The U.S. treasury has blocked the financial transactions of 28 people or entities connected to the international drug trade, including a Canadian and two of his companies..On Oct. 3, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated 28 individuals and entities involved with the international proliferation of illicit drugs..This action identified a China-based network responsible for the manufacturing and distribution of ton quantities of fentanyl, methamphetamine, and MDMA precursors. Others designated were involved in the global trafficking of xylazine and “nitazenes,” which are highly potent and often mixed with illicit fentanyl or other drugs..The Treasury’s designation under E.O. 14059 means all property and interests in property of the designated individuals and entities that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC..Any entities that are owned, directly or indirectly, 50% or more by one or more blocked persons are also blocked, as are transactions by the people and entities designated. U.S. persons may face civil or criminal penalties for violations..These designations target 12 entities and 13 individuals based in China and two entities and one individual based in Canada. They were made through ongoing collaboration between Treasury’s FAC, Internal Revenue Service, Criminal Investigations, and Financial Crimes Enforcement Network, the Drug Enforcement..Administration (DEA), and the Department of Homeland Security’s U.S. Customs and Border Protection agency..Treasury’s sanctions complement eight indictments issued Oct. 3 by the U.S. Attorneys Offices for the Southern District of Florida and the Middle District of Florida..“Treasury is taking sweeping action with our colleagues in law enforcement to expose and disrupt a network responsible for manufacturing and distributing illicit drugs, including fentanyl and other substances that take thousands of American lives each year,” said Deputy Secretary of the Treasury Wally Adeyemo..“Today’s action from OFAC and IRS-CI reflects how we will swiftly use all of our tools to counter the global threat posed by the illicit drug trade.”.Valerian Labs, Inc., led by Canadian national Bahman Djebelibak a.k.a. Bobby Shah, also received the Treasury’s dubious designation..The company shares its British Columbia address with Valerian Labs Distribution Corp., which is owned by Djebelibak..According to the Treasury press release, Djebelibak is a distributor of illicit precursor chemicals and equipment used to produce an array of synthetic drugs. Valerian Labs, Inc. has received shipments of methylamine hydrochloride, a precursor chemical used to produce methamphetamine and MDMA..Valerian Labs Distribution Corp. has allegedly attempted to procure 2,000 litres of chloroform, 800 litres of dichloromethane, and 200 kg of iodine, substances used in the production of fentanyl, heroin, and methamphetamine..The Treasury added that Valerian Labs Distribution Corp. imported chemicals from Hebei Guanlang, which is a member of the syndicate targeted by the Treasury. The company was also a major customer of Jinhu Minsheng Pharmaceutical Machinery Co. LTD. who was also named in the Treasury action..Djebelibak and his two aforementioned corporate entities were designated 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..This action follows a rapid increase in Treasury financial sanctions targeting the illicit fentanyl supply chain, including a recent action against China- and Mexico-based enablers of counterfeit pill production. The collaborative effort across agencies was called for in the Financial Action Task Force’s 2022 report on Money Laundering from Fentanyl and Synthetic Opioids..The Biden Administration says it has strengthened its efforts to counteract two key drivers of the opioid crisis: untreated addiction and the drug trafficking profits that fuel it. The administration has made investments in public health interventions including research, prevention, treatment, and ecovery support services..OFAC warned that those that engaged in certain transactions with the individuals and entities designated could also be exposed to sanctions or subject to an enforcement action..However, OFAC says the ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior.
