The Department of the Treasury designated an Ecuador-based cocaine trafficking network on Aug. 20, targeting individuals and entities with ties to violent street gangs and Mexican cartels that move narcotics toward the United States.
The sanctions freeze U.S.-based assets of the designated individuals and entities and prohibit Americans from doing business with them, OFAC said.
Ecuador has emerged in recent years as a major transit and production hub for narco-trafficking, with violence in the country spiking dramatically. The nation’s ports and weak institutional capacity have been exploited by transnational criminal organizations to move cocaine toward North America and Europe.
The sanctioned network operates across multiple countries, using Ecuador as a key node in a supply chain that ultimately feeds drug markets in the United States, according to the Treasury Department. The network’s ties to Mexican cartels connect it to the organizations responsible for the bulk of illicit drug flows across the U.S. southern border.
Ecuador declared a state of internal armed conflict in January 2024 after a series of violent incidents attributed to narco-trafficking organizations. The country’s homicide rate has increased more than fivefold since 2018.
For American communities affected by cocaine trafficking and its associated violence, the sanctions represent the primary non-military financial tool available to target these networks. Treasury sanctions aim to cut organizations off from the international financial system and disrupt their operations.
The action is coordinated with broader Western Hemisphere narcotics enforcement priorities. U.S. Southern Command has expanded its counter-narcotics operations in the region in recent months.
The designated individuals face potential criminal prosecution if they enter U.S. jurisdiction. Foreign banks that facilitate their transactions risk being cut off from the U.S. financial system.