Treasury Department Sanctions 3 in Alleged China-Linked Cartel Money Laundering Scheme

The U.S. Treasury Department has sanctioned one Mexican resident and two Chinese residents suspected of laundering drug trafficking proceeds for the Sinaloa Cartel. The Treasury Department, on July 1, named Mexico-based Diego Acosta Ovalle and China-based Tong Peiji and He Jiaxuan as suspected Cartel moneymen. The Treasury Department sanctioned the trio, in accordance with a December 2021 executive order, authorizing sanctions on suspected participants in the global illicit drug trade. According to the Treasury Department’s Office of Foreign Assets Control, Mr. Ovalle helped the Sinaloa Cartel collect and hide their drug trafficking profits, and moved those proceeds along to cartel associates....