U.S. Announces New Bank Alert Targeting Powerful Jalisco Cartel

U.S. Treasury announces sanctions against Jalisco New Generation Cartel

The U.S. Treasury’s Office of Foreign Assets Control has imposed sanctions on two Mexican men and nine companies linked to a cartel-associated fuel theft ring. The operation aims to evade Mexican taxes while generating tens of millions annually for the cartel.

Financial Crimes Enforcement Network issues alert over fuel smuggling schemes

The Financial Crimes Enforcement Network has issued an alert to financial institutions, highlighting red flags associated with U.S.-Mexico fuel smuggling into Mexico through tax evasion schemes.

“Today’s action underscores how Mexico’s cartels are diversifying their operations beyond traditional drug trafficking,” said Treasury Secretary Scott Bessent. “These criminal organizations continue to traffic deadly drugs that kill Americans.”

The New Generation Cartel, which operates in 21 of Mexico’s 32 states, has surpassed the Sinaloa Cartel in power and influence.

Last year, President Trump designated the Jalisco New Generation Cartel and five other Mexican cartels as foreign terrorist organizations. In recent years, Mexican authorities have seized millions of gallons of stolen diesel, gasoline, and petroleum distillates from Texas bordering states.

U.S. authorities have accused the Jalisco New Generation cartel of operating its own service stations. Last month, a U.S. federal grand jury expanded charges against the cartel’s second-in-command, accusing him of methamphetamine trafficking and money laundering conspiracy.

Mexican drug kingpin Audias Flores Silva was arrested on April 27 in Nayarit by Mexican Navy special forces based on information from U.S. agencies. Flores Silva was seen as a possible successor to Nemesio Oseguera Cervantes, or “El Mencho,” who was killed in February. The killing led to increased cartel violence and attacks on businesses, vehicle burnings, and road blockades that killed over 70 people, including 25 National Guard members.