US Targets Mexican Cartel Over Alleged Money Laundering in 13 Casinos

Following an operation by Mexican law enforcement and judicial authorities, the US has responded in kind, targeting a suspected criminal enterprise behind a large-scale casino money laundering scheme.

On Thursday, a day after Mexico opened an investigation and suspended 13 casinos suspected of money laundering, the US Treasury issued a round of sanctions against the Sinaloa cartel, the suspected criminal group operating the criminal venture.

US Confirms Sanctions Issued over Cartel Activity, Drug Proceeds Laundering

According to the US Treasury, millions of dollars were laundered through the 13 properties, using a fraudulent scheme that would have people of no considerable means play, and then the casinos write up their wins, remitting them overseas, to offshore destinations, before sending them back into Mexico.

While Mexico at first denied the potential link between cartel activity and the 13 casinos, the announcement by the US makes this more likely. US Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley had this to say as part of the official statement announcing the sanctions:

“Our message to those supporting the cartels is clear: You will be held accountable. We thank the Government of Mexico for its strong partnership in this effort.”

The sanctions name members of the notorious Hysa family, a ruthless cartel, and go after 20 businesses, which include the aforementioned casinos as well as high-end restaurants.

Mexico’s own Treasury has responded to the sanctions and confirmed that it has been able to identify more transactions linked to the criminal enterprise. The money was remitted to various destinations, including Mexico, Canada, the United States, Panama, Romania, Poland, Albania, and Belize.

Mexico Expands List of Sanctioned Entities Following US Action

As a result, Mexico’s Treasury has similarly sanctioned five more companies that are suspected of having aided the money-laundering operation.

“These actions reaffirm the commitment to international cooperation to prevent the use of the financial system for illicit ends,” a statement by the Treasury noted. Cartel crime has long been a thorn in the side of both the US and Mexican governments.

Sanctions have had a chilling effect on the potential to do business legally, but criminal enterprises such as cartels have vast networks of alternative options, including the use of IDs by unsuspecting Mexican casino patrons, who end up remitting millions abroad without their knowledge.