U.S. Imposes Sanctions on Money Laundering Networks Linked to Sinaloa Cartel in Mexico and China

Treasury Department Targets Illicit Funds from Fentanyl Trafficking

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions on Monday against individuals in both Mexico and China who were operating money laundering networks for the Sinaloa Cartel's illicit drug trafficking activities. 

The sanctions are aimed at disrupting the flow of drug proceeds, particularly those generated from the Sinaloa Cartel's lucrative fentanyl trafficking operations that have had devastating public health consequences in the United States.

"Combating the threat posed by money laundering organizations in China is a key priority for the Treasury Department, and today we are taking action to cut off the financial flows of the major money launderers fueling the fentanyl and other illicit drug trafficking to the United States," said Deputy Treasury Secretary Wally Adeyemo.

The sanctions target two key individuals:

- Diego Acosta Ovalle, a Mexico-based figure who collected drug trafficking proceeds for the Sinaloa Cartel and delivered them to associates in China to launder. 

- He Jiaxuan, a Chinese national who served as a central figure in the money laundering network, following instructions from Acosta Ovalle to collect large sums of illicit funds from criminal groups and move them through the China-based laundering operation.

The actions are the result of ongoing collaboration between U.S. and Mexican authorities to disrupt the financial infrastructure enabling the Sinaloa Cartel's drug trafficking activities, especially the flow of fentanyl that has caused thousands of overdose deaths in the United States.

"Through our Fentanyl Task Force, we will continue to leverage the unique capabilities of the Treasury to disrupt the illicit fentanyl and drug trafficking that claims thousands of American lives each year," Adeyemo added.

The sanctions come as the U.S. and China have sought to enhance cooperation in combating the manufacture and trafficking of synthetic opioids like fentanyl, following a 2013 meeting between Presidents Biden and Xi on the issue.