Measures target two Mexican men and nine companies tied to a fuel smuggling and tax evasion scheme that Treasury said generates tens of millions of dollars annually for the cartel.
The U.S. Treasury unveiled new sanctions and a banking-sector warning aimed at the Jalisco New Generation Cartel's fuel theft and smuggling operations, broadening pressure on a criminal group better known for drug trafficking. Treasury's Office of Foreign Assets Control sanctioned two Mexican men and nine companies in transportation, financial services and real estate that it accused of links to a cartel-connected fuel theft ring designed to evade Mexican taxes while producing tens of millions of dollars each year for the cartel. Treasury's Financial Crimes Enforcement Network, or FinCEN, also issued an alert to financial institutions outlining red flags tied to fuel smuggling from the U.S. into Mexico. Treasury Secretary Scott Bessent said the move underscored how Mexico's cartels are expanding beyond traditional drug trafficking to raise money for organizations that continue to traffic deadly drugs. The action lands as the U.S. Drug Enforcement Agency says the Jalisco New Generation Cartel operates in 21 of Mexico's 32 states, more than the Sinaloa Cartel's 19, and after President Donald Trump last year designated the group and five other Mexican cartels as foreign terrorist organizations. Mexican authorities have recently seized million gallons of stolen diesel, gasoline and petroleum distillates in states bordering Texas, reflecting how organized crime taps pipelines, diverts fuel to captive service stations and, in some cases, sells it directly on the street.