US imposes sanctions on tobacco company for support of Paraguay’s former president

(MENAFN) On Tuesday, the U.S. Treasury Department announced that it has imposed sanctions on the Paraguayan tobacco company Tabacalera del Este S.A. (Tabesa) due to its financial support of Paraguay’s former president. The sanctions were levied under the Office of Foreign Assets Control (OFAC), which had already designated Horacio Manuel Cartes Jara on January 26, 2023, for his involvement in corruption.

In its statement, the Treasury Department noted that Tabesa had been previously identified by OFAC on its Specially Designated Nationals and Blocked Persons List. This designation was made because Cartes owned a significant stake in the company, either directly or indirectly, amounting to a 50 percent or greater interest. Despite Cartes no longer holding ownership of Tabesa due to a sales agreement where his shares were acquired, the company has continued to make substantial payments to him.

The Treasury Department’s action against Tabesa is based on the company's ongoing financial transactions with Cartes, despite his sanctions by OFAC. Tabesa is accused of having materially assisted, sponsored, or provided financial, material, or technological support to Cartes, or for providing goods or services in support of him.

The sanctions aim to disrupt and penalize any financial support flowing to Cartes, reinforcing the Treasury Department's stance against individuals and entities engaged in or supporting corruption. This move underscores the commitment to targeting financial networks that sustain sanctioned individuals, regardless of their ownership status in associated companies.

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