Key Players and Relevance
The U.S. Department of the Treasury, in collaboration with the Mexican government, announced a joint operation against the criminal group Hysa, linked to the Sinaloa Cartel, and a network of gaming establishments involved in money laundering. This action was led by the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN).
John K. Hurley, the U.S. Under Secretary for Terrorism and Financial Intelligence, emphasized bilateral cooperation in combating drug trafficking and financial crimes during his recent visit. His efforts have paved the way for this significant development.
Sanctioned Individuals and Consequences
The OFAC designated 27 individuals and entities associated with the Hysa criminal group, accusing them of using casinos, restaurants, and front companies in Mexico, Canada, and Europe to launder money from drug trafficking.
- Mexican Companies Sanctioned: Entretenimiento Palmero S.A. de C.V., Diversiones Los Mochis S.A. de C.V., Grupo Internacional Canhysamex S.A. de C.V., and Rosetta Gaming S.A. de C.V.
- These Mexican companies are part of the Hysa group’s financial network.
As a result, all assets and financial interests in the U.S. are now blocked, and transactions or services with U.S. entities require special authorization from the OFAC. Violations can lead to civil and criminal penalties.
EU Urges Mexico to Enhance Gaming Sector Oversight
The U.S. Treasury stressed that the measures aim not only to penalize but also prevent casinos from being used as platforms for money laundering. FinCEN urged Mexico to strengthen its supervision of the entertainment and gaming sectors by implementing international transparency and financial control standards.
“The objective of these sanctions is not punitive, but dissuasive,” the Treasury statement highlighted. “We seek a change in behavior that will reinforce the integrity of the financial system.”
Key Questions and Answers
- Who is involved in this operation? The U.S. Department of the Treasury, in collaboration with the Mexican government, is targeting the criminal group Hysa and a network of gaming establishments involved in money laundering.
- Which companies were sanctioned? Mexican companies Entretenimiento Palmero S.A. de C.V., Diversiones Los Mochis S.A. de C.V., Grupo Internacional Canhysamex S.A. de C.V., and Rosetta Gaming S.A. de C.V. were sanctioned.
- What are the consequences of these sanctions? All assets and financial interests in the U.S. are blocked, and transactions or services with U.S. entities require OFAC authorization. Violations can result in civil and criminal penalties.
- What is the purpose of these sanctions? The sanctions aim to discourage, rather than punish, and promote a change in behavior that strengthens the integrity of the financial system.
