China

1993-03-01

No. 141 Niujiazhai Village, Fengjiazhai Township, Xingtai City, Guangzong County, Hebei Province, China

CC7375752, Passport; 13053119930301025X, National ID No.

The actors designated today comprise, or are otherwise affiliated with, a Chinese illicit drugs syndicate (hereafter, the “Syndicate”). From at least 2016 on, Wang Shucheng (王树程) directed members of the Syndicate to establish companies that would be used for cover to move pharmaceutical products internationally. A member of the Syndicate previously under Wang Shucheng, Du Changgen (杜长根) has risen to prominence and currently maintains the greatest influence over the organization in its current state. Under Du Changgen’s leadership, the Syndicate is responsible for the manufacturing and distribution of ton quantities of nitazenes, fentanyl, methamphetamine, and MDMA precursors and various other illicit chemicals utilized to synthesize finished fentanyl, methamphetamine, and MDMA. The network is capable of synthesizing multi-thousand-kilogram quantities of the aforementioned substances, and Du Changgen and persons operating under him have been responsible for approximately 900 kilograms of seized fentanyl and methamphetamine precursors shipped to the United States and Mexico. As the leader of the Syndicate, Du Changgen oversees a large group of sales teams based in China who communicate with their co-conspirators via encrypted messaging. These groups of individuals send and receive funds through virtual currency, bank-wire transfers, and other financial transactions. Du Changgen himself has personally received virtual currency in exchange for shipments of fentanyl precursors. The Syndicate is the source of supply for dozens of narcotics traffickers in the United States, dark web vendors, virtual currency money launderers, and Mexico-based criminal organizations such as the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG). The Sinaloa Cartel and CJNG have been designated by OFAC pursuant to the Foreign Narcotics Designation Kingpin Act and E.O. 14059. Du Changgen is the owner of Hong Kong-based Hubei Vast Chemical Co., Limited (湖北翰弘化工有限公司) (Hubei Vast), Hong Kong-based Hebei Guanlang Biotechnology Co., Limited (河北冠朗生物科技有限公司) (Hebei Biotechnology Limited), China-based Hebei Xiuna Trading Co., LTD. (河北休纳商贸有限公司) (Hebei Xiuna), and China-based Shanghai Jarred Industrial Co., LTD. (上海嘉瑞德实业有限公司) (Shanghai Jarred). Highlighting the interrelated nature of the persons designated today, Wang Shucheng is the legal supervisor of Shanghai Jarred. Du Changgen was designated today pursuant to E.O. 14059 for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production. Hubei Vast, Hebei Biotechnology Limited, Hebei Xiuna, and Shanghai Jarred were designated today pursuant to E.O. 14059 for being owned, controlled, or directed by, or for having acted or purported to act for or on behalf of, directly or indirectly, Du Changgen. Wang Shucheng was designated today pursuant to E.O. 14059 for being or having been a leader or official of Shanghai Jarred.

https://home.treasury.gov/news/press-releases/jy1779

2023-10-03

US

Executive Order 14059 of December 15, 2021 Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade

OFAC-horizontal

Drugs

Blocking Property, Suspending Entry

President Biden signed a new Executive Order (E.O.) to modernize the U.S. Department of the Treasury’s sanctions authorities used to combat the illicit drug trade. This E.O. will provide the Treasury Department with new tools to tackle changes in the global illicit drug trade that substantially contributed to over 100,000 American overdose deaths in the 12-month period ending in April 2021. This E.O. enhances the Department of Treasury’s authorities to target any foreign person engaged in drug trafficking activities, regardless of whether they are linked to a specific kingpin or cartel. It further enables Treasury to sanction foreign persons who knowingly receive property that constitutes, or is derived from, proceeds of illicit drug trafficking activities. Under the new E.O., “Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade,” the Office of Foreign Assets Control (OFAC) today designated 25 actors (10 individuals and 15 entities) in four countries for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production. “The illicit drug trade threatens our national security, economy, communities, and families,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson. “More than 100,000 Americans died in just twelve months from a drug overdose, a record 28 percent increase that was driven largely by synthetic opioids, particularly fentanyl. Using President Biden’s new E.O., Treasury will deploy its sanctions authority with greater speed, power, and effect across the entire illicit drug ecosystem, especially those who profit from the death and misery of the opioid epidemic. We will continue working closely with our partners to reduce threats from these groups and disrupt their business models, including by stopping them from using the U.S. financial system.” Today’s action targets individuals and drug trafficking organizations (DTO) based in Brazil, China, Colombia, and Mexico. Those sanctioned include individuals who traffic fentanyl, and its precursor chemicals, methamphetamine, cocaine, and heroin, as well as organizations that pose the greatest drug threat to the United States. The new E.O. builds upon Treasury’s previous narcotics sanctions authorities, specifically E.O. 12978 (1995) and the Foreign Narcotics Kingpin Designation Act (Kingpin Act) (1999). Treasury designated eight individuals and entities under the new E.O. and is also applying the expanded tools of this authority to designate 17 individuals and entities previously sanctioned under other authorities.

SDN