The Treasury Department's Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN) have announced a series of actions to combat fuel smuggling schemes linked to the violent drug cartel, the Jalisco New Generation Cartel (CJNG). The CJNG, designated as a foreign terrorist organization, has been implicated in the theft and smuggling of fuel, generating tens of millions of dollars annually for the cartel while evading Mexican taxes. The Treasury Department's actions target two Mexican nationals and nine entities associated with the CJNG's fuel theft scheme, which involves cross-border smuggling, falsified customs documents, and the use of shell companies.
One of the designated individuals is Oscar Guillermo Juraidini Silva, a key business person facilitating the CJNG's fuel theft enterprise. Silva operates as an accountant and creates shell companies for the cartel, falsifying customs documents to aid in the illicit cross-border transfer of fuel. The Treasury Department's actions also target J. Refugio Ruiz Villagomez, who has been smuggling fuel from the United States into Mexico without proper permits and paying fees to cartels.
The implications of these sanctions are significant. Any property or interests in property of the designated individuals or entities that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Violations of U.S. sanctions may result in civil or criminal penalties, and financial institutions may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons.
This action highlights the Treasury Department's commitment to dismantling terrorist organizations and making America safe again. It also reflects the strong collaboration between OFAC and FinCEN, as well as their coordination with law enforcement agencies in the United States and Mexico. The Treasury Department's efforts to combat fuel smuggling schemes linked to the CJNG are a crucial step in disrupting the cartel's illicit revenue streams and preventing the trafficking of deadly drugs into the United States.
