Financial Sanctions Evasion in Costa Rica Linked to Surge in Homicides

A notorious narcotics trafficker has been slapped with financial sanctions by the US Treasury’s Office of Foreign Assets Control (OFAC) for evading financial regulations and contributing to Costa Rica’s rising homicide rate.

Background

Gilbert Hernan de Los Angeles Bell Fernandez, also known as “Macho Coca”, is one of the most prolific drug traffickers in Limón, moving large quantities of cocaine. He is also notorious for his violent tactics, which have contributed to the country’s alarming homicide rate.

Rising Homicide Rate in Costa Rica

According to a recent report by the State Department, Costa Rica has seen a 66 percent increase in its homicide rate over the past decade, with the national rate rising from 11.2 per 100,000 inhabitants in 2021 to 12.6 per 100,000 inhabitants in 2022. The province of Limón is particularly affected, with a staggering homicide rate of 35.8 per 100,000 inhabitants.

US Sanctions against Bell

The sanctions against Bell are part of a wider effort by the US government to combat the global threat posed by drug trafficking, which has been linked to numerous deaths and overdoses in the United States.

• “Today’s action demonstrates our shared commitment to address the surge in violent crime in Costa Rica, driven by narcotics trafficking,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.
• “The United States will continue to partner with the government of Costa Rica, as well as with our key partners in the region, to leverage our collective tools and authorities against these groups’ illicit facilitation networks.”

Consequences of Sanctions

As a result of the sanctions, all property and interests in property of Bell that are in the US or in the possession or control of US persons must be blocked and reported to OFAC. Any entities owned 50 percent or more by one or more blocked persons are also blocked.

Broader Effort against Illicit Drug Trafficking

The sanctions against Bell are part of a broader effort to target and pursue accountability for foreign illicit drug actors, and may be removed if he demonstrates a change in behavior and no longer engages in activities linked to international illicit drug trafficking.