Puerto Vallarta, Mexico – The United States has imposed economic sanctions on a Mexican national and two Chinese nationals accused of laundering money for the notorious Mexican Sinaloa cartel, as announced by the U.S. Treasury Department on Monday. The sanctions highlight ongoing international efforts to disrupt the financial networks supporting drug trafficking organizations.
The Treasury Department, through its Office of Foreign Assets Control (OFAC), reported that Diego Acosta Ovalle, a resident of Mexico, played a significant role in aiding the Sinaloa cartel. “Diego Acosta Ovalle helped the Sinaloa cartel by hiding and collecting the proceeds of drug trafficking, before delivering them to cartel partners,” OFAC stated.
The sanctions also target Tong Peiji and He Jiaxuan, based in China, who are members of a U.S.-based money laundering organization. This organization has been instrumental in laundering the Sinaloa cartel’s profits. According to OFAC, these individuals are involved in schemes that repatriate most of the money generated from drug sales in the United States, attempting to send it abroad, often to Mexico. This process provides U.S. dollars to Chinese citizens seeking to evade currency controls.
“This action was closely coordinated with the Mexican government,” the Department noted in a statement, emphasizing the collaborative efforts between the two nations to combat the financial underpinnings of drug trafficking.
Deputy Treasury Secretary Wally Adeyemo underscored the importance of this initiative. “Combating the threat posed by money laundering organizations in China is a key priority of the Treasury Department, and today we are taking action to cut off the financial flows of major money launderers who are driving the trafficking of fentanyl and other illicit drugs into the United States,” he stated.
This crackdown comes in the wake of a renewed commitment by the United States and China to collaborate in the fight against drug trafficking. In November 2023, U.S. President Joe Biden and Chinese President Xi Jinping announced the resumption of bilateral cooperation to combat the manufacturing and trafficking of drugs, particularly synthetic substances like fentanyl. This agreement aims to address the growing crisis of synthetic drug abuse and its devastating impacts.
As a consequence of the sanctions, all property and interests in property of the sanctioned individuals that are located in the United States or held or controlled by U.S. persons are now frozen. This measure is intended to disrupt the financial operations of these individuals and their associated networks, significantly hindering their ability to support drug trafficking activities.
The Sinaloa cartel, one of Mexico’s most powerful drug trafficking organizations, has long been a target of U.S. law enforcement due to its extensive involvement in the production and distribution of narcotics, including fentanyl, which has contributed to the opioid crisis in the United States. The cartel’s operations are sustained by intricate money laundering schemes that move illicit profits across borders, posing significant challenges for authorities.
The imposition of these sanctions reflects the United States’ ongoing commitment to dismantling the financial networks that enable drug trafficking organizations to thrive. By targeting key individuals and their financial assets, the Treasury Department aims to weaken the operational capabilities of the Sinaloa cartel and similar entities, thereby reducing the flow of illicit drugs into the country.
This latest action represents a critical step in the broader strategy to combat international drug trafficking and its associated financial crimes, demonstrating the importance of international cooperation in addressing these complex and pervasive issues.
Puerto Vallarta, Mexico - The United States has imposed economic sanctions on a Mexican national and two Chinese nationals accused of laundering money for the notorious Mexican Sinaloa cartel, as announced by the U.S. Treasury Department on Monday. The sanctions highlight ongoing international efforts to disrupt the financial networks supporting drug trafficking organizations.
