Treasury Sanctions Mexican Companies Accused of Aiding Cartel Fentanyl Production

The Treasury Department says that Los Chapitos has ‘consistently procured precursor chemicals, overseen illicit laboratories, and managed drug distribution.’

A Sinaloa state police officer helps dismantle of one of three clandestine laboratories that produces illicit synthetic drugs in El Dorado, Mexico, on June 4, 2019. Rashide Frias/AFP via Getty Images

The U.S. Department of the Treasury on Oct. 6 sanctioned Mexican companies and individuals accused of supplying precursor chemicals for fentanyl production to a Sinaloa Cartel faction.

The ingredients for fentanyl are produced in China and exported to Mexico, where syndicates such as the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG) manufacture the deadly product, which is shipped across the border for a customer base of U.S. addicts.