On January 26th, 2023, the Office of Foreign Assets Control (OFAC) of the United States. Department of the Treasury imposed sanctions on Horacio Cartes, former president of Paraguay, four companies owned by him (Tabacos USA Inc., Bebidas USA Inc., Dominicana Acquisition S.A. and Frigorífico Chajha S.A.E.), and Hugo Velázquez, the current Vicepresident of the country. Subsequently, OFAC imposed sanctions on fifth company owned by Horacio Cartes, Tabacalera del Este S.A., the economic group´s largest company and the second largest taxpayer in Paraguay. The sanctions also extend to any entity owned 50% or more by any of the aforementioned individuals or companies, directly or indirectly. The sanctions entail a general prohibition for United States persons (including citizens, residents, and visitors) and companies to transact business with any of the sanctioned persons or companies, and also possible penalties for non-United States persons and companies if they transact with sanctioned persons or companies through the United States financial system or in United States Dollars, or if they materially support sanctioned persons or companies.
