The United States Treasury Department has imposed sanctions on two Mexican drug cartels, Carteles Unidos and Los Viagras, and seven affiliated individuals on allegations of “terrorism”. The Treasury Department announced the sanctions on Thursday, stating that the cartels have been exploiting “otherwise legitimate commerce” to further their illicit activities.
In a statement, Treasury Secretary Scott Bessent explained that the sanctions would help the US government hamstring the cartel’s ability to generate revenue, including through cross-border commerce. “Today’s sanctions action draws further attention to the diverse, insidious ways the cartels engage in violent activities and exploit otherwise legitimate commerce,” Bessent said.
The sanctions will freeze any US-based assets the targeted individuals may have, and people in the US are prohibited from making transactions with them. Both Carteles Unidos and Los Viagras are said to be active in the Mexican state of Michoacan, where they use funds from drug trafficking to hire mercenaries, bribe officials, and buy weapons. The Trump administration has pledged to take a hard line against criminal groups and those involved in drug trafficking, including by labelling some Latin American criminal networks as “foreign terrorist organisations”.
The Department of Justice has announced that it is offering rewards for information leading to the arrests of Carteles Unidos leader Juan Jose Farias Alvarez, also known as “El Abuelo” or “The Grandfather”, as well as Alfonso Fernandez Magallon, Luis Enrique Barragan Chavez, Edgar Orozco Cabadas, and Nicolas Sierra Santana. They are charged with participation in a conspiracy to manufacture and distribute drugs for importation to the US. Altogether, the rewards totalled $26m, with the highest single bounty offered for Farias Alvarez, at $10m.
Experts have questioned the efficacy of such steps and raised fears that they could backfire, penalising nonprofits and civilians who live and work in gang-controlled territory. Mexican President Claudia Sheinbaum has attempted to dispel concerns over US military operations against cartels, saying “there will be no invasion of Mexico”.
However, critics have expressed concern that the US has been exerting increasing pressure on her government to bend to its will. Mexico has also called on the US to take greater steps to restrict the massive flow of weapons from sellers and manufacturers north of the border, which Mexican authorities and other experts argue fuel the violence committed by criminal groups.
Earlier this week, the Mexican government sent 26 suspected cartel members to the US to face charges, the second such transfer this year. Sheinbaum emphasized that the transfer was a “sovereign decision” she undertook, but critics have expressed concern that the US has been exerting increasing pressure on her government to bend to its will. The US Supreme Court recently struck down a lawsuit from the Mexican government arguing that the flow of illicit firearms constituted negligence.