WASHINGTON, CMC—The Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced Tuesday that it had sanctioned members of one of Guyana’s wealthiest families, a Guyana government official, and a company for their roles in public corruption in the Caribbean Community (CARICOM) country.
In addition to imposing sanctions on Nazar Mohamed, his son Azruddin Mohamed, their company, Mohamed’s Enterprise, and government official Mae Thomas, OFAC has designated two other entities, Hadi’s World and Team Mohamed’s Racing Team, as owned or controlled by Mohamed’s Enterprise and Azruddin, respectively.
It said that these individuals and entities are sanctioned under Executive Order 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of severe human rights abuse and corruption worldwide.
“Today’s action underscores our commitment to holding accountable those who seek to exploit Guyana’s underdeveloped gold sector for personal gain,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.
“Treasury, in close coordination with our partners in U.S. law enforcement, will continue to take action to safeguard the U.S. financial system from abuse by corrupt actors,” Nelson added.
The OFAC actions were conducted in coordination with Homeland Security Investigations New York Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, Diplomatic Security Service, Customs and Border Protection (CBP) Office of Intelligence – New York Operations, and the Federal Bureau of Investigation’s Miami Field Office, with assistance from HSI Miami, CBP Miami and New York Field Offices, New York City Police Department Intelligence Bureau, and the Drug Enforcement Administration.
The U.S. authorities say gold is one of Guyana’s main exports. Still, it remains a highly fractured industry, with small-scale gold mining operations accounting for most of the country’s gold production.
It said these small, family-owned businesses have informal relationships with more significant purchasers and traders like Mohamed’s Enterprise and that “once mined, Guyanese gold is sold and traded throughout international markets, including the United States, Canada, the United Arab Emirates, and the European Union.
It is said that Nazar Mohamed founded Mohamed’s Enterprise in Guyana before expanding to the United States as a moneychanger and transitioning into gold trading. Mohamed’s Enterprise grew into one of Guyana’s largest gold exporters.
In time, Azruddin Mohamed ultimately took over Mohamed’s Enterprise, which now operates as “Confidential Cambio.”
Azruddin and Mohamed’s Enterprise evaded Guyana’s tax on gold exports and defrauded the Guyanese government of tax revenues by under-declaring their gold exports to Guyanese authorities. Between 2019 and 2023, Mohamed’s Enterprise omitted more than 10 thousand kilograms of gold from import and export declarations and avoided paying more than US$50 million in duty taxes to the government of Guyana.
“Mohamed’s Enterprise has bribed customs officials to falsify import and export documents and facilitate illicit gold shipments. Mohamed’s Enterprise had paid bribes to Guyanese government officials to ensure the undisrupted flow of inbound and outbound personnel that move currency and other items on behalf of Azruddin and Mohamed’s Enterprise,” OFAC said.
It said that “Azruddin and Mohamed’s Enterprise have engaged in extensive bribery schemes involving government officials in Guyana to conceal their illegal activity and operate with impunity.
“This includes providing direct and recurring bribery payments to Guyanese government officials to ensure favorable treatment in criminal or civil matters that would otherwise suggest their involvement in illegal criminal activity. In return, corrupt officials receive cash and gifts for overlooked incidents. Mohamed’s Enterprise has also paid bribes to corrupt Guyanese government officials to facilitate awarding government contracts.”
OFAC said that one such official, Mae Thomas, was the Permanent Secretary to Guyana’s Minister of Home Affairs from October 2020 through August 2023 and is the current Permanent Secretary of the Ministry of Labour.
“A corrupt Permanent Secretary could manipulate procurement processes to suit their preferred bidder by providing inside information at the early evaluation stages. Access to a Ministry’s Permanent Secretary could afford contractors insight into upcoming projects and bid values. Permanent Secretaries can act as the legal authority to sign contracts for their ministry.”
OFAC said that while Permanent Secretary to Guyana’s Minister of Home Affairs, Thomas used her position to offer benefits to Mohamed’s Enterprise and Azruddin, among others, in exchange for cash payments and high-value gifts.
“Thomas misused her position to influence the award of official contract bids and the approval processes for weapons permits and passports on behalf of Mohamed’s Enterprise.
OFAC said that due to the sanctions, “all property and interests in property of the designated persons…that are in the United States or the possession or control of U.S. persons are blocked and must be reported to OFAC.
“In addition, any entities owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.”
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action.
“The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.” its ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law.
“The ultimate goal of sanctions is not to punish, but to bring about a positive behavior change.”
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