Culiacan, Sinaloa, Mexico

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Los Chapitos, a powerful faction of the Mexico-based Sinaloa Cartel that facilitates illicit fentanyl trafficking and production. Los Chapitos-controlled laboratories are responsible for introducing fentanyl in counterfeit pills manufactured by the Sinaloa Cartel and trafficked to the United States. Gunmen linked to the Sinaloa Cartel were also involved in the October 18, 2024 killing of former U.S. Marine Nicholas Quets in Sonora, Mexico. Additionally, OFAC is designating two fugitive leaders of Los Chapitos, Archivaldo Ivan Guzman Salazar and Jesus Alfredo Guzman Salazar, sons of incarcerated Sinaloa Cartel leader Joaquin “El Chapo” Guzman Loera. OFAC also sanctioned a regional network of Los Chapitos associates and businesses based in Mazatlan, Sinaloa, Mexico, that engages in drug trafficking, extortion, kidnapping, and money laundering. Today’s action was coordinated with the U.S. Drug Enforcement Administration (DEA). Collectively referred to as Los Chapitos, the four sons of El Chapo—Archivaldo Ivan Guzman Salazar (Ivan), Jesus Alfredo Guzman Salazar (Alfredo), Ovidio Guzman Lopez (Ovidio), and Joaquin Guzman Lopez (Joaquin)—have consolidated control over and assumed leadership of the Sinaloa Cartel through their self-named Los Chapitos faction. Although Ovidio and Joaquin are now in U.S. custody, Ivan and Alfredo remain fugitives in Mexico. Los Chapitos’ dominance overfentanyl trafficking is largely the result of the faction’s capacity to procure precursor chemicals, while also controlling production via its secret laboratories in Sinaloa. Since September 2024, turf wars between Los Chapitos and its rivals have engulfed the Mexican state of Sinaloa, resulting in the deaths of over 600 people. Los Chapitos is being sanctioned pursuant to E.O. 14059 and pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, the Sinaloa Cartel. Ivan’s leadership of Los Chapitos has sparked an alarming spate of violence in Mexico and the United States against civilians, law enforcement, and rival cartel members. Alfredo, serving as lieutenant to his brother Ivan, has participated in the torture of rivals to solicit information about potential infiltration into Los Chapitos-controlled territory. Ivan and Alfredo were previously designated on May 8, 2012 and June 7, 2012, pursuant to the Kingpin Act and again in 2021 pursuant to E.O. 14059.

https://home.treasury.gov/news/press-releases/sb0161

2025-06-09

US

Executive Order 14059 of December 15, 2021 Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade

OFAC-horizontal

Drugs

Blocking Property, Suspending Entry

President Biden signed a new Executive Order (E.O.) to modernize the U.S. Department of the Treasury’s sanctions authorities used to combat the illicit drug trade. This E.O. will provide the Treasury Department with new tools to tackle changes in the global illicit drug trade that substantially contributed to over 100,000 American overdose deaths in the 12-month period ending in April 2021. This E.O. enhances the Department of Treasury’s authorities to target any foreign person engaged in drug trafficking activities, regardless of whether they are linked to a specific kingpin or cartel. It further enables Treasury to sanction foreign persons who knowingly receive property that constitutes, or is derived from, proceeds of illicit drug trafficking activities. Under the new E.O., “Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade,” the Office of Foreign Assets Control (OFAC) today designated 25 actors (10 individuals and 15 entities) in four countries for having engaged in, or attempted to engage in, activities or transactions that have materially contributed to, or pose a significant risk of materially contributing to, the international proliferation of illicit drugs or their means of production. “The illicit drug trade threatens our national security, economy, communities, and families,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson. “More than 100,000 Americans died in just twelve months from a drug overdose, a record 28 percent increase that was driven largely by synthetic opioids, particularly fentanyl. Using President Biden’s new E.O., Treasury will deploy its sanctions authority with greater speed, power, and effect across the entire illicit drug ecosystem, especially those who profit from the death and misery of the opioid epidemic. We will continue working closely with our partners to reduce threats from these groups and disrupt their business models, including by stopping them from using the U.S. financial system.” Today’s action targets individuals and drug trafficking organizations (DTO) based in Brazil, China, Colombia, and Mexico. Those sanctioned include individuals who traffic fentanyl, and its precursor chemicals, methamphetamine, cocaine, and heroin, as well as organizations that pose the greatest drug threat to the United States. The new E.O. builds upon Treasury’s previous narcotics sanctions authorities, specifically E.O. 12978 (1995) and the Foreign Narcotics Kingpin Designation Act (Kingpin Act) (1999). Treasury designated eight individuals and entities under the new E.O. and is also applying the expanded tools of this authority to designate 17 individuals and entities previously sanctioned under other authorities.

SDN