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US Imposes Financial Sanctions and Embargoes on Mexican Money Launderer and Chinese Criminals Linked to Sinaloa Cartel

In a major crackdown on drug trafficking, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned a Mexico-based money launderer and China-based members of a money laundering organization with ties to the notorious Sinaloa Cartel. This move is part of an ongoing effort by the US government to disrupt the flow of illicit narcotics into the country.

Background

The sanctions were announced today in Washington, as part of the US government’s “President’s Unity Agenda” to combat the drug trafficking crisis that has claimed thousands of American lives each year. The Treasury Department said that the action is a key priority in its efforts to cut off the financial flows of major money launderers who are fueling the trafficking of fentanyl and other illicit drugs.

Sanctions Targets

The individuals sanctioned include:

  • Diego Acosta Ovalle, a Mexico-based individual who assisted the Sinaloa Cartel by hiding and collecting drug trafficking proceeds
  • Tong Peiji and He Jiaxuan, China-based members of a US-based money laundering organization that has laundered illicit drug proceeds for the cartel
  • The Treasury Department said that Ovalle worked with associates of the cartel to deliver drug trafficking proceeds, while Tong Peiji traveled to Mexico to meet with Sinaloa Cartel members to obtain contracts to launder drug trafficking proceeds

Sanctions Implications

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 US persons must be blocked and reported to OFAC
  • Any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked
  • Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by US persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons

Next Steps

OFAC will continue to target and pursue accountability for foreign illicit drug actors. The Treasury Department spokesperson said: “We will not rest until we have dismantled these criminal organizations and brought an end to their destructive activities.”

For more information on the individuals designated today, please visit [website URL]. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please refer to [OFAC FAQ website URL].