Janet Yellen Secretary of the Treasury | Twitter Website
Washington — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned a Mexico-based money launderer and China-based members of a money laundering organization linked to the Sinaloa Cartel. This action is part of ongoing efforts to disrupt the flow of illicit narcotics into the United States, aligning with the President’s Unity Agenda.
Deputy Secretary of the Treasury Wally Adeyemo stated, “Combatting the threat posed by Money Laundering Organizations in China is a key priority of the Treasury Department, and today we are taking action to cut off the financial flows of major money launderers who are powering the trafficking of fentanyl and other illicit drugs to the United States.” He added that through their Counter-Fentanyl Strike Force, they will continue leveraging unique capabilities to disrupt illicit drug trafficking.
The action was coordinated closely with La Unidad de Inteligencia Financiera (UIF) in Mexico, reflecting strong bilateral cooperation. In November 2023, Presidents Biden and Xi Jinping announced renewed collaboration between the U.S. and China to combat synthetic drug trafficking. Treasury Secretary Yellen furthered these discussions during her recent visits to China and Mexico City.
Treasury’s sanctions complement indictments issued by the U.S. Attorney’s Office for the Central District of California. According to Treasury's 2024 National Money Laundering Risk Assessment, Chinese Money Laundering Organizations (CMLOs) have become prominent actors in laundering funds for drug trafficking organizations like the Sinaloa Cartel.
Diego Acosta Ovalle from Mexico assisted in hiding and collecting proceeds for delivery to cartel associates. PRC-based Tong Peiji (佟霈佶) and He Jiaxuan (何家璇), both members of a CMLO, laundered these proceeds through various means including cryptocurrency purchases.
Ovalle, Tong Peiji, and He Jiaxuan were sanctioned under Executive Order 14059 for activities contributing significantly to international drug proliferation.
This action would not have been possible without cooperation from multiple U.S. agencies including DEA, IRS-Criminal Investigations, Homeland Security Investigations, FBI, local police departments in California, FinCEN, among others.
As a result of these sanctions, all property and interests in property within U.S. jurisdiction belonging to these individuals must be blocked and reported to OFAC. Transactions involving designated persons are generally prohibited unless authorized by OFAC.
Today’s measures are part of broader efforts by the Biden-Harris Administration to counteract global drug trafficking threats causing significant fatalities in America annually. These actions support public safety by disrupting illegal drug production pipelines while also addressing untreated addiction issues fueling this crisis.
OFAC emphasizes that its sanctions aim not just at punishment but at fostering positive behavioral changes among designated entities or individuals.
