The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), in partnership with the Government of Mexico, have taken coordinated action against the Hysa Organized Crime Group and several gambling businesses in Mexico. These actions target money laundering activities linked to Mexican drug cartels operating across Mexico and Europe.
This collaboration follows recent commitments made during a visit by Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley to strengthen joint efforts against narcotrafficking and financial crimes.
“The United States and Mexico are working together to combat money laundering in Mexico’s gambling sector. Our message to those supporting the cartels is clear: You will be held accountable,” said Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “We thank the Government of Mexico for its strong partnership in this effort.”
OFAC has imposed sanctions on 27 individuals and entities associated with these activities, while FinCEN has proposed measures that would cut off 10 Mexican gambling establishments from accessing the U.S. financial system due to concerns about money laundering.
The Hysa Organized Crime Group (HOCG), led by family members Luftar, Arben, Ramiz, Fatos, and Fabjon Hysa, is accused of using investments in various businesses—including casinos and restaurants—to launder proceeds from drug trafficking. The group reportedly operates with approval from the Sinaloa Cartel, which controls much of the territory where these operations take place.
According to authorities, Luftar Hysa divides his time between Mexico and Canada and is recognized as a prominent member of his family’s business interests in both regions. Members of the Hysa family allegedly collaborated with a U.S.-based individual to move bulk cash into the United States for laundering through a company there. Some members also used European entities for similar purposes.
Arben Hysa is reported to own or direct several companies involved in these schemes within Mexico, including Entretenimiento Palmero S.A. de C.V., identified as central to HOCG’s operations. Other individuals named include Gilberto Lopez Lopez, who serves as commissioner at Entretenimiento Palmero S.A. de C.V., and Eselda Baku (formerly Eselda Hysa), who sits on its board.
Entities sanctioned include multiple Mexican companies such as Bliri S.A. de C.V., Diversiones Los Mochis S.A. de C.V., Grupo Internacional Canhysamex S.A. de C.V., LH Pro-Gaming S.A. de C.V., among others; Canadian-based companies like Hysa Holdings Inc; as well as Rosetta Gaming SP ZOO in Poland.
Under Executive Order 13581, OFAC designated these individuals and organizations for their roles in transnational criminal activity or their connections to designated persons or groups.
Following these sanctions, any property or interests belonging to those designated that fall under U.S jurisdiction are blocked and must be reported to OFAC. Transactions involving these persons or entities by U.S.-based individuals or within U.S territory are generally prohibited unless authorized by OFAC licenses or exemptions.
Violations can result in civil or criminal penalties for both U.S. citizens and foreign nationals; OFAC enforces such penalties on a strict liability basis according to its Economic Sanctions Enforcement Guidelines.
Foreign financial institutions participating knowingly in significant transactions involving designated parties may face secondary sanctions—such as restrictions on opening accounts within the United States.
While adding people or organizations to sanction lists is one aspect of enforcement, OFAC notes that removal from such lists is possible if legal criteria are met: “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.” Guidance regarding petitions for removal from an OFAC list can be found on their website.
In parallel with OFAC’s actions, FinCEN has issued a notice proposing new rules under Section 311 of the USA PATRIOT Act targeting transactions related to ten specific Mexican casinos operated by HOCG—identified as key sites facilitating money laundering benefiting the Sinaloa Cartel:
- Emine Casino (San Luis Rio Colorado)
- Casino Mirage (Culiacan)
- Midas Casinos (Agua Prieta; Los Mochis; Guamuchil; Mazatlan; Rosarito)
- Palermo Casino (Nogales)
- Skampa Casinos (Ensenada; Villahermosa)
If adopted, covered financial institutions would be barred from opening correspondent accounts used for processing transactions involving these casinos and required to apply special due diligence measures designed to prevent misuse.
Public comments on FinCEN's proposed rule can be submitted via https://www.regulations.gov.
