Background on the Pacific Cartel and its Relevance
The Pacific Cartel, also known as the Sinaloa Cartel, is one of Mexico’s most notorious and powerful drug trafficking organizations. Founded by the late Joaquín “El Chapo” Guzmán, it has been involved in the production and distribution of illegal drugs, money laundering, and other criminal activities for decades. The cartel’s influence extends across Mexico and reaches into various countries, including the United States, Europe, and Central America.
Collaborative Efforts to Disrupt the Cartel’s Finances
In a significant move against the Pacific Cartel, Mexico’s Unit for Intelligence Financial (UIF) collaborated with the United States’ Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN). This partnership led to the freezing of 31 accounts and suspension of business activities linked to the cartel.
Targeted Businesses and Individuals
The UIF, in collaboration with its US counterparts, targeted 26 individuals and 24 companies associated with the cartel. These entities included casinos, restaurants, and entertainment businesses spread across Mexico, the United States, and Europe. The OFAC designated the Pacific Cartel and 26 related individuals (7 physical persons and 19 companies), while the UIF identified five additional entities to include in total, making it 31 individuals on the Blocked Persons List.
Financial Analysis and Disruption
The UIF’s financial analysis revealed that the 24 companies and seven individuals operated international corporate structures and financial networks to transfer and conceal illicit funds. This was achieved through large cash movements and triangulation of over a billion pesos between Mexico, the United States, Canada, Belize, Panama, Romania, Poland, and Albania. These funds were dispersed through companies established to channel capital towards identified foreign enterprises within the transnational financial scheme.
Legal Actions and Denunciations
Based on the findings, the UIF filed denunciations with the Federal Attorney General’s Office (FGR) for possible crimes related to illicit resource operations. The Federal Fiscal Prosecutor’s Office was also notified for fiscal offenses and the use of front companies to justify non-existent income.
Recent Investigations and Casino Allegations
This action comes shortly after the UIF announced it would file denunciations against 13 casinos for alleged money laundering, following months of investigation revealing cash operations, international flows, and unsupervised digital platforms. The probes uncovered consistent patterns with international money laundering typologies in establishments present in Jalisco, Nuevo León, Sinaloa, Sonora, Baja California, the State of Mexico, Chiapas, and the City of Mexico.
- Cash Movements and International Transfers: Investigations detected large cash movements and transfers to countries like the United States, Romania, Albania, Malta, and Panama.
- Digital Platforms for Money Laundering: The use of digital platforms facilitated the dispersal, concealment, and reinsertion of illicit funds into both Mexican and international financial systems.
- Mismatched Economic Profiles: Investigators found individuals with economic profiles inconsistent with the amount of money they received. These individuals, often portrayed as housewives, students, retirees, or unemployed, transferred the entire funds to true owners, thereby legitimizing seemingly illicit gaming income.
