Not quite sure what happened to my last couple of blogs that I posted but they aren’t showing up. Hopefully this one does.

Today the United States Department of Foreign Assets Control (“OFAC”) added, changed, and deleted some entries from its Specially Designated Nationals (“SDN”) list. These designations were made pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”), a piece of legislation that seeks to block the assets of those designated under it as well as those designees transactions with U.S. persons. The full list of today’s changes to the SDN list can be found here.

Today’s additions related to the operations of the Revolutionary Armed Forces of Columbia (“FARC”) and include one individual and four entities. The individual, Jose Cayetano Melo Perilla, is alleged to have provided material assistance to the narcotics trafficking activities of the FARC. In addition to his designation, four of his companies were also designated: Carillanca Colombia Y Cia S en CS, a Colombian company dedicated to hydroponic agriculture; Carillanca S.A., a Costa Rican company involved in tomato cultivation; Carillanca C.A., a company located in Venezuela whose focus is real estate and construction; and Parqueadero De La 25-13, a commercial parking lot located in Bogota, Colombia.

The Department of Treasury contends that FARC is the leading trafficker of narcotics out of Columbia.

Due to his new status as a designee those who engage in transactions with Mr. Melo Perilla without a specific license from OFAC can face stiff penalties. Penalties for violations of the Kingpin Act include civil penalties of up to $1.075 million per violation, criminal penalties for corporate officers up to 30 years in prison and $5 million in fines, and criminal fines for corporations up to $10 million.

Furthermore, individuals can face up to 10 years in prison for criminal violations of the Kingpin Act and fines determined pursuant to Title 18 of the United States Code.

This year OFAC has really been relying on the Kingpin Act heavily to fight the illicit drug trade. Not only have I seen this in the number of designations that have been forthcoming, but also in my the number of requests for representation in SDN list removal proceedings I have received. This area has really been heating up. If you are doing business in South America, particularly Columbia, be wary and make sure to exercise due diligence. If you are one of those you have been designated, there are procedures under which you can seek removal from the SDN list. Call a U.S. attorney specializing in OFAC litigation to learn what you can do.