WASHINGTON — In Atlanta to promote the Biden administration’s efforts to quell the import of illegal drugs into the U.S., Treasury Secretary Janet Yellen announced new sanctions against members of a Mexican drug cartel accused of trafficking fentanyl, cocaine, meth and migrants through the southern border.
Included in the sanctions are eight members of the La Nueva Familia Michoacana drug cartel, a notoriously violent group that wars for territorial control with a slate of other Mexican cartels.
Also Thursday, Yellen issued an advisory to banks to help them identify and report suspicious transactions related to the sale an purchase of chemicals and equipment used to manufacture fentanyl and other synthetic opioids.
“Combatting the trafficking of fentanyl is a significant challenge,” she said in a speech at the Richard B. Russell Federal Building in Atlanta Thursday afternoon. “It will not be solved overnight. But let me be clear: The President and I will do everything we can to combat this crisis.”
La Nueva Familia Michoacana is among Mexico’s most powerful drug cartels, dominating big chunks of southern and central Mexico, especially areas known for drug production. It’s known for manufacturing and distributing drugs like fentanyl and methamphetamine. The group is among those that have rapidly pushed into the increasingly lucrative migrant smuggling industry amid a historic wave of migration to the U.S.
The cartel is based in the southern state of Guerrero and is often known as “The New Michoacan Family,” to distinguish it from an older gang that was largely expelled from the western state of Michoacan in the mid-2010s.
In 2022, the Biden administration sanctioned leaders of the cartel, known as the Hurtado brothers, for manufacturing “rainbow” fentanyl pills, which the US Treasury Department said was “part of a deliberate effort to drive addiction amongst kids.”
Yellen’s trip also comes after President Joe Biden signed into law the FEND off Fentanyl Act as part of the supplemental spending package signed in April, which among other things, declares that the international trafficking of fentanyl is a national emergency.
Fentanyl, a powerful opioid, is the deadliest drug in the U.S. today. The Centers for Disease Control and Prevention states that drug overdose deaths in the U.S. have increased more than sevenfold from 2015 to 2021.
Mexico and China are the primary sources of fentanyl and fentanyl-related substances trafficked directly into the U.S., according to the Drug Enforcement Administration, which is tasked with combating illicit drug trafficking. Nearly all the precursor chemicals that are needed to make fentanyl come from China.
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Janetsky contributed to this report from Mexico City.
During her visit to Atlanta, Treasury Secretary Janet Yellen announced sanctions against a Mexican cartel in an effort to combat drug trafficking and organized crime. The move comes as part of the Biden administration’s broader strategy to address the ongoing crisis at the US-Mexico border and disrupt the operations of criminal organizations that fuel violence and instability in the region.
Yellen’s announcement marks a significant escalation in the US government’s efforts to target the financial networks of drug cartels, which play a key role in facilitating their illicit activities. By imposing sanctions on individuals and entities associated with the cartel, the US aims to cut off their access to the international financial system and disrupt their ability to launder money and fund their operations.
The decision to target this particular cartel comes amid growing concerns about the impact of drug trafficking on both sides of the border. The cartel in question has been linked to a range of criminal activities, including drug trafficking, human trafficking, and extortion, which have had devastating consequences for communities in Mexico and the US.
Yellen emphasized the importance of international cooperation in addressing the root causes of drug trafficking and organized crime. She called on Mexico to step up its efforts to combat corruption and strengthen its law enforcement capabilities, while also highlighting the need for increased collaboration between the US and Mexico to disrupt the flow of drugs and money across the border.
The announcement of sanctions against the Mexican cartel is likely to have far-reaching implications for both the cartel itself and the broader landscape of organized crime in Mexico. By targeting their financial networks, the US government hopes to weaken their ability to operate and send a clear message that those who engage in criminal activities will face consequences.
Overall, Yellen’s announcement underscores the Biden administration’s commitment to tackling the root causes of drug trafficking and organized crime in Mexico and beyond. By targeting the financial networks of criminal organizations, the US aims to disrupt their operations and protect communities on both sides of the border from the devastating impact of drug-related violence.
