The U.S. Treasury Department imposed sanctions on a network of companies and individuals accused of supplying precursor Fentanyl chemicals to a faction of Mexico’s Sinaloa cartel, known as the “Chapitos,” led by the sons of former cartel leader Joaquín “El Chapo” Guzmán. The group consists of twelve Mexico-based companies and eight managers who allegedly used businesses in pharmaceuticals, laboratories, chemicals, cleaning, and real estate to obtain and funnel these chemicals to the cartel for fentanyl production.
One notable company, Sumilab, previously sanctioned by the Biden administration in 2023, managed to continue its operations through various front companies, according to Treasury officials. The new measures freeze all assets of the sanctioned entities within the U.S. and prohibit any U.S. transactions with them.
Fentanyl
The Sinaloa cartel is among several Latin American criminal groups the Trump administration has designated as foreign terrorist organizations in a bid to more aggressively combat drug trafficking. John K. Hurley, Under Secretary for Terrorism and Financial Intelligence, emphasized that stopping the deadly influx of drugs remains a top national security priority, with the Treasury Department focused on dismantling the complex financial networks supporting these organizations.
While these cartels are largely non-political and profit-driven, President Trump recently characterized the situation as an “armed conflict” with drug cartels, especially following U.S. strikes on drug-smuggling boats in the Caribbean, which have heightened tensions across Latin America.
