The U.S. Treasury Department’s crusade to target the finances of the Mexican drug trade now extends to a network of luxury restaurants and casinos in Mexico. The Office of Foreign Assets Control (OFAC) announced Thursday that it has sanctioned, in a joint operation with Mexico, 27 companies accused of allegedly laundering money for the Sinaloa Cartel. “The United States and Mexico are working together to combat money laundering in Mexico’s gambling industry. Our message to those who support the cartels is clear: They will be held accountable,” John K. Hurley, Treasury Under Secretary for Terrorism and Financial Intelligence, said in writing.
OFAC sanctioned 27 individuals and entities this Thursday, and FinCEN proposed a special measure to limit access to the U.S. financial system to 10 Mexico-based gaming establishments due to money laundering concerns. The sanctions announced by the United States come a day after the Mexican government froze the bank accounts of 13 betting houses in Mexico over alleged money laundering and links to organized crime.
The US investigation indicates that the Hysa organized crime group is composed of members of the Hysa family, who have used their influence, through investment or control over various Mexico-based businesses – including casinos and restaurants – to launder money from drug trafficking. This gang is believed to operate with the consent of the Sinaloa Cartel, which maintains criminal control over much of the territory where the group carries out its activities.
The companies controlled by Hysa, now in the US spotlight are Bliri; Port Kitchen; Entertainment Los Mochis; The art of cooking and drinking; Entertainment Villahermosa; Entertainment and shows; Canhysamex international group; H Hydrocarbons Hysa Freight Forwarders; LH Pro-Gaming SA de CV (Mexico); LH Rental SA De CV (Mexico); Operator Alejil; Commercial operator; Your food processor; Rosetta Game; Hysa Holdings, among others.
The United States indicates that, as a result of the sanctions against the Hysa Group, all assets and interests in assets of previously designated persons located in the United States or in the possession or control of US citizens are blocked and must be reported to OFAC. Additionally, any entity that is owned, directly or indirectly, individually or jointly, 50% or more by one or more blocked persons is also blocked.
At the same time, the Treasury Department has charged a dozen Mexican casinos with alleged money laundering for the Sinaloa Cartel. Licensed betting houses are located in Sinaloa, Baja California, Tabasco and Sonora. Among the names that appear, Midas, Eminem Mirage, Skampa and Palermo casinos stand out, among others.
The US authorities have dictated the financial blockade of these casinos in their country. “It would prohibit financial institutions from opening or maintaining a correspondent account for any foreign banking institution if such account is used to process transactions involving any of the gaming establishments,” the document states.
