The U.S. Treasury has imposed sanctions on two Mexican men and nine companies tied to the Jalisco New Generation Cartel. The measures target a fuel theft operation that generates tens of millions of dollars annually for the group. A new alert was also issued to banks about related smuggling risks.
Treasury's Office of Foreign Assets Control designated the individuals and firms involved in transportation, financial services and real estate. The actions aim to disrupt schemes that evade Mexican taxes through stolen fuel.
Treasury Secretary Scott Bessent said the move shows how cartels are expanding beyond drug trafficking. The Financial Crimes Enforcement Network separately issued guidance highlighting red flags for financial institutions.
The Jalisco New Generation Cartel operates in 21 Mexican states. Last year President Trump designated it and five other groups as Foreign Terrorist Organizations.
In related developments, Mexican authorities arrested Audias Flores Silva on April 27. He had been viewed as a potential successor to Nemesio Oseguera Cervantes, known as El Mencho, who was killed in February.
