Financial Crimes in US-Mexico Relations: A Growing Concern

The United States Treasury Department has expressed its appreciation for the commitment of financial institutions in combating illicit finance and illegal activities that threaten the stability of both countries. The strong relationship between the two nations has allowed for regular discussions on topics such as:

Illicit Finance Typologies: Understanding the various methods used by criminals to launder money and evade detection
Compliance Challenges: Addressing difficulties faced by financial institutions in adhering to regulations and identifying suspicious transactions
De-Risking Concerns: Mitigating the risks associated with conducting business in high-risk countries or industries
Dollar Repatriation from Mexico: Ensuring that funds are being properly reported and tracked as they move across borders

Collaborative Efforts

The Treasury Department has worked closely with banks on both sides of the border to exchange operational information, resulting in:

Concrete Work Done Together: The sharing of intelligence and best practices has led to a significant impact in preventing and reducing the flow of illicit proceeds
Joint Efforts to Disrupt Illicit Finance: Collaboration between financial institutions and law enforcement agencies has helped to undermine the ability of criminals to launder their ill-gotten gains

Ongoing Threats

Despite these efforts, financial crimes continue to pose a major threat to national security and economic stability. The trafficking of illicit drugs, particularly Fentanyl, has been identified as a key focus area for further action.

The Illegal Trade Undermines the Rule of Law: Criminal organizations are able to operate with impunity, threatening public health and safety
Risks to Economic and National Security: Illicit drug trade poses significant risks to both countries’ economic stability and national security

Estimates Suggest Widespread Impact

According to estimates, drug trafficking alone generates nearly $100 billion annually that flows through the US financial system.

Sanctions Authorities

To disrupt this illicit finance and undermine the ability of transnational organized crime groups to launder their ill-gotten gains, the Treasury Department will continue to employ its sanctions authorities to:

Cut Off Narco Traffickers and Their Enablers: Disrupting the flow of funds and assets controlled by criminal organizations
Undermine Transnational Organized Crime Groups: Targeting individuals and entities involved in illegal activities

Recent Designation

In a recent move, the Treasury Department designated 16 individuals and two entities affiliated with the Beltran Leyva Organization (BLO) under its authority to designate any individual or entity that engages in activities or transactions that contribute to the global drug trade.

The BLO’s Involvement: The organization has been involved in importing multi-ton quantities of fentanyl, cocaine, and methamphetamine into the US from Mexico since at least February 2001

Growing Threat: Illicit Trade in Fentanyl and Synthetic Opioids

The Treasury Department also highlighted a growing threat posed by the illicit trade in:

Fentanyl: A highly potent synthetic opioid that has contributed to a significant increase in overdose deaths
Precursor Chemicals: The illegal procurement of precursor chemicals by drug trafficking organizations in Mexico presents a significant challenge for joint efforts to disrupt this trade
Means of Production: The use of pill presses and die molds to manufacture illicit drugs further complicates the situation

The difficulty in detecting illicit diversion due to the legitimate pharmaceutical uses of precursor chemicals makes it essential to strengthen coordination and information sharing between authorities on both sides of the border.