US imposes sanctions on Los Chapitos, a faction of the Sinaloa Cartel

By Daphne Psaledakis

WASHINGTON (Reuters) -The United States on Monday imposed sanctions on Los Chapitos, a faction of the Sinaloa Cartel, labeling it a Specially Designated Global Terrorist as President Donald Trump's administration seeks to tackle cross-border drug trafficking.

The U.S. Treasury Department in a statement said it designated Los Chapitos under illicit drug and terrorism authorities, accusing it of facilitating trafficking and production of fentanyl, the lethally potent opioid.

Two of its fugitive leaders, both sons of convicted Mexican drug kingpin Joaquin "El Chapo" Guzman, were also hit with sanctions, according to the Treasury Department.

"Los Chapitos is a powerful, hyperviolent faction of the Sinaloa Cartel at the forefront of fentanyl trafficking into the United States," Treasury Secretary Scott Bessent said in the statement.

"At the Department of the Treasury, we are executing on President Trump’s mandate to completely eliminate drug cartels and take on violent leaders like ‘El Chapo’s’ children. Treasury is maximizing all available tools to stop the fentanyl crisis and help save lives."

The Treasury on Monday also imposed sanctions on what it said was a regional network of Los Chapitos associates and businesses based in Mexico.

Monday's action freezes any of their U.S. assets and generally bars Americans from dealing with them. Those that engage in certain transactions with the sanctioned parties also risk being hit with sanctions.

The move comes after the Trump administration in February designated Tren de Aragua, the Sinaloa Cartel and other drug cartels as global terrorist organizations.

Trump, a Republican, issued an executive order after taking office on January 20 that called on officials to evaluate whether any criminal cartels or transnational gangs should be designated as terrorism groups.

The U.S. terrorism designations have come alongside a government crackdown on migration, with thousands of foreigners being deported to third countries in Latin America.

(Reporting by Daphne Psaledakis and Jasper Ward in Washington; Editing by Bill Berkrot)

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