Puerto Vallarta, Mexico – In a ten-year span, the intersection of Mexico’s tourism and restaurant sectors with drug cartels has become increasingly pronounced. Under the auspices of the Kingpin Law established by the United States in 1999 to stifle transactions with drug traffickers worldwide, a concerning trend has emerged, as revealed by recent reports from the Treasury Department.
As of February 16, the Treasury Department’s Office of Foreign Assets Control (OFAC) has cataloged a staggering 1,813 companies, spanning travel agencies, timeshares, hotels, and restaurants, into its blacklist for their involvement in drug trafficking and money laundering operations. Notable among the implicated organizations are the Arellano Félix brothers, Carrillo Fuentes, Beltrán Leyva, Los Caballeros Templarios, Los Cuinis, La Familia Michoacana, the Sinaloa Cartel, the Jalisco New Generation Cartel (CJNG), and others.
Placement on this list not only empowers the State Department to freeze assets within the United States but also prohibits any American entity from engaging in business transactions with the sanctioned companies.
Violations of these sanctions carry severe penalties, including civil fines of up to $1.44 million per infraction, potential imprisonment for up to 30 years for company directors, and fines reaching $5 million. Furthermore, criminal penalties for companies can extend up to $10 million, with individuals facing up to 10 years behind bars.
Recent additions to the OFAC blacklist in 2023 include Assis Reality and Vacation Club SA de CV, Axis Sale & Maintenance Buildings SA de CV, and Comercializadora de Servicios Turísticos de Vallarta SA de CV, all operating within Puerto Vallarta, Jalisco. These entities have been linked to the CJNG through fraudulent time-sharing schemes targeting American citizens.
The enforcement actions extend beyond the tourism sector, with restaurants like Habaneros, operating as Conceptos Gastronomicos de Sonora S. de RL de CV in Nogales, Sonora, finding themselves entangled in cartel activities. Notably, the Sinaloa Cartel’s plaza boss, known as Cacayo, was among 13 individuals sanctioned alongside the restaurant in November.
The breadth of the blacklist encompasses over 5,000 companies across various industries, including gas stations, beauty clinics, pharmacies, entertainment centers, and more. Notably, even civil society figures like soccer player Rafael Márquez found themselves ensnared in 2017 due to alleged connections with organized crime, though they were later removed from the list after a four-year ordeal.
American lawyer Charles Tocmon highlighted the arduous process for delisting, noting its complexity and time-consuming nature, which can span up to five years. This process involves meticulous scrutiny by OFAC, often probing relationships with individuals or assets within the United States, making it a daunting challenge for those ensnared in the net of suspicion.
The evolving landscape underscores the ongoing battle against the intertwining of legitimate industries with illicit activities, highlighting the vigilance required to safeguard against criminal infiltration.
Puerto Vallarta, Mexico - In a ten-year span, the intersection of Mexico's tourism and restaurant sectors with drug cartels has become increasingly pronounced. Under the auspices of the Kingpin Law established by the United States in 1999 to stifle transactions with drug traffickers worldwide, a concerning trend has emerged, as revealed by recent reports from the Treasury Department.
