Cartel del Noreste

The United States has imposed sanctions on four individuals and 11 entities allegedly linked to Mexico’s Cartel del Noreste (CDN), targeting a commercial network spanning horse racing, construction, trucking, and the oil and gas industries.

The US Department of the Treasury announced the measures on October 13, describing the action as its most significant effort to date to disrupt the cartel’s financial infrastructure. The department said the targeted businesses and individuals allegedly helped generate, move or conceal money connected to the criminal organisation.

The sanctions were imposed by the Treasury’s Office of Foreign Assets Control (OFAC). US officials said the action was intended to restrict the financial resources available to the cartel and disrupt businesses they allege supported its operations.

Horse Racing Allegedly Used to Launder Money

A central focus of the sanctions is the use of American Quarter Horse racing to move illicit proceeds. According to the US Treasury, CDN-linked individuals and businesses used horse purchases, racing operations and related commercial activities to generate revenue and conceal money.

One of the businesses identified by US authorities is Club La Molienda, a racetrack, restaurant and bar on the outskirts of Nuevo Laredo, in the Mexican state of Tamaulipas. The Treasury alleges that the venue is controlled by CDN-linked interests and generates income through entrance fees paid by horse owners and spectators.

The department also described connections between the racetrack and a wider network of businesses. These alleged links illustrate how legitimate commercial activities can be used to conceal financial flows associated with organised crime.

The allegations are part of the US government’s broader effort to target the financial systems that authorities say allow drug-trafficking organisations to continue operating.

Construction, Trucking and Energy Businesses Also Targeted

The sanctions extend beyond horse racing to companies operating in construction, road transport, fuel and natural gas.

US authorities identified construction businesses including Construcciones y Edificaciones Garza Elías, known as CEGESA, and Concretos y Productos Asfálticos del Norte, known as COPASA. The Treasury alleges that the companies were involved in a network used to obtain public contracts and channel financial support to political candidates favoured by the cartel.

The department also targeted businesses involved in gas distribution, fuel trading and transport. Another sanctioned company, Tamex Leasing, and an associated dispatcher were linked by US authorities to alleged drug shipments concealed in truck trailers.

These are allegations made by US authorities in announcing the sanctions. The designations themselves are administrative measures and should not be treated as proof that every allegation has been established in a criminal court.

Who Is Cartel del Noreste?

Cartel del Noreste is a Mexican criminal organisation that emerged from the former Los Zetas network. US authorities have linked the group to trafficking in fentanyl, methamphetamine, heroin, marijuana and cocaine, as well as other violent criminal activity.

The cartel’s stronghold is in northeastern Mexico, particularly around Nuevo Laredo, across the border from Laredo, Texas. The border area is a major route for trade between the two countries, making control of transport corridors and commercial networks an important concern for law-enforcement agencies.

The US government designated CDN as a Foreign Terrorist Organization and a Specially Designated Global Terrorist in February 2025. The latest sanctions build on earlier actions against people and businesses that Washington says are connected to the group.

What Do the Sanctions Mean?

Under US sanctions rules, assets belonging to designated individuals and entities that are within the United States or under the possession or control of US persons are generally blocked and must be reported to OFAC. US persons are also generally prohibited from conducting transactions involving the designated parties unless an exemption or authorisation applies.

The restrictions can affect access to the US financial system and the ability to conduct business with US-linked individuals and institutions. Companies owned 50% or more, directly or indirectly, by blocked persons may also be subject to blocking rules under OFAC’s ownership policy.

The practical impact will depend on the affected businesses’ assets, transactions and international connections. The sanctions do not, by themselves, amount to a criminal conviction in Mexico or the United States.

The announcement highlights Washington’s focus on the financial and commercial networks that authorities say sustain organised crime, alongside efforts to disrupt drug trafficking across the US-Mexico border.