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Financial Services Law Insights and Observations

OFAC sanctions Guatemalan drug trafficking organization connected to Mexican cartels

Financial Crimes Of Interest to Non-US Persons Department of Treasury OFAC OFAC Sanctions OFAC Designations SDN List Guatemala Mexico

Financial Crimes

On March 18, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order 14059 against a drug trafficking organization tied to Mexican cartels, as well as the organization’s leaders, for engaging in actions that threaten the people and security of the U.S. and Guatemala. Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson stated that “Treasury and our U.S. and Guatemalan government partners will continue to use every available resource to dismantle these criminal networks” that have “engaged in, or attempted to engage in, activities or transactions that materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production.” As a result of the sanctions, the designated persons’ property located in the U.S. or held by U.S. persons are blocked and must be reported to OFAC. Additionally, OFAC regulations generally prohibit U.S. persons from participating in transactions with the designated persons.