The Financial Crimes Enforcement Network today issued an alert urging financial institutions to be vigilant for suspicious activity connected to Mexico-based transnational criminal organizations smuggling stolen crude oil from Mexico across the U.S. southwest border. In addition, the Treasury Department announced that the Office of Foreign Assets Control has sanctioned three Mexican nationals and two Mexico-based entities involved in a drug trafficking and fuel theft network linked to the Cartel Jalisco Nueva Generacion.
“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,” Treasury Secretary Scott Bessent said. “Treasury, as part of the administration’s whole-of-government effort, will continue to use all available tools to relentlessly target drug cartels and foreign terrorist organizations to Make America Safe Again.”
The alert provides an overview of methodologies and financial typologies associated with the cartels’ oil smuggling operations, highlights red flag indicators and reminds financial institutions of their reporting requirements under the Bank Secrecy Act, according to FinCEN. It was issued in cooperation with other federal agencies, including the FBI and the Department of Homeland Security.
