US Imposes Sanctions On Mexican Fuel Smuggling Network
The US is imposing sanctions on a network of individuals and companies who allegedly helped the Cartel de Jalisco Nueva Generacion generate hundreds of millions of dollars per year through cross-border fuel smuggling and tax evasion schemes, the Treasury Department said on Tuesday.The Treasury's Office of Foreign Assets Control said the sanctions target two Mexican nationals and nine entities involved in fuel smuggling between the US and Mexico, evading Mexican fuel taxes through falsified customs documentation and the use of shell companies.The Department blacklisted Oscar Guillermo Juraidini Silva, whom the Treasury described as a key financial operator in CJNG's fuel theft enterprise.The US authorities also sanctioned J. Refugio Ruiz Villagomez and two logistics companies, Jomadi Logistics & Cargo and Ahavat Logistics Solution.The Treasury said the companies had processed tens of millions of dollars in transactions through the US financial system.US authorities estimate that illicit fuel operations have become the largest non-drug revenue source for Mexican cartels.The schemes typically involve purchasing gasoline, diesel, and other refined products from US suppliers, then transporting them into Mexico using falsified documentation, bribery, and networks of shell companies to evade the country's tax system.The Treasury's Financial Crimes Enforcement Network said it had received over 160 suspicious activity reports year to date, following a previous advisory on crude oil smuggling that detailed over $7 billion in suspicious transactions.