Diack has promised a tough stance
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The head of athletics' world governing body has accused the US authorities of contributing to the new drugs scandal.
Suspicion about the designer steroid THG centres on the Balco laboratory in California, which was founded by former musician Victor Conte.
"We are where we are today because the United States have proved to be lax," said IAAF president Lamine Diack.
"If a musician can be the owner of a laboratory and advise athletes, we are heading towards a catastrophe."
Conte denies any wrongdoing, but Diack added: "If it is proved that Mr Conte is the source of THG, I hope that any sanctions will not be just fiscal but also penal."
Diack also called for trainers, managers and agents of athletes who test positive to be punished with fines or the withdrawal of their licences.
British sprinter Dwain Chambers, who has been a BALCO client, admits testing positive for THG but said he did not deliberately take any banned substances.
"I'm not expecting an epidemic of THG, but rather a phenomenon limited to athletes in contact with Conte," Diack told French newspaper Le Monde.
The IAAF is considering increasing the ban for athletes who use steroids to four years.
And Diack insisted he was not worried that top athletes would miss the Olympic Games in Athens next summer if tests on their World Championship samples revealed THG.
"It does not bother me if stars miss the Games. They will be replaced by others," he said.