InfoBytes Blog
OFAC sanctions entities connected to Mexican cartel
On June 6, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions, pursuant to Executive Order 14059, against three individuals and one entity connected to the Cartel de Jalisco Nueva Generación (CJNG). The CJNG is a Mexico-based organization responsible for a significant proportion of fentanyl and other drugs trafficked into the U.S. OFAC explained that two individuals are senior members of CJNG who engaged in trafficking firearms into the U.S. and fuel theft in Mexico. These sanctions follow similar actions taken earlier this year against other Mexican arms dealers working in collaboration with the CJNG (covered by InfoBytes here). Additionally, one individual and her currency exchange house (responsible for laundering over $6 million between 2020 and 2022) have been identified for laundering money on behalf of the CJNG, OFAC stated.
As a result of the sanctions, all property and interests in property of the designated persons located in the U.S. or held by U.S. persons are blocked and must be reported to OFAC. Further, “any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked.” U.S. persons are generally prohibited from engaging in any dealings involving the property or interests in property of blocked or designated persons unless authorized by an OFAC-issued general or specific license, or an exemption. OFAC further warned that “U.S. persons may face civil or criminal penalties for violations of E.O. 14059 and the Kingpin Act.”