U.S. Set to Freeze Assets of Top Cartels in Landmark Terrorist Organization Move

Secretary of State Marco Rubio announced Thursday that eight Latin American criminal organizations are now considered Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs) under US law. The decision, published in the Federal Register and effective immediately, targets a range of groups from Venezuela, El Salvador, and Mexico, including Tren de Aragua, Mara Salvatrucha (MS-13), and six major Mexican cartels: Cartel de Sinaloa, Cartel de Jalisco Nuevo Generación (CJNG), Carteles Unidos, Cartel del Noreste, Cartel del Golfo, and La Nueva Familia Michoacana.

The designation by Rubio follows an executive order signed by President Donald Trump in January, which instructed the State Department to recommend such designations within two weeks. The move is aimed to target not only the gangs’ financial networks but also to curb the violence and criminal activities that directly affect US communities, especially along the southern border.

The Foreign Terrorist Organization (FTO) designation triggers the authority for officials to freeze the assets of the targeted groups, criminalizes financial transactions with them, and bars their members from entering the United States. Individuals providing material support to these organizations face severe penalties. The Specially Designated Global Terrorist (SDGT) designation adds additional financial sanctions, further isolating these groups from international financial systems. By applying both designations, the US aims to disrupt their financial networks, prevent the flow of resources, and dismantle their operations, significantly undermining their capacity to act.

Targeted Criminal Organizations

Each of the groups has a distinct history and operational focus, but all have been involved in drug trafficking, violence, and organized crime in their home countries and in the United States:

The financial disruption will likely be one of the most immediate effects. Freezing assets and prohibiting financial transactions are designed to cut off vital funding sources for these groups, complicating their ability to operate effectively. Restricting their access to funds undermines the groups’ logistical capabilities, which could have a ripple effect on their supply chains, and potentially hinder their ability to bribe officials or purchase weapons.

Legal actions will also be intensified, with greater scrutiny placed on individuals and entities providing material support to these criminal organizations. Law enforcement agencies, such as the DEA and FBI, are expected to work together in joint operations targeting both the organizations’ members and their associates, bolstering domestic efforts to dismantle the cartels.

Further enhancement of border security measures by the Trump administration, including stricter screening at entry points, could result in more deportations and further limit the groups’ ability to operate within US borders.

The designation also turns up the heat on international partners, particularly Mexico, to take stronger action against these criminal enterprises. While diplomatic efforts may encourage cooperation in areas like intelligence sharing and joint military operations, the move puts more pressure on US-Mexico relations.

Mexican President Claudia Sheinbaum expressed concerns over potential infringements on Mexican sovereignty, emphasizing her country’s commitment to fighting organized crime but cautioning against external interference.

“We all want to fight the drug cartels,” Sheinbaum reportedly said at her daily press briefing. The U.S. “in their territory, us in our territory.”

Experts remain divided, with some arguing that the designation is largely symbolic, given that these groups have already been targeted by authorities.

Mike Vigil, former chief of international operations for the DEA, said in an NPR interview in January that the FTO designation for cartels “is nothing more than political theater, but here’s the problem – that by designating these groups, it’s going to alienate Mexico, and we need to work very closely with Mexico in order to attack some of the biggest drug trafficking networks that exist in the world.”

Others, like former Acting Deputy Secretary of Homeland Security Ken Cuccinelli say it is a necessary escalation in response to the growing opioid crisis and increasing border violence.

“They are quasi-governments, because they control territory in Mexico that the Mexican government simply won’t contest,” he told Roll Call last month.

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Christina Botteri is the Executive Editor of The Tennessee Star and The Star News Network. Follow her on X at @christinakb.
Photo “Migrant Caravan” by Pueblas Sin Fronteras.

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