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OFAC Announces Sanctions on Chinese Drug Traffickers

The Treasury’s Office of Foreign Assets Control announced sanctions on three Chinese citizens and two Chinese entities for drug trafficking, Treasury said in an Aug. 21 press release. OFAC designated Fujing Zheng and his company, Shanghai-based Zheng Drug Trafficking Organization (Zheng DTO), under the Foreign Narcotics Kingpin Designation Act. OFAC also sanctioned Xiaobing Yan for being a drug trafficker, Guanghua Zheng for supporting Zheng DTO and Shanghai-based Qinsheng Pharmaceutical Co. Ltd., for being owned by Zheng.

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Treasury said Fujing Zheng and his father Guanghua shipped fentanyl and other drugs to the U.S. and 25 countries through express mail and the U.S. Postal Service to avoid being caught by customs enforcement. Zheng laundered the money from the sales by using digital currencies and “transmitted drug proceeds into and out of bank accounts in China and Hong Kong,” bypassing reporting requirements, the press release said.