In June, the U.S. Office of Foreign Assets Control sanctioned two Mexican individuals and seven companies for aiding the Jalisco Nueva Generación cartel’s cross‑border fuel smuggling operation. The entities, spanning finance, freight, transportation and real estate, were linked to a single owner and had never appeared on OFAC’s sanctions list before the June 30 action.
The case underscores a growing risk for firms operating in Mexico: criminal groups are increasingly embedding illicit activities within legitimate business structures. Consequently, traditional “know‑your‑client” checks that focus solely on existing sanctions may miss hidden threats, prompting companies to scrutinize whether a partner’s declared operations align with its actual activities and ultimate beneficiaries.
Source: Corporate Compliance Insights