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U.S. Treasury Dept’s OFAC sanctions Mexican cartel operators under the ‘Kingpin Act’

August 17, 2016  |  Posted by: JammedUp Staff
U.S. Treasury Dept’s OFAC sanctions Mexican cartel operators under the ‘Kingpin Act’

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The United States Department of Treasury’s Office of Foreign Assets Control (OFAC) announced the designation of two top financial operators for the Sinaloa cartel under the Foreign Narcotics Kingpin Designation Act (Kingpin Act.)

In an announcement, Acting Director of OFAC, John E. Smith said that two Mexican nationals, Juan Manuel Alvarez Inzunza, identified as the top money launderer for the Sinaloa cartel, and Jose Olivas Chaidez, a drug smuggler, have been sanctioned as Specially Designated Narcotics Traffickers.

The two men stand accused providing material support and services to high-ranking members of the Sinaloa Cartel including top bosses Joaquin “El Chapo” Guzman Loera, Ismael “El Mayo” Zambada Garcia, along with several top lieutenants.

Additionally, the OFAC also designated two companies owned by Alvarez Inzunza based in Culiacan Mexico: Nueva Atunera Triton, S.A. de C.V., a fishing company and Operadora Eficaz Pegaso, a money services business.

As a result of Tuesday’s actions, U.S. authorities have the capability to freeze any assets linked to the two business entities that fall within U.S. Jurisdiction.

Furthermore, the sanctions prohibit all U.S. based companies and citizens from engaging in any business transactions with the two designated entities.

“The designation of Juan Manuel Alvarez Inzunza and Jose Olivas Chaidez represents a strategic blow to the Sinaloa Cartel’s ability to launder illicit drug trafficking proceeds into Mexico, Central America, and South America,” Smith said.

“This action builds on our continued effort to disrupt Mexican drug cartels by targeting the financial operators who provide support to organizations such as the Sinaloa Cartel and Cartel leaders such as ‘El Mayo’ Zambada and ‘Chapo’ Guzman.”

Alvarez Inzunza, who was arrested in Mexico back in March, is alleged to have overseen an elaborate multi-nation money laundering operation on behalf of high-ranking Sinaloa Cartel figures, including senior lieutenants Alfonso Limon Sanchez and Jose Guadalupe Tapia Quintero. Both are key operators for El Mayo Zambada and Chapo Guzman.

Jose Olivas Chaidez, a top narcotics trafficker, based in Mexico City, oversees a multi-national drug smuggling group responsible for the distribution of multi-ton quantities of cocaine in Southern California.

U.S. federal prosecutors say Alvarez Inzunza laundered millions of dollars from illegal drugs from the U.S. to Mexico and throughout Central and South America.

According to Smith, Tuesday’s actions taken by the OFAC is part of an overall proactive strategy aimed at dismantling Mexican drug trafficking organizations using financial sanctions.

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