OFAC sanctions Hysa crime group; FinCEN targets Mexico gambling businesses

The Treasury Department said the Office of Foreign Assets Control and the Financial Crimes Enforcement Network, working with the Government of Mexico, took coordinated action targeting the Hysa Organized Crime Group and Mexico-based gambling establishments tied to cartel-related money laundering.

OFAC said it designated the Hysa Organized Crime Group under Executive Order 13581, as amended, for being a foreign person that constitutes a significant transnational criminal organization. Treasury also designated members of the Hysa family and additional individuals and companies described as part of the group’s network, including Mexico-based businesses and related entities in Canada and Poland.

Treasury said FinCEN proposed a “special measure” intended to sever 10 Mexico-based gambling establishments’ access to the U.S. financial system due to money laundering concerns.

Under OFAC’s action, Treasury said all property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Treasury said entities owned, directly or indirectly, individually or in the aggregate, 50% or more by one or more blocked persons are also blocked.

Treasury said that, unless authorized by a general or specific OFAC license or exempt, OFAC regulations generally prohibit transactions by U.S. persons or within (or transiting) the United States involving any property or interests in property of blocked persons.

Treasury said violations of U.S. sanctions may result in civil or criminal penalties and that OFAC may impose civil penalties on a strict liability basis.