U.S. Treasury Initiates Sanctions Blitz: Targets Drug Cartel in Mexico and Russian Nationals

In a multifaceted effort to bolster national security and combat international illicit activities, the U.S. Department of the Treasury has announced a series of sanctions targeting significant threats from Mexico's La Nueva Familia Michoacana drug cartel and Russian nationals under Executive Order 14024. These actions aim to disrupt drug trafficking networks and address emerging challenges in global security.

OFAC Sanctions on La Nueva Familia Michoacana

Secretary of the Treasury Janet Yellen disclosed on June 20, 2024, that the Office of Foreign Assets Control (OFAC) has expanded its Specially Designated Nationals (SDN) List. The sanctions target prominent leaders of La Nueva Familia Michoacana, a notorious drug cartel operating primarily in Michoacán, Mexico. The designated individuals include:

• Kevin Arzate Gomez
• Euclides Camacho Goicochea (a.k.a. "Quilles")
• David Duran Alvarez
• Josue Lopez Hernandez (a.k.a. "El Colima")
• Rodolfo Maldonado Bustos
• Lucio Ochoa Lagunes (a.k.a. "El Borrego")
• Josue Ramirez Carrera
• Uriel Tabares Martinez (a.k.a. "El Medico")

These individuals are accused of facilitating drug trafficking activities that threaten regional stability and public safety. They are now subject to sanctions under Executive Order 14059, which aims to disrupt illicit networks and combat organized crime.

FinCEN Advisory on Illicit Fentanyl Supply Chain

Concurrently, the Financial Crimes Enforcement Network (FinCEN) issued a supplemental advisory to U.S. financial institutions regarding the illicit fentanyl supply chain. The advisory highlights new trends involving Mexico-based transnational criminal organizations procuring fentanyl precursor chemicals and manufacturing equipment from suppliers in the People's Republic of China.

FinCEN's advisory, issued under the mandate of the FEND Off Fentanyl Act, introduces updated typologies and red flags to enhance the detection and reporting of suspicious activities linked to fentanyl procurement.

The coordinated actions by OFAC and FinCEN reflect the United States' proactive stance in combating international threats posed by drug trafficking and illicit financial activities. These measures underscore efforts to safeguard national security interests and protect global financial systems from exploitation by criminal enterprises.

OFAC Sanctions on Russian Nationals

In a separate move, OFAC also targeted several Russian nationals under Executive Order 14024, focusing on individuals engaged in activities contrary to U.S. interests. The newly sanctioned individuals include:

• Marina Mikhaylovna Aleskeeva
• Kirill Aleksandrovich Astrakhan
• Daniil Sergeyevich Borshchev
• Igor Gennadyevich Chekunov
• Andrey Petrovich Dukhvalov
• Andrei Anatolyevich Efremov
• Mikhail Yuyevich Gerber
• Anton Mikhaylovich Ivanov
• Anna Vladimirovna Kulashova
• Andrei Anatolyevich Suvorov
• Andrei Gennadyevich Tikhonov
• Denis Vladimirovich Zenkin

These individuals are identified as posing risks under secondary sanctions provisions, necessitating enhanced monitoring by financial institutions to mitigate risks associated with illicit financial activities.

The recent surge in sanctions by the U.S. Department of the Treasury against entities involved in drug trafficking and illicit activities reflects a growing reliance on economic tools to enforce international norms and security objectives. As sanctions expand in scope and impact, they are becoming increasingly integral to U.S. foreign policy, shaping global economic relationships and underscoring the importance of compliance and vigilance in international financial transactions. As nations navigate these complex regulatory landscapes, adherence to sanctions regimes has emerged as a critical component in maintaining stability and integrity across global markets.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.