Treasury and Government of Mexico Companions Goal Transnational Felony Group

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN) joined the Government of Mexico in concentrating on the Hysa Organized Crime Group and quite a few Mexico-based playing institutions concerned in cartel-related cash laundering and a slew of different prison actions throughout Mexico and Europe. This coordinated motion is the results of current U.S.-Mexico commitments—secured throughout Treasury Under Secretary for Terrorism and Financial Intelligence John Okay. Hurley’s journey—to work collectively extra carefully to fight narcotrafficking and associated monetary crime by Mexico-based drug cartels and different teams.

“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,” stated Treasury Under Secretary for Terrorism and Financial Intelligence John Okay. Hurley.  “We thank the Government of Mexico for its strong partnership in this effort.”

OFAC as we speak sanctioned 27 people and entities, and FinCEN proposed a particular measure to sever 10 Mexico-based playing institutions’ entry to the U.S. monetary system because of cash laundering considerations.

OFAC SANCTIONS TARGETING THE HYSA ORGANIZED CRIME GROUP 

The Hysa Organized Crime Group(HOCG), which incorporates members of the family Luftar Hysa (Luftar), Arben Hysa (Arben), Ramiz Hysa (Ramiz), Fatos Hysa (Fatos), and Fabjon Hysa (Fabjon), has used its affect by means of its investments in, or management over, numerous Mexico-based companies—together with playing institutions and eating places—to launder the proceeds of narcotics trafficking.  The HOCG is believed to function with the consent of the Sinaloa Cartel, which maintains prison management over a lot of the territory the place the group conducts its actions.

Luftar, based mostly between Mexico and Canada, is usually seen in public media as a number one member of the Hysa household, offering public interviews on his household’s companies in Mexico and Europe.  Luftar, Fatos, Arben, and Fabjon have labored carefully with a U.S. individual to launder cash, together with the motion of bulk money from Mexico to the United States, the place the U.S. individual’s firm was used to launder the funds.  Luftar and Arben have utilized a Europe-based entity to complement themselves from laundering illicit funds belonging to suspected narcotraffickers. Luftar additionally owns or directs a number of firms utilized by the HOCG.

Arben owns or directs a number of firms utilized by the HOCG in Mexico.  Arben has additionally been concerned within the smuggling of bulk money to the United States for the needs of cash laundering, in addition to using playing institutions and luxurious eating places in Mexico to launder drug cash.

Ramiz has been concerned in using playing institutions and luxurious eating places in Mexico as fronts for laundering the proceeds of the sale of narcotics.

Fatos, alongside Luftar, Arben, and Fabjon, was concerned in smuggling bulk money into the United States for the aim of laundering cash.  Fatos and Fabjon had been additionally concerned in using a Europe-based entity to complement themselves from laundering illicit funds belonging to suspected narcotraffickers. 

With as we speak’s motion, OFAC can also be concentrating on a number of people and entities inside HOCG’s community. Mexico-based Entretenimiento Palmero, S.A. de C.V., owned by Arben, is central to the HOCG’s operations. Mexican nationwide Gilberto Lopez Lopez acts as its commissioner. Albanian nationwide however Mexico-based Eselda Baku (previously Eselda Hysa), Ramiz’s daughter, sits on its Board of Directors. Additional firms focused with this motion embrace:

• Bliri S.A. de C.V. (Mexico)
• Cucina Del Porto S.A. de C.V. (Mexico)
• Diversiones Los Mochis S.A. de C.V. (Mexico)
• El Arte de Cocinas y Beber S.A. de C.V. (Mexico)
• Entretenimiento Villahermosa S.A. de C.V. (Mexico)
• Entretenimiento Y Espectaculos B.C. S.A. de C.V. (Mexico)
• Grupo Internacional Canhysamex S.A. de C.V. (Mexico)
• H Hidrocarburos S.A. de C.V. (Mexico)
• Hysa Forwarders S.A. de C.V. (Mexico)
• LH Pro-Gaming S.A. de C.V. (Mexico)
• LH Rental S.A. De C.V. (Mexico)
• Operadora Alejil S.A. De C.V. (Mexico)
• Operadora de Empresas LH S.A. de C.V. (Mexico)
• Procesadora de Alimentos Hs S.A. de C.V. (Mexico)
• Rosetta Gaming S.A. de C.V. (Mexico)
• Hysa Holdings Inc (Canada)
• Rosetta Gaming Inc (Canada)
• Rosetta Gaming SP ZOO (Poland) 

Treasury is designating the Hysa Organized Crime Group pursuant to E.O. 13581, as amended, for being a international individual that constitutes a major transnational prison group.

Treasury is designating Luftar Hysa, Arben Hysa, Fatos Hysa, Ramiz Hysa, and Fabjon Hysa pursuant to E.O. 13581, as amended, for being owned or managed by or having acted or presupposed to act for or on behalf of, straight or not directly, the Hysa Organized Crime Group.

Treasury is designating Entretenimiento Y Espectaculos B.C. S.A. de C.V., Hysa Holdings Inc, and Rosetta Gaming Inc, pursuant to E.O. 13581, as amended, for being owned or managed by or having acted or presupposed to act for or on behalf of, straight or not directly, Luftar Hysa.

Treasury is designating Diversiones Los Mochis S.A. de C.V., Entretenimiento Palmero S.A. de C.V., Entretenimiento Villahermosa S.A. de C.V., Grupo Internacional Canhysamex S.A. de C.V., H Hidrocarburos S.A. De C.V., and Procesadora De Alimentos S.A. De C.V. pursuant to E.O. 13581, as amended, for being owned or managed by or having acted or presupposed to act for or on behalf of, straight or not directly, Arben Hysa.

Treasury is designating Gilberto Lopez Lopez and Eselda Baku pursuant to E.O. 13581, as amended, for being owned or managed by or having acted or presupposed to act for or on behalf of, straight or not directly, Entretenimiento Palmero S.A. de C.V.

Treasury is designating Bliri S.A. de C.V., Hysa Forwarders S.A. de C.V., LH Pro-Gaming S.A. De C.V., and Operadora de Empresas LH S.A. de C.V., and Rosetta Gaming S.A. de C.V. pursuant to E.O. 13581, as amended, for being owned or managed by or having acted or presupposed to act for or on behalf of, straight or not directly, Arben Hysa and Luftar Hysa.

Treasury is designating Cucina del Porto S.A. de C.V., El Arte de Cocinas y Beber S.A. de C.V., and Operadora Alejil S.A. de C.V. pursuant to E.O. 13581, as amended, for being owned or managed by or having acted or presupposed to act for or on behalf of, straight or not directly, Gilberto Lopez Lopez.

SANCTIONS IMPLICATIONS

As a results of as we speak’s motion, all property and pursuits in property of the designated individuals described above which are within the United States or within the possession or management of U.S. individuals is blocked and have to be reported to OFAC.  In addition, any entities which are owned, straight or not directly, individually or within the mixture, 50 p.c or extra by a number of blocked individuals are additionally blocked.  Unless licensed by a common or particular license issued by OFAC, or exempt, OFAC’s laws typically prohibit all transactions by U.S. individuals or inside (or transiting) the United States that contain any property or pursuits in property of blocked individuals. 

Violations of U.S. sanctions could end result within the imposition of civil or prison penalties on U.S. and international individuals.  OFAC could impose civil penalties for sanctions violations on a strict legal responsibility foundation.  OFAC’s Economic Sanctions Enforcement Guidelines present extra info concerning OFAC’s enforcement of U.S. financial sanctions. In addition, monetary establishments and different individuals could threat publicity to sanctions for partaking in sure transactions or actions involving designated or in any other case blocked individuals.  The prohibitions embrace the making of any contribution or provision of funds, items, or providers by, to, or for the advantage of any designated or blocked individual, or the receipt of any contribution or provision of funds, items, or providers from any such individual. 

Furthermore, partaking in sure transactions involving the individuals designated as we speak could threat the imposition of secondary sanctions on collaborating international monetary establishments.  OFAC can prohibit or impose strict circumstances on opening or sustaining, within the United States, a correspondent account or a payable-through account of a international monetary establishment that knowingly conducts or facilitates any important transaction on behalf of an individual who’s designated pursuant to the related authority.

The energy and integrity of OFAC sanctions derive not solely from OFAC’s capacity to designate and add individuals to the Specially Designated Nationals and Blocked Persons List (SDN List), but in addition from its willingness to take away individuals from the SDN List in line with the regulation.  The final aim of sanctions is to not punish, however to carry a couple of constructive change in conduct.  For info in regards to the course of for looking for removing from an OFAC record, together with the SDN List, or to submit a request, please consult with OFAC’s steerage on Filing a Petition for Removal from an OFAC List.

Click here for more information on the persons designated today.

FINCEN PROPOSES SPECIAL MEASURE TO CUT OFF 10 GAMBLING ESTABLISHMENTS FROM THE U.S. FINANCIAL SYSTEM 

Concurrently, and in coordination with OFAC and the Government of Mexico, FinCEN issued a discover of proposed rulemaking (NPRM), pursuant to part 311 of the USA PATRIOT Act, figuring out transactions involving 10 Mexico-based playing institutions as a category of transactions of main cash laundering concern.  The HOCG operates these playing institutions, which for years have been used to facilitate cash laundering that advantages the Sinaloa Cartel.  The playing institutions are:

• Emine Casino, situated in San Luis Rio Colorado, Sonora, Mexico
• Casino Mirage, situated in Culiacan, Sinaloa, Mexico
• Midas Casino, situated Agua Prieta, Sonora, Mexico
• Midas Casino, situated in Los Mochis, Sinaloa, Mexico
• Midas Casino, situated in Guamuchil, Sinaloa, Mexico
• Midas Casino, situated in Mazatlan, Sinaloa, Mexico
• Midas Casino, situated in Rosarito, Baja California, Mexico
• Palermo Casino, situated in Nogales, Sonora, Mexico
• Skampa Casino, situated in Ensenada, Baja California, Mexico
• Skampa Casino, situated in Villahermosa, Tabasco, Mexico

To deal with the dangers offered by these playing institutions, FinCEN proposes within the NPRM the imposition of a particular measure that might:  (1) prohibit coated monetary establishments from opening or sustaining a correspondent account for any international banking establishment if such account is used to course of transactions involving any of the playing institutions; and (2) require coated monetary establishments to use particular due diligence to their correspondent accounts that’s fairly designed to protect in opposition to using such accounts to course of transactions involving any of the playing institutions. 

FinCEN’s NPRM, as submitted to the Federal Register, is available here. 

Comments on the NPRM could also be submitted by means of https://www.regulations.gov. 

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