GUATEMALA: US Sanctions Two Government Officials for Corruption Involvement

US Department of Treasury’s Office of Foreign Assets Control (OFAC) Takes Action Against Corrupt Guatemalan Officials

The US Department of Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned two current and former Guatemalan government officials, Gustavo Adolfo Alejos Cambara and Felipe Alejos Lorenzana, for their roles in corruption. The sanctions were imposed under Executive Order (E.O.) 13818, which implements the Global Magnitsky Human Rights Accountability Act.

Background on Sanctions

• Executive Order (E.O.) 13818: Implements the Global Magnitsky Human Rights Accountability Act, targeting individuals involved in human rights abuses and corruption worldwide.
• Sanctions Aim: Shine a light on corruption, promote accountability for those who would seek to thwart the judicial process.

Involvement of Sanctioned Officials

• Gustavo Adolfo Alejos Cambara:
  • Former Chief of Staff for the Alvaro Colom presidential administration
  • Involved in a scheme to influence the judicial selection process, facilitating payments to congressional representatives and judges on the Supreme Court of Justice (CSJ)
• Felipe Alejos Lorenzana:
  • Elected delegate to the Congress of the Republic of Guatemala for the 2020-2024 term
  • Close associate of Gustavo
  • Allegedly facilitated bribes and payments from private construction firms for ongoing or potential state infrastructure contracts

Designations Pursuant to E.O. 13818

• Designated Persons: Gustavo Adolfo Alejos Cambara and Felipe Alejos Lorenzana
• Reasons for Designation: Involvement in corruption, including misappropriation of state assets, expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery

Consequences of Sanctions

• Blocked Property and Interests: All property and interests in property of the designated persons that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC
• Entities Owned by Blocked Persons: Entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked

Broader Effort by US Government

• Tangible and Significant Consequences: Imposing tangible and significant consequences on those who commit serious human rights abuse or engage in corruption
• Protection of Financial System: Protecting the financial system of the United States from abuse by these same persons