Overview
- The Treasury announced new measures on June 30, 2026, that use OFAC designations and a FinCEN advisory to disrupt a fuel theft and smuggling network tied to the Jalisco New Generation Cartel.
- The Office of Foreign Assets Control designated two Mexican nationals and nine companies linked to transportation, logistics, real estate and financial services for providing material support to the smuggling ring.
- Treasury described the scheme as using pipeline taps, stolen or misclassified shipments, falsified customs paperwork and shell companies to move fuel across the U.S.-Mexico border and evade Mexican taxes.
- FinCEN issued a concurrent bank alert listing red flags for financial institutions, stressing traditional banking and corporate channels used to launder proceeds rather than cryptocurrencies.
- Officials framed the action as the latest phase of a wider campaign that follows earlier 2024–25 designations and a cartel foreign terrorist organization label, and it raises legal and compliance risks for U.S. firms that buy or move fuel for export to Mexico.