In my last post I discussed the significant uptick in designations under the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”) by the United States Department of Treasury Office of Foreign Assets Control (“OFAC”). Amongst the 2009 designations under the Kingpin Act was Las Zetas, an organization believed by the U.S. government to be involved in international narcotics trafficking. Recently a number of members of Las Zetas have had criminal indictments issued against them.

According to an article on Examiner.com, “Antonio Ezequiel Cardenas-Guillen, Jorge Eduardo Costilla-Sanchez, Heriberto Lazcano-Lazcano and Miguel Trevino-Morales, high-level Mexican leaders of the Company[Los Zetas] and 15 of their top lieutenants, have been charged in U.S. federal courts with drug trafficking-related crimes. Also today, the State Department announced rewards of up to $50 million, collectively, for information leading to the capture of 10 of these defendants……”

The article also points out that OFAC is continuing to step up pressure on Los Zetas. According to OFAC Director Adam J. Szubin, “Following on the heels of the President’s naming of Los Zetas as a drug kingpin organization in April, we are today targeting sanctions against four drug lords who are senior leaders in Los Zetas and the Gulf Cartel. We remain committed to using all tools at our disposal to assist President Calderon in his courageous efforts against Mexico’s deadly narcotics cartels.”

While Los Zetas know exactly where they stand with regards to the U.S. government, some other designees under the Kingpin Act do not. It is possible for a designee under an OFAC administered sanctions program to also have charges brought against them under sealed indictment. When a sealed indictment is issued there is no way of the individual targeted by the indictment to know that charges are pending against them. Therefore, it would be possible for an individual designated under a sanctions program to be traveling from his home country to another and then be stopped in that other country and extradited to the U.S. to be tried on charges that he didn’t even know existed.

For example, a Mexican national who has been designated under the Kingpin Act may also have criminal charges pending against him in the United States, but the indictment in which those charges are brought have been kept under seal. Therefore, he has no way of knowing that there an indictment has been issued against them. That same Mexican national could then attempt to travel to India and be stopped as he comes off the plane and be held in custody pending extradition to the U.S. to face those charges under sealed indictment.

Therefore, if you have been designated under U.S. sanctions regulations, the danger is not just in dealings with the United States, but rather it can effect your transactions with other third party countries. One who has been designated should always immediately contact a U.S. attorney who is familiar with OFAC procedures and sanctions.