Guatemala's location between Mexico and the other Central American countries makes it an appealing and convenient transit country for drug trafficking organizations moving South American cocaine and heroin to Mexico, the United States, and, to a lesser extent, Europe. Recently obtained intelligence suggests opium poppy cultivation is increasing, primarily in the San Marco and Sacatepequez Departments. Cannabis continues to be cultivated in the northern jungle areas of the country, but there is no known coca cultivation. Drug trafficking organizations transship precursors and controlled chemicals used in processing methamphetamine and MDMA through Guatemala into Mexico. The Government of Guatemala recognizes that escalating drug abuse among its citizens is a serious problem that could undermine Guatemalan society. It supports an active demand-reduction program. Rampant corruption permeates all levels of law enforcement, the judiciary, military, and other government agencies. Guatemala is considered to be an offshore financial center, and the country's larger banks conduct considerable business through their offshore subsidiaries. Modern comprehensive money laundering legislation was enacted in November 2001, followed by implementing regulations passed early in 2002. The U.S. State Department decertified the Government of Guatemala in January 2003 due to pervasive corruption and the apparent lack of action to correct many internal deficiencies. Projections for the future include the continuation of Guatemala as an important drug-smuggling transshipment point between South America and the United States, an increase in opium poppy cultivation in the remote highlands due to limited aerial reconnaissance and sporadic eradication, and a continuing increase in domestic cocaine abuse.