The Trump administration has escalated its financial offensive against Mexican drug cartels, leveraging new terrorist designations and Treasury powers to dismantle their funding networks. This strategy targets the financial lifelines of cartels like the Sinaloa Cartel, Cartel del Noreste (CDN), and Jalisco New Generation Cartel (CJNG), aiming to disrupt their operations and reduce the flow of drugs and violence into the United States.
Deputy Treasury Secretary Michael Faulkender highlighted the administration’s approach, stating that designating narco groups as terrorist organizations has empowered the Treasury to more effectively target the financial activities of these cartels. This move has enabled a series of sanctions and enforcement actions aimed at severing the cartels’ access to funds.
In recent months, the Treasury Department has sanctioned key figures within these organizations. Notably, Miguel Angel de Anda Ledezma and Ricardo Gonzalez Sauceda of the CDN were sanctioned for their roles in arms procurement and violent attacks against Mexican military forces. Similarly, six individuals and seven entities associated with the Sinaloa Cartel were targeted for laundering drug proceeds through front companies and currency exchanges along the U.S.-Mexico border.
The administration has also imposed a $37 million civil penalty on Brink’s Global Services for violating anti-money laundering regulations by moving funds across the southern border without proper compliance.
To further disrupt cartel finances, the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a Geographic Targeting Order (GTO) requiring money services businesses in 30 ZIP codes across California and Texas to report cash transactions exceeding $200. This measure aims to intercept small-dollar transactions that cartels exploit to launder money.
These actions are part of a broader strategy that includes designating cartels as Foreign Terrorist Organizations, thereby expanding the tools available to U.S. authorities to combat these groups. The administration continues to work with Mexican counterparts to enhance cooperation in targeting the financial networks that support cartel operations.
