US Treasury and Mexico target Hysa crime group in gambling sector

Investing.com -- The U.S. Department of the Treasury and the Mexican government have jointly targeted the Hysa Organized Crime Group (HOCG) and several Mexico-based gambling establishments involved in cartel-related money laundering operations.

The Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 27 individuals and entities on Thursday, while the Financial Crimes Enforcement Network (FinCEN) proposed measures to cut off 10 Mexican gambling establishments from the U.S. financial system.

"The United States and Mexico are working together to combat money laundering in Mexico’s gambling sector. Our message to those supporting the cartels is clear: You will be held accountable," said Treasury Under Secretary John K. Hurley.

The HOCG, which includes family members Luftar, Arben, Ramiz, Fatos, and Fabjon Hysa, has used investments in Mexican businesses to launder narcotics trafficking proceeds. The group reportedly operates with the consent of the Sinaloa Cartel.

According to Treasury officials, Luftar Hysa, who moves between Mexico and Canada, has appeared in public media as a leading family member. He and other family members have worked with a U.S. person to move bulk cash from Mexico to the United States for laundering purposes.

The sanctions target numerous companies connected to the Hysa network, including Entretenimiento Palmero, S.A. de C.V., which is owned by Arben Hysa and considered central to the group’s operations. Mexican national Gilberto Lopez Lopez and Albanian national Eselda Baku (Ramiz’s daughter) are also named in the sanctions.

The action blocks all U.S.-based property and interests of the designated persons and prohibits transactions involving them by U.S. persons or within the United States.

In coordination with these sanctions, FinCEN identified 10 Mexico-based gambling establishments as primary money laundering concerns. These include multiple Midas Casino locations, Casino Mirage in Culiacan, and several other establishments operated by the HOCG that allegedly facilitate money laundering benefiting the Sinaloa Cartel.

The proposed FinCEN measures would prohibit U.S. financial institutions from maintaining accounts that process transactions involving these gambling establishments and require special due diligence for correspondent accounts.

This coordinated action stems from recent U.S.-Mexico commitments to combat narcotrafficking and related financial crimes by Mexico-based drug cartels.

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