Within just three weeks after Claudia Sheinbaum was elected as the country’s first female president, US announced fentanyl sanctions on Mexican drug cartels highlighting the challenges that new president will face.
U.S. Treasury Secretary Janet Yellen announced new sanctions targeting leaders of the La Nueva Familia Michoacana cartel. This Mexican drug cartel is heavily involved in the trafficking of fentanyl, a deadly synthetic opioid, and its precursor chemicals into the United States.
This move is part of a broader effort by the U.S. government to stem the flow of fentanyl, which has been a significant contributor to the opioid crisis in the country.
The Scope of the Sanctions
The sanctions, announced during Yellen’s visit to Georgia—a critical state in the upcoming presidential election—target eight cartel leaders. Among those sanctioned are Rodolfo Maldonado Bustos, also known as “Don Jose,” and Euchlides Chamacho Goicochea. Both individuals have been charged by a federal grand jury with crimes related to heroin trafficking and are currently fugitives believed to be in Mexico.
The sanctions effectively cut these individuals off from the U.S. dollar-based financial system and freeze any assets they may hold in the United States or within U.S.-based financial institutions.
Cartel Activities Related to Fentanyl
La Nueva Familia Michoacana is not limited to fentanyl trafficking; the cartel also deals in cocaine and methamphetamines and is involved in human smuggling operations across the southern U.S. border. The cartel’s operations extend into major U.S. cities such as Atlanta and Houston, illustrating the far-reaching impact of their illicit activities.
Financial Crime Enforcement Network (FinCEN) Advisory
Alongside the sanctions, Yellen announced a new advisory from the Treasury’s Financial Crimes Enforcement Network (FinCEN). This advisory aims to assist banks in identifying and reporting suspicious transactions related to the procurement of fentanyl precursor chemicals and manufacturing equipment by Mexico-based criminal organizations from China.
The advisory outlines specific “red flags” for banks, including transactions linked to chemical and pharmaceutical companies in China or Hong Kong and purchases from e-commerce or “darknet” sites using Chemical Abstracts Service numbers.
U.S.-Mexico and U.S.-China Cooperation
Yellen emphasized the need for increased cooperation with Mexico to curb the trafficking of fentanyl and its precursor chemicals. The Biden administration plans to focus on this issue in its engagement with Mexican President-elect Claudia Sheinbaum. In December, Yellen traveled to Mexico to discuss boosting cooperation and introduced a new counter-fentanyl “strike force” that integrates all U.S. Treasury resources, including the IRS’s Criminal Investigations unit.
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Furthermore, the United States is seeking cooperation from China, a key player in the production of fentanyl precursors. In a meeting near San Francisco in November, U.S. President Joe Biden and Chinese President Xi Jinping agreed to work together to curb the illicit trade in these chemicals. However, a U.S. congressional committee investigation in April found that China was subsidizing the production of these chemicals through tax rebates.
The sanctions and the FinCEN advisory represent significant steps in the U.S. government’s strategy to combat the opioid crisis by targeting the financial networks and supply chains that enable the trafficking of fentanyl. By disrupting these networks and increasing international cooperation, the U.S. aims to reduce the availability of fentanyl and other synthetic opioids that have devastated communities across the country.
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Secretary Yellen’s actions underscore the importance of a multifaceted approach to address the complex issue of drug trafficking. By targeting the financial underpinnings of drug cartels and fostering international collaboration, the U.S. government is taking decisive action to combat the opioid epidemic and protect public health and safety.
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The announcement of sanctions against the leaders of La Nueva Familia Michoacana marks a significant development in the U.S. government’s efforts to tackle the opioid crisis. As the U.S. continues to refine its strategies and enhance cooperation with international partners, it remains committed to disrupting the operations of drug cartels and mitigating the impact of synthetic opioids on American communities.
