OFAC Sanctions CDN Cartel Casinos, Attorney, and Disinformation Actors

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OFAC Sanctions CDN Cartel Casinos, Attorney, and Disinformation Actors

Crowell & Moring Trade Blog

Published April 14th, 2026

Detected April 15th, 2026

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Summary

On April 14, 2026, OFAC designated six individuals and entities tied to Cartel del Noreste (CDN), including two casinos (Casino Centenario and Diamante Casino) used for laundering drug proceeds near the U.S.-Mexico border. Also designated were an attorney acting as intermediary for imprisoned cartel members and a disinformation actor purporting to be a human rights activist. General License 35 authorizes wind-down transactions through May 13, 2026.

Published by Crowell & Moring on cmtradelaw.com . Detected, standardized, and enriched by GovPing. Review our methodology and editorial standards .

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What changed

OFAC issued sanctions targeting CDN, a State Department-designated Foreign Terrorist Organization, under Executive Orders 14059 and 13224. The designations include Casino Centenario (two miles from the U.S. border with known U.S. patrons), Diamante Casino, and their operator CAMSA, along with individuals including a human smuggling coordinator, a defense attorney intermediary, and a disinformation actor. General License 35 permits wind-down transactions through May 13, 2026.

Affected parties include casinos and gambling establishments near the U.S.-Mexico border, legal professionals acting as intermediaries for criminal organizations, and individuals involved in cartel disinformation campaigns. Financial institutions should enhance AML monitoring for transactions involving Mexican casinos and border-region businesses, as these actions signal increased scrutiny of non-traditional financial institutions used by cartels.

What to do next

Monitor OFAC sanctions list for designation updates
Review AML compliance programs for cartel-related red flags
Consult OFAC General License 35 for wind-down transaction authorization

Archived snapshot

Apr 15, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Key Takeaways

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated six individuals and entities tied to Cartel del Noreste (CDN)—one of Mexico’s most violent drug trafficking organizations—including two CDN-affiliated casinos used for money laundering and drug operations near the U.S.-Mexico border.
OFAC’s actions are the latest examples of a broader national security strategy to use sanctions, AML authorities, criminal prosecutions, and other tools to counter cartels on the U.S.-Mexico border. These efforts have targeted in particular non-traditional financial institutions such as casinos, public-facing professionals, and disinformation actors.
The State Department designated CDN as a foreign terrorist organization (FTO) on February 20, 2026, and today’s designations were issued under both Executive Order 14059 (narcotics trafficking) and Executive Order 13224 (terrorism), underscoring the U.S. government’s treatment of major cartels as hybrid criminal-terrorist threats.

Overview of the Designations

On April 14, 2026, the U.S. Department of the Treasury announced OFAC sanctions targeting a money laundering and cash smuggling network operated by CDN, a U.S.-designated Foreign Terrorist Organization (FTO) with significant influence in Nuevo Laredo, located on the U.S.-Mexico border. Key designation targets include:

Casino Centenario and Diamante Casino, identified as vehicles for laundering illicit proceeds and facilitating cartel operations. The announcement notes that Casino Centenario is only two miles from the U.S. border and is known to have U.S. patrons;
Comercializadora y Arrendadora de Mexico (CAMSA), the operator of the casinos;
Senior cartel-linked individuals, including:
- Eduardo Javier Islas Valdez (Islas), a coordinator of human smuggling operations along the Rio Grande;
- Juan Pablo Penilla Rodriguez (Penilla), a defense attorney acting as an intermediary for imprisoned CDN member to current CDN leadership; and
- Jesus Reymundo Ramos Vazquez (Ramos), a CDN associate purported who leads CDN disinformation campaigns supporting cartel interests while purporting to be a “human rights activist.” enTreasury also issued General License (GL) 35, authorizing wind-down transactions through May 13, 2026, involving Casino Centenario, Diamante Casino, or CAMSA, or any entity in which one or more of the foregoing three designated entities owns a 50 percent or greater interest. While OFAC has long targeted cartel leadership and trafficking networks, this action is notable for its focus on professional enablers — an attorney and disinformation “influence” for the cartel — and on specific vehicles for the laundering of funds, in the form of the sanctioned casinos.

Broader Enforcement Trend

This action is the latest in a series of coordinated U.S. Government measures targeting cartels and their financial infrastructure. For example:

On November 13, 2025, FinCEN issued a finding and notice of proposed rulemaking (NPRM) that identified transactions involving ten identified Mexico-based gambling establishments to be of “primary money laundering concern. This action was taken concurrently with OFAC designations that sanctioned members of a criminal group that used the establishments to launder the proceeds of narcotics trafficking in collaboration with the Sinaloa Cartel.
On July 3, 2025, FinCEN issued orders pursuant to the Fentanyl Sanctions Act and FEND Off Fentanyl Act determining that three Mexican financial institutions are “of primary money laundering concern in connection with illicit opioid trafficking,” which orders effectively excluded the three financial institutions from the U.S. financial system.
On March 10, 2025, FinCEN issued an expanded Geographic Targeting Order (GTO) that requires money services businesses (MSBs) to file Currency Transaction Reports with FinCEN for cash transactions between $1,000 and $10,000 occurring in specific U.S. counties and ZIP codes located near the U.S-Mexico border, intended to help law enforcement identify efforts to structure transactions to evade existing currency reporting requirements
On February 20, 2025, the U.S. State Department designated eight international criminal organizations as Foreign Terrorist Organizations (FTOs), including several entities operating in Mexico. See more on this development from Crowell’s past client alert here. The State Department has identified several other cartels and international criminal organizations as FTOs since then. The use of terrorism authorities expands potential criminal liability associated with support for these groups, and also can give rise to civil liability in suits by private plaintiffs against persons that aid them.

Practical Considerations

Financial institutions, FinTechs, and companies with operations or transactions involving Mexico or with other cross-border exposure may wish to consider:

Enhanced screening and Customer Due Diligence (CDD) for gaming companies and non-traditional financial institution counterparties in Mexico, particularly near border regions.
Reviewing customer profiles tied to pro-cartel legal, media, or advocacy roles in high-risk jurisdictions, and conducting Enhanced Due Diligence (EDD) for high-risk customers.
Reassessing exposure to cash-intensive businesses that may serve as laundering conduits.

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Named provisions

Executive Order 14059 Executive Order 13224 General License 35

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Last updated

April 15, 2026

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Crowell & Moring

Published

April 14th, 2026

Compliance deadline

May 13th, 2026 (27 days)

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Notice

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Non-binding

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Final

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Minor

Document ID

Release No. sb0440

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7132 Gambling & Casino Operations 5411 Legal Services

Activity scope

Sanctions compliance Money laundering detection Border financial monitoring

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United States US

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OFAC Sanctions BSA/AML

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OFAC Sanctions CDN Cartel Casinos, Attorney, and Disinformation Actors

Summary

What changed

What to do next

Archived snapshot

Key Takeaways

Overview of the Designations

Broader Enforcement Trend

Practical Considerations

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