US Treasury bodies sanction 27 people and companies and propose restricting Mexican betting houses’ access to the North American country’s financial system
The action involves two fronts: sanctions from OFAC (Office of Foreign Assets Control) against 27 individuals and entities, and a proposal from FinCEN (Financial Crimes Enforcement Network) to block the access of 10 Mexican gaming establishments to the US banking system.
Who is the Hysa group according to the USA
According to the US Treasury, the HOCG is primarily made up of members of the Hysa family:
- Airs Hysa
- Arben Hysa
- Ramiz Hysa
- Fatos Hysa
- Fabjon Hysa
The US government claims that the group used its investments in casinos, restaurants, logistics, oil, food and entertainment companies to launder money from drug trafficking. The operation would take place mainly in Mexico, with ramifications for Europe and Canada.
The statement mentions:
- Remittance of large amounts of cash from Mexico to the USA;
- Use of an American company to process illicit resources;
- Use of a European entity for financial transactions;
- Participation of third parties linked to company administration.
The sanctions announced by OFAC
OFAC has sanctioned 27 individuals and entities related to HOCG. Among them:
- Individuals
- The five members of the Hysa family
- Contributors including Gilberto Lopez and Eselda Baku
Non-Mexico companies
Among the more than 15 companies mentioned are:
- Palmero Entertainment SA de CV
- Diversiones Los Mochis SA de CV
- Entertainment Villahermosa SA de CV
- H Hidrocarburos SA de CV
- Cucina Del Porto SA de CV
- The Art of Cooking and Drinking SA de CV
- Hysa Forwarders S.A. de C.V.
- Rosetta Gaming S.A. de C.V.
Non-foreign companies:
- Hysa Holdings Inc (Canada)
- Rosetta Gaming Inc (Canada)
- Rosetta Gaming SP ZOO (Poland)
The sanctions include freezing assets in the US and banning transactions with US companies or citizens. Any foreign entity that has a financial relationship with those sanctioned may also be affected by secondary sanctions. 10 Mexican casinos considered “of primary money laundering concern”
At the same time, FinCEN proposed a rule that classifies transactions related to 10 betting houses in Mexico as high risk. All would, according to the note, be operated by HOCG and used over the years to move illicit resources.
The list includes:
Casinos cited by FinCEN
- Emine Casino — San Luis Río Colorado (Sonora)
- Mirage Casino — Culiacán (Sinaloa)
- Midas Casino — units in Agua Prieta, Los Mochis, Guamúchil, Mazatlán and Rosarito
- Palermo Casino — Nogales (Sonora)
- Skampa Casino — Ensenada (Baja California) and Villahermosa (Tabasco)
FinCEN’s proposal provides:
1. Prohibit American banks from maintaining correspondent accounts used to process transactions involving these establishments.
2.Require special enhanced due diligence measures to prevent US financial institutions from being used for transactions related to these casinos.
Practical implications of the measures
According to the Treasury:
- All assets of sanctioned entities that are in the USA or under the control of American people are now blocked;
- Companies with 50% or more ownership by sanctioned individuals are also automatically blocked;
- Foreign financial institutions that carry out “significant transactions” for those sanctioned may have their access to the American banking system restricted;
- Violations may result in civil or criminal penalties.
Treasury says the purpose of sanctions is to disrupt illicit financial flows and that there is a formal process for sanctioned entities to request removal from the list if they meet legal requirements.
The action was announced just days after meetings between US and Mexican authorities focused on combating:
- Drug trafficking;
- Money laundering;
- Use of the gaming sector by criminal groups.
The statement highlights that the Mexican government cooperated directly in the operation and that joint work should continue in the coming months.
*This text does not necessarily reflect the opinion of Jovem Pan.
