CURACAO: 2007-2008 INTERNATIONAL NARCOTICS CONTROL STRATEGY

UNCLAS SECTION 01 OF 05 CURACAO 000938

SIPDIS

SIPDIS

STATE FOR INL/LP, WHA/CAR - JROSHOLT, KWILLIAMS

E.O. 12958: N/A
TAGS: SNAR PREL PGOV KCRM NA AA
SUBJECT: CURACAO: 2007-2008 INTERNATIONAL NARCOTICS CONTROL STRATEGY
REPORT (INCSR) PART I, DRUGS AND CHEMICAL CONTROL

REF: STATE 136787


I. Summary


1. Aruba, the Netherlands Antilles, and the Netherlands
together form the Kingdom of the Netherlands. The two Caribbean
parts of the Kingdom have autonomy over their internal affairs,
with the right to exercise independent decision making in a
number of counter narcotics areas. The Government of the
Netherlands (GON) is responsible for the defense and foreign
affairs of all three parts of the Kingdom and assists the
Government of Aruba (GOA) and the Government of the Netherlands
Antilles (GONA) in their efforts to combat narcotics
trafficking. The Kingdom of the Netherlands is a party to the
1988 UN Drug Convention, and all three parts are subject to the
Convention. Both Aruba and the Netherlands Antilles are active
members of the Financial Action Task Force (FATF) and Caribbean
Financial Action Task Force (CFATF).

II. Status of Country


2. Netherlands Antilles. The islands of the Netherlands
Antilles (NA) (Curacao and Bonaire off Venezuela and Saba, Saint
Eustatius, and Sint Maarten east of the U.S. Virgin Islands)
continue to serve as northbound transshipment points for cocaine
and increasing amounts of heroin coming from South America;
chiefly Colombia, Venezuela, and to a much lesser extent,
Suriname. These shipments typically are transported to U.S.
territory in the Caribbean by "go-fast" boats although use of
fishing boats, freighters, and cruise ships are becoming more
common. Direct transport to Europe, and at times to the U.S., is
sometimes by "mules" (drug couriers) using commercial flights.
The DEA and local law enforcement saw continued go-fast boat
traffic this year with some load sizes reduced because of a
potential exposure to law enforcement. This shift was attributed
to successful investigations along with investments by the
Antilles in border security like the new ground- based radar
system capable of identifying inbound vessels. These shipments
were generally en route to Puerto Rico or the U.S. Virgin
Islands, but Sint Maarten continued to hold some measurable
popularity among couriers as a gateway to Europe. In addition to
go-fast boat activity and smuggling via commercial airlines,
large quantities of narcotics continued to be moved through in
containers.


3. The Netherlands Antilles is expected be dissolved, and Sint
Maarten and Curacao are scheduled to attain autonomous country
status within the Kingdom of the Netherlands (similar to Aruba's
status) in December of 2008. Sint Maarten's geographic location
and its multi-national population make it an ideal transshipment
point between South America and the United States, for drug and
human smuggling. Statistics on significant seizures in 2006
indicate that Dutch Sint Maarten remains a staging ground for
moving cocaine and heroin into the U.S. market. Officials in
Sint Maarten have taken this threat seriously by initiating
joint U.S. cooperative investigations, as well as adopting new
law enforcement strategies to combat the problems. Sailing
vessels and larger vessels continued to be identified
infrequently as they were used to clandestinely move
multi-hundred kilogram shipments of cocaine under the guise of
recreational maritime traffic. Drug smugglers have a multitude
of routes and methods. The diversity of the methods, coupled
with inadequate law enforcement controls upon the flow of goods,
works in favor of criminals. Dutch Sint Maarten is considered a
"Free Zone", which means there are limited controls placed on
import and export of goods. This situation also applies to
financial crimes. The absence of stringent checks into monetary
flows means that money laundering and proceeds from illegal
activities are relatively easy to conceal. Several authorities
within the GONA cite the lack of personnel with adequate
training in these areas. As a result, checks and investigations
can not be carried out effectively.


4. In Curacao, the crackdown at Curacao's Hato International
Airport on "mules"-who either ingest or conceal on their bodies
illegal drugs-which began in 2002 continued during 2007.
Historically, most of the courier traffic (current estimate is
95 percent) has been destined for Europe. Since the inception of
the "Hato Team" concept of interagency cooperation in 2002, at
least 13,000 persons have been denied boarding based on
suspicion of drug trafficking. During 2004, Dutch officials in
The Netherlands initiated a "100 percent Check" on all
passengers arriving at Amsterdam's Schiphol Airport from the
Antilles. The Antilles joined in the effort by initiating a
program during 2004 wherein Antilleans identified attempting to
carry drugs to Europe automatically lost their passports for a
period of two years, although this action has been challenged as
a human rights violation. The previous year saw positive results

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from the intensification of regional law enforcement against
this endemic problem. During 2007, the Antillean authorities
continued to report a significant reduction in courier traffic.
The problem, which originally consisted of the detention of
between eighty and one hundred couriers a day, was diminished in
recent years to a steady rate of approximately ten couriers per
month according to 2007 local court statistics. These results
were directly attributed to aggressive law enforcement tactics
employed by Antillean authorities, in conjunction with their
Dutch partners, that led to significant seizures and the
dismantling of responsible organizations coupled with innovative
legislative tactics like passport removal.


5. Consistent with the continued smuggling ventures, arrests
were frequent in 2007. Curacao's prison remains at capacity and
management problems there persist. Aware of this problem, the
GONA, with the assistance of their Dutch partners, has
undertaken efforts to reduce the prison population by pre-trial
diversion of non-violent offenders and by constructing new jail
space with Dutch financial assistance.


6. The crime and homelessness stemming from drug abuse remained
important concerns for the GONA. During 2007, reporting
continued to indicate even further reductions in drug related
homicides to below levels prior to the 2002 spike. This was
attributed to successful regional enforcement operations and
legislative action. The GONA continued its policy of requiring
visas of Colombians and several other countries. The GONA's
"Zero Tolerance" teams, whose primary mission is to identify
illegal immigrants to the islands and deport them, remained
active during 2007.


7. Elected officials and all elements of the law enforcement
and judicial community recognize that the NA, chiefly due to
geography, face a serious threat from drug trafficking. The
police, who are understaffed and need additional training, have
received some additional resources, including various support
and training by the Netherlands and the United States including
recent training regarding money laundering investigations. The
rigorous legal standards that must be met to prosecute cases
constrain the effectiveness of the police; nevertheless, local
police made progress in 2006 and 2007 in initiating complex,
sensitive cases targeting upper-echelon traffickers. These
efforts demonstrated the effectiveness of cooperation with other
law enforcement entities in the region. In 2007, the level of
Dutch Police presence remained consistent.


8. The far-reaching restructuring of the police, started in
2000, continues to show results. During 2007, the newly
appointed Police Chief in conjunction with the Minister of
Justice made a concentrated effort to improve Criminal
Intelligence by creating a new Operational Intelligence Unit
within the Curacao Police Corps. These improvements were formed
through money grants from the Netherlands and partnerships with
U.S. law enforcement; specifically the Drug Enforcement
Administration. This specialized Intel Unit has made a favorable
impact on the Police Department and has improved investigative
effectiveness. In 2007, as in previous years, the priority
was, and continues to be, improving the expertise of the
financial investigation team. Successful joint Antillean/Dutch
investigations conducted by the Hit and Run Money Laundering
Team (HARM) have become commonplace during 2007.


9. The specialized Dutch police units (RSTs) that support law
enforcement in the NA continued to be effective in 2007 and to
include local officers in the development of investigative
strategies to ensure exchange of expertise and information.
During the year, the RST improved their place in the regional
scheme of enforcement as a viable international partner for law
enforcement matters. During 2007, RST efforts culminated in
several successful operations. The RST Curacao had its biggest
success in a joint international money laundering operation
named "Operation Kings Cross" which focused on illegal
activities within the Curacao Free Zone. This operation
resulted in the seizure of $120,000.00 in Euros and $130,000.00
in US Currency and the arrest of the principal target in the
investigation. In another joint RST investigation named
"Operation Pick Pocket" results included the seizure of 542
kilograms of cocaine; 10 kilograms of heroin; and the arrest of
61 defendants.


10. The Netherlands Antilles and Aruba Coast Guard (CGNAA)
scored a number of successes in 2007. The CGNAA was responsible
for several seizures of cocaine, heroin, and marijuana. As an
example of their continued success and ability to be forward
leaning with law enforcement initiatives, during October 2007,
the CGNAA, in coordination with the RST Curacao seized

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approximately 35 kilograms and a go-fast vessel. Seizures like
this by the CGNAA have become commonplace and highlight the
CGNAA's desire to be a regional player in law- enforcement
endeavors. The CGNAA's three cutters, outfitted with rigid-hull
inflatable boats (RHIBs) and new `super' RHIBs designed
especially for counter narcotics work in the Caribbean,
demonstrated their utility against "go-fast" boats and other
targets.


11. The CGNAA has developed an effective counter narcotics
intelligence service and is considered by the U.S. Coast Guard
and DEA to be an invaluable international law enforcement
partner. Authorities in both the NA and Aruba are intent on
ensuring that there is a proper balance between the CGNAA's
international obligation to stop narcotics trafficking through
the islands, and its local responsibility to stop narcotics
entry into the islands. Under the continued leadership of the
Attorney General, the GONA continued to strengthen its
cooperation with U.S. law enforcement authorities throughout

2007. This cooperation extended to Sint Maarten, where the
United States and the GONA continued joint efforts against
international organized crime and drug trafficking.


12. The regular Dutch Navy also operates in the Netherlands
Antilles under the auspices of Component Task Group 4.4 (CTG
4.4) which operates in international waters under the oversight
of the Joint Inter Agency Task Force (JIATF) South. Over the
past two years, particularly during 2006 and 2007, the CTG 4.4
has become a close and essential ally of the DEA and other U.S.
agencies. Their continual efforts to thwart drugs trafficking
from the region have been noted at the highest levels of the DEA
and U.S. government. Several notable seizures occurred during

2007. The most impressive effort was the tracking of a maritime
vessel from Colombia past the ABC Islands to Puerto Rico which
ultimately culminated with the seizure of approximately 153
kilograms of heroin.


13. In addition to these improvements in law enforcement, the
GONA demonstrated its commitment to the counter narcotics effort
by continued support for a U.S. Forward Operating Location (FOL)
at the Curacao Hato International Airport. Under a ten-year use
agreement signed in March 2000 and ratified in October 2001 by
the Dutch Parliament, U.S. military aircraft conduct counter
narcotics detection and monitoring flights over both the source
and transit zones from commercial ramp space provided free of
charge. A major expansion project at the airport that began in
January 2002 and completed during September 2003 significantly
increased the FOL's capacity.


14. Aruba. Aruba is a transshipment point for increasing
quantities of heroin, and to a lesser extent cocaine, moving
north, mainly from Colombia, to the U.S. and secondarily to
Europe. Drugs move north via cruise ships and the multiple daily
flights to the U.S. and Europe. The island attracts drug
traffickers with its good infrastructure, excellent flight
connections, and relatively light sentences for drug-related
crimes served in prisons with relatively good living conditions.
This problem is affected by continued successes in Curacao
during 2006-2007, which necessitated a change in route on the
part of the traffickers in the region.


15. While Aruba enjoys a low crime rate, crime reporting during
2007 indicates that prominent drug traffickers are established
on the island. Drug abuse in Aruba, including among tourists,
remains a cause for concern. Cruise lines that visit Aruba have
instituted strict boarding/search policies for employees in
order to thwart efforts of the traffickers to establish regular
courier routes back to the United States. The expanding use of
MDMA in clubs by young people attracts increasing attention.
Private foundations on the island work on drug education and
prevention and the Aruba government's top counter narcotics
official actively reaches out to U.S. sources for materials to
use in prevention programs. The police also work in demand
reduction programs for the schools and visit them regularly. The
Government has established an interagency commission to develop
plans and programs to discourage youth from trafficking between
the Netherlands and the U.S. The Government has been very clear
that it intends to pursue a dynamic counter narcotics strategy
in close cooperation with its regional and international
partners.


16. In 2007, Aruba law enforcement officials continued to
investigate and prosecute mid-level drug traffickers who supply
drugs to "mules." During 2007, there were several instances
where Aruba authorities cooperated with U.S. authorities to
realize U.S. prosecutions of American citizens arrested in Aruba
while attempting to return to the United States with drugs in

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multi-kilogram quantities. Aruba also devotes substantial time
and effort to the identification of the person's responsible for
the importation of drugs to Aruba.


17. The GOA hosts the Department of Homeland Security's (DHS)
Bureau of Customs and Border Protection pre-inspection and
pre-clearance personnel at Reina Beatrix airport. These officers
occupy facilities financed and built by the GOA. DHS seizures of
cocaine and heroin were frequent in 2007. Drug smugglers
arrested are either prosecuted in Aruba or returned to the U.S.
for prosecution. Aruba jails remain critically overcrowded. The
GOA established special cells in which to detain those suspected
of ingesting drugs. Aruba officials regularly explore ways to
capitalize on the presence of the FOL and pre-clearance
personnel, seeking to use resident U.S. law enforcement
expertise to improve local law enforcement capabilities. Aruba
also continued to participate in the Coast Guard of the
Netherlands Antilles and Aruba.

III. Country Actions Against Drugs in 2007


18. Agreements and Treaties. The Netherlands extended the 1988
UN Drug Convention to the NA and Aruba in March 1999, with the
reservation that its obligations under certain provisions would
only be applicable in so far as they were in accordance with NA
and Aruba criminal legislation and policy on criminal matters.
The NA and Aruba subsequently enacted revised, uniform
legislation to resolve a lack of uniformity between the asset
forfeiture laws of the NA and Aruba. The obligations of the
Netherlands as a party to the 1961 UN Single Convention on
Narcotic Drugs, as amended by the 1972 Protocol, apply to the NA
and Aruba. The obligations of the Netherlands under the 1971 UN
Convention on Psychotropic Substances have applied to the NA
since March 10, 1999. The Netherlands's Mutual Legal Assistance
Treaty (MLAT) with the United States applies to the NA and
Aruba. Both Aruba and the NA routinely honor requests made under
the MLAT and cooperate extensively with the United States on law
enforcement matters at less formal levels.


19. Cultivation/Production. Cultivation and production of
illicit drugs are not issues.


20. Seizures. Available drug seizure statistics for calendar
year 2007 as of October 31, 2007 are as follows:
Aruba seized 390 kilograms of cocaine and 13 kilograms of
heroin.
The Netherlands Antilles seized 638 kilograms of cocaine and 10
kilograms of heroin.


21. Corruption. The effect of official corruption on the
production, transportation, and processing of illegal drugs is
not an issue for Aruba. During 2007, the NA continued an
aggressive and notably successful program to identify certain
links from prominent traffickers in the region to law
enforcement officials, which prompted additional investigation
in the region. The NA has been quick to address these issues
through criminal investigations, internal investigations, new
hiring practices, and continued monitoring of law enforcement
officials that hold sensitive positions. To prevent such public
corruption, there is a judiciary that enjoys a well-deserved
reputation for integrity. It has close ties with the Dutch legal
system including extensive seconding of Dutch prosecutors and
judges to fill positions for which there are no qualified
candidates among the small Antillean and Aruban populations.


22. Domestic Programs (Demand Reduction). Both the NA and Aruba
have ongoing demand reduction programs, but need additional
resources. In 2007, the Curacao Police Corps in conjunction with
D.A.R.E. opened a new D.A.R.E. facility in Willemstad, Curacao
to aid in Demand Reduction activities for the youth of Curacao.

IV. U.S. Policy Initiatives and Programs


23. The United States encourages Aruba and NA law enforcement
officials to participate in INL-funded regional training courses
provided by U.S. agencies at the GOA and GONA's expense. Chiefly
through the DEA and DHS/Immigration and Customs Enforcement, the
United States is able to provide assistance to enhance technical
capabilities as well as some targeted training. The U.S.
continues to search for ways in which locally assigned U.S. law
enforcement personnel can share their expertise with host
country counterparts.


24. Appreciation of the importance of intelligence to effective
law enforcement has grown in the Dutch Caribbean. The USG is
expanding intelligence sharing with GOA and GONA officials as
they realize the mutual benefits that result from such sharing.

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Because U.S.-provided intelligence must meet the strict
requirements of local law, sharing of intelligence and law
enforcement information requires ongoing, extensive liaison work
to bridge the difference between U.S. and Dutch-based law.
DUNNTJ