By Javier Coronado Diaz. On October 24, 2025, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) announced an unprecedented measure: the designation of Colombian President Gustavo Francisco Petro Urrego, along with several members of his inner circle, under Executive Order 14059, which authorizes economic sanctions against foreign persons involved in the global illicit drug trade.
Beyond the geopolitical impact of these sanctions, financial institutions and other organizations must consider the extraterritorial reach of the U.S. sanctions regime and the compliance risks they now face in their transactions involving Colombia.
This article describes the legal basis for the designation, its practical effects, and the compliance implications that both Colombian institutions and foreign institutions operating in Colombia should consider.
