TRANSNATIONAL ISSUES Trafficking in persons Mozambique is currently a source of and, to a much lesser extent, a destination country for men, women and children trafficked for the purposes of forced labour and sexual exploitation. The use of forced and bonded child labourers is common practice in Mozambique’s rural areas. Women and girls are trafficked from rural to urban areas of Mozambique, as well as to South Africa, for domestic servitude and commercial sexual exploitation. Young men and boys are trafficked to South Africa for farm work and mining. Illicit drugs Mozambique is a transit point for South Asian hashish and heroin, as well as South American cocaine, probably destined for the European and South African markets. It is a producer of cannabis (for local consumption) and methaqualone (for export to South Africa). Corruption and poor regulatory capacity make the Mozambican banking system vulnerable to money laundering, but the lack of a well developed financial infrastructure limits the country’s utility as a single laundering centre. xxv