New Treasury Sanctions Aim to Combat International Drug Trafficking
In response to the spike in fatal overdoses of synthetic drugs, the Biden Administration is modernizing the Treasury Department's sanction authority and establishing an oversight council on organized international crime to combat the illicit drug trade.
On December 15, the President issued two executive orders (EO): Establishing the U.S. Council on Transnational Organized Crime (TOC) and Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade.
As outlined in the order, the Council on Transnational Organized Crime will act as a coordinated Federal framework and will house the authority to combat TOC and provide oversight to law enforcement agencies, while the Strategic Division will use national intelligence to guide operations, initiatives, and actions across government.
The Foreign Narcotics Kingpin Designation Act, or the 1999 Kingpin Act, has been implementing counter-narcotics sanctions designations for most of the last two decades; however, synthetic drugs like fentanyl are more lethal than heroin, and these executive orders are the first step in attempting to combat the surge in drug trafficking — they also align with initiatives taken by the Drug Enforcement Administration (DEA) to combat synthetic drugs, as FEDagent has previously reported.
“The illicit drug trade threatens our national security, economy, communities, and families. More than 100,000 Americans died in just twelve months from a drug overdose, a record 28 percent increase that was driven largely by synthetic opioids, particularly fentanyl,” stated Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson.
The latter EO enhances Treasury's ability to target foreign persons engaged in drug trafficking, regardless of whether they are affiliated with a specific kingpin or cartel. Moreover, Treasury can sanction foreign persons who knowingly receive property that derives from illicit drug trafficking proceeds.
Immediately following the announcement of the EOs, the Office of Foreign Assets Control (OFAC) publicized the sanctions of 10 individuals and 15 entities in four countries for participating in or attempting to participate in activities that have contributed, or could contribute, to the proliferation of illicit drugs or their means of production internationally.
The individuals and drug trafficking organizations listed by Treasury engage in the trafficking of fentanyl, cocaine, methamphetamine, and heroin, with operations in Brazil, China, Colombia, and Mexico.
“Using President Biden’s new EO, Treasury will deploy its sanctions authority with greater speed, power, and effect across the entire illicit drug ecosystem, especially those who profit from the death and misery of the opioid epidemic,” added Nelson, “We will continue working closely with our partners to reduce threats from these groups and disrupt their business models, including by stopping them from using the U.S. financial system.”