In a wide-ranging attack on drug-based money laundering, the US Department of the Treasury, in partnership with the Mexican government, has applied sanctions and other measures to undermine organized crime operating in Mexico, Europe, Canada, and elsewhere.
The Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) are targeting Mexico-based gambling firms that are allegedly laundering cartel money.
Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley thanked Mexico for its assistance while declaring that drug cartels will be held accountable.
OFAC sanctioned 27 individuals and entities, and FinCEN proposed a special measure to remove 10 Mexico-based gambling establishments’ access to the US financial system.
The actions taken by the Treasury mean that all property and interests in property of the designated persons that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC.
At the same time, 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.
Certain transactions involving sanctioned individuals may expose participating foreign financial institutions to secondary sanctions.
Treasury states that the “Hysa Organized Crime Group” (HOCG), which includes family members Luftar Hysa, Arben Hysa, Ramiz Hysa, Fatos Hysa, and Fabjon Hysa, has leveraged various Mexico-based businesses—including gambling establishments and restaurants—to launder the proceeds of drug trafficking.
The Trump administration has taken a sterner approach to dealing with international drug trafficking.
According to the NIH, drug overdose deaths rose from 2019 to 2022, with 107,941 drug overdose deaths reported in 2022. Drug overdose deaths declined slightly to 105,007 in 2023.
“Deaths involving synthetic opioids other than methadone, primarily illicitly manufactured fentanyl, decreased from 73,838 overdose deaths reported in 2022, to 72,776 in 2023.
Deaths due to Cocaine abuse continued to increase, with 29,449 deaths in 2023.
The Treasury’s announcement is viewable here.
