Yesterday, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated parties they believe to comprise the financial network of the 48th Front, alleged to be part of the Southern bloc of the Fuerzas Armadas Revolucionarias de Colombia (FARC) as Specially Designated Nationals (SDNs). The 48th Front organization is thought to be located along the border of Colombia and Ecuador and Peru. OFAC’s designations targeted the 48th Front’s finance chief Olidem Romel Solarte Ceron and individuals it believes hold leadership roles inside of the Jefferson Ostaiza Amay drug trafficking organization. These parties were designated as Specially Designated Narcotics Traffickers for their alleged assistance to the FARC. Also designated was an alleged arms trafficker, Gilma Montenegros Vallejos, and three entities with purported ties to the FARC.

These designations mark the 14th time OFAC has targeted the FARC and its support networks through the SDN designation process since 2004. Of course, these designations are all made pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). Designation under the Kingpin Act prohibits U.S. persons from conducting financial or commercial transactions with these individuals and entities, and freezes any assets the designees may have under U.S. jurisdiction.

The FARC was identified by the President as a significant foreign narcotics trafficker pursuant to the Kingpin Act on May 29, 2003. The State Department designated the FARC as a Specially Designated Global Terrorist in 2001 pursuant to Executive Order 13224 and as a Foreign Terrorist Organization in 1997.

Also designated were Miguel and Edison Ostaiza Amay, brothers of Jefferson Ostaiza Amay and also believed to be key members of the Jefferson Ostaiza Amay drug trafficking organization. Jefferson and Edison own and control Multinational Integral Productiva Jooamy Ema, a real estate company that has also been designated. Others targeted by OFAC’s latest rounds of designations include two agricultural companies located in San Jose, Costa Rica owned by previously designated FARC financial associate Jose Cayetano Melo Perilla, Agropecuaria San Cayetano de Costa Rica Ltda and Arrocera El Gaucho Ltda.

Penalties for violations of the Kingpin Act 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.