United States Department of State

The Department of State's International Narcotics Control Strategy Report (INCSR) has been prepared in accordance with section 489 of the Foreign Assistance Act of 1961, as amended (the "FAA," 22 U. S. C. 2291). The 2014 INCSR, published in March 2014, covers the year January 1 to December 31, 2013 and is published in two volumes, the second of which covers money laundering and financial crimes. In addition to addressing the reporting requirements of section 489 of the FAA (as well as sections 481(d)(2) and 484(c) of the FAA and section 804 of the Narcotics Control Trade Act of 1974, as amended), the INCSR provides the factual basis for the designations contained in the President's report to Congress on the major drug-transit or major illicit drug producing countries initially set forth in section 591 of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (P. L. 107-115) (the "FOAA"), and now made permanent pursuant to section 706 of the Foreign Relations Authorization Act, Fiscal Year 2003 (P. L. 107-228) (the "FRAA"). Section 706 of the FRAA requires that the President submit an annual report no later than September 15 identifying each country determined by the President to be a major drug-transit country or major illicit drug producing country. The President is also required in that report to identify any country on the majors list that has "failed demonstrably . . . to make substantial efforts" during the previous 12 months to adhere to international counternarcotics agreements and to take certain counternarcotics measures set forth in U. S. law. U. S. assistance under the current foreign operations appropriations act may not be provided to any country designated as having "failed demonstrably" unless the President determines that the provision of such assistance is vital to U. S. national interests or that the country, at any time after the President's initial report to Congress, has made "substantial efforts" to comply with the counternarcotics conditions in the legislation. This prohibition does not affect humanitarian, counternarcotics, and certain other types of assistance that are authorized to be provided notwithstanding any other provision of law. The FAA requires a report on the extent to which each country or entity that received assistance under chapter 8 of Part I of the Foreign Assistance Act in the past two fiscal years has "met the goals and objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances" (the "1988 UN Drug Convention"). FAA 489(a)(1)(A).

The Money Laundering and Financial Crimes section of the Department of State's "International Narcotics Control Strategy Report" (INCSR) has been prepared in accordance with section 489 of the Foreign Assistance Act of 1961, as amended ((the FAA), 22 U. S. C. 2291). The 2014 INCSR is the 31st annual report prepared pursuant to the FAA.1The FAA requires a report on the extent to which each country or entity that received assistance under chapter 8 of Part I of the Foreign Assistance Act in the past two fiscal years has "met the goals and objectives of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances" (1988 UN Drug Convention) (FAA 489(a)(1)(A)). Although the 1988 UN Drug Convention does not contain a list of goals and objectives, it does set forth a number of obligations the parties agree to undertake. Generally speaking, it requires the parties to take legal measures to outlaw and punish all forms of illicit drug production, trafficking, and drug money laundering; to control chemicals that can be used to process illicit drugs; and to cooperate in international efforts to these ends. The statute lists action by foreign countries on the following issues as relevant to evaluating performance under the 1988 UN Drug Convention: illicit cultivation, production, distribution, sale, transport and financing, money laundering, asset seizure, extradition, mutual legal assistance, law enforcement and transit cooperation, precursor chemical control, and demand reduction.

Burundi is a low-income developing country with a population of 10.5 million (July 2012 CIA World Fact book), an annual population growth of 2.4 percent, and more than 300 inhabitants per km2. This makes Burundi the country with the second highest population density in sub-Saharan Africa. Burundi remains one of the poorest countries in the world with a per capita gross national income (GNI) of $170, and it is considered one of the world's 40 "Heavily Indebted Poor Countries". Additionally, it is worth noting that a civil war, which lasted 13 years from 1993, killed more than 300,000 people, severely weakened the health and social welfare systems and negatively affected donor support and private sector investment in Burundi.

Almost two years after the Ouattara administration came into office, C te d'Ivoire is moving toward stability and growth, putting behind it more than 10 years of civil unrest that divided the country, impoverished the population, decimated health and social services. President Alassane Ouattara's administration achieved a number of early successes in organizing national legislative elections, originating a new national development strategy, and reinvigorating the investment climate. The government's efforts to foster economic growth, increase foreign investment, and improve infrastructure are producing results. Following a contraction of 4.7% in 2011, GDP rebounded remarkably, with growth of 8.5% in 2012 and initial IMF forecasts anticipating 8% growth in 2013. Only limited progress, however, has been achieved on national reconciliation efforts, accountability for crimes committed during the crisis years, and security sector reform. About half the population of 22 million survives on less than $2 a day; a similar proportion lives in rural areas with high illiteracy rates and poor access to services. According to the National Poverty Reduction Strategy (2009), the poverty rate worsened from 10% in 1985 to 48.9% in 2008. Transparency International ranked Cote d'Ivoire 130 out of 174 countries in its 2012 Corruption Perception report. Though there have been some indications of progress (CI ranked 154 of 182 countries in 2011) during the Ouattara administration, corruption remains endemic, and anti-corruption measures are coming up against entrenched systemic practices that hinder ambitious development plans. The provision of basic services, including health and HIV/AIDS services, continues to challenge the government, especially outside of Abidjan.