President Trump’s all-out war on Mexican drug cartels brings unprecedented pressure through new terrorist designations, with multinational businesses caught in the crossfire of strengthened enforcement actions.
Key Takeaways
- The Trump administration has designated certain drug cartels as terrorist organizations, allowing for the blocking of financial transactions and creating severe legal consequences for businesses involved with them.
- Treasury Department sanctions have targeted five leaders of the Cartel de Jalisco Nueva Generacion (CJNG), one of Mexico’s most dangerous criminal organizations involved in fentanyl trafficking to the U.S.
- Companies operating in regions with cartel presence now face increased legal scrutiny and must implement stronger compliance measures to avoid civil penalties or criminal prosecution.
- A $15 million reward is being offered for information leading to the arrest of CJNG leader Ruben Oseguera Cervantes (“El Mencho”), highlighting the administration’s aggressive pursuit of cartel leadership.
- The administration’s anti-cartel strategy represents a comprehensive approach combining law enforcement, financial sanctions, and business compliance requirements to attack criminal networks at multiple levels.
Cartels Designated as Terrorist Organizations
President Trump’s administration has implemented a groundbreaking strategy in the fight against Mexican drug cartels by designating certain cartels and transnational criminal organizations (TCOs) as terrorist entities. This designation fundamentally changes the legal landscape for both the criminal organizations and any businesses that might interact with them, even inadvertently. Under this framework, engaging with these newly designated Foreign Terrorist Organizations (FTOs) can expose individuals and companies to severe civil penalties or criminal prosecution under U.S. law, creating a powerful new tool in disrupting cartel operations.
The seriousness of this approach was highlighted in a recent federal indictment charging two Utah men with supporting Mexican cartels through a Texas-based crude oil company. This case demonstrates the administration’s willingness to pursue not just direct cartel members but also their business partners and facilitators. By expanding enforcement beyond traditional drug trafficking prosecutions to include business relationships, the Trump administration has created a more comprehensive strategy for attacking cartel financial networks and support systems that have previously operated with relative impunity.
Deported 40 Times – Trump Still Cleaning Up Biden’s Mess, Jasmine Crocket, Chucky Schummer, the entire DNC and Soros.
Here’s a number that should make every American furious: 40.That’s how many times Julian Estrada-Garcia, a 36-year-old illegal alien from Mexico, has been… pic.twitter.com/08D6ITIImM
— Stan Speer (@StanSpeer1) April 5, 2025
Treasury Department Targets CJNG Leadership
In a significant escalation of enforcement efforts, the U.S. Department of the Treasury has sanctioned five leaders of the Cartel de Jalisco Nueva Generacion (CJNG), one of Mexico’s most violent and powerful criminal organizations. These sanctions, implemented under Executive Orders 14059 and 13224, specifically target key figures, including cartel leader Ruben Oseguera Cervantes, commonly known as “El Mencho.” The Treasury’s actions block all property and interests of these individuals within U.S. jurisdiction and prohibit all transactions involving U.S. persons or conducted within the United States.
CJNG has established itself as a particularly dangerous criminal enterprise, responsible for trafficking significant quantities of fentanyl into the United States while engaging in a wide range of other criminal activities. The cartel controls production facilities in Mexico, manufacturing fentanyl, methamphetamine, and cocaine, utilizing the port of Manzanillo for international trafficking operations. Beyond drug trafficking, CJNG’s criminal portfolio includes extortion, migrant smuggling, oil and mineral theft, weapons trafficking, and extreme violence against competitors and law enforcement. Their global reach extends to operations in Australia, China, and various parts of Southeast Asia.
Business Compliance Requirements
The Trump administration’s aggressive stance against cartels has created significant compliance challenges for legitimate businesses operating in regions with cartel activity. Companies now face increased scrutiny of their operations, requiring a reassessment of risk exposure and implementation of enhanced due diligence measures. Key compliance requirements include strengthening protocols for vetting third-party partners, updating contracts to include specific anti-cartel and anti-TCO clauses, and conducting more thorough supply chain reviews to identify potential exposure to sanctioned entities or individuals.
For multinational corporations, adapting existing compliance procedures to align with these new enforcement priorities has become essential. Successful risk management now requires leveraging a combination of enhanced due diligence, Office of Foreign Assets Control (OFAC) screening, and comprehensive supply chain reviews. Businesses must be particularly vigilant about indirect relationships with entities or individuals that might have connections to designated criminal organizations, as even unintentional violations can result in severe penalties under the administration’s enforcement framework.
Rewards and Ongoing Enforcement
Underscoring the administration’s determination to dismantle CJNG leadership, the State Department is offering substantial rewards for information leading to the capture of key figures. A $15 million reward has been established for information resulting in the arrest of Ruben Oseguera Cervantes, while $5 million is available for information leading to regional commander Audias Flores Silva. These rewards represent some of the largest bounties currently offered by the U.S. government for criminal figures, reflecting the priority placed on dismantling this particular organization.
The broader enforcement strategy includes previous actions by the Department of State, which has sanctioned numerous individuals and entities connected to CJNG for fentanyl trafficking and other criminal activities. This coordinated approach between the Treasury, State, and Justice departments represents an unprecedented whole-of-government effort to attack cartel operations at multiple levels simultaneously. By combining financial sanctions, law enforcement actions, and rewards programs, the Trump administration has created a comprehensive framework designed to systematically weaken cartel operations and their global networks.
