on the bill in late 2004 and continued as of
late 2005.


4. At the multilateral level, Italy contributed $12 million
to the UN Office of Drug Control and Crime Prevention
(UNODC),making it one of the largest contributors to the
UNODC budget. Italy also supported U.S. key objectives at
the UN commission on narcotic drugs. The Italian EU
presidency in 2003 championed the need to get tougher on
synthetic drugs, enhance counternarcotics assistance in the
Balkans, and strengthen the role of the family in drug abuse
prevention. In 2002, the GOI established a national
department for drug control policy in the Office of the Prime
Minister to coordinate anti-drug initiatives and implement
the government,s three-year, national drug control plan.


5. Accomplishments. Comparing data from January to October
for 2004 and 2005, seizures of cocaine and hashish have
increased, while those of heroin and marijuana have
decreased. As of October 2005, the Italian police seized
about 27,000 kilograms of narcotics, and apprehended 18,000
people. The major nationalities of those arrested were
Moroccan, Tunisian, Albanian, Algerian, Nigerian, Spanish,
Senegalese, and Colombian.


6. Jan-Oct. Seizure Breakdown (kilograms):

Heroin - 1,168.4
Cocaine - 3,714.4
Hashish - 19, 947.5
Marijuana - 2,024.1
MDMA - 284,310 (tablets)


7. In October 2005, the Italian police led an international
drug bust involving five countries (Italy, Spain, Argentina,
France, and the Netherlands) that netted about 1.5 tons of
cocaine and over 120,000 Ecstasy tablets; at least 60 people
were arrested. Also in October, the Italian Carabinieri
(military police) busted an organized crime-led international
drug trafficking network based in southern Italy. Over 40
individuals were arrested and about 100 others were put under
investigation.


8. The fight against drugs is a major priority of the
National Police, Carabinieri, and financial police counter
narcotics units. The counter narcotics units of the three
national police services are coordinated by the Central
Directorate for Drug Control Prevention (DCSA). Working with
the liaison offices of the U.S. and western European
countries, DCSA has 19 drug liaison officers in 18 countries
that focus on major traffickers and their organizations. Two
additional drug liaison positions were created in Tehran,
Iran and Tashkent, Uzbekistan. Investigations of
international narcotics organizations often overlap with the
investigations of Italy,s traditional organized crime groups
(e.g. the Sicilian Mafia, the Calabrian N,drangheta, the
Naples-based Camorra and the Puglia-based Sacra Corona
Unita). During a two-year investigation leading to a major
drug bust in early 2005, Italian officials confirmed working
links on drug trafficking between the Mafia, N,dragheta, and
Camorra.


9. Additional priority trafficking groups are Albanian,
Nigerian and other Balkan organized crime groups responsible
for smuggling heroin into Italy, while Colombian, Dominican
and other South American trafficking groups are involved in
the importation of cocaine. Italian law enforcement officials
employ the same narcotics investigation techniques used by
other western countries: informants, extensive court-ordered
wire-tapping of phones and e-mail accounts, undercover
operations and controlled deliveries under certain
circumstances. Adequate financial resources, money
laundering laws, and asset seizure/forfeiture laws help
insure the effectiveness of these efforts.


10. Corruption. Italian officials do not encourage or
facilitate the illicit distribution of narcotics or the
laundering of proceeds from illegal drug transactions. No
senior official of the government of Italy engages in,
encourages, or facilitates the illicit production or
distribution of such drugs or substances, or the laundering
of proceeds from illegal drug transactions. Corruption
exists in Italy although it rarely rises to the national
level and it does not compromise investigations. When a
corrupt law enforcement officer is discovered, authorities
take appropriate action. Laws against corruption come under
the Criminal Code, apply to all public officials, and pertain
to the receipt of money or other advantages in exchange for
an official act or for delaying or not performing an official
act. Penalties range from 6 months to 5 years in prison,
depending on the charge.

11. Agreements and Treaties. Italy is a party to the 1961
UN Single Convention and its 1972 Protocol, as well as the
1971 UN Convention on Psychotropic Substances, and the 1988
UN Drug Convention. Italy has signed, but has not yet
ratified, the UN Convention Against Transnational Organized
Crime, which is still being examined by the Justice Ministry.
Italy is a signatory to the 2003 UN Convention Against
Corruption but has not yet ratified the treaty. Italy has
bilateral extradition and mutual legal assistance treaties
with the U.S., which will be affected by the new U.S.-EU
mutual legal assistance and extradition treaties agreed to in

2003. Italy and the U.S. have concluded negotiations on the
instruments to implement the U.S.-EU treaties. Translations
of these instruments are being finalized and it is expected
that they will be signed in early 2006.


12. Cultivation/Production. There is no known cultivation of
narcotics plants in Italy, although small-scale marijuana
production in remote areas does exist, but is mainly for
domestic consumption. No heroin laboratories or processing
sites have been discovered in Italy since 1992. However,
opium poppy grows naturally in the southern part of Italy,
including Sicily. It is not commercially viable due to the
low alkaloid content. No MDMA-Ecstasy laboratories have been
found in Italy.


13. Drug Flow/Transit. Italy is a consumer country and a
major transit point for heroin coming from southwest Asia
through the Balkans en route to western and central Europe.
A large percentage of all heroin seized in Italy comes via
Albania (i.e., produced elsewhere). Albanian heroin
traffickers work with Italian criminal organizations as
transporters and suppliers of drugs. Heroin is smuggled into
Italy via automobiles, ferryboats and commercial cargo.
Albania is a source country for marijuana destined for Italy.
During 2002-2004, Italian law enforcement agencies seized
15, 907 kg. of marijuana originating in Albania. Italian
seizures of Albanian marijuana in 2004 (801 kg.) were
significantly lower than 2003 levels (9,258 kg.).


14. Almost all cocaine found in Italy originates with
Colombian and other South American criminal groups and is
managed in Italy mainly by Calabrian-based organized crime
groups. Multi-hundred kilograms shipments enter Italy via
several seaports concealed among commercial cargo. Although
the traditional Atlantic trafficking route is still in use,
stepped up international scrutiny and cooperation are forcing
traffickers to use alternative avenues. Italian officials
have detected traffickers using transit ports in Nigeria,
TOGO, and Ghana where drugs are off-loaded to smaller fishing
vessels that ultimately reach Spain and other Mediterranean
approaches. Cocaine shipments off-loaded in Spain and the
Netherlands are eventually transported to Italy and other
European countries by means of vehicles. Smaller amounts of
cocaine consisting of grams to multi-kilograms enter Italy
via express parcels or airline couriers traveling from South
America. They are usually concealed in luggage.


15. Ecstasy found in Italy primarily originates in the
Netherlands and is usually smuggled into the country by means
of couriers utilizing commercial airlines, trains or
vehicles. Italy is also used as transit point for couriers
smuggling Ecstasy destined for the United States. A method
used by trafficking groups in the past has been to provide
thousands of Ecstasy tablets to couriers in Amsterdam
concealed in luggage. The couriers then travel by train or
airline to Italy facilitated by the EU,s open borders. Once
in Italy, the couriers are provided an originating airline
ticket from Italy to the U.S. disguising the couriers,
recent travel from a source country, thereby minimizing
scrutiny by law enforcement authorities in the U.S.


16. Hashish comes predominantly from Morocco through Spain,
entering the Iberian Peninsula (and the rest of Europe) via
sea access points using fast boats. Hashish also is smuggled
into Italy on fishing and pleasure boats from Lebanon. As
with cocaine, larger hashish shipments are smuggled into
Spain and eventually transported to Italy by vehicle.


17. Domestic Programs/Demand Reduction. The GOI promotes
drug prevention programs using abstinence messages and
treatment aimed at the full rehabilitation of drug addicts.
The Italian Ministry of Health funds 557 public health
offices operated at the regional level while private
non-profit NGOs operate another 1,430 social communities for
drug rehabilitation. Of the 500,000 estimated drug addicts
in Italy, 159,000 receive services at public agencies and
approximately 15,000 are served by smaller private centers.
Others either are not receiving treatment or arrange for
treatment privately. The Berlusconi government continues to
promote more responsible use of methadone at the public
treatment facilities. For 2005, the Italian Government
budgeted $141 million for counter narcotics programs run by
the health, education, and labor ministries. Seventy-five
percent (75 percent) of this amount is dedicated to the
different regions and the remaining twenty-five percent (25
percent) is for national programs.

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U.S. Policy Initiatives and Programs
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18. Bilateral Cooperation. The U.S. and Italy continue to
enjoy exemplary counternarcotics cooperation. The DEA
Administrator visited Italy in April 2004 to discuss
counternarcotics issues with both Italian law enforcement and
ministry level officials. During 2005, the DEA continued the
Drug Sample Program with the GOI, which consists of the
analysis of seized narcotics to determine purity, cutting
agents and source countries. From January-November 2005, the
DEA received approximately 140 samples of heroin, cocaine and
Ecstasy. DEA recently expanded this program to the countries
of Slovenia, Croatia and Albania. The sample collection from
these countries and others in the Balkan region is essential
in determining production methods and trafficking trends that
ultimately impact Italy. The DEA independently conducted
drug awareness programs at international schools in Rome and
Milan. The DEA also provided training to Italian
counterparts in the areas of asset forfeiture, undercover
operations, and forensic chemistry.


19. The Road Ahead. The USG will continue to work closely
with Italian officials to break up trafficking networks into
and through Italy as well as enhance both countries,
abilities to apply effective demand dampening policies. The
Italian authorities are considering an invitation by the
Government of Afghanistan's "Drug Czar" to assign a drug
liaison officer in Kabul, Afghanistan. Italy also maintains
a large liaison office in Albania made up of Carabinieri,
Finance Police, and National Police to assist Albanians
interdicting narcotics originating there and destined for
either Italy or other parts of Europe.
SPOGLI