The U.S. Treasury announced sanctions and issued a new bank alert targeting the Jalisco New Generation Cartel. The Treasury's Office of Foreign Assets Control imposed sanctions on two Mexican men and nine companies.

The sanctioned entities are involved in transportation, financial services, and real estate. They are accused of being tied to a cartel-linked fuel theft ring intended to evade Mexican taxes. This fuel theft ring is accused of generating tens of millions of dollars annually for the cartel.

The Treasury's Financial Crimes Enforcement Network issued an alert to financial institutions regarding red flags of fuel smuggling from the U.S. into Mexico. The alert links fuel smuggling schemes to Mexican tax evasion.

"Today's action highlights the extent to which Mexico's cartels are expanding beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to traffic deadly drugs that kill Americans," said Treasury Secretary Scott Bessent. The U.S. Drug Enforcement Agency has acknowledged the Jalisco New Generation Cartel's presence in 21 of Mexico's 32 states, while the Sinaloa Cartel is estimated to operate in 19 Mexican states. Last year, President Trump designated the Jalisco New Generation Cartel and five other Mexican cartels as foreign terrorist organizations.

Mexican authorities have seized millions of gallons of stolen diesel, gasoline, and petroleum distillates from states bordering Texas in recent years. Organized crime taps pipelines and diverts fuel to service stations forced to buy from cartels or sell it directly in the streets. U.S. authorities have accused the Jalisco New Generation Cartel of operating its own service stations.