The U.S. Treasury has sanctioned six individuals and seven firms linked to the Sinaloa Cartel’s money laundering operations. This crackdown marks a strategic shift in how the U.S. government targets cartel finances under new terrorist designations. The move signals a broader effort to cut off illicit cash flows fueling the fentanyl crisis.
The U.S. Treasury Department has imposed sanctions on six individuals and seven companies accused of laundering money for the Sinaloa Cartel. This marks a significant escalation in efforts to disrupt the cartel’s financial network.
Announced Monday, the sanctions form part of a broader federal initiative following the cartel’s recent designation as a Foreign Terrorist Organization (FTO). The move prohibits U.S. individuals and institutions from doing business with those listed and requires financial institutions to freeze their U.S.-based assets.
Treasury Secretary Scott Bessent underscored the urgency of the action. “Laundered drug money is the lifeblood of the Sinaloa Cartel’s narco-terrorist enterprise,” he said. “These operations rely on trusted financial facilitators like those we have designated today.”
The Treasury’s Office of Foreign Assets Control (OFAC) identified a network of front companies and shell corporations involved in masking illicit drug profits. Many of these businesses operated as currency exchanges and bulk cash handlers along the U.S.-Mexico border, funneling fentanyl proceeds back to the cartel.
FinCEN, the Treasury’s Financial Crimes Enforcement Network, issued a concurrent alert to help banks and financial institutions detect bulk cash smuggling. The alert outlined common laundering techniques and highlighted red flags, urging increased scrutiny of suspicious cross-border activity.
Bessent said the administration will continue deploying every available tool to dismantle financial support for cartel operations. “From the White House to DHS to DOJ, we’re sending a clear message: American strength is back,” he added.
The new measures require U.S. entities to block and report any property owned by sanctioned individuals or companies. Any organization with 50% or more ownership by a sanctioned party is also automatically blocked, even if not named directly.
Violating these sanctions carries serious consequences, including civil and criminal penalties. Secondary sanctions may also apply to those who assist or transact with the designated entities.
This enforcement action represents one of the most assertive uses of Treasury powers to combat drug cartels. It also aligns with national security objectives to counter the ongoing fentanyl crisis.
The Trump administration’s decision to label the Sinaloa Cartel and seven other groups as FTOs signals a more aggressive stance on transnational organized crime. The designation broadens the government’s ability to pursue these groups and strengthens international cooperation.
Experts have noted that while the label doesn’t drastically change legal authorities, it provides important tools for cross-border enforcement and adds pressure on financial networks supporting the cartels.
The State Department described the Sinaloa Cartel as one of the largest traffickers of fentanyl and other illicit drugs into the U.S. It cited the group’s history of violence, intimidation, and corruption as justification for the designation.
Officials say the sanctions also aim to protect the U.S. financial system. By cutting off access to U.S. markets, the Treasury seeks to preserve the strength of the dollar and limit criminal infiltration of legitimate institutions.
“These sanctions help safeguard the integrity of the U.S. dollar by denying cartel operators access to the financial system,” the department said. “They also support domestic and international law enforcement efforts.”
This move is part of a series of actions targeting the financial and operational infrastructure of major drug cartels. It follows earlier enforcement efforts against groups like MS-13 and Tren de Aragua.
With more than 100,000 drug-related deaths each year in the U.S., pressure continues to mount on federal agencies to show progress in combating the fentanyl epidemic. Monday’s sanctions reflect a coordinated effort to hit cartels where it hurts most—their money.
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