President Obama Designates Three Mexican Drug Trafficking Organizations Under the Kingpin Act

Mexico City | April 15, 2009

Today President Obama submitted to Congress a report on three Mexican drug trafficking groups that he has determined are Significant Foreign Narcotics Traffickers appropriate for sanctions under the Foreign Narcotics Kingpin Designation Act.  These organizations are the Sinaloa Cartel, Los Zetas, and La Familia Michoacana.   

President Obama’s identification of these three Mexican drug trafficking groups underscores his administration’s support for President Calderon’s efforts to fight drug traffickers and work toward ending the widespread suffering that the illicit drug trade inflicts.  Kingpin designations must be submitted to Congress by June 1 of each year; however, these three Mexican drug cartels were identified on an accelerated schedule in order to provide an additional tool for U.S. support of the Mexican government’s campaign against drug trafficking organizations. 

Under the Kingpin Act, trafficking organizations, their kingpins, and their operatives will be denied access to the United States financial system.  They are prohibited from all trade and transactions involving U.S. companies and individuals, and sanctions may be imposed for violation of this prohibition.  

The Kingpin Act, which became law in December 1999, does not target the countries in which these foreign individuals and entities are operating or those countries’ governments.  It does allow the United States to block the assets under U.S. jurisdiction of anyone who is designated, and take action against any U.S. person for doing business with a designee.  Based on this action, the State Department working with the Treasury Department also can deny visas to designated individuals and their immediate family members who have knowingly benefited from the designated individuals’ illicit activity.   

Since the first Significant Foreign Narcotics Traffickers were named pursuant to the Kingpin Act on June 1, 2000, a total of 78 persons, 37 of whom are Mexican, have been identified for sanctions under the Act, including the designations today.  Among the 37 Mexican kingpins are nine named drug trafficking organizations.  A complete list of individuals and entities sanctioned under the Kingpin Act can be found at www.treasury.gov/ofac.