US sanctions Mexican-, Chinese-based money launderers linked to Sinaloa Cartel

ISTANBUL

The US Treasury Department announced Monday it imposed sanctions on a Mexican-based money launderer and Chinese-based members of a money laundering organization with criminal links to the Sinaloa Cartel.

The move is part of ongoing efforts to disrupt the flow of illicit narcotics into the US, the agency said in a statement.

Mexico-based Diego Acosta Ovalle assisted the Sinaloa Cartel by hiding and collecting drug trafficking proceeds before delivering them to associates of the cartel, according to the statement.

The Sinaloa Cartel associates worked with China-based Tong Peiji and He Jiaxuan, both members of a US-based Chinese Money Laundering Organizations (CMLO) that has laundered illicit drug proceeds belonging to the Sinaloa Cartel, it added.

In at least one instance, Tong Peiji traveled to Mexico to meet Sinaloa Cartel members to obtain contracts to launder drug trafficking proceeds, and also arranged to purchase cryptocurrency that could be provided to Sinaloa Cartel accounts, said the agency.

Tong Peiji and He Jiaxuan worked within the CMLO to deliver drug trafficking proceeds to individuals in need of US currency, it said, adding that the latter individual would pick up bulk currency from criminal groups and deliver the funds to other members of the CMLO.

"Combatting the threat posed by Money Laundering Organizations in China is a key priority of the Treasury Department, and today we are taking action to cut off the financial flows of major money launderers who are powering the trafficking of fentanyl and other illicit drugs to the United States," said Deputy Secretary of the Treasury Wally Adeyemo.

"Through our Counter-Fentanyl Strike Force, we will continue leveraging Treasury’s unique capabilities to disrupt the illicit fentanyl and drug trafficking trade that claims the lives of thousands of Americans each year," he added.