Although U.S. officials lack comprehensive statistics on drug-related activities in Panama, they believe that drug trafficking may be increasing and that Panama continues to be a haven for money laundering. U.S. and Panamanian efforts to reduce the flow of illegal drugs into the United States have been hindered because Panama's law enforcement agencies lack the training and resources necessary to conduct effective antidrug operations. In addition, Panama's environment is conducive to money laundering because of the large volume of transactions processed through banking and commercial sectors. Nonetheless, Panama has implemented measures to help identify potential money laundering activities, and the governments of Panama and the United States have signed agreements to reduce drug trafficking and money laundering. The United States also provided Panama with about $1 million in aid for fiscal years 1990 and 1991 to help Panama's law enforcement agencies reduce drug-related activities. These assistance programs, however, experienced delays. The limited role of the U.S. military in assisting drug control efforts in Panama is discussed.