The U.S. Treasury Department is sanctioning more individuals and businesses it accuses of being involved in a scheme to smuggle crude oil for a Mexican drug cartel.
Treasury’s Office of Foreign Assets Control says the newly sanctioned individuals and businesses are associated with the Jalisco New Generation Cartel and are involved in the criminal organization’s crude oil theft operations.
The cartel is accused of stealing crude oil from Mexico’s state oil company and smuggling it over the U.S.-Mexico border, where it’s then allegedly delivered to complicit U.S. importers and sold on U.S. and global energy markets.
Fuel smuggling has become one way Mexico’s cartels have diversified their revenue streams apart from drug sales. The Trump administration designated the Jalisco New Generation Cartel as a foreign terrorist organization last year.
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