Binging Griselda? Let’s Talk Drug Trafficking Sanctions

Netflix’s new series Griselda tells the story of Griselda Blanco. Known as the “Godmother of Cocaine,” Blanco trafficked cocaine from Colombia to Miami from the 1970s to the early 2000s. Despite her criminal activities, Blanco managed to evade law enforcement for many years. She was eventually arrested in 1985 in connection with drug trafficking and sentenced to 15 years in prison. There were no sanctions against Blanco at the time, since the Kingpin Act, a U.S. law aimed at combating international drug trafficking and organized crime, was enacted in 1999 after Blanco’s sentencing.  

In the realm of global criminal activity, drug trafficking emerges as a pervasive and intricate issue that transcends international borders, casting its disruptive shadow upon societies and economies worldwide.  

• In October 2023, the U.S. Justice Department charged Chinese companies for their involvement in crimes related to the production of fentanyl and methamphetamine. This marks the second wave of prosecutions targeting Chinese entities for trafficking fentanyl precursors into the United States. The Department of the Treasury has also sanctioned 28 entities implicated in the global drug trade. Chinese chemical companies employ diverse tactics, including cryptocurrency transactions, to conceal their illicit activities. 
• INTERPOL provides services and support for global law enforcement agencies to enhance their capacity in detecting and investigating drug trafficking, emphasizing the importance of coordinated international efforts. 

In response to the multifaceted challenges posed by this illicit trade, nations have strategically employed sanctions as a pivotal tool in their efforts to combat those who profit from the widespread suffering narcotics trafficking inflicts. Understanding the complexities surrounding drug trafficking sanctions, their efficacy, and the evolving landscape of international cooperation is key to sanctions compliance. 

U.S. Counternarcotics Sanctions 

Counternarcotics sanctions are some of the earliest forms of list-based sanctions imposed by the United States. The U.S. government has the authority to freeze assets, prohibit transactions, and impose financial sanctions on those designated as significant narcotics traffickers. 

• Executive Order (EO) 12978 – issued in 1995 by then-President Clinton, the executive order declared a national emergency to address the unusual and extraordinary threat to the national security, foreign policy, and economy of the United States posed by the actions of significant narcotics traffickers centered in Colombia, and the extreme level of violence, corruption, and harm such actions cause in the United States and abroad. 
• Foreign Narcotics Kingpin Designation Act – signed into law in 1999, the Kingpin Act grants the U.S. government the authority to identify and sanction individuals and entities involved in international drug trafficking. Designated as “significant foreign narcotics traffickers,” those targeted by the Kingpin Act face asset freezes, prohibition on U.S. transactions, and restrictions on travel. The primary objective of the Kingpin Act is to disrupt and dismantle the financial networks supporting major drug cartels, thereby combating the global drug trade and its associated criminal activities.  
• Executive Order 14059 – Signed by President Biden in late 2021, enhances and broadens the authority of the U.S. government to identify and address foreign drug trafficking organizations and their enablers through the imposition of sanctions, including on any foreign person who provides–or attempts to provide–support to international illicit drug proliferation activity, or to any person sanctioned under executive order. This focus is particularly pertinent in the context of combating opioid and fentanyl trafficking, along with the trafficking of narcotics and other controlled substances. 

The illicit drug trade remains a global issue causing thousands of deaths annually. The Biden administration in 2023 announced plans to further strengthen its approach toward disrupting fentanyl and other drug supply chains in collaboration with other global authorities. The approach includes a coordinated global effort to disrupt the synthetic drug trade, strengthening coordination and information-sharing among U.S. intelligence and law enforcement agencies, increasing engagement with the private sector globally to fight illicit drugs, and protect the U.S. financial system from abuse by drug trafficking organizations. 

Impact of Sanctions 

As of February 2024, there are over 200 individuals and entities designated as Specially Designated Narcotics Traffickers (SDNTs) and over 1,400 Specially Designated Narcotics Trafficker Kingpins (SDNTKs). Both terms are used to designate individuals and entities involved in significant narcotics trafficking, but “SDNT” is a broader designation, while “SDNTK” specifically refers to high-profile individuals and organizations involved in narcotics trafficking, often associated with major drug cartels.  

OFAC and its U.S. partner agencies employ diverse methods to enforce sanctions under the Kingpin Act. However, assessing the Act’s overall effectiveness is challenging, because isolating its impact from other counternarcotics initiatives is challenging. Reported outcomes indicate the designation of over 2,000 individuals as Kingpins and their supporters, along with the freezing of assets exceeding half a billion dollars between 2000 and 2019. 

• In October 2023, the Director of the White House Office of National Drug Control Policy (ONDCP), Dr. Rahul Gupta, unveiled new sanctions by the United States against 28 individuals and entities involved in the global illicit drug trade. This action targets a China-based network and entities in Canada engaged in the production and distribution of fentanyl, methamphetamine, and MDMA precursors. The sanctioned individuals are also implicated in the worldwide trafficking of potent non-fentanyl synthetic opioids such as xylazine and “nitazenes.” The statement underscores a commitment to assertive measures against contributors to the illicit drug trade and the overdose epidemic. Sanctions are a significant part of the United States’ comprehensive strategy to combat drug trafficking and organized crime.  
• OFAC in 2018 removed Colombian soccer team Envigado Futbol Club S.A. from the SDN list after it was sanctioned in 2014 pursuant to the Kingpin Act because it was owned, controlled, or directed by, or acting for or on behalf of, drug trafficking organization (DTO) La Oficina de Envigado and Juan Pablo Upegui Gallego, who was also sanctioned in 2014 for being a key associate of the DTO. OFAC noted that Envigado sold the team and restructured the team management under the oversight of the Colombian government that eliminated ties to La Oficina and prevented the DTO from gaining any benefit from the sale. 

Through disrupting their operations and imposing financial repercussions, counternarcotics sanctions have effectively discouraged the influx of drugs, notably opioids and fentanyl, into the country. Moreover, the rigorous enforcement of these measures has played a role in dismantling trafficking networks and diminishing the prevalence of narcotics and controlled substances within U.S. borders. This has, in turn, contributed to safeguarding public health and bolstering national security. However, more work must be done to continue fighting narcotics trafficking to the United States. The United States and China in November restarted bilateral cooperation on counternarcotics, focusing on reducing the flow of precursor chemicals for illicit fentanyl and other synthetic drug production. Increased engagement with other countries that are high-risk for illicit drugs and enhanced information-sharing among U.S. stakeholders will help in the battle. Since Griselda Blanco’s prosecution, U.S. sanctions have provided additional tools not just to criminally prosecute drug traffickers, but also cut off their access to the global financial system and protect the U.S. financial system. 

Visit the DOLFIN library for more information on counternarcotics sanctions and illicit drug activity.