“The United States and Mexico are working jointly to combat money laundering in Mexico’s gaming and betting sector. Our message to those who support the cartels is clear: They will be held accountable,” said John K. Hurley, the U.S. Treasury’s Under Secretary for Terrorism and Financial Intelligence. “We appreciate the Government of Mexico for its strong partnership in this effort.”
This statement appears in the press release issued on November 13 by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), announcing coordinated action with the Mexican government against the Hysa Organized Crime Group (HOCG). The release states:
“The Hysa Organized Crime Group (HOCG), which includes Luftar Hysa (Luftar), Arben Hysa (Arben), Ramiz Hysa (Ramiz), Fatos Hysa (Fatos), and Fabjon Hysa (Fabjon), has leveraged its influence through investments in, or control over, various Mexico-based businesses—including gambling establishments and restaurants—to launder the proceeds of drug trafficking. The HOCG is believed to operate with the consent of the Sinaloa Cartel, which maintains criminal control over much of the territory where the group conducts its activities.”
Luftar, who resides between Mexico and Canada, is frequently seen in public media as a prominent member of the Hysa family, giving interviews about their business operations in Mexico and Europe. Luftar, Fatos, Arben, and Fabjon have worked closely with a U.S. person to launder money, including the movement of bulk cash from Mexico to the United States, where that individual’s company was used to wash the funds. Luftar and Arben have also used a Europe-based entity to enrich themselves by laundering illicit funds belonging to alleged narcotics traffickers. Luftar additionally owns or manages several companies used by the HOCG.
With this action, OFAC is also targeting several individuals and entities within the HOCG network. Entretenimiento Palmero, S.A. de C.V., a Mexico-based company owned by Arben, is central to the organization’s operations. Mexican national Gilberto López López acts as its commissioner. Albanian-born, Mexico-based citizen Eselda Baku (formerly Eselda Hysa), daughter of Ramiz, sits on its Board of Directors.
Additional companies designated in this action include:
- Bliri S.A. de C.V. (Mexico)
- Cucina Del Porto S.A. de C.V. (Mexico)
- Diversiones Los Mochis S.A. de C.V. (Mexico)
- El Arte de Cocinas y Beber S.A. de C.V. (Mexico)
- Entretenimiento Villahermosa S.A. de C.V. (Mexico)
- Entretenimiento y Espectáculos B.C. S.A. de C.V. (Mexico)
- Grupo Internacional Canhysamex S.A. de C.V. (Mexico)
- H Hidrocarburos S.A. de C.V. (Mexico)
- Hysa Forwarders S.A. de C.V. (Mexico)
- LH Pro-Gaming S.A. de C.V. (Mexico)
- LH Rental S.A. de C.V. (Mexico)
- Operadora Alejil S.A. de C.V. (Mexico)
- Operadora de Empresas LH S.A. de C.V. (Mexico)
- Procesadora de Alimentos Hs S.A. de C.V. (Mexico)
- Rosetta Gaming S.A. de C.V. (Mexico)
- Hysa Holdings Inc. (Canada)
- Rosetta Gaming Inc. (Canada)
- Rosetta Gaming SP ZOO (Poland)
Simultaneously, and in coordination with OFAC and the Government of Mexico, FinCEN issued a Notice of Proposed Rulemaking (NPRM) under Section 311 of the U.S. PATRIOT Act, identifying transactions involving ten Mexico-based gaming establishments as a class of transactions of primary money-laundering concern. The HOCG operates these establishments, which for years have been used to facilitate money laundering that benefits the Sinaloa Cartel. These establishments include:
- Emine Casino – San Luis Río Colorado, Sonora
- Mirage Casino – Culiacán, Sinaloa
- Midas Casino – Agua Prieta, Sonora
- Midas Casino – Los Mochis, Sinaloa
- Midas Casino – Guamúchil, Sinaloa
- Midas Casino – Mazatlán, Sinaloa
- Midas Casino – Rosarito, Baja California
- Palermo Casino – Nogales, Sonora
- Skampa Casino – Ensenada, Baja California
- Skampa Casino – Villahermosa, Tabasco
Source: regulations.gov
Two of these casinos belong to businessman Ricardo Salinas Pliego, who is already under investigation by Mexico’s Financial Intelligence Unit (UIF). Should the investigations advance, broader legal or regulatory consequences could affect the entire conglomerate—including its banking arm—since sanctions may emerge not only from Mexican authorities but also from international agencies, given the cross-border financial flows involved.
In response, Salinas Pliego issued a public statement.
Historically, Banco Azteca has faced difficulties with U.S. correspondent banks. Lone Star Bank, for example, terminated its relationship with Banco Azteca due to “unclear” dollar flows and alleged irregularities. If the current crisis expands, it could become increasingly difficult for Banco Azteca to maintain international banking relationships, limiting its ability to operate in U.S. dollars, process remittances, or conduct cross-border transactions.
Indirect financial impact
If accounts linked to the casinos are blocked or sanctioned by the UIF or other authorities, the group could face liquidity pressures, particularly if cross-guarantees or internal loans exist among its companies. In addition, reputational damage may hinder deposit growth or reduce profitability if the bank adopts a more conservative posture to mitigate risk in the short term.
