The Financial Crimes Enforcement Network (FinCEN) has issued an alert involving oil smuggling schemes associated with Mexico-based cartels. This announcement is in collaboration with the Department of the Treasury's Office of Foreign Assets Control (OFAC), along with the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, and Homeland Security Investigations. The alert calls on financial institutions to remain vigilant in spotting and reporting suspicious activities linked to the Jalisco New Generation Cartel (CJNG), Sinaloa Cartel, Gulf Cartel, and other criminal organizations involved in smuggling stolen crude oil across the U.S. southwest border.
In recent events, fuel theft in Mexico, particularly crude oil smuggling, has emerged as a significant non-drug illicit revenue source for these cartels. U.S. law enforcement indicates that the cartels are employing complicit Mexican brokers in the oil and natural gas industry. These brokers aid in smuggling and selling crude oil stolen from Mexico’s Petróleos Mexicanos (Pemex) to complicit small-sized U.S.-based oil and natural gas firms near the U.S. southwest border. The cartels are responsible for stealing billions of dollars in crude oil, inciting violence and corruption in Mexico, and unfairly competing against lawful oil and natural gas businesses in the U.S.
The FinCEN alert outlines various methodologies and financial typologies related to the cartel's smuggling operations. It also highlights red flag indicators and reminds financial institutions about their reporting obligations under the Bank Secrecy Act. This alert was issued in conjunction with an OFAC sanctions action against individuals and companies in Mexico tied to CJNG’s fuel theft and oil smuggling activities on the U.S. southwest border.
For more detailed information, FinCEN's Alert (FIN-2025-Alert002) and a Treasury Press Release are available online.
