The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), in collaboration with the Government of Mexico, have taken joint action against the Hysa Organized Crime Group (HOCG) and several gambling establishments in Mexico suspected of cartel-related money laundering and other criminal activities.
This effort follows recent commitments between the United States and Mexico to strengthen cooperation in fighting narcotrafficking and related financial crimes. The agreement was secured during a visit by Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley.
“The United States and Mexico are working together to combat money laundering in Mexico’s gambling sector. Our message to those supporting the cartels is clear: You will be held accountable,” said Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “We thank the Government of Mexico for its strong partnership in this effort.”
As part of today’s measures, OFAC sanctioned 27 individuals and entities linked to HOCG, while FinCEN proposed a special measure to restrict 10 Mexican gambling businesses from accessing the U.S. financial system because of money laundering concerns.
The Hysa Organized Crime Group, which includes family members Luftar Hysa, Arben Hysa, Ramiz Hysa, Fatos Hysa, and Fabjon Hysa, is accused of using investments in various Mexican businesses—including casinos and restaurants—to launder proceeds from drug trafficking. Authorities believe that these activities occur with the consent of the Sinaloa Cartel, which controls much of the territory where HOCG operates.
Key members such as Luftar Hysa are known publicly through media appearances discussing their business interests in both Mexico and Europe. According to authorities, Luftar, Fatos, Arben, and Fabjon collaborated with a U.S.-based individual to move bulk cash from Mexico into the United States for laundering purposes via that individual’s company. Luftar and Arben also allegedly used a European entity to launder illicit funds from suspected narcotraffickers.
Arben is said to own or direct several companies involved in these operations within Mexico, including managing bulk cash smuggling into the U.S., as well as utilizing luxury restaurants as fronts for laundering money obtained through drug sales.
Ramiz has reportedly been engaged in similar schemes using casinos and restaurants as cover for illegal proceeds. Fatos worked alongside other family members on smuggling operations involving large sums intended for laundering; both Fatos and Fabjon also benefitted financially through activities tied to European-based entities.
Among those sanctioned are individuals like Gilberto Lopez Lopez—a commissioner at Entretenimiento Palmero S.A. de C.V., owned by Arben—and Eselda Baku (formerly Eselda Hysa), who sits on its board. Numerous other companies across Mexico, Canada, and Poland have also been designated under executive order E.O. 13581 for their involvement or association with key figures in this group.
Following these designations, any property or interests belonging to these persons that fall under U.S jurisdiction are blocked. U.S persons are generally prohibited from engaging in transactions involving these assets unless authorized by OFAC. Entities majority-owned by blocked individuals face similar restrictions; violations can result in civil or criminal penalties even without intent due to strict liability provisions under OFAC regulations.
Foreign financial institutions could also face secondary sanctions if they knowingly conduct significant transactions on behalf of sanctioned parties—potentially losing access to correspondent banking services within the United States.
OFAC maintains authority not only to add but also remove names from its Specially Designated Nationals (SDN) List if circumstances change according to law; instructions for seeking removal are provided via official OFAC channels.
In parallel action coordinated with OFAC and Mexican authorities, FinCEN issued a notice proposing stricter rules targeting ten gambling establishments identified as being used by HOCG for money laundering benefiting groups like the Sinaloa Cartel:
– Emine Casino (San Luis Rio Colorado)
– Casino Mirage (Culiacan)
– Midas Casinos (multiple locations)
– Palermo Casino (Nogales)
– Skampa Casinos (Ensenada & Villahermosa)
If adopted after public comment via https://www.regulations.gov , these rules would prevent covered U.S financial institutions from opening or maintaining accounts processing transactions related to these establishments—and require additional due diligence safeguards against misuse by criminal organizations.
“The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior,” states OFAC guidance regarding its enforcement policies.
