US Treasury sanctions Mexican businesses linked to Sinaloa cartel

The sanctions target the businesses established by individuals previously cited for money laundering, indicating a systematic approach by the cartel to launder drug proceeds through seemingly legitimate enterprises. The Treasury’s Office of Foreign Assets Control (OFAC) has highlighted that drug traffickers often create businesses, such as restaurants and retail stores, to disguise their illegal activities and facilitate money laundering. This action comes amidst rising tensions between U.S. and Mexican authorities regarding the ongoing drug crisis, which has seen over 107,000 overdose deaths in 2023 alone, with fentanyl being a significant contributor. The sanctions are part of a comprehensive strategy by the Biden administration to address the fentanyl epidemic, including proposed legislative measures aimed at enhancing penalties for drug traffickers and establishing a registry for pill presses and tableting machines.

Context of the Sanctions

The U.S. Treasury’s recent actions are a response to the escalating fentanyl crisis, which has been described as the worst drug crisis in U.S. history. Fentanyl is often manufactured using precursor chemicals sourced from countries like China and India, and it is trafficked into the U.S. predominantly through the porous U.S.-Mexico border. The Sinaloa cartel is a major player in this trade, responsible for a significant portion of the fentanyl entering the United States.

Broader Implications

The sanctions against the Mexican businesses are part of a coordinated effort between the U.S. and Mexican governments to tackle drug trafficking and money laundering. A senior Treasury official is currently visiting Colombia and Mexico to further these discussions and enhance cooperation against drug trafficking organizations. The U.S. aims to disrupt the financial operations of these cartels, which not only contribute to the drug crisis but also lead to violence and instability in both nations.