Mexico blocks 15 accounts linked to Northeast Cartel case

Reporting and context

Mexico’s Financial Intelligence Unit blocked 15 accounts linked to possible money-laundering operations involving the Northeast Cartel after the United States sanctioned four people and 11 companies, according to UDGTV. Mexico’s Finance Ministry said the UIF identified significant cash movements, domestic and international transfers, and purchases of luxury vehicles, jewelry and real estate among some of those targeted by the U.S. Office of Foreign Assets Control. The measures and allegations described in the report remain attributed to the agencies and source.

UDGTV reported that the investigation covers a possible network of construction companies, financial-services businesses and equestrian operations. Hacienda said some of the entities showed activity it considered inconsistent with declared income, tax irregularities, or little to no economic activity. The ministry described placement on Mexico’s List of Blocked Persons as a preventive administrative measure restricting financial operations, rather than a court finding.

The U.S. Treasury Department separately ordered assets under its jurisdiction frozen and generally barred U.S. citizens and companies from doing business with the sanctioned parties. Treasury identified Club La Molienda, a horse-racing venue in Nuevo Laredo, as a company it said generated cartel income through races. Washington also named businessman Gamaliel Garza García and his son, Gamaliel Garza Elías, and attributed alleged ties to construction companies and campaign financing to them. The report said OFAC also listed a transport company investigated over alleged cocaine shipments to the United States, along with gas and fuel distributors. In a separate Sept. 29 action involving the Sinaloa Cartel, the UIF added 46 people and companies identified by Washington to its blocked list.