301A, Fl. 3, No. 17 III of Xinxiang Industrial Park, Xinhe Street New and Emerging Industrial Area (A), Fuhai Street, Baoan District, Shenzhen, 518000, Guangdong Province, China;
Floor 3, Bldg 1, (Zone A) Zone 3, Xinhe Xinxing Ind. Zone, Fuyong Street, Baoan Dist., Shenzhen, Guangdong, China;
No 188-23, Xiangming RD, Fengcheng Town, Anxi County, Quanzhou, Fujian, China
Reg. ID
91440300586742510R, Unified Social Credit Code (USCC)
Official reason
OFAC also designated Shenzhen, China-located Yason General Machinery Co., Ltd. (亚新通用机械有限公司) (Yason), Hong Kong-registered but Shenzhen, China-based Yason Electronics Technology Co., Limited (亞新電子科技有限公司) (Yason Electronics), and Nanchang, China-located Shenzhen Yason General Machinery Co., Ltd. Nanchang Branch (深圳市亚新通⽤机械有限公司南昌分公司) (Yason Nanchang), interrelated Chinese companies implicated in the supply of press equipment internationally. OFAC additionally designated Yason and Yason Electronics company official Fei Yiren (费亿人) (Fei), a Chinese national.
Yason sells pill press-related equipment and has worked with a Mexico-based pill equipment supplier and contact who previously provided equipment to a Sinaloa Cartel-linked individual. This individual used the machines to create superlabs in Mexico with the capacity to produce millions of fentanyl-laced pills weekly. In 2017, Yason Electronics sent a pill press machine — in multiple packages and via the United States — to the contact in Mexico, the intended buyer of the equipment.
OFAC designated Yason and Yason Electronics 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. OFAC designated Fei pursuant to E.O. 14059 for being or having been a leader or official of Yason and of Yason Electronics. OFAC designated Yason Nanchang pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Fei.
Executive Order 14059 of December 15, 2021 Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade
Regime
OFAC-horizontal
Target State
Drugs
Measures
Blocking Property, Suspending Entry
Official Information
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.
