In a speech at the Richard B. Russell Federal Building in Atlanta, Treasury Secretary Janet Yellen announced new sanctions against members of the La Nueva Familia Michoacana drug cartel, targeting their involvement in trafficking fentanyl, cocaine, meth, and migrants through the southern border. The sanctions aim to combat the significant challenge of fentanyl trafficking and are part of the Biden administration’s efforts to address the crisis. Yellen also issued an advisory to banks to help identify and report suspicious transactions related to the sale and purchase of chemicals and equipment used to manufacture fentanyl and other synthetic opioids.
La Nueva Familia Michoacana is one of Mexico’s most powerful drug cartels, with a stronghold in southern and central Mexico, known for dominating areas associated with drug production. The group is involved in manufacturing and distributing drugs like fentanyl and methamphetamine, and has expanded into migrant smuggling amid a surge in migration to the U.S. The cartel, based in Guerrero state, is distinct from an older gang expelled from Michoacan in the mid-2010s, highlighting the ongoing evolution and expansion of criminal organizations in Mexico.
In 2022, the Biden administration sanctioned leaders of the La Nueva Familia Michoacana cartel, known as the Hurtado brothers, for their role in manufacturing “rainbow” fentanyl pills aimed at fueling addiction, particularly among young people. Yellen’s visit to Atlanta follows President Biden signing the FEND off Fentanyl Act as part of a supplemental spending package in April, declaring the international trafficking of fentanyl a national emergency. Fentanyl, a potent opioid, is a leading cause of drug overdose deaths in the U.S., with fatalities increasing significantly in recent years.
The Centers for Disease Control and Prevention has reported a more than sevenfold increase in drug overdose deaths from 2015 to 2021, with fentanyl being a major contributor to the crisis. Mexico and China are identified as primary sources of fentanyl and related substances trafficked into the U.S., with the Drug Enforcement Administration tasked with combating illicit drug trafficking. Most precursor chemicals needed to produce fentanyl originate in China, highlighting the international nature of the fentanyl trade and the challenges faced by law enforcement agencies in addressing the crisis. Yellen’s announcement of sanctions and efforts to combat fentanyl trafficking reflect the administration’s commitment to addressing the ongoing drug epidemic in the country.
