Washington:The United States has imposed sanctions on a commercial network linked to the Mexican criminal group Cartel del Noreste (CDN). The sanctions target front companies operating in the energy, construction, and horse racing industries.

According to Anadolu Agency, the Treasury Department's Office of Foreign Assets Control (OFAC) designated four individuals and 11 entities connected to this group, which is classified as a foreign terrorist organization by the US.

The network has been laundering drug proceeds through American Quarter Horse racing and running front companies involved in municipal contracting, trucking, construction, and the fuel market in Mexico. The cartel evolved from Los Zetas, known for some of the deadliest mass-casualty incidents in Mexican history.

Officials have raised concerns about the cartel's operations directly across from Laredo, Texas, a major commercial crossing handling nearly 40% of US-Mexico bilateral trade. This location allows the cartel to infiltrate local governments, influence public contracts, and manipulate regional elections.

Treasury Secretary Scott Bessent emphasized the importance of the sanctions, stating that the action exposes Cartel del Noreste's use of the horse racing sector to launder illicit funds and finance their operations. He described this move as the department's most significant effort to disrupt the cartel's financial infrastructure to date.