The US Department of the Treasury imposed sanctions on two Mexican men and nine companies tied to alleged fuel theft and smuggling schemes linked to the Jalisco New Generation Cartel. FinCEN also issued a bank alert outlining red flags for US-to-Mexico fuel smuggling and Mexican tax evasion that may finance organised crime.
International
-Sathish Raman
The US Treasury announced fresh sanctions and a new bank alert against the Jalisco New Generation Cartel. The action targeted what US officials described as a cartel-linked fuel theft network. Authorities said the scheme moved fuel and avoided Mexican taxes. Officials said it brought the group tens of millions of dollars each year.
The US Department of the Treasury imposed sanctions on two Mexican men and nine companies tied to alleged fuel theft and smuggling schemes linked to the Jalisco New Generation Cartel. FinCEN also issued a bank alert outlining red flags for US-to-Mexico fuel smuggling and Mexican tax evasion that may finance organised crime.
Treasury’s Office of Foreign Assets Control imposed sanctions on two Mexican men and nine companies. The firms worked in transportation, financial services and real estate, according to the Treasury. US officials accused them of ties to a fuel theft ring linked to the cartel. The Treasury said the goal was tax evasion and cartel income.
Jalisco New Generation Cartel sanctions target fuel theft network
Treasury Secretary Scott Bessent linked the measures to wider cartel business activity. “Today’s action highlights the extent to which Mexico’s cartels are expanding beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to traffic deadly drugs that kill Americans,\” said Treasury Secretary Scott Bessent in a statement.
Alongside the sanctions, the Treasury’s Financial Crimes Enforcement Network issued guidance to banks. The alert asked financial institutions to watch for warning signs tied to fuel smuggling. Officials said the schemes involved fuel moved from the US into Mexico. They also said the activity supported Mexican tax evasion.
Jalisco New Generation Cartel presence and US actions
The US Drug Enforcement Agency said the New Generation Cartel operated widely in Mexico. The agency acknowledged its presence in 21 of Mexico’s 32 states. That footprint surpassed the Sinaloa Cartel, which was estimated to operate in 19 states. US officials have treated that spread as a major security concern.
Last year, President Donald Trump designated the Jalisco New Generation Cartel as a foreign terrorist organisation. The designation also applied to five other Mexican cartels. The move added to US tools used to disrupt cartel finances. It also increased pressure on businesses and individuals accused of assisting such groups.
Jalisco New Generation Cartel fuel seizures near Texas border
Mexican authorities in recent years seized million gallons of stolen diesel, gasoline and petroleum distillates. The seizures came from states bordering Texas, according to the report. Officials said organised crime groups tapped pipelines and redirected fuel. The diverted supplies were then moved into illegal sales networks.
Authorities said service stations were sometimes forced to buy fuel from cartels. Officials also said stolen fuel could be sold directly on the streets. US authorities have accused the Jalisco New Generation cartel of running its own service stations. The Treasury’s actions added new financial restrictions tied to those allegations.
With inputs from PTI
