Shifting now to narcotics and international crime, narcotics production continues to meet rising worldwide demand for both cocaine and heroine, traffickers are developing new shipment routes and methods, and trafficking networks are increasingly sophisticated in their operations. In spite of some significant blows by counternarcotics operations to drug trafficking organizations, the international narcotics trade remains a formidable threat. Accompanying the expansion of narcotics production and trafficking are money laundering, financial crime, alien smuggling, and criminal involvement in arms trading. The multibillion dollar scope of worldwide money laundering poses a significant threat to countries. The tremendous wealth being legitimized by laundering allows criminal organizations to gain a large amount of economic power fairly quickly.
Front companies are the predominant means of laundering funds used by almost all criminal groups.
Other areas including China, Russia, Iran, Iraq, and North Korea were discussed above. The Middle East peace process is still a difficult and contentious proceeding, with issues around the status of Jerusalem, settlements, and the Golan Heights still to be decided. In South Asia, relations between India and Pakistan remain poor and there are few signs of improvement. Deterrence has worked for years but it could break down in a crisis and the time available to national leaders and external powers to defuse tensions would be limited. In Bosnia, the Dayton Accords have had a positive effect but several challenges in the months ahead could disrupt the reconciliation process.