The Treasury Department today announced a joint effort with Mexico to target the Hysa Organized Crime Group and several Mexico-based gambling establishments involved in alleged cartel-related money laundering and other criminal activities.
The Hysa Organized Crime Group has used its influence through its investments and control of various Mexico-based businesses to launder the proceeds of narcotics trafficking for the benefit of the Sinaloa Cartel, according to the Treasury Department. The Financial Crimes Enforcement Network issued proposed rulemaking to identify transactions involving 10 Mexico-based gambling establishments as a class of transactions to be of primary money laundering concern. At the same time, the Office of Foreign Assets Control sanctioned 27 individuals and entities with alleged ties to the crime group.
FinCEN’s proposed rulemaking would sever the following gambling establishments’ access to the U.S. financial system by prohibiting banks and other financial institutions from opening or maintaining any correspondent account used to process transactions involving any of the following: Emine Casino (San Luis Rio Colorado, Sonora); Casino Mirage (Culiacan, Sinaloa); Midas Casino (Agua Prieta, Sonora); Midas Casino (Guamúchil, Sinaloa); Midas Casino (Los Mochis, Sinaloa); Midas Casino (Mazatlan, Sinaloa); Midas Casino (Rosarito, Baja California); Palermo Casino (Nogales, Sonora); Skampa Casino (Ensenada, Baja California); and Skampa Casino (Villahermosa, Tabasco).
The proposed rulemaking does not propose a new or amended suspicious activity reporting obligation on financial institutions, according to FinCEN. “However, consistent with their existing SAR reporting obligations, covered financial institutions may consider, as warranted and appropriate, FinCEN’s finding that transactions involving the gambling establishments targeted today are a class of transactions of primary money laundering concern,” it said.
Should SARs be filed on transactional activity involving the gaming establishments, FinCEN requests Field 2 include “FIN-311-Gambling-Establishments.”
