Category Archives: Narcotics Trafficking

June 1, 2015

The Office of Foreign Assets Control Designates Peruvian Terrorist Group and its Leaders as Significant Narcotics Traffickers

by Jeremy Paner

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the Peruvian Narco-Terrorist group, the Shining Path (a.k.a. Sendero Luminoso) and three of its leaders as significant narcotics traffickers pursuant to the Foreign Narcotics Kingpin Designation Act. These designations follow the July 2014 indictment of these narco-terrorists by the U.S. Attorney’s Office for the Southern District of New York for Conspiracy to Provide Material Support to a Foreign Terrorist Organization (FTO) and for Narco-Terrorism Conspiracy in violation of 21 U.S.C. 960a. The State Department added this group to its list of FTOs in 1997 and it has been on the Specially Designated Nationals List (the SDN List, commonly referred to as the OFAC list) as a Specially Designated Global Terrorist since 2011.

It is important to note that section 219 of the Immigration and Nationality Act (the FTO designation authority) does not grant authority to designate support networks or business owned by listed terrorist organizations. Although Executive Order 13224 (the Specially Designated Global Terrorist authority) allows for OFAC to designate these networks, Treasury has not exercised this authority for a variety of reasons. This is due in part to the perception within the U.S. government that intelligence gathered on terrorist groups is far more sensitive than information relating to narcotics trafficking activities.

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May 22, 2015

OFAC Targets Mexican and Colombian Cocaine Trafficking Networks

by Jeremy Paner

Over the past two days, OFAC has designated major Mexican and Colombian cocaine trafficking networks as Specially Designated Narcotics Traffickers (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”). In addition to designations of individuals, OFAC also designated businesses in Colombia, Panama and Mexico, including a gas station, maritime company, auto shop, and “freezer air contractor.”

All property and interests in property held by these designees that is in the United States, or comes into the jurisdiction of the United States at a later date must be blocked. Failure to comply with these prohibitions will lead to civil and in the case of willful violations, criminal penalties.

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