POROUS BORDERS AND DRUG TRAFFICKING IN URUGUAY

UNCLAS MONTEVIDEO 001072

SIPDIS

SENSITIVE
SIPDIS

STATE FOR S/CT KEN MCKUNE AND INL/LP LCASAS
CIA FOR NCTC
BUENOS AIRES FOR LEGATT (WGODOY) AND DHS/ICE (DFREEMAN)
SOUTHCOM FOR POLAD

E.O. 12958: N/A
TAGS: PGOV PTER SNAR ASEC UY
SUBJECT: POROUS BORDERS AND DRUG TRAFFICKING IN URUGUAY

REF: A. STATE 133921

B. MONTEVIDEO 0947


1. (SBU) This telegram supplements information provided in
reftel B. AmEmbassy Montevideo remains concerned over the
future implications of Uruguay's porous borders,
unprecedented levels of drug-trafficking, and potential money
laundering. The Government of Uruguay (GOU) does not have
adequate resources or expertise to combat all of these issues
simultaneously. It is imperative that we get ahead of the
curve and assist the GOU in its efforts to address these
burgeoning problems. In a recent meeting with RSO, the
Minister of Interior (Daisy Tourne) lamented the lack of
control the GOU has over its borders and the sky-rocketing
seizures of illegal drugs in 2007. She has also expressed
serious concern over potential money laundering in Uruguay.


2. (SBU) The government has scant resources dedicated to
border security. This stems from a general lack of resources
for security and the fact that transnational crime is a
recent phenomenon in Uruguay. The Embassy has planned
fact-finding trips to border areas, particularly to the north
with Brazil in January 2008 to provide additional on-site
reporting. Post also is exploring the establishment of a
U.S. Customs and Border Patrol (CBP) Advisor in Uruguay, as
suggested in reftel, if a funding mechanism can be found.
GoU authorities report that USD 26 million (street value) in
illegal drugs were seized in Uruguay in 2007. This is an
extremely significant amount of trafficking for this small
country. Most of the drugs are/were likely bound for Europe,
but once they leave the harbor, their destination could be to
any viable market, including the U.S. There was an
approximate 100 percent increase in seizures of cocaine and
marijuana in 2007, versus 2006. Uruguayan seizure success
rates are much lower than in the U.S. and what we are
witnessing could be just the tip of the iceberg.


3. (SBU) Finally, the much more complex crime of money
laundering is of growing concern and the extent of it in
Uruguay is difficult to gauge. Uruguay has very strict
banking secrecy laws which are conducive to money laundering.
It is not just Uruguay's idyllic beaches that seem to make
it a favored destination for "retiring" drug lords. As the
U.S. and its regional partners manage to successfully put the
squeeze on areas such as the nearby tri-border area, it
follows that some of this activity will flow to other areas
of lesser resistance, such as Uruguay. For this reason,
prior planning and preventive action will pay-off for the
U.S. if we can find ways to help Uruguay better control its
borders, drug-trafficking and money laundering.
Harding