Treasury Sanctions Mexico-Based Money Launderer and China-Based Members of Money Laundering Organization Tied to Sinaloa Cartel
Disrupting the Flow of Illicit Narcotics into the United States
Washington D.C., [Date] - The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken action against a Mexico-based money launderer and China-based members of a money laundering organization with criminal links to the notorious Sinaloa Cartel, as part of ongoing efforts to disrupt the flow of illicit narcotics into the United States.
Close Cooperation between U.S. Government and Mexican Counterparts
The sanctions are the result of close cooperation between the U.S. government and its Mexican counterparts to combat the trafficking of fentanyl and other illicit drugs. This action is also a key component of President Biden’s Unity Agenda, which prioritizes saving lives by disrupting the trafficking of illicit fentanyl and its precursors into American communities.
Designated Individuals
- Diego Acosta Ovalle: A Mexico-based money launderer who assisted the Sinaloa Cartel by hiding and collecting drug trafficking proceeds before delivering them to associates of the cartel.
- Tong Peiji and He Jiaxuan: Both members of a China-based money laundering organization that worked with the cartel to launder illicit drug proceeds.
Sanctions Under Executive Order 14059
The sanctions were imposed under Executive Order 14059, which targets individuals who have engaged in activities or transactions that have contributed to the international proliferation of illicit drugs. The designations would not have been possible without the cooperation and support of various U.S. law enforcement agencies, including:
- Drug Enforcement Administration
- Internal Revenue Service - Criminal Investigations
- Homeland Security Investigations
- Federal Bureau of Investigation
Consequences of Sanctions
As a result of today’s action, all property and interests in property of the designated individuals that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. The sanctions will help strengthen public safety by disrupting the illicit drug production and trafficking pipeline that profits from harming Americans.
Continued Efforts
The Treasury Department has made it clear that it will continue to target foreign illicit drug actors, and individuals who engage in certain transactions with those designated may themselves be exposed to sanctions or subject to an enforcement action.