The US imposed sanctions Tuesday on a commercial network tied to the Mexican criminal group Cartel del Noreste (CDN), targeting front companies across the energy, construction, and horse racing industries.
The Treasury Department's Office of Foreign Assets Control (OFAC) designated four individuals and 11 entities linked to the US-designated foreign terrorist organization.
The targeted network laundered drug proceeds through American Quarter Horse racing while operating front companies in municipal contracting, trucking, construction, and the fuel market in Mexico.
It noted that the group evolved from Los Zetas, a predecessor organization "responsible for some of the deadliest mass‑casualty attacks in Mexican history."
Officials warned that the cartel operates directly across from Laredo, Texas, a busy commercial crossing along the US' southern border handling nearly 40% of bilateral trade, enabling operatives to "infiltrate local governments, steer public contracts, and manipulate regional elections."
"Today's action exposes Cartel del Noreste's exploitation of the horse racing sector to launder illicit proceeds and finance cartel operations," Treasury Secretary Scott Bessent said, calling the step the department's "most significant effort to date to disrupt Cartel del Noreste's financial infrastructure."
