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US Sanctions Mexican Cartel Members and Businesses With Ties to Fentanyl Trafficking

The U.S. last week sanctioned 15 members of the Mexico-based Sinaloa Cartel and six Mexican businesses for their involvement in a “Black Market Peso Exchange” scheme to launder millions in illegal fentanyl proceeds for the cartel. The designations target cellphone businesses and their owners, fentanyl suppliers, money launderers, food service companies and clothing retailers, a former Mexican police officer and more.

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The sanctions were announced March 22 by Treasury Deputy Secretary Wally Adeyemo during a trip to Arizona, where he met with federal, state and local law enforcement officials, government officials and industry representatives to discuss U.S. efforts to combat the illegal fentanyl trade. Adeyemo said the sanctions will “effectively disrupt their ability to profit from drug sales in our country.”

He also said the U.S. has seen China recently “stepping up enforcement with its domestic industry to limit the flow of precursor chemicals fueling illicit fentanyl.” Commerce Department officials have made similar comments, saying as recently as December that the agency’s November decision to remove a Chinese science institute from the Entity List has led the Chinese government to become more helpful (see 2312120070).