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Mnuchin: Treasury to Consider Sanctioning Central American Officials

The Department of the Treasury may soon sanction government officials in Guatemala, El Salvador and Honduras, Treasury Secretary Steven Mnuchin hinted while he was being questioned April 9 during a House hearing for the department’s 2020 budget request.

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During the hearing, held by the Appropriations Subcommittee on Financial Services and General Government, Rep. Norma Torres, D-Calif., called for sanctions on the governments of the three countries in Central America’s northern triangle, asking Mnuchin why Treasury had levied sanctions against Venezuela but not Guatemala, El Salvador and Honduras. Torres said government officials from all three countries are “corrupt” and “narco traffickers.” “They should not have access to our financial systems here in the U.S.,” Torres said. “Do you see any reason why those ... should not be sanctioned?”

Mnuchin said he plans to speak with Secretary of State Mike Pompeo about possible sanctions. “It does sound like it's something we should look at and take into consideration,” Mnuchin said.

Torres pushed further, saying she was “disappointed” with a list the State Department provided to Congress on April 3 -- a list that was required by a provision in the National Defense Authorization Act -- that was intended to provide Congress with the names of government officials who were “known to have committed acts related to drug trafficking and corruption,” according to Torres. Instead, Torres said, the list was insufficient and only included names of currently sanctioned or convicted officials. “I was very disappointed with that list. I was very disappointed to see many officials that we know are dealing in narcotics and very much involved in narco trafficking are not on that list,” Torres said. “We can't be negligent and not pay attention to the very corrupt governments in the northern triangle.”

Mnuchin said he “completely” agreed with Torres. “These sanctions work,” he said, “and we will follow up with your office to make sure that corrupt officials do not have access to our financial system.”