Financial Crime World

GUATEMALA: Treasury Sanctions Luis Miguel Martinez Morales for Widespread Bribery Schemes

Washington D.C., [Date] - The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken action against Luis Miguel Martinez Morales, a former head of the Centro de Gobierno in Guatemala, for his role in corruption and bribery schemes that undermined democracy and stability in the country.

Background on the Sanctions

The sanctions were announced today by Treasury’s Under Secretary for Terrorism and Financial Intelligence, Brian E. Nelson, who stated that Martinez used his privileged position to engage in widespread bribery schemes, including those related to government contracts. This move is part of a larger effort by the U.S. government to promote accountability for corrupt actors in Guatemala.

Sanctions against Martinez

Martinez was designated under Executive Order 13818, which targets individuals responsible for serious human rights abuse and corruption around the world. The sanctions impose strict financial restrictions on Martinez, including:

  • Blocking all property and interests in property within the United States or in the possession or control of U.S. persons.
  • Prohibiting the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of Martinez or his entities.

The Impact of the Sanctions

The sanctions demonstrate the U.S. government’s commitment to standing by the Guatemalan people and promoting democracy and stability in the region. This move is part of a larger effort to:

  • Protect the financial system from abuse by corrupt individuals.
  • Promote stability and security around the world.

Recent Efforts against Corruption in Guatemala

Since 2021, the U.S. government has sanctioned 11 individuals and entities in Guatemala for their roles in corruption. Additionally, the U.S. government has used visa restriction tools to promote accountability for corrupt actors in the country.

The Centro de Gobierno

Martinez was the former head of the Centro de Gobierno, a powerful quasi-cabinet level agency created by President Alejandro Giammattei. During his time as head of the agency, Martinez:

  • Influenced the government contracts process to benefit himself and close associates.
  • Colluded with other government officials to illegally award contracts to favored bidders.

The Global Magnitsky Human Rights Accountability Act

The sanctions were imposed under the Global Magnitsky Human Rights Accountability Act, which aims to impose tangible and significant consequences on individuals who commit serious human rights abuse or engage in corruption. The act was built upon and implemented through Executive Order 13818.

For more information on the sanctions and the individual designated today, please visit [link].