Updated

The U.S. Treasury Department said Thursday it imposed Kingpin Act sanctions on an alleged Panamanian trade-based money laundering organization.

Treasury said it targeted what it called the Waked Money Laundering Organization by imposing sanctions on its alleged leaders, Nidal Ahmed Waked Hatum and Abdul Mohamed Waked Fares, as well as six Panama-based associates and 68 companies linked to the alleged network. Treasury said Panamanian authorities were told about the sanctions designations, and that U.S. and Panamanian authorities will coordinate going forward.

The organization uses trade-based money laundering schemes, which include bulk-cash smuggling and false commercial invoicing, to launder drug money on behalf of international drug traffickers and their networks, Treasury alleged. As a result, all their U.S. assets are frozen and Americans are barred from transacting with them.

"This action exposes the Waked Money Laundering Organization and disrupts its ability to launder drug trafficking proceeds using trade-based methods, duty-free retail, real estate development and financial services throughout the region” said John E. Smith, acting director of Treasury's Office of Foreign Assets Control, in a statement.