Synethic opiods, primarily fentanyl, are responsible for the deaths of more than 52,000 Americans each year,1 with drug overdoses being the leading cause of death for those aged 18-44 years old.2 In 2024, U.S. financial institutions (FIs) reported approximately $1.4 billion in suspicious transactions potentially linked to fentanyl-related activities, including precursor chemical procurement, fentanyl trafficking, and associated money laundering.3 Moreover, the trade in fentanyl and other illicit drugs drives violence, criminality, bribery, and corruption globally.
The Trump Administration has made combating the illegal production and trafficking of fentanyl a top priority. It has declared a national emergency with respect to the threat posed by drug cartels and implemented a policy of “total elimination” of their presence in the United States.4 In February 2024, the State Department designated six Mexican drug cartels as Foreign Terrorist Organizations (FTOs)5 and the Treasury Department, Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Federal Bureau of Investigations (FBI), Customs and Border Protection (CBP), and Department of Justice have coordinated on a “whole-of-government” effort to use all available tools to relentlessly target the cartels and their support networks.6
FIs have a vital role to play in this effort. This article provides background on designated cartels — their geographic reach, how they raise and move money, the risks they pose to financial institutions, and common red flags that may help identify suspicious activity.
The big two: Sinaloa and Jalisco Cartels
According to the DEA, the two most important FTOs are the Sinaloa and Jalisco Cartels: they are at the heart of the fentanyl crisis and have a presence in almost every state in America.7 In Mexico, they are based out of the states from which they derive their names (Sinaloa and Jalisco) but they exercise control and influence beyond those areas, including at multiple maritime ports, to help facilitate their shipments and raise revenue. In addition, the “big two” cartels operate extensive global supply chains, from precursor chemicals to production facilities, and direct complex networks that include international shippers, cross-border transporters, corrupt officials, tunnel builders, shell companies, and money launderers.
- The Sinaloa Cartel does not have a leader. Instead, the cartel “umbrella” covers four separate but cooperating criminal organizations. One of the four organizations is directed by “Los Chapitos” — the collective name of four sons of Joaquin “El Chapo”, who was the most powerful drug trafficker in the world until he was extradited to the United States and sentenced to life in prison in 2019.8
- The Jalisco Cartel (a.k.a. Cartel Jalisco Nueva Generacion, or CJNG) was formed in 2011 out of the remnants of a Sinaloa Cartel affiliate and has risen to be one of Mexico’s most powerful and ruthless criminal organizations. It operates under a franchise business model overseen by Ruben “El Mencho” Oseguera-Cervantes, and maintains a financial arm known as “Los Cuinis” that leads its diverse network of money laundering operations.9
The Northeasterners: Gulf and Northeast cartels
The Gulf Cartel and Northeast Cartel are both based in the Mexican state of Tamaulipas, which is in the northeastern corner of Mexico bordering Texas.
- The Gulf Cartel (a.k.a. Cartel del Golfo, or CDG) is one of Mexico’s oldest and most notorious criminal groups, but it has lost territory and influence in recent years and has splintered into several rival factions. The names of the different factions include Scorpions, Metros, Cyclones, Rojos, and Panthers.10
- The Northeast Cartel (a.k.a. Cartel del Noreste, or CDN), formerly known as the Zetas, originated as an enforcement arm of the Gulf Cartel formed by deserters from the Mexican Army’s elite special forces in 1997 and became one of Mexico’s most powerful and feared groups circa 2007-2012. Infighting and the loss of key leaders led to the Zetas’ decline, and CDN emerged as the most dominant splinter faction.11
The Michocanos: New Family Michocana and United Cartels
The New Family Michoacana and United Cartels are based in the Mexican state of Michoacán and have been locked in an ongoing battle with the Jalisco Cartel to control drug trafficking routes running through the state and their share in local illicit economies, including drug production and the extortion of avocado producers.
- The New Family Michoacana Cartel (a.k.a. La Nueva Familia Michoacana, or LNFM) has splintered into several factions since the 2000’s, some of which have joined forces under the United Cartels banner. In addition to trafficking fentanyl and other drugs to the U.S., the group has engaged in acts of terror and violence in Mexico through kidnappings, killings, and extortion.12
- The United Cartel (a.k.a. Carteles Unidos, or CU) is a coalition of criminal networks and civilian defense groups that joined forces to resist the Jalisco Cartel’s expansion into Michoacán and keep control of the state’s drug trade. It is led by “El Abuelo” (Juan Jose Farias Alvarez), the leader of Cartel del Abuelo.13
To view detailed maps of fentanyl trafficking operations in Mexico by cartel, please see pages 8–16 of the 2025 National Drug Threat Assessment published by the Drug Enforcement Administration. The full PDF is available here.