The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on a Mexico-based money launderer and several China-based members of a money laundering organization with connections to the notorious Sinaloa Cartel. This action is part of the ongoing efforts by the U.S. government, in collaboration with Mexican authorities, to combat the trafficking of fentanyl and other illicit drugs into the U.S.
Treasury’s Strategic Strike Against Illicit Networks
Deputy Secretary of the Treasury Wally Adeyemo emphasized the importance of this initiative. The Treasury’s Counter-Fentanyl Strike Force is leveraging the department’s expertise to dismantle these illicit financial networks, which significantly contribute to the drug epidemic claiming thousands of American lives each year.
This strategic action was closely coordinated with Mexico’s financial intelligence unit, La Unidad de Inteligencia Financiera (UIF), reflecting the robust partnership between the U.S. and Mexico in addressing the financial underpinnings of the fentanyl trade.
Treasury’s sanctions also complement indictments on these designated persons issued by the U.S. Attorney’s Office for the Central District of California.
Details of the Sanctioned Individuals
The individuals sanctioned include Mexico-based Diego Acosta Ovalle, who assisted the Sinaloa Cartel by managing and delivering drug trafficking proceeds. Ovalle worked alongside PRC-based Tong Peiji (佟霈佶) and He Jiaxuan (何家璇), members of a U.S.-based Chinese Money Laundering Organization (CMLO). These operatives laundered drug proceeds and facilitated financial transactions benefiting the cartel. Their activities included handling bulk cash in the U.S., moving funds internationally, and purchasing cryptocurrency for the cartel’s accounts.
Broader Implications and Ongoing Efforts
The Treasury’s actions complement indictments issued by the U.S. Attorney’s Office for the Central District of California. This comprehensive effort involved multiple agencies, including the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigations, Homeland Security Investigations, and the Federal Bureau of Investigation, alongside local police departments in California and international partners.
According to Treasury’s 2024 National Money Laundering Risk Assessment, Chinese Money Laundering Organizations are becoming significant threats to the U.S. financial system, with drug trafficking organizations like the Sinaloa Cartel increasingly relying on them.
