Fuel Trafficking Fuels Mexican Cartel Fortunes: U.S. Treasury Strikes Back

The U.S. Treasury has sanctioned two Mexican nationals and nine entities linked to a scheme smuggling fuel from the U.S. into Mexico, avoiding significant taxes. This operation, tied to the Jalisco New Generation Cartel, highlights how cartels are diversifying income sources beyond drug trafficking.

The U.S. Treasury has imposed sanctions on two Mexican nationals and nine entities for their involvement in a cartel-linked fuel smuggling operation. This scheme illegally imports fuel from the U.S. to Mexico, avoiding taxes and generating substantial revenue for the Jalisco New Generation Cartel.

According to the Treasury, the smuggling of fuel and stolen crude oil is now the second-largest source of income for Mexican cartels, following drug trafficking. The levy evasion through customs misclassification and bribery of officials is crucial for this illegal trade, highlighting the cartels' expanding ventures.

The Treasury has issued new guidelines for financial institutions to pinpoint red flags in cross-border fuel trades, aiming to crack down on complicit U.S. companies and disrupt the revenue streams of the cartels. The sanctions serve as a stern warning in the ongoing battle against organized crime.