Treasury Department Targets Mexican Cartel Leaders with Bold Sanctions

Treasury Department building with Ionic columns visible

The Trump administration’s Treasury Department has imposed sanctions on leaders of the La Nueva Familia Michoacana cartel, aiming to curb their dangerous fentanyl operations.

Key Takeaways

  • Treasury sanctions target finances of La Nueva Familia Michoacana cartel members.
  • Sanctions extend to affiliates involved in fentanyl supply chain.
  • Cartel leaders Johnny and Jose Alfredo Hurtado Olascoaga face severe consequences.
  • U.S. financial institutions must monitor transactions linked to the cartel.
  • The cartel’s activities include fentanyl trafficking and violent crimes.

Sanctions and Their Targets

The Treasury Department has issued new sanctions against high-ranking members of the La Nueva Familia Michoacana (LNFM) cartel, particularly targeting Johnny and Jose Alfredo Hurtado Olascoaga, the cartel’s co-leaders. These actions are a part of a broader strategy to dismantle the cartel’s financial network and curtail its operations within the United States. The measures block all U.S. properties linked to these individuals and require transactions involving their assets to be reported to the Office of Foreign Assets Control.

The cartel, notorious for drug smuggling and extreme violence, has been a primary distributor of fentanyl, a synthetic opioid contributing to over 70,000 deaths annually in the U.S. Efforts to disrupt their activities also extend to other members, like Ubaldo and Adita Hurtado Olascoaga, who manage operations related to arms trafficking and laundering drug sale profits.

International Implications and Cooperation

Globally, over 250 affiliates linked to the cartel’s operations face sanctions aimed at weakening the larger drug trafficking networks. However, the effectiveness of these sanctions is complicated by limited cooperation from China and Mexico. Former Mexican President Andrés Manuel López Obrador notably declined aggressive actions against cartels, citing national sovereignty. Meanwhile, some Chinese companies allegedly involved in the fentanyl trade benefit from government subsidies.

“Today’s action underscores our commitment to intensify the pressure on violent drug cartels like LNFM, who continue to traffic deadly fentanyl and other drugs, smuggle illegal aliens over our Southwest border, and attack law enforcement,” Treasury Secretary Scott Bessent said. “The Trump Administration will continue to use all available tools to target the cartels and other violent organizations that attempt to exploit our communities and harm Americans.”

Efforts to collaborate with international partners continue, as highlighted by recent promises from China and Mexico to target drug assets and money-laundering operations. The U.S. Justice Department has also indicted Chinese money exchanges that were laundering fentanyl profits, emphasizing the complex global dimensions of this issue.

Challenges and Outlook

Describing the widespread and deadly impact of fentanyl, Treasury Secretary Janet Yellen emphasized the unique role of the Treasury Department in degrading cartel operations. However, challenges persist, notably the lack of international cooperation and the cartel’s continued use of U.S. cities like Atlanta as drug distribution hubs. Sanctions against LNFM represent just one strategy amid ongoing efforts to combat the broader opioid crisis threatening American lives.

The Department of State is offering significant financial rewards for leads on the capture of key cartel figures, which may incentivize additional cooperation and results. These sanctions are a critical step in an ongoing fight against powerful drug trafficking organizations and their detrimental impact on communities across the United States.

Sources:

  1. U.S. goes after Mexican cartel leaders’ drug profits in fight against fentanyl
  2. Treasury adds more cartel members to sanctions list | National | purdueexponent.org
  3. Trump’s Treasury Sanctions Cartel Drug-Runners Behind Fentanyl Trafficking, Human Smuggling

RELATED ARTICLESMORE FROM AUTHOR