Key facts
- U.S. Treasury imposed sanctions on two individuals and nine companies linked to the Jalisco New Generation Cartel.
- The sanctioned entities are accused of involvement in a fuel theft ring to evade Mexican taxes.
- A new bank alert highlights red flags associated with fuel smuggling from the U.S. into Mexico.
- The cartel's fuel theft operations are estimated to generate tens of millions of dollars annually.
- The Jalisco New Generation Cartel is present in 21 Mexican states, more than the Sinaloa Cartel.
The U.S. Treasury has intensified its efforts against the Jalisco New Generation Cartel, Mexico's most powerful criminal organization, by imposing sanctions and issuing a financial alert. The Office of Foreign Assets Control sanctioned two individuals and nine companies accused of ties to a cartel-linked fuel theft ring that generates tens of millions of dollars annually and evades Mexican taxes. Concurrently, the Financial Crimes Enforcement Network alerted financial institutions to red flags associated with fuel smuggling schemes from the U.S. into Mexico.
Treasury Secretary Scott Bessent stated that these actions highlight the cartels' expansion beyond traditional drug trafficking into other revenue-generating activities. The Jalisco New Generation Cartel's reach is significant, reportedly operating in 21 of Mexico's 32 states, exceeding the presence of the Sinaloa Cartel. Last year, President Donald Trump designated the Jalisco New Generation Cartel and five other Mexican cartels as foreign terrorist organizations.