US Sanctions Paraguayan Money Launderer, Arrests Him Amid Crackdown on Corruption
The US Treasury Department has taken a significant step in its efforts to combat corruption and money laundering by sanctioning a Paraguayan businessman and his associates for their involvement in a massive money laundering scheme.
Background
Kassem Mohamad Hijazi, 48, is the leader of a money laundering organization based in Ciudad del Este, Paraguay. He has been accused of maintaining strong ties with local politicians, police officers, and money exchange brokers to launder hundreds of millions of dollars obtained through illicit means.
Sanctions and Arrest
The Treasury Department sanctioned Hijazi and two of his partners, Khalil Ahmad Hijazi and Liz Paola Doldan Gonzalez, along with five of their companies. The sanctions freeze all US property and interests in property under the names of the sanctioned individuals and companies, while also barring US citizens from doing business with them.
On Tuesday morning, Paraguayan authorities arrested Hijazi following a joint investigation with the United States Justice Department. He has been charged with money laundering drug proceeds and is wanted by the U.S. Justice Department.
The Scheme
According to the Treasury, Hijazi used his company Espana Informatica S.A. to coordinate with American and Chinese suppliers to import US electronic equipment into Paraguay through companies and other despachantes to avoid taxation and launder money. The value of the goods was estimated to be in the hundreds of millions of dollars.
Global Crackdown on Corruption
The sanctions are part of a global crackdown on corruption by the Biden administration, which has identified money laundering as a major threat to democracies and national security. The State Department described the sanctions as a whole-of-government effort to combat corruption in the tri-border area, saying that the United States is committed to supporting Paraguay’s efforts to promote accountability for those who undermine government institutions.
Key Points
- Kassem Mohamad Hijazi, a 48-year-old Paraguayan businessman, has been sanctioned by the US Treasury Department for his involvement in a massive money laundering scheme.
- Hijazi used his company Espana Informatica S.A. to launder hundreds of millions of dollars obtained through illicit means.
- The sanctions freeze all US property and interests in property under the names of the sanctioned individuals and companies, while also barring US citizens from doing business with them.
- Paraguayan authorities arrested Hijazi on Tuesday morning following a joint investigation with the United States Justice Department.
- The Biden administration is leading a global crackdown on corruption, identifying money laundering as a major threat to democracies and national security.