Pharmaceuticals

The diversion and abuse of pharmaceutical narcotics, depressants, and stimulants are a significant threat to the United States. Rates of abuse for prescription drugs have increased sharply since the early to mid-1990s but appear to be stabilizing at high levels. The consequences of prescription drug abuse also have increased since the early to mid-1990s and have continued to increase during the past 2 reporting years.

Trends and Developments

• The abuse of prescription drugs increased sharply since the mid-1990s and now has stabilized at high levels. ED mentions of narcotic analgesics increased nearly 300 percent from 1995 through 2002, and mentions of benzodiazepines increased 38 percent during the same period. From 1992 through 2002 treatment admissions for opiates other than heroin increased more than 200 percent.

• The availability of pharmaceuticals has increased since the late 1990s when legitimate production of pharmaceuticals increased sharply, making more pharmaceuticals available for illegal diversion.

Figure 11. Emergency Department Mentions for Narcotic Analgesics, 1995-2002

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Source:  Drug Abuse Warning Network.

   Figure 12. Emergency Department Mentions for Benzodiazepines, 1995-2002

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Source:  Drug Abuse Warning Network.

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Other Dangerous Drugs

• The trafficking and abuse of GHB (gamma-hydroxybutyrate) have become a particular concern to law enforcement and public health agencies because of increasing availability of the drug in some areas, sharp increases in ED mentions for GHB since the mid-1990s, and the use of GHB in the commission of drug-facilitated sexual assault. 
• Rates of ketamine use are trending downward among adolescents and young adults. In addition, seizure data indicate that ketamine availability is decreasing and that ketamine-related ED mentions appear to be trending downward. 
• The availability of LSD (lysergic acid diethylamide) is decreasing, and rates of use have decreased sharply to very low levels. 
• The consequences of PCP (phencyclidine) use are increasing despite relatively stable or declining past year rates of use. The estimated number of ED mentions for PCP increased each year from 1998 to 2002.

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Inhalants

• Analysis of long-term trends in inhalant abuse among adolescents reveals that rates of abuse declined overall from 1995 to 2002; however, abuse among eighth graders rose significantly from 2002 to 2004.

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Steroids

• According to MTF, steroid use appears to be relatively low among high school students and young adults. These data show that steroid abuse among high school students has risen overall since the early 1990s but now appears to be stable or declining.

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Money Laundering

Interagency estimates indicate that the cost to society from drug trafficking and abuse in the United States is between $60 billion and $108 billion. In 2000, the most recent year for which these data are available, the Office of National Drug Control Policy (ONDCP) estimated annual retail-level cocaine purchases at $36 billion, heroin at $10 billion, marijuana at $11 billion, methamphetamine at $5.4 billion, and other substances at $2.4 billion. These figures do not include the estimated dollar figure for drugs purchased at wholesale or midlevel, meaning that the amount of drug-related currency generated in the United States may be significantly greater than the $60 billion to $108 billion estimate.

Figure 13. Estimated Annual Domestic Retail-Level Drug Purchases in Billions of Dollars, 2000

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Source:  Drug Abuse Warning Network.

Trends and Developments

• The physical transportation of bulk cash and monetary instruments is a principal method used by drug traffickers to move illicit drug proceeds from domestic drug markets to other U.S. and foreign destinations. The primary origins of U.S. currency seized between 2001 through 2003 were California, Illinois, New York, and Texas, while Arizona, California, Florida, and Texas were the primary destinations. 

• Drug traffickers in the United States frequently use money services businesses (MSBs)--particularly money transmittal, currency exchange (casas de cambio), and check-cashing businesses--to launder drug proceeds. MSBs filed 214,966 Suspicious Activity Reports (SARs) with the Financial Crimes Enforcement Network (FinCEN) from October 1, 2002, to December 31, 2003. During that period, states with the most MSB-SAR filings were New York, California, Arizona, Texas, and Florida.

• Drug traffickers, particularly South American traffickers, launder illicit drug proceeds through informal value transfer systems (IVTS). For example, South American traffickers launder an estimated $3 to $6 billion each year through the Black Market Peso Exchange (BMPE). Southeast and Southwest Asian traffickers also launder and transfer large amounts of money through hawala, hundi, or hui khan IVTS. Unlike the BMPE, however, hawala, hundi, and hui khan businesses can operate legally in the United States, provided that they register with the FinCEN and comply with all applicable laws, such as the Bank Secrecy Act. The registration requirement was established by the USA PATRIOT Act of 2001 and makes it easier for government agencies to prosecute individuals laundering drug proceeds through these systems. 

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