OFAC Targets Chinese Fentanyl Precursor Chemical Suppliers
The Office of Foreign Assets Control sanctioned five individuals in China and Guatemala as well as two Chinese entities for supplying Mexican drug cartels with precursor chemicals for illegal fentanyl production, OFAC said in a news release last week.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
OFAC designated Wuhan Shuokang Biological Technology (WSBT) and its owner Yao Huatao for having engaged in activities that have materially contributed to the international proliferation of illicit drugs or their means of production. OFAC also sanctioned three other Chinese nationals for their association with WSBT. Wu Yaqin and Wu Yonghao are sales representatives of WSBT who allegedly negotiated and facilitated the sale of fentanyl precursor chemicals on behalf of WSBT and provided information on efficient preparation methods for synthesizing illicit fentanyl. Wang Hongfei, the owner of a cryptocurrency wallet that has been used to receive bitcoin payments for illicit drug transactions on behalf of WSBT, also was designated, the April 14 release said.
OFAC additionally designated Ana Gabriela Rubio Zea, a Guatemala-based broker of fentanyl precursor chemicals who purchases on behalf of Mexican drug traffickers. Rubio Zea was the broker for the 25 kilograms of N-BOC-4-Piperidone, on behalf of the Sinaloa Cartel in Mexico. The product was purchased from Chinese chemical company Suzhou Xiaoli Pharmatech, which also was sanctioned. Rubio Zea has allegedly used her connections to Chinese suppliers and manufacturers to procure chemicals for the Sinaloa Cartel and to connect traffickers directly with Chinese suppliers, OFAC said.
“Illicit fentanyl is responsible for the deaths of tens of thousands of Americans each year,” Treasury Undersecretary Brian Nelson said. “Treasury, as part of the whole-of-government effort to respond to this crisis, will continue to vigorously apply our tools to prevent the transfer of precursor chemicals and machinery necessary to produce this drug.”