1. Asia-Pacific Drug Threat Employing Soft Power to Counter Networks Presented to: PACOM Science & Technology Conference Maritime Awareness Panel 16 March 2011 CAPT Anthony LaVecchia, USN Joint Interagency Task Force West

2. Asia-Pacific Criminal Threats South Asia Largest producer/exporter of meth precursor chemicals (ephedrine/ pseudoephedrine) Southwest Asian heroin transit Terror network activity Porous land and maritime borders Criminal facilitation hubs Counterfeit money networks Human trafficking/ Illegal migration Northeast Asia Meth and heroin precursor producer and exporter (ephedrine, acetic anhydride, P2P) Southwest Asian heroin market Gambling/ Drugs nexus Weapons proliferation (DPRK) Money laundering Human trafficking Southeast Asia Large-scale meth/ heroin production for Asian markets Iranian & Eurasian criminal elements Terror/ insurgent presence Porous land and maritime borders Criminal facilitation hubs Maritime trafficking TCO casino money laundering Oceania Westward Cocaine transit zone PRC expanding presence Permissive security regimes Back door to U.S. homeland Casinos/ Money Laundering Human trafficking / Illegal migration Illegal fishing

3. Global Issues affecting Maritime Trade & Security Global economy…and transnational crime depend upon the oceans MANMADE DISASTERS MARITIME TERRORISM CONTRABAND SMUGGLING ILLEGAL FISHING ILLEGAL MIGRATION PIRACY WEAPONS SMUGGLING

4. Scope and size of the problem Lack of resources Varying levels of regulatory regimes Legitimate organizations supporting illicit activity Challenges to Maritime Security Interdiction Challenges - Globalization of trade route, primarily maritime - Information on illicit trafficking movements, destinations Detect Monitor Interdict The Goal

5. Methamphetamine precursors (ephedrine, pseudoephedrine, phenyl- 2-propanone [P-2-P] and other pharmaceuticals) –India is the #1 global exporter of ephedrine –China is the #1 producer of P-2-P related Mexican imports –Secondary ephedrine markets also contribute to meth manufacturing Methamphetamine precursors sourced from PACOM AOR contribute directly to Mexican/ U.S. border narco-conflict and meth distribution to U.S. populace Precursors CHINA INDIA WESTERN HEMISPHERE METH SE ASIA Precursors Meth Precursors from Asia-Pacific Region CY 2010 Meth Precursor Interdiction 52 containers involving 1,067 metric tons investigated 184 mt seized by law enforcement

6. Heroin precursor Acetic Anhydride (AA) makes heroin when combined with opium AA flows from Northeast Asia to Afghanistan, is converted into heroin, then resold in China and Europe –Afghanistan heroin supplies 25% of China’s market Afghanistan now produces 93% of world’s opium (2,700mt) –Produced 380mt of heroin Opium cultivation in Golden Triangle declined ~85% during last 20 years PACOM countries supply heroin precursor chemicals to Afghanistan and purchase Afghan heroin, which likely supplies Taliban with terrorist financing AA Heroin Heroin (Europe) $$ Taliban Afghanistan ROK China Japan Asia-Pacific Heroin Precursors to Afghanistan

7. Trans-Pacific Cocaine Movement Cocaine will continue to be shipped into Asia for domestic consumption and transshipment due to high profit margins CHINA AUSTRALIA CANADA WESTERN HEMISPHERE Legend Containerized Fishing Vessels/ Pleasure Crafts Commercial containers remain the ideal method –Depart from South America/ Mexico directly to China or Australia or transit through Canada or U.S. ports Fishing vessels & small pleasure craft conduct at-sea transfers

8. Tracking Sources Along the Route Illegal Legal National trade data Company websites Company reports Press reporting after seizure Sales data Shipping company Sites Shipment location websites Port authority reports Air freight handling websites Commodity quarterly production statistics Shipping and customs declarations UN required reports OriginTransitDestination

9. Containerized Precursor Chemicals Tracking Premise: Chemical movements are legitimate Large amounts of data exists: –Customs reports, Bill of Lading –Shipping movements –Business sector analysis and reporting Non-traditional analysis –Targeted commodity record by record requests instead of entire shipping database transfers –Private company websites Multi-agency effort without single lead –Allows effort to morph depending on supported / supporting requirements Targeting chemicals is cheaper than targeting smuggled products Interagency approach to challenging problem set by complemented traditional intelligence tools and processes Core

10. 27 Nov 2009: Mexico raised PAA to a Level 1 controlled chemical –Importations by manufacturers only –Permits required PAA shipments are low value, high volume 87.2MT Ethyl Phenyl Acetate Example 07 Mar: 5 containers identified at origin 08 Mar: Freight carrier and ship identified 28 Mar: Shipment arrived in Manzanillo 30 Mar: Mexican Navy detained cargo 09 Apr: Mexican Attorney General seized cargo for investigation 06 May: PGR announced seizure in press stating fictitious company to receive shipment Example - Meth Precursor Tracking to Mexico

11. Example - Australian Cocaine Interdiction Cocaine transferred at-sea approximately 600nm from Australian coast Available information analyzed and passed between US and Australian LE agencies Australian-U.S. information sharing and relationships facilitated interdiction ops  464kg of cocaine seized – 3 rd largest seizure in Australian history  Clandestine lab also identified  3 Australian citizens arrested while 1 German and 1 Costa Rican also detained Keys to success: information, relationships & legal frameworks

12. Summary Drug precursors present a significant threat to North America from the PACOM AOR Drug trafficking transnational criminal organizations adapt as nations restrict precursor movements JIATF West, in partnership with US Law Enforcement Agencies, supports networking of authorities, competencies, & capabilities into cooperative operations Sharing of data and best practices amongst international partners and U.S. agencies key to success

13. Questions & Discussion