Financial Crime World

Nicaragua Hit with Financial Sanctions as US Cracks Down on Migrant Smuggling and Repression

The United States has taken a strong stance against Nicaragua’s government, imposing visa restrictions on over 250 officials and slapping sanctions on three entities in response to the country’s “repressive actions” and failure to combat migrant smuggling.

Visa Restrictions and Sanctions

Senior administration officials have identified those subject to visa restrictions as including:

  • Police and paramilitary officials
  • Prosecutors
  • Judges
  • Public higher education officials

The sanctions target:

  • A Russian training center operating in Managua since 2017, which has enabled anti-democratic behavior and repression
  • Two government-affiliated gold companies that profit from Nicaragua’s top commodity export

Accusations of Repression and Migrant Smuggling

The US has accused Nicaragua’s government under President Daniel Ortega and Vice President Rosario Murillo of having “permissive-by-design migration policies.” The country’s government did not immediately respond to a request for comment.

The Rise of the Nicaragua Route

In recent years, migrants have started flying into Nicaragua and then heading north overland to the US-Mexico border. This route has become increasingly popular due to the danger posed by the Darien Gap on the Colombia-Panama border.

Crackdown Efforts

The Biden administration’s latest move is seen as part of an effort to crack down on migrant smuggling and address concerns about immigration. The administration has struggled with record numbers of migrant crossings at the US-Mexico border, which has become a major election issue as President Joe Biden runs for reelection in November.

Concerns Over Human Rights

Nicaragua’s National Police (NNP) has been accused of carrying out extrajudicial killings, using live ammunition against peaceful protests, and participating in death squads. The Treasury Department has imposed sanctions on the NNP, which it describes as a “repressive state apparatus.”

Joint Alert Issued

US officials have issued a joint alert with the Departments of State and Treasury warning airlines and travel agents about the ways smuggling and human trafficking networks are exploiting legitimate transportation services to facilitate illegal migration to the US through Nicaragua.

Decline in Migrant Apprehensions

Migrant apprehensions at the US-Mexico border halved from December to March, partly due to increased enforcement by Mexican authorities. Homeland Security Secretary Alejandro Mayorkas has attributed the decline to stepped-up efforts.