IN FOCUS: The Foreign Narcotics Kingpin Designation Act

On December 3, 1999, President Clinton signed into law the Foreign Narcotics Kingpin Designation Act (the “Kingpin Act”). The Kingpin Act blocks all property and interests in property, subject to US jurisdiction, owned or controlled by significant foreign narcotics traffickers as identified by the President. In addition, the Kingpin Act blocks the property and interests in property, subject to US jurisdiction, of foreign persons designated by the Secretary of Treasury, in consultation with the Attorney General, the CIA Director, the FBI Director, the DEA Administrator, the Secretary of Defense, and the Secretary of State, who are found to be: (1) materially assisting in, or providing financial or technological support for or to, or providing goods or services in support of, the international narcotics trafficking activities of a person designated pursuant to the Kingpin Act; (2) owned, controlled, or directed by, or acting for or on behalf of, a person designated pursuant to the Kingpin Act; or (3) playing a significant role in international narcotics trafficking. 

Significant foreign narcotics traffickers and foreign persons designated by the Secretary of the Treasury are referred to collectively as Specially Designated Narcotics Traffickers. Foreign persons designated under the Kingpin Act are referred to as "[SDNTK]s" on the Office of Foreign Assets Control's listing of "Specially Designated Nationals and Blocked Persons" to differentiate them from the Specially Designated Narcotics Traffickers named under Executive Order 12978. US persons are prohibited from engaging in any transaction or dealing in property or interests in property of [SDNTK]s and from engaging in any transaction that evades or avoids the prohibitions of the Kingpin Act. These prohibitions affect trade transactions as well as accounts, securities, and other assets.

Since the inception of the Kingpin Act, dozens of top Mexican DTO members have been added to the SDNTK list, including the Arellano Felix brothers, Osiel Cardenas Guillen, Ismael Zambada Garcia, Joaquin Guzman Loera, and Vicente Carrillo Fuentes. In June 2004, the AFO and VCFO were added to the list as organizations. In June 2007, the Gulf cartel was added, and in May 2008, the BLO was added. Most recently, in April 2009, La Familia Michoacana, Los Zetas, and the Sinaloa Federation were added to the SDNTK list as organizations.