The U.S. Treasury Department announced a fresh round of sanctions and a new bank alert on Tuesday targeting the Jalisco New Generation Cartel, Mexico’s most powerful criminal organization.

The Treasury’s Office of Foreign Assets Control imposed sanctions on two Mexican nationals and nine companies operating in transportation, financial services, and real estate. These entities are accused of being linked to a cartel-operated fuel theft ring designed to evade Mexican taxes while generating tens of millions of dollars annually for the criminal organization.

In a parallel move, the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions, flagging red flags associated with fuel smuggling from the U.S. into Mexico as part of schemes involving Mexican tax evasion.

“Today’s action highlights the extent to which Mexico’s cartels are expanding beyond traditional drug trafficking to generate revenue for their criminal organizations, which continue to traffic deadly drugs that kill Americans,” said Treasury Secretary Scott Bessent in a statement.

The U.S. Drug Enforcement Administration has confirmed the Jalisco New Generation Cartel’s presence in 21 of Mexico’s 32 states, surpassing the once-dominant Sinaloa Cartel, which is estimated to operate in 19 states. Last year, President Donald Trump designated the Jalisco New Generation Cartel and five other Mexican cartels as foreign terrorist organizations.

Mexican authorities have seized millions of gallons of stolen diesel, gasoline, and petroleum distillates in recent years from states bordering Texas. Organized crime groups routinely tap into pipelines and divert fuel to service stations that are either coerced into buying from cartels or sell it directly on the streets. U.S. authorities have even accused the Jalisco New Generation Cartel of operating its own gas stations.