The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned three Mexican nationals and two Mexico-based entities for their involvement in drug trafficking and fuel theft linked to the Cartel Jalisco Nueva Generacion (CJNG). According to the Treasury, this network generates significant revenue annually for CJNG through criminal activities that include fentanyl trafficking, fuel theft, and smuggling stolen crude oil from Mexico into the United States.
Secretary of the Treasury Scott Bessent emphasized the impact of these crimes on both Mexico and the United States, stating, "Fuel theft and crude oil smuggling are cash cows for CJNG’s narco-terrorist enterprise, providing a lucrative revenue stream for the group and enabling it to wreak havoc in Mexico and the United States."
This move by OFAC was in coordination with multiple U.S. agencies such as the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), U.S. Customs and Border Protection, as well as with Mexican authorities, including the Financial Intelligence Unit of Mexico (Unidad de Inteligencia Financiera, UIF).
FinCEN, alongside DEA, FBI, HSI, and OFAC, also issued an alert providing financial typologies and red flags associated with crude oil smuggling schemes linked to CJNG. This alert forms part of broader efforts to address illicit activities connected with Mexico-based transnational criminal organizations.
CJNG, designated as a Foreign Terrorist Organization (FTO) and a Specially Designated Global Terrorist (SDGT), is heavily involved in drug trafficking operations into the United States. OFAC has previously sanctioned CJNG under various statutes, targeting their involvement in drug trafficking, money laundering, and other criminal activities.
Part of the OFAC's efforts involves targeting Cesar Morfin Morfin, alias Primito, a CJNG leader operating in Tamaulipas, Mexico. Primito, known for his association with CJNG leader Ruben Oseguera Cervantes (El Mencho), is also involved in smuggling narcotics into the United States. He has diversified his criminal activities into fuel theft, specifically crude oil smuggling.
Apart from Cesar Morfin Morfin, OFAC has designated two of his family members, Alvaro Noe Morfin Morfin and Remigio Morfin Morfin, for their roles in narcotics trafficking and fuel theft. Additionally, two companies, SLA. Servicios Logisticos Ambientales, S.A. de C.V. and Grupo Jala Logistica, S.A. de C.V., involved in the transportation of crude oil associated with Primito's operations, have also been sanctioned.
The sanctions mean that all properties and interests of the designated persons in the U.S. or controlled by U.S. persons are blocked and must be reported to OFAC. U.S. persons are generally prohibited from dealing with those on the Specially Designated Nationals (SDN) list.
OFAC has highlighted the risk of secondary sanctions for transactions involving the designated individuals and entities. The agency's sanctions aim to alter the behavior of designated entities and individuals by encouraging compliance with U.S. laws.
In line with its objectives, the Treasury will continue utilizing sanctions to combat illicit activities facilitated by criminal organizations like CJNG.
