The U.S. Treasury Department has sanctioned several individuals and businesses it accuses of being part of a network that supplies precursor chemicals to a Mexican drug cartel.
The new sanctions are against eight individuals and 12 businesses in Mexico accused of being associated with the Chapitos faction of the Sinaloa cartel.
The companies and individuals accused of running them allegedly produce precursor chemicals and laboratory equipment used by the cartel to produce fentanyl and methamphetamine, the department said.
The Sinaloa cartel is one of the Mexico-based drug cartels the Trump administration earlier this year designated as a foreign terrorist organization.
“Under Secretary Bessent’s leadership, the Treasury Department is committed to dismantling the complex financial networks that support these terrorist organizations,” said Under Secretary for Terrorism and Financial Intelligence John K. Hurley in a statement.
The Chapitos faction of the Sinaloa cartel is headed by two sons of the notorious cartel boss Joaquín “El Chapo” Guzmán, who is now imprisoned in the United States.
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