Important News

U.S. Treasury Sanctions Costa Rica–Based Cocaine Trafficking Network and Leader Luis Manuel Picado Grijalba

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Key takeaways

  • OFAC designated five Costa Rican nationals and five Costa Rica–based entities under Executive Order 14059 for narcotics trafficking and money laundering.
  • The sanctions target a network led by Luis Manuel Picado Grijalba (aka “Shock”) and his brother Jordie Kevin Picado Grijalba (aka “Noni”), accused of transporting multi-ton quantities of cocaine from Colombia via Costa Rica to the U.S. and Europe.
  • The action followed a Homeland Security Task Force investigation involving DEA offices (San José and Dallas) and multiple Costa Rican agencies (Attorney General, Drug Control Police, Office of Judicial Investigation, Fuerza Pública, and Financial Intelligence Unit).
  • Authorities report prior related designations (Bell, Gamboa, Lopez) and recent law-enforcement operations: Shock was arrested in the U.K. in December 2024, Noni was arrested in August 2025, and a November 2025 Costa Rican operation led to 30 arrests and the seizure of 14 tons of drugs and luxury assets.
  • Family members and several businesses (including ASOLIPES, 3-101-507688 SA, Celajes de York CDY SA, Magic Esthetic Salon SA, and Inversiones Laurita L&L SA) are designated for facilitating money laundering; some firms have been temporarily suspended by Costa Rican authorities.
  • As a result of the designations, all U.S.-located property and interests of the listed persons/entities are blocked, and U.S. persons are generally prohibited from transacting with them unless OFAC authorizes a license.

Follow Up Questions

What is OFAC and what does an OFAC designation mean in practice?Expand

OFAC is the U.S. Department of the Treasurys Office of Foreign Assets Control, which designs and enforces U.S. economic and trade sanctions. An OFAC designation (e.g., onto the SDN or other sanctions lists) means the designated persons or entitys property and interests in property subject to U.S. jurisdiction are "blocked" (i.e., frozen), U.S. persons are generally prohibited from dealing with them, and transactions require OFAC authorization. Designations can also trigger secondary effects for foreign banks and businesses (loss of access to U.S. dollar clearing, correspondent relationships, and reputational/contracting limits).

What is Executive Order 14059 and which activities does it specifically target?Expand

Executive Order 14059 (Dec. 15, 2021) is the presidential order titled "Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade." It authorizes sanctions (including blocking property, restricting transactions, and related measures) against foreign persons involved in the global illicit drug tradeincluding producers, traffickers, facilitators, and those who launder or otherwise move illicit drug proceeds (including fentanyl and other controlled substances). The EO is implemented by OFAC and can be used with other authorities (IEEPA, NEA) and coordinated with other U.S. tools (e.g., visa restrictions).

How do OFAC sanctions block property and how do they affect non-U.S. persons and foreign businesses?Expand

When OFAC blocks property it is designated as "blocked" and all property and interests in property of the designated person that are in the United States or in the possession or control of U.S. persons must be frozen and reported. U.S. persons are generally prohibited from engaging in transactions with blocked parties absent an OFAC license. Non-U.S. persons and foreign businesses are not directly exempt: they risk secondary sanctions, loss of access to U.S. banks and dollar clearing, and contractual/operational disruption if they transact with designated parties; they must conduct enhanced compliance (screening, refusing prohibited payments). OFACs "50% rule" also blocks firms 50%+ owned by blocked persons. Licenses, penalties, and enforcement apply as set out in OFAC guidance.

What is the SDN (Specially Designated Nationals) List and how can someone seek removal from it?Expand

The SDN List (Specially Designated Nationals and Blocked Persons List) is OFACs public list of individuals, entities, vessels, and aircraft owned or controlled by, or acting for or on behalf of, sanctioned targets; SDNss U.S.-located assets are blocked and U.S. persons are generally prohibited from dealing with them. To seek removal (delisting) a person or entity can file a petition for reconsideration with OFAC (submit evidence showing why the listing is erroneous or no longer appropriate); OFAC reviews petitions and posts decision or removal guidance. Detailed instructions and forms are on OFACs petitions/removal pages.

What is the typical process for extraditing suspects from Costa Rica or the United Kingdom to the United States?Expand

Extradition processes differ by country but share common steps. From Costa Rica: the U.S. submits a formal extradition request to Costa Rican authorities, supported by probable cause and case documents; Costa Rican prosecutors and courts review the request, may hold extradition hearings, and the Justice Ministry or President signs the extradition order; Costa Rican law enforcement may arrest and hold the suspect pending judicial review and transfer. From the United Kingdom: the U.S. sends a formal request under the U.S.-U.K. extradition treaty (or via the U.K.s Extradition Act); U.K. courts review legality, human-rights and specialty assurances, and the Home Secretary orders surrender if requirements met; the process can include appeals before surrender. Timeframes and evidentiary standards vary; diplomatic assurances, dual criminality, and defendants rights are key. (Practically, arrests abroad often follow cooperation between U.S. and local law enforcement, and formal treaty procedures complete the transfer.)

How do U.S. Treasury actions coordinated with Costa Rican law enforcement affect on-the-ground policing and drug-trafficking routes in Costa Rica?Expand

U.S. Treasury/OFAC designations coordinated with Costa Rican law enforcement support on-the-ground policing by identifying and freezing the networks financial infrastructure, enabling local seizures and arrests, and prompting asset forfeiture and regulatory actions (e.g., suspending implicated businesses). That financial-pressure approach raises the cost and risk of operating for traffickers, disrupts cash flows, and helps investigators target logisticians, front companies, and money-laundering channels. However, interdiction impacts on trafficking routes are often dynamic: traffickers can shift routes, use new intermediaries, or decentralize operations, so long-term changes require sustained policing, anti-corruption, and financial-intelligence work. The Treasury action typically complements arrests and seizures done by Costa Rican agencies and U.S. partners (DEA, HSI) but does not by itself eliminate trafficking routes without ongoing law-enforcement operations and regional cooperation.

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