The Trump Administration’s crackdown on cartels and transnational criminal organizations (TCOs) operating abroad and in the United States is a significant Department of Justice (DOJ) priority.[1] The Trump Administration already has designated certain cartels and transnational criminal organizations, or “TCOs,” as terrorists (labeling them as either Specially Designated Global Terrorists (SDGTs), Foreign Terrorist Organizations (FTOs), or both), thereby blocking these groups or persons from conducting transactions in or with the United States, any U.S, persons, or even non-U.S. persons where there is some jurisdictional nexus to the United States, including the use of U.S. dollars related to the transaction.

Engaging in transactions with FTOs can result in civil penalties or even criminal prosecution. Indeed, at the end of May 2025, a federal indictment was unsealed, charging two men from Utah with conspiring “to provide material support” to the Mexican cartels “in the form of U.S. currency” through their operation of a crude oil company based in Texas. Notably, the cartel at issue was designated under the Trump Administration, on February 20, 2025.

This is only a precursor to the many similar actions that will be coming under the Trump Administration. In advance of further enforcement actions by the DOJ and other agencies, companies doing business in areas where cartels operate or TCO activity is prevalent should take practical steps to ensure compliance with applicable U.S. laws and regulations. The Trump Administration’s renewed focus on cartel and TCO-related threats means that multinational companies must reassess their risk exposure in this evolving enforcement environment.

Under this new approach, companies operating in regions with known cartel or TCO activity — including Mexico, Central and South America, the Caribbean, and parts of Africa — may face heightened scrutiny from U.S. regulators and enforcement agencies. In some cases, exposure could arise not from direct contact with cartels but from indirect connections through suppliers, subcontractors, or intermediaries.

To manage these increased risks, companies — particularly those with complex global operations or vulnerable supply chains — should undertake a frank and rigorous compliance assessment. Key measures to consider include the following:

• Strengthen and Expand Due Diligence Protocols. Conduct enhanced due diligence on all third-party business partners, with special emphasis on new suppliers, distributors, and intermediaries. Go beyond traditional onboarding checks by including screenings for SDGTs, FTOs, and other Specially Designated Nationals (SDNs) identified by OFAC and other agencies. SDGT/FTO screening should occur at the same time as OFAC SDN screening and should be incorporated into both supplier onboarding and recurring supply chain integrity audits. When using automated tools, ensure they are calibrated to flag indirect affiliations or complex ownership structures that may obscure ties to prohibited actors.
• Update Supply Chain and Partner Contracts to Include Risk Controls. Review and update all supply chain, distribution, and vendor contracts to include explicit anti-cartel and anti-transnational criminal organization clauses. Use template language vetted by legal counsel to maintain consistency across global agreements.
• Reevaluate Existing Relationships for Creeping Risk. Even longstanding, previously vetted business partners may change in ways that introduce new risks, such as through a change in beneficial ownership, acquisition by unknown entities, or subtle expansion of services into new sectors. Establish a process for ongoing counterparty review and re-screening. Changes in business scope, leadership, or operating regions should automatically trigger a due diligence refresh and possibly a targeted audit.
• Scrutinize Cash Payments and Sudden Financial Behavior Shifts. Cash transactions are frequently used by TCOs and cartels to avoid detection. Companies should monitor for counterparties that insist on cash payments or suddenly switch from traceable payment methods (e.g., wire transfers, checks) to cash-based transactions. Establish a robust vendor management and transaction monitoring system capable of flagging such shifts. Red flags may include frequent invoice overpayments, ambiguous remittance details, or transactions routed through high-risk jurisdictions.
• Conduct Deep-Dive Audits on High-Risk Counterparties. Map all tiers of your supply chain to identify potential exposure points to cartel activity or TCO influence or cartel activity. For high-risk counterparties — particularly those located in known trafficking corridors or regions with a high volume of organized crime — conduct transaction-level audits to assess whom they are paying, the nature of those payments, and whether financial flows align with declared business purposes. Routinely screen for changes in beneficial ownership, payment methods, and contract behavior. If indicators of risk arise, consider notifying the counterparty and requiring remedial steps.
• Identify and Monitor Vulnerable Industries. Certain industries are systematically targeted by cartels and TCOs for their logistical value, regulatory complexity, or local influence. These include (1) logistics and transportation firms, especially those crossing remote borders or maritime routes; (2) construction and infrastructure developers, often required to interact with local permitting authorities; (3) utility monopolies or service providers, like trash collection or internet services, where regional dominance makes them strategic takeover targets; and (4) sectors with powerful unions or complex labor dynamics, which may be subject to infiltration or co-option. When partnering with companies in these industries — especially in regions known for cartel or TCO activity — layer additional scrutiny into the relationship and maintain heightened oversight throughout the contract lifecycle.
• Institutionalize Training and Internal Reporting Channels. Train employees, compliance personnel and, where appropriate, third-party partner employees on how to identify and report signs of cartel or TCO interference. Go beyond providing lists of restricted parties — build awareness of red flags. Establish secure, anonymous internal whistleblower channels and provide amnesty or protection policies to encourage early reporting of compliance breaches or attempted criminal coercion.
• Establish Executive and Board Oversight Mechanisms. Ensure that TCO- and cartel-related risks are regularly escalated to executive leadership and the board of directors. Incorporate updates into quarterly compliance reports or risk committee briefings. For companies operating in high-risk regions, consider designating a senior-level risk officer or task force to oversee response protocols and monitoring, or appoint someone within procurement or the legal department to perform these risk-management tasks.
• Develop a Crisis Response Plan for Criminal Acts. Cartels often rely on violent or coercive tactics, such as extortion, theft, fraud, and even kidnapping, to infiltrate business operations. Companies operating in high-risk regions should prepare in advance. Develop a crisis management protocol, including incident escalation steps, points of contact within local and international law enforcement, communication procedures, and protocols for employee safety and legal response. Consider risk-management exercises to test responsiveness.
• Monitor Public Crime Reports and Prepare for Legal Requests. Maintain regular review of public crime databases, law enforcement briefings, and NGO reports to stay informed about emerging threats in your company’s regions of operation. Coordinate with inside and outside counsel to ensure readiness to respond to subpoenas, civil investigative demands, and voluntary requests for information, as the Trump Administration is expected to ramp up these tools for probing potential violations of law. Rapid response capability is especially important in high-risk sectors or jurisdictions where investigations may commence with little warning.
• Implement Incident Documentation and Red Flag Response Protocols. Create a formal procedure for documenting red flags, screening matches, due diligence findings, and responses to suspected cartel/TCO exposure. Maintain a secure compliance log or internal case management system to ensure continuity, support audits, and demonstrate good faith efforts in the event of enforcement action.

The Trump Administration’s policy pivot toward aggressive enforcement of cartel and TCO-related crimes brings heightened risk for global businesses — not just for direct violations but for secondary liability through unmonitored third parties. A proactive, systems-based approach to compliance, backed by due diligence, real-time monitoring, employee training, and strong response plans, is essential to avoid reputational, financial, and legal damage in this new enforcement landscape.

Nonetheless, while the Trump Administration’s enhanced focus and enforcement strategy on eliminating cartels and TCOs may be a shift from the previous administration’s enforcement priorities, multinational companies do not have to reinvent the wheel to ensure they are operating in compliance with relevant U.S. laws. Companies should look to harness existing compliance procedures such as due diligence supplier onboarding measures, OFAC screening, supply chain integrity reviews, and red flags awareness and to adapt them to the new enforcement priorities of the new administration. By proactively following longstanding compliance best practices, they can effectively mitigate against these heightened risks.

[1] See Executive Order 14157, “Designating Cartels and Other Organizations As Foreign Terrorist Organizations And Specially Designated Global Terrorists,” (Jan. 20, 2025); Office of the Attorney General, “Total Elimination of Cartels and Transnational Criminal Organizations,” (Feb. 5, 2025); Office of the Spokesperson of the U.S. State Dep’t, “Designation of International Cartels,” (Feb. 20, 2025); Criminal Division of U.S. Dep’t of State, “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime (May 12, 2025).