The U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has designated as two Colombians they believe to be involved in money laundering on behalf  of various organizations, including the Fuerzas Armadas Revolucionarias de Colombia (“FARC”) as drug kingpins (“SDNTKs”).  In addition, OFAC has named 17 individuals and 12 entities as Specially Designated Narcotics Traffickers (“SDNTs”).  The aforementioned designations were taken pursuant to the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”). The Kingpin Act is a U.S. sanction program which prohibits U.S. persons from engaging in financial transactions with those individuals and entities designated as SDNTs or SDNTKs.

According to a press release from the Department of Treasury, one of the individuals designated, Maria Mercedes Jimenez Urrego, leads a money laundering network consisting of individuals who utilize money exchange professionals, otherwise known as cambistas, to launder drug proceeds. She was arrested in 2008 by Colombian authorities for engaging in such activities on behalf of the FARC, a narco-terrorist organization designated as a drug kingpin in 2003.  Her business partner, Myriam Rincon Molina, was also designated by OFAC in April 2008 and has been arrested by Colombian authorities for engaging in money laundering activities on behalf of the FARC.  OFAC also designated a business entity that is jointly owned by Urrego and Molina’s, Cambista Negociamos MCM LTDA.

Maria Mercedes Jimenez Urrego’s brother, Jorge Enrique Jimenez Urrego, has also been accused of involvement in drug trafficking and money laundering activities.  According to U.S. authorities he leads a money laundering network that launders drug proceeds through several agricultural companies, including C.I. Stones and Byproducts Trading S.A., and a Colombian money exchange business Fimesa de Colombia S.A. In May 2008, Colombian authorities arrested Urrego on money laundering charges.

As noted above U.S. persons cannot engage in transactions with those who have been designated pursuant to the Kingpin Act. Penalties for engaging in such prohibited transactions range from civil penalties of up to $1.075 million per violation to more severe criminal penalties.  Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million.  Criminal fines for corporations may reach $10 million.  Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.