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12/16/2021

Treasury Uses New Sanctions Authority to Combat Global Illicit Drug Trade | U.S. Department of the Treasury

Treasury Uses New Sanctions Authority to Combat Global Illicit
Drug Trade
December 15, 2021

Presidentʼs Executive Order Modernizes Sanctions to Counter Evolving Drug Threats
WASHINGTON — Today, President Biden signed a new Executive Order (E.O.) to modernize
the U.S. Department of the Treasuryʼs sanctions authorities used to combat the illicit drug
trade. This E.O. will provide the Treasury Department with new tools to tackle changes in the
global illicit drug trade that substantially contributed to over 100,000 American overdose
deaths in the 12-month period ending in April 2021.
This E.O. enhances the Department of Treasuryʼs authorities to target any foreign person
engaged in drug tra icking activities, regardless of whether they are linked to a specific
kingpin or cartel. It further enables Treasury to sanction foreign persons who knowingly
receive property that constitutes, or is derived from, proceeds of illicit drug tra icking
activities.
Under the new E.O., “Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug
Trade,” the O ice of Foreign Assets Control (OFAC) today designated 25 actors (10 individuals
and 15 entities) in four countries for having engaged in, or attempted to engage in, activities
or transactions that have materially contributed to, or pose a significant risk of materially
contributing to, the international proliferation of illicit drugs or their means of production.
“The illicit drug trade threatens our national security, economy, communities, and families,”
said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson.
“More than 100,000 Americans died in just twelve months from a drug overdose, a record 28
percent increase that was driven largely by synthetic opioids, particularly fentanyl. Using
President Bidenʼs new E.O., Treasury will deploy its sanctions authority with greater speed,
power, and e ect across the entire illicit drug ecosystem, especially those who profit from the
death and misery of the opioid epidemic. We will continue working closely with our partners to
reduce threats from these groups and disrupt their business models, including by stopping
them from using the U.S. financial system.”
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Todayʼs action targets individuals and drug tra icking organizations (DTO) based in Brazil,
China, Colombia, and Mexico. Those sanctioned include individuals who tra ic fentanyl, and its
precursor chemicals, methamphetamine, cocaine, and heroin, as well as organizations that
pose the greatest drug threat to the United States.
The new E.O. builds upon Treasuryʼs previous narcotics sanctions authorities, specifically E.O.
12978 (1995) and the Foreign Narcotics Kingpin Designation Act (Kingpin Act) (1999). Treasury
designated eight individuals and entities under the new E.O. and is also applying the
expanded tools of this authority to designate 17 individuals and entities previously
sanctioned under other authorities.

NEW INDIVIDUALS AND ENT IT IES DESIGNAT ED
Brazil
Primeiro Comando Da Capital (a.k.a. “PCC,” “First Capital Command”) is the most powerful
organized crime group in Brazil and among the most powerful in the world. PCC arose in Sao
Paulo in the 1990s and has forged a bloody path to dominance through drug tra icking, as
well as money laundering, extortion, murder-for-hire, and drug debt collection. PCC operates
throughout South America, Paraguay, and Bolivia, and its operations reach the United States,
Europe, Africa, and Asia.

China
Chuen Fat Yip and Wuhan Yuancheng Gongchuang Technology Co. Ltd.: Chuen Fat Yip, a
Chinese national, leads a DTO that operates in mainland China and Hong Kong. He tra ics
fentanyl, anabolic steroids, and other synthetic drugs to the United States and controls a
group of companies that sell compounds and fentanyl precursor chemicals to the public and
to private businesses, one of which is Wuhan Yuancheng Gongchuang Technology Co. Ltd.
Chuen Fat Yipʼs business receives internet orders for precursors and compounds, which are
then shipped worldwide, including to the United States. Chuen Fat Yip was also considered
one of, if not the largest, producer of anabolic steroids in the world, much of which ended up
the in the United States. Chuen Fat Yip utilizes virtual currency, such as Bitcoin, and funds
transfers through money services businesses and banks to receive payment. The U.S.
Department of State is issuing a reward o er, under its Transnational Organized Crime

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Rewards Program, of up to $5 million for information leading to the arrest and/or conviction
of Chuen Fat Yip.
Shanghai Fast-Fine Chemicals Co., LTD.: Since 2019, Shanghai Fast-Fine Chemicals Co., LTD.,
a Chinese chemical transportation company, has shipped various precursor chemicals, o en
falsely labeled, to DTOs in Mexico for illicit fentanyl production and intended for U.S. markets
for sale and consumption.
Hebei Huanhao Biotechnology Co., Ltd. and Hebei Atun Trading Co., Ltd.: China-based
Hebei Huanhao Biotechnology Co., Ltd. imports and exports chemical and pharmaceutical
products used to in produce opioids. The company has advertised or supplied fentanyl
precursor chemicals using business-to-business chemical marketplaces and has been involved
in producing fentanyl precursors. Hebei Atun Trading Co., Ltd., also located in China, is also
involved in fentanyl precursor chemical sales and falsifying chemical shipment details.

Mexico
Los Rojos DTO is a splinter group of the Beltran Leyva Organization (BLO), which in recent
years has risen to become one Mexicoʼs most powerful criminal organizations. In addition to
driving violence in Mexico, the Los Rojos DTO is responsible for tra icking numerous illicit
drugs, including heroin, into the United States.
Guerreros Unidos (GU), a DTO based in Guerrero, Mexico, was originally a splinter group from
BLO and through violence expanded its role in the heroin trade. GU collaborates with the
Mexican narcotics tra icking organization, Cartel de Jalisco Nueva Generacion, and shares the
same transportation networks to move drug shipments into the United States and to return
drug proceeds to Mexico.

PREVIOUS DESIGNAT IONS UNDER T HE KINGPIN ACT
AND/OR E.O 13581
Cartel de Jalisco Nueva Generacion (CJNG) is one of the most powerful cartels in Mexico
and one of the five most dangerous transnational criminal organizations in the world,
according to the U.S. Department of Justice. The United States Drug Enforcement
Administration (DEA) reports that CJNG tra ics a significant proportion of the fentanyl and
other deadly drugs that enter the United States. CJNG uses extreme violence against rivals
and Mexican authorities to expand and maintain territory in strategic drug tra icking
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corridors. In 2015, OFAC designated CJNG pursuant to the Kingpin Act. Todayʼs designation
pursuant to the new E.O. will enhance Treasuryʼs ability to target the full range of actors
linked to this brutal organization.
Nemesio Oseguera Cervantes (a.k.a. Ruben Oseguera Cervantes; a.k.a. “El Mencho”) is the
leader of CJNG and among the worldʼs most powerful narcotics tra ickers. Oseguera
Cervantes has been involved in drug tra icking since the 1990s. A er serving nearly three
years in a U.S. prison for conspiracy to distribute heroin, Oseguera Cervantes returned to
Mexico, resumed drug tra icking, and co-founded CJNG. In 2014, following a DEA
investigation, a federal grand jury in the District of Columbia indicted Oseguera Cervantes on
multiple charges, including being the principal leader of a Continuing Criminal Enterprise. In
2015, OFAC designated Oseguera Cervantes pursuant to the Kingpin Act. He remains one of
the DEAʼs most wanted fugitives. Through its Narcotics Rewards Program, the U.S.
Department of State o ers a reward of up to $10 million for information leading to his arrest
and/or conviction.
The Sinaloa Cartel: Founded in the 1980s, the Sinaloa Cartel initially operated as a coalition
of Mexicoʼs most powerful drug tra ickers. In the early 2000s, Ismael Zambada Garcia (a.k.a.
“El Mayo”) and Joaquin Guzman Loera (a.k.a. “El Chapo”) consolidated their power, which led
to the Sinaloa Cartelʼs ascent into one of the largest and most notorious DTOs in Mexico. The
Sinaloa Cartel controls drug tra icking activity in key regions throughout Mexico, especially
along the Pacific Coast. From these strategic points, the Sinaloa Cartel tra ics multi-ton
quantities of illicit drugs, including fentanyl and heroin, into the United States. In 2009, the
President identified the Sinaloa Cartel as a significant foreign narcotics tra icker pursuant to
the Kingpin Act.
Ismael Zambada Garcia (a.k.a. “El Mayo”) is one of Mexicoʼs most notorious drug tra ickers.
In the 1990s, Zambada Garcia began accumulating power and rose through the ranks of what
is now known as the Sinaloa Cartel, of which he is now the leader. In 2014, Zambada Garcia
was charged in California with continuing criminal enterprise and drug tra icking, among
other charges. Zambada Garcia has also been charged in several jurisdictions across the
United States for a variety of drug tra icking o enses. The DEA has identified Zambada
Garcia as one of its most wanted fugitives. Through its Narcotics Rewards Program, the U.S.
Department of State o ers a reward of up to $15 million dollars for information leading to his
arrest and/or conviction. The Mexican government is also o ering a reward for his capture. In
2002, the President identified Zambada Garcia as a significant foreign narcotics tra icker
pursuant to the Kingpin Act.
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Leaders of a Faction of the Sinaloa Cartel: Brothers Ivan Archivaldo Guzman Salazar (a.k.a.
“Chapito”) and Jesus Alfredo Guzman Salazar (a.k.a. “El Alfredillo”), and their stepbrother,
Ovidio Guzman Lopez (a.k.a. “El Raton”), lead a faction of the Sinaloa Cartel. Ivan and Jesus
are the sons of Sinaloa leader Joaquin “El Chapo” Guzman Loera, who is now imprisoned in
the United States. Following their fatherʼs arrest, the brothers carried on the business. Ivan
Archivaldo, Jesus Alfredo, and Ovidio are all indicted on U.S. federal drug-related charges. All
three are also designated by OFAC as specially designated narcotics tra ickers pursuant to
the Kingpin Act. Through its Narcotics Rewards Program, the U.S. Department of State o ers
a reward of up to $5 million each for information leading to the arrest and/or conviction of
Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, Ovidio Guzman Lopez, and
Ovidioʼs brother, Joaquin Guzman Lopez.
Beltran Leyva Organization (BLO): Identified by the DEA as one of Mexicoʼs most powerful
and cohesive criminal organizations, BLO once saw the death or arrest of much of its
leadership but is now regaining strength and influence throughout Mexico. Though less
structured, BLO relies on its loose alliances with larger cartels for access to drug smuggling
corridors along the U.S. southwest border. Its members primarily tra ic heroin,
methamphetamine, cocaine, and marijuana. The President originally identified BLO as a
significant foreign narcotics tra icker pursuant to the Kingpin Act in 2009.
Fausto Isidro Meza Flores (a.k.a. “Chapito Isidro,” a.k.a. “Chapo Isidro”), a Mexican national, is
a BLO operator out of northern Sinaloa. Meza Flores has been the leader of the Meza Flores
DTO since at least 2005. In 2021, the U.S. Attorneyʼs O ice for the District of Columbia
charged Meza Flores with multiple drug tra icking o enses. According to the indictment,
Meza conspired to distribute cocaine, methamphetamine, and heroin to the United States. In
2013, Treasury designated Meza Flores pursuant to the Kingpin Act. Through its Narcotics
Rewards Program, the U.S. Department of State o ers a reward of up to $5 million for
information leading to his arrest and/or conviction.
The Gulf Cartel is one of Mexicoʼs oldest and most powerful DTOs. The U.S. Department of
Justice and the DEA identified the Gulf Cartel as one of Mexicoʼs nine major transnational
criminal organizations and “engaged in the manufacture, distribution, and importation of ton
quantities of cocaine and marijuana into the United States.” The cartel primarily tra ics heroin
and cocaine and transports its loads into the United States near McAllen and Brownsville,
Texas. The President identified the Gulf Cartel as a significant foreign narcotics tra icker
pursuant to the Kingpin Act in 2007.
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The Juarez Cartel and its faction unit, La Linea, continue to pose a significant threat to the
United States through its drug tra icking activities along the U.S. southwest border.
According to the DEA, this organization is one of nine significant Mexican criminal
organizations that pose the greatest drug threat to the United States. The DTO primarily
smuggles heroin, methamphetamine, cocaine, and marijuana from Mexico via the profitable El
Paso, Texas corridor. The organization and its leaders have been the subject of multiple U.S.
indictments. In addition, in 2004, the President identified the Juarez Cartel as a significant
foreign narcotics tra icker pursuant to the Kingpin Act.
Los Zetas: Los Zetas (a.k.a. “Cartel del Noreste”) is one of nine Mexican transnational criminal
organizations that pose the greatest drug threat to the United States, according to the DEA.
It relies on extreme violence, o en displayed through social media, to exert control over
territory and to intimidate and terrorize local citizens, Mexican security forces, and rival
organizations. Los Zetas smuggles most of its illicit drugs through the U.S. southwest border
near Laredo and Eagle Pass, Texas. The President originally identified Los Zetas as a
significant foreign narcotics tra icker pursuant to the Kingpin Act in 2009 and again in 2011 as
a significant transnational criminal organization pursuant to E.O. 13581.
Miguel Trevino Morales is considered the “head of the notoriously violent and vicious Los
Zetas cartel” by the DEA. He occupied a supervisory and management position within Los
Zetas and was the principal administrator, organizer, and leader of its continuing criminal
enterprise. Trevino Morales generated more than $10 million in illicit income in a 12-month
period for the manufacture, importation, and distribution of cocaine. Miguel Trevino Morales
has been charged with multiple drug counts in the U.S. District Court for the Eastern District
of New York, in the U.S. District Court in Eastern District of Texas, as well as in the U.S. District
Court in Western District of Texas and U.S. District Court for the District of Columbia. In 2009,
OFAC designated Trevino Morales pursuant to the Kingpin Act. Trevino Morales is currently in
the custody of Mexican authorities. The U.S. Department of State has a reward o er through
the Narcotics Rewards Program of up to $5 million for information leading to his arrest and/or
conviction.
Omar Trevino Morales is a leader of Los Zetas who oversaw and facilitated drug shipments
into the United States and elsewhere,” according to the DEA. Omar Trevino Morales was
indicted on multiple drug-related and money laundering charges and identified as a leader of
Los Zetas by the U.S. District Court in Western District of Texas, the U.S. District Court for the
Southern District of Texas, and the U.S. District Court for the District of Columbia. He was
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actively involved in the coordination of cocaine and marijuana shipments into the United
States, as well as the receipt of bulk currency shipments from the United States to Mexico. He
was actively involved in the coordination of cocaine and marijuana shipments into the United
States, as well as the receipt of bulk currency shipments from the United States to Mexico. In
2010, OFAC designated Trevino Morales pursuant to the Kingpin Act. Mexican authorities
arrested Trevino Morales in 2015. The U.S. Department of State has a reward o er through
the Narcotics Rewards Program of up to $5 million for information leading to the arrest
and/or conviction of Omar Trevino Morales, also known as Alejandro Trevino Morales.
La Familia Michoacana (LFM) has been identified as one of the major DTOs in Mexico. LFM,
which operates primarily in the states of Michoacán and Guerrero, allegedly specializes in
methamphetamine production, while also tra icking in marijuana and cocaine. It is believed to
be taxing other groups producing heroin in territory it controls. In 2009, the President
identified LFM as a significant foreign narcotics tra icker pursuant to the Kingpin Act.

Colombia
Clan del Golfo (CDG): The DEA has identified CDG as a major illicit DTO based in Colombia
with links to drug cartels in Costa Rica, Honduras, Panama, Guatemala, and Mexico. The
organization functions as a highly structured and centralized criminal enterprise that has
evolved into the largest “Armed Criminal Organization” (Grupo Armado Organizado) in
Colombia, with a cohesive national presence. According to the DEA, CDG relies on drug
tra icking activities and a military-style framework to maintain operability. CDGʼs power base
lies in its birthplace region of Urabá in northwest Colombia, a strategic location from which
CDG sends multi-ton quantities of cocaine, destined for the United States, via maritime
conveyances to Central America on a regular basis. Following attacks by CDG on community
leaders in Colombia, the U.S. Attorney General established a Transnational Crime Task Force
to target CDG for its threats to the safety and prosperity of the United States and its allies.
The President originally identified CDG as a significant foreign narcotics tra icker pursuant to
the Kingpin Act in 2013.
Dairo Antonio Usuga David (a.k.a. “Otoniel”) headed CDG since 2012 until his capture in
Colombia in October 2021. In 2010, OFAC designated Usuga David pursuant to the Kingpin Act.
In 2015, a superseding indictment filed in the U.S. District Court for the Eastern District of
New York charged him with multiple counts, including being involved in an international
cocaine manufacturing and distribution conspiracy, as well as 31 separate incidents of
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international cocaine distribution between 2003 and 2012, totaling approximately 75,000
kilograms of cocaine for importation into the United States. The Colombian government had
o ered a reward for whoever provided information leading to the capture of Usuga David.
Additionally, the U.S. Department of State has a reward o er through the Narcotics Rewards
Program of up to $5 million for information leading to the arrest and/or conviction of Usuga
David.

SANCT IONS IMPLICAT IONS
As a result of todayʼs action, all property and interests in property of the designated
individuals that are in the United States or in the possession or control of U.S. persons must
be blocked and reported to OFAC. In addition, any entities that are owned, directly or
indirectly, 50 percent or more by one or more blocked persons are also blocked.
Unless authorized by a general or specific license issued by OFAC, or otherwise exempt,
OFACʼs regulations generally prohibit all transactions by U.S. persons or persons within (or
transiting) the United States that involve any property or interests in property of designated
or otherwise blocked persons. The prohibitions include the making of any contribution or
provision of funds, goods, or services by, to, or for the benefit of any blocked person or the
receipt of any contribution or provision of funds, goods, or services from any such person.
Violations of IEEPA sanctions may result in the imposition of civil or criminal penalties.
For information concerning the process for seeking removal from any OFAC list, including the
Specially Designated Nationals and Blocked Persons List (SDN List), please refer to OFACʼs
Frequently Asked Question 897. Additional information regarding sanctions programs
administered by OFAC can be found here.
View more information on the entities designated today.

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