Washington — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated six individuals and seven entities involved in a money laundering network supporting the Sinaloa Cartel, one of the most notorious and violent drug trafficking organizations in the world, and a U.S.-designated Foreign Terrorist Organization (FTO). The Sinaloa Cartel is responsible for a significant portion of the illicit fentanyl and other deadly drugs trafficked into the United States and has exploited multiple ports of entry along the southern border for its criminal activities. Today’s action is the culmination of a coordinated investigation by the U.S. Attorney’s Office for the Southern District of California, the Drug Enforcement Administration, the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, Homeland Security Investigations, and the Government of Mexico, including the Unidad de Inteligencia Financiera, Mexico’s Financial Intelligence Unit.
“Laundered drug money is the lifeblood of the Sinaloa Cartel’s narco-terrorist enterprise, only made possible through trusted financial facilitators like those we have designated today,” said Secretary of the Treasury Scott Bessent. “Treasury, as part of a whole-of-government approach to addressing this pressing national security threat, will use all available tools to target anyone who assists the cartels in furthering their campaign of crime and violence.”
Click here to watch a video from Secretary Bessent on today’s action.
TARGETING THE FINANCIAL OPERATIONS OF THE SINALOA CARTEL
On February 20, 2025, the U.S. Department of State identified the Sinaloa Cartel as an FTO and as a Specially Designated Global Terrorist. Today’s designations build on a series of actions in February 2023, May 2023, July 2023, July 2024, and September 2024, targeting the Sinaloa Cartel’s illicit fentanyl production and the financial networks that launder the cartel’s proceeds from the sale of fentanyl in the United States. Prior to its designation as an FTO, OFAC sanctioned the Sinaloa Cartel on April 15, 2009 pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for playing a significant role in international narcotics trafficking. On December 15, 2021, OFAC also designated the Sinaloa Cartel pursuant to Executive Order (E.O.) 14059, which targets persons involved in the global trade in illicit drugs. Over the years, OFAC has sanctioned over 600 Sinaloa Cartel-linked individuals and companies pursuant to both the Kingpin Act and E.O. 14059 for playing critical roles in the Sinaloa Cartel’s drug trafficking, money laundering, and corruption schemes. These sanctions have safeguarded the integrity of the U.S. dollar by denying cartel operators and their affiliates access to the U.S. financial system, as well as supported U.S. and foreign law enforcement efforts to combat the Sinaloa Cartel.
Today’s action is taken pursuant to E.O. 14059, as well as E.O. 13224, as amended, which targets terrorist groups and their supporters.
On March 31, Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert urging financial institutions to be vigilant to bulk cash smuggling and repatriation by Mexico-based transnational criminal organizations. The alert outlines methodologies associated with these operations and highlights red flag indicators in an effort to better equip financial institutions to counter this illicit activity.
MONEY LAUNDERERS FOR THE SINALOA CARTEL
Enrique Dann Esparragoza Rosas (Esparragoza) operates a money laundering organization, overseeing several cells based in Mexicali, Baja California, Mexico. Esparragoza’s organization transfers illicit narcotics proceeds from the United States to Mexico utilizing a currency arbitrage scheme in which dollars are traded for Mexican pesos at currency exchange businesses along the U.S.-Mexico border between Imperial County, California, and Mexicali, Baja California. Esparragoza’s clients include “Los Chapitos” (as the four sons of captured Sinaloa Cartel leader Joaquin “El Chapo” Guzman Loera are collectively known) and the Sinaloa Cartel faction led by Ismael “El Mayo” Zambada Garcia. As of April 2023, Esparragoza’s organization had laundered at least $16.5 million for Sinaloa Cartel clients. Esparragoza controls Tapgas Mexico S.A. de C.V., a company based in Culiacán, Sinaloa, Mexico.
Mexico-based Alan Viramontes Sesteaga (Viramontes) is a high-ranking member of the Sinaloa Cartel who reports to Ivan Archivaldo Guzman Salazar, one of Los Chapitos. Viramontes is involved in money laundering for the Sinaloa Cartel, establishing straw businesses and business representatives and coordinating large bulk cash pickups on behalf of the organization. Treasury designated Ivan Archivaldo Guzman Salazar pursuant to the Kingpin Act on May 8, 2012 and pursuant to E.O. 14059 on December 15, 2021.
Salvador Diaz Rodriguez (Diaz) and Israel Daniel Paez Vargas (Paez) are Mexicali-based money launderers who operate on behalf of the Sinaloa Cartel. Diaz also works as an enforcer in Mexicali, collecting “taxes” on behalf of a local criminal organization, including through the use of violence; Diaz is known to kill those who do not pay the required amount. Paez is also a recruiter for Alberto David Benguiat Jimenez’s money laundering organization and is involved in laundering money on behalf of the Sinaloa Cartel. On March 31, 2025, the United States District Court for the Southern District of California unsealed an indictment charging Paez with conspiracy to launder monetary instruments and conspiracy to import and distribute methamphetamine, heroin, and fentanyl. Also on March 31, 2025, the United States District Court for the Southern District of California unsealed an indictment charging Diaz with conspiracy to launder monetary instruments.
LAUNDERING PROCEEDS OF FENTANYL SALES
Alberto David Benguiat Jimenez (Benguiat) is based in Mexico City and operates a money laundering network moving illicit narcotics proceeds from the United States into Mexico on behalf of the Sinaloa Cartel and OFAC-designated fentanyl trafficker Jose Angel Rivera Zazueta (Rivera), whose drug trafficking organization imports precursor chemicals from China into Mexico to manufacture synthetic drugs, including fentanyl, MDMA (ecstasy), crystal methamphetamine, and ketamine. Benguiat’s network has laundered over $50 million to date. On March 31, 2025, the United States District Court for the Southern District of California unsealed an indictment charging Benguiat with conspiracy to launder monetary instruments and transmit monetary instruments for the purpose of laundering. Christian Noe Amador Valenzuela (Amador) is a close associate of Benguiat who launders money as a part of the network. On March 31, 2025, the United States District Court for the Southern District of California unsealed an indictment charging Amador with conspiracy to launder monetary instruments.
Benguiat’s organization uses a network of front companies and shell corporations to obscure the origins of the money it moves from the United States, including Scatman and Hatman Corp S.A.P.I. de C.V., Personas Unidas Hoas S.A.P.I. de C.V., Grupo Zipfel de Mexico S.A., Grupo Unter Empresarial S.A. de C.V., Productions Pipo S. De R.L. de C.V., and Grupo Vindende S.A. de C.V.
Esparragoza, Viramontes, and Benguiat were designated today pursuant to E.O. 14059 for having provided, or attempted to provide, financial, material, or technological support for, or goods or services in support of, the Sinaloa Cartel. Additionally, Esparragoza, Viramontes, and Benguiat were designated today pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the Sinaloa Cartel.
Paez and Diaz were designated today pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, the Sinaloa Cartel.
Tapgas Mexico S.A. de C.V. was designated today pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Esparragoza.
Amador, Scatman and Hatman Corp S.A.P.I. de C.V., Personas Unidas Hoas S.A.P.I. de C.V., Grupo Zipfel de Mexico S.A., Grupo Unter Empresarial S.A. de C.V., Productions Pipo S. De R.L. de C.V., and Grupo Vindende S.A. de C.V. were designated today pursuant to E.O. 14059, and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Benguiat.
The specific law enforcement offices that contributed to today’s action include the DEA Imperial County District Office and Mexico City Country Office, IRS-CI San Diego Office, FBI San Diego Field Office, HSI Calexico Office of the Assistant Special Agent in Charge, and Imperial Valley High Intensity Drug Tracking Area (HIDTA) Intelligence.
SANCTIONS IMPLICATIONS
As a result of today’s action, all property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities with designated or otherwise blocked persons.
Today’s action is part of a whole-of-government effort to counter the global threat posed by the trafficking of illicit drugs into the United States that is causing the deaths of over a hundred thousand Americans annually, as well as countless more non-fatal overdoses. OFAC, in coordination with its U.S. Government partners and foreign counterparts, will continue to target and pursue accountability for foreign illicit drug actors. In addition, persons that engage in certain transactions with the individuals designated today may themselves be exposed to sanctions or subject to an enforcement action.
Furthermore, engaging in certain transactions with the individuals and entities designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended. Pursuant to this authority, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account of a foreign financial institution that knowingly conducted or facilitated any significant transaction on behalf of a Specially Designated Global Terrorist.
Exports, reexports, or transfers of items subject to U.S. export controls involving persons included on the SDN List pursuant to E.O. 13224, as amended, may be subject to additional restrictions administered by the Department of Commerce, Bureau of Industry and Security. See 15 C.F.R. section 744.8 for additional information.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.
To view the chart on the individuals and entities designated today, click here.
For more information on the individuals and entities designated today, click here.