Treasury Targets Corrupt Officials, Human Rights Abusers in Nicaragua
The United States Treasury has announced a new effort to target corrupt officials and human rights abusers in Nicaragua, aiming to disrupt their ability to launder money and fund illegal activities.
Combating Global Corruption and Promoting Economic Stability
As part of the Treasury’s efforts to combat global corruption and promote economic stability, the department has identified several individuals and entities connected to the Nicaraguan government who are suspected of:
- Embezzling funds
- Engaging in human rights abuses
- Using shell companies to launder money
“We will not tolerate corrupt officials or human rights abusers who seek to exploit their positions for personal gain,” said a Treasury official. “These actions undermine trust in governments and economies around the world, and we are committed to holding them accountable.”
Designation of Individuals and Entities
The Treasury’s action includes the designation of several individuals and entities under its Office of Foreign Assets Control (OFAC), which will:
- Freeze their assets
- Prohibit US citizens from conducting business with them
In addition, the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory to financial institutions warning them of potential suspicious activity related to these individuals and entities. The advisory reminds banks and other financial institutions of their obligation to report any suspicious transactions that may be linked to foreign corruption or money laundering.
SAR Reporting Crucial in Identifying Money Laundering
FinCEN also emphasized the importance of Suspicious Activity Reports (SARs) in identifying money laundering and other financial crimes associated with foreign corruption. SAR reporting, combined with effective implementation of due diligence requirements and OFAC obligations by financial institutions, has been critical to identifying these illicit activities.
“We rely on the timely and accurate reporting of suspicious activity by financial institutions to help us detect and prevent financial crimes,” said a FinCEN official. “By working together, we can better protect the US financial system and promote global economic stability.”
Contact Information
For further information or questions regarding the contents of this advisory, please contact the FinCEN Regulatory Support Section at frc@fincen.gov.