Narcotics

In 1995, the President issued EO 12978 declaring a national emergency to address the threat posed by the actions of narcotics traffickers in Colombia.  In 1997, OFAC issued the Narcotics Trafficking Sanctions Regulations which authorise asset freezes on narcotics traffickers centred in Colombia.

In 1999, the President signed into law the Kingpin Act, providing authority for the application of sanctions on significant foreign narcotics traffickers and their organisations operating worldwide.  In 2000, OFAC issued the Foreign Narcotics Kingpin Sanctions Regulations, which implement the Kingpin Act, authorising the designation of individuals who meet the following criteria:

• plays a significant role in international narcotics trafficking (tier 1 designees); or

• Materially assists in, or provides financial or technological support for or to, or provides goods or services in support of, the international narcotics trafficking activities of a specially designated narcotics trafficker (tier 2 designees); or

• Owned, controlled, or directed by, or acts for or on behalf of, a specially designated narcotics trafficker.

In 2021, the President issued EO 14059 which authorises the imposition of sanctions on foreign persons who have:

• engaged in or attempted to engage in activities that contribute to the international proliferation of illicit drugs or their means of production;

• received property or an interest in property that the person knows is derived from the proceeds of the proliferation of illicit drugs;

• provided or attempted to provide financial, material, or technological support for goods or services in support of the international proliferation of illicit drugs; or

• provided or attempted to provide financial, material, or technological support for leaders or officials of sanctioned organisations engaging in the international proliferation of illicit drugs.

Designations under the Kingpin Act generally require ongoing conduct whereas designations can be made under EO 14059 on the basis of prior conduct.

Civil monetary penalties of up to the greater of $368,136 or twice the amount of the underlying transaction may be imposed administratively against any person who violates, attempts to violate, conspires to violate, or causes a violation of EO 12978, EO 14059, or the regulations.

Upon conviction, criminal fines of up to $1,000,000, imprisonment for up to 20 years, or both, may be imposed on any person who wilfully commits or attempts to commit, or wilfully conspires to commit, or aids or abets in the commission of a violation of EO 12978, EO 14059, or the regulations.