OFAC designates fentanyl trafficking network

The US Department of the Treasury’s Office of Foreign Assets Control (‘OFAC’) has targeted fentanyl trafficking by designating five Chinese nationals alleged to be active in the trade.

Jian Zhang has been identified as a ‘significant narcotics trafficker’, while four others have been designated for acting on his behalf or for a Hong-Kong company under his control, Zaron Bio-Tech (Asia) Ltd, also designated. Na Chu, Yeyou Chu, Cuiying Liu and Kepig Zhang are suspected of laundering money for Zhang and his organisation through money service businesses.

According to OFAC, the US federal agencies are increasingly co-operating with Chinese authorities to restrict the flow of illicit narcotics into the US. In February 2018, China enacted controls on two precursor chemicals used in the illicit manufacture of fentanyl.

The assets of those designated have been blocked and all US persons are prohibited from dealing with them.

OFAC’s press release can be found here:
https://home.treasury.gov/news/press-releases/sm0372h

OFAC’s notice can be found here:
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20180427.aspx