Sinaloa Cartel Faces New Sanctions from Trump Administration Amid Escalating Drug Crisis

The Trump administration has launched extensive sanctions against the notorious Sinaloa cartel as the White House seeks to confront the increasing threat posed by Mexican drug trafficking organizations.

The Department of the Treasury’s Office of Foreign Assets Control, known as OFAC, announced on Tuesday the designation of six individuals and seven entities linked to a money laundering network that supports the Sinaloa cartel, classified as a Foreign Terrorist Organization (FTO) by the United States.

According to the head of the Drug Enforcement Administration, the United States is currently confronting the “most dangerous and deadly drug crisis” in its history, with fentanyl and methamphetamine flooding across the border. He emphasized that both the Sinaloa and Jalisco cartels play a pivotal role in this crisis.

Significant Action by Treasury Secretary

This decisive move by Treasury Secretary Scott Bessent underscores the administration’s ongoing efforts to dismantle Mexican drug cartels. Bessent highlighted the importance of cutting off the financial resources that support these organizations.

He stated, “Laundered drug money is the lifeblood of the Sinaloa cartel’s narco-terrorist enterprise, only made possible through trusted financial facilitators like those we have designated today.” This action aims to inhibit the cartel’s operations significantly.

Details of the Sanctioned Individuals and Entities

The list of individuals and organizations targeted by the sanctions reflects the depth of the cartel’s financial web. The Treasury Department has mandated that assets held in U.S. institutions be frozen and reported to OFAC.

Enrique Dann Esparragoza Rosas serves as a key figure in this money laundering network, managing multiple cells based in Mexicali, Baja California, Mexico. His organization is reportedly responsible for transferring illicit proceeds from the U.S. to Mexico through a currency arbitrage scheme that trades dollars for pesos at exchange businesses along the U.S.-Mexico border.

Esparragoza’s operations reportedly involve high-profile clients, including the four sons of Joaquin “El Chapo” Guzman Loera, referred to as “Los Chapitos,” along with factions of the cartel led by Ismael “El Mayo” Zambada Garcia. Recent investigations suggest that as of April 2023, his organization has laundered at least $16.5 million for Sinaloa cartel members.

Notable Figures Under Sanction

Among others sanctioned, Alan Viramontes Sesteaga is identified as a senior member of the Sinaloa cartel, directly reporting to Ivan Archivaldo Guzman Salazar. The Treasury Department accused him of establishing front businesses and coordinating significant cash pickups for the cartel.

Salvador Diaz Rodriguez and Israel Daniel Paez Vargas are also named, with both allegedly being engaged in money laundering operations for the Sinaloa cartel. Diaz reportedly functions as an enforcer in Mexicali, using violence to collect payments for a local criminal organization, while Paez is suspected of recruiting for another money laundering group.

Legal proceedings against these individuals are progressing. Notably, indictments were unsealed on March 31, 2025, against both Paez and Diaz related to conspiracy charges involving money laundering and the distribution of controlled substances.

Wider Implications of the Sanctions

Alberto David Benguiat Jimenez, another key individual, operates from Mexico City. He allegedly oversees a money laundering network that channels illicit cash from the U.S. to Mexico for the Sinaloa cartel. This network has laundered over $50 million thus far and is linked to fentanyl trafficking operations that import precursor chemicals from China.

Benguiat faces serious legal challenges, including charges of conspiracy to launder monetary instruments and transmit funds for laundering purposes.

Christian Noe Amador Valenzuela, an associate of Benguiat, also faces charges related to money laundering, further underlining the extent of the cartel’s financial operations.

Recent Developments in the Fight Against Cartels

The announcement of these sanctions follows President Donald Trump’s recent designation of the Sinaloa cartel and seven other criminal groups in Latin America as Foreign Terrorist Organizations. This designation allows for a wide range of law enforcement actions aimed at dismantling the operational capacity of these groups.

FBI Director Kash Patel recently noted that the agency had successfully extradited a leader from the notorious MS-13 gang from Mexico, showcasing the administration’s intensified efforts to tackle violent crime associated with drug trafficking.

The administration has also invoked the Alien Enemies Act, facilitating the expedited removal of suspected members of criminal organizations such as Tren de Aragua. These actions reflect a broader strategy aimed at combating the pervasive influence of drug cartels.

Ongoing Challenges and Future Outlook

As the U.S. government continues its campaign against the Sinaloa cartel and other drug traffickers, experts warn that the challenges posed by these organizations remain significant. The enforcement of these sanctions could disrupt cartel operations, but the adaptability of such networks often leads to shifts in tactics.

Future efforts will require a collaborative approach involving international cooperation and comprehensive strategies to combat the multifaceted nature of drug trafficking. The ongoing crisis calls for vigilance and innovative solutions to effectively address the threat posed by drug cartels to communities across the United States.