Treasury Sanctions Former Haitian President for Drug Trafficking

WASHINGTON — The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on former Haitian President Michel Joseph Martelly under Executive Order (E.O.) 14059, “Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade,” issued on December 15, 2021.

“Today’s action against Martelly underscores the critical and destabilizing role he and other corrupt political elites have played in exacerbating the ongoing crisis in Haiti,” stated Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence. “The United States, in coordination with international partners, remains dedicated to dismantling those who support drug trafficking, corruption, and other illegal activities that fuel the severe gang violence and political instability in Haiti.”

Haiti’s widespread gang violence and human rights violations have created a conducive environment for drug trafficking, turning the country into a significant transit point for illegal drugs destined for the United States. Political and business elites in Haiti have long been implicated in drug trafficking and have been associated with the gangs responsible for the nation’s instability. The U.S. is committed to promoting accountability and paving the way for a more prosperous, democratic, and secure future for all Haitians.

Martelly is accused of exploiting his political influence to aid in the trafficking of dangerous drugs, including cocaine, to the United States. Furthermore, he engaged in laundering illicit drug profits, collaborated with Haitian drug traffickers, and supported multiple Haiti-based gangs. Prior to this, the Government of Canada sanctioned Martelly on November 17, 2022. Link here

The sanctions imposed today are based on Martelly’s involvement in, or attempted involvement in, activities that have significantly contributed to, or pose a substantial risk of contributing to, the global proliferation of illegal drugs. As a result, OFAC has added Martelly to the Non-SDN Menu-Based Sanctions List (NS-MBS List) under E.O. 14059.

In collaboration with the Drug Enforcement Administration, OFAC has imposed several prohibitions as part of this action, including:

1. U.S. financial institutions are barred from providing loans or extending credit to Martelly.
2. All transactions in foreign exchange subject to U.S. jurisdiction, in which Martelly has any interest, are prohibited.
3. U.S. persons are forbidden from investing in or purchasing significant equity or debt instruments associated with Martelly.

Violations of E.O. 14059 may result in civil or criminal penalties for U.S. persons, and non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to knowingly or unknowingly violate U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide additional information regarding the enforcement of U.S. sanctions, including the factors considered when determining the appropriate response to a potential violation.

While sanctions are a powerful tool, OFAC emphasizes that the ultimate goal is not punishment but to encourage positive changes in behavior. For details on the process for seeking removal from an OFAC list, including the NS-MBS List, please refer to OFAC guidelines.