The Office of Foreign Assets Control this week sanctioned the Lopez Human Smuggling Organization, a Guatemala-based transnational criminal organization. OFAC said the group helps move migrants through Mexico and into the U.S., and has relied on several U.S. banks and money service businesses to “receive payment from the family members of those being smuggled and to pay other members of the organization.” Along with the sanctions, DOJ charged 19 members of the group for their involvement in human smuggling.
The U.S. sanctioned the Congo River Alliance, also known by its French name Alliance Fleuve Congo, a coalition of rebel groups that the Office of Foreign Assets Control said is looking to overthrow the government of the Democratic Republic of Congo. The agency also sanctioned Corneille Yobeluo Nangaa, who founded the alliance, along with Bertrand Bisimwa, the president of the March 23 Movement (M23), a Rwanda-backed rebel group and member of the alliance. Also sanctioned was Twirwaneho, another member group of the alliance and its commander Charles Sematama.
The U.S. designated two Mexican members of Cartel de Jalisco Nueva Generacion this week, along with their companies, for helping to move fentanyl and other illegal drugs into the U.S. The designations target Juan Carlos Banuelos Ramirez, a CJNG “cell leader” who moves drugs for the group, launders money, procures precursor chemicals and oversees Mexican production labs; and Gerardo Rivera Ibarra, another cartel leader who works to send fentanyl, methamphetamine and cocaine to the U.S. OFAC sanctioned Inmobiliaria Universal Deja Vu S.A. de C.V. for being owned by Banuelos, and Fornely Lab S.A. de C.V. for being owned by Rivera.
The Office of Foreign Assets Control this week sanctioned three people for being “key financiers and trusted operatives” of the Islamic State group’s activities in Africa. The designations target South Africa- and Zambia-based Abubakar Swalleh, South Africa-based Zayd Gangat and Democratic Republic of the Congo-based Hamidah Nabagala. OFAC said they help the group move funds and carry out terrorist attacks in the region.
The Office of Foreign Assets Control this week published new reporting requirements for banks and other financial institutions under a law that allows the U.S. to use certain frozen Russian assets to help support and rebuild Ukraine.
The Office of Foreign Assets Control this week sanctioned a network of people and companies in China involved in procuring items for North Korea’s weapons programs, which the country is using to provide missiles to Russia’s military. OFAC said North Korea is relying on this Chinese network to buy foreign-sourced materials and parts that it can’t produce domestically. The companies “consolidate and repackage items for onward shipment” to North Korea, the agency said, and hide the “true end-user” from the manufacturers and distributors of those items.
The House of Representatives approved by voice vote on July 22 a bill that would create an interagency working group to conduct research and develop legislative and regulatory proposals to counter sanctions evasion, terrorism financing and money laundering on digital platforms.
The EU is considering entities to be subject to sanctions if they are owned 50% or more by another sanctioned entity or party, a move that aligns the bloc with the U.S. Office of Foreign Assets Control’s 50% rule. The announcement is a change from the EU’s previous position on the ownership test threshold, which had previously extended asset freezes to entities only if they were owned more than 50% by a sanctioned party, a law firm said this week.
The Office of Foreign Assets Control plans to extend its sanctions-related recordkeeping requirements to match a similar expansion of the U.S. statute of limitations for sanctions violations that was signed into law earlier this year (see 2404290071).
Samuel Cutler, a former sanctions and export control lawyer with Miller & Chevalier, joined the Office of Foreign Assets Control as an enforcement officer, he announced last week on LinkedIn. Cutler said he began the new role this month.