U.S. sanctions two Mexicans and nine companies over alleged CJNG-linked fuel smuggling network

What is the alleged smuggling scheme?

U.S. authorities say the network bought gasoline, diesel and other fuels in the United States and brought them into Mexico while mislabeling shipments, using false customs paperwork and shell companies to avoid Mexican import taxes NoticiasDe.es,EL IMPARCIAL | Noti…,Diario La Prensa.

Why are U.S. officials focusing on fuel smuggling?

Treasury and related reports say fuel smuggling and stolen crude have become a major source of cartel income outside drug trafficking, which is why financial sanctions are being used to target the business networks behind it infobae,Yahoo!,Diario La República.

What happens when the U.S. imposes these sanctions?

The action was taken by OFAC, and reports say it was paired with FinCEN and Mexican financial authorities, indicating a financial-enforcement effort aimed at restricting the sanctioned people and companies' access to the formal financial system and prompting related measures in Mexico infobae,Excélsior,Vanguardia.