##  [Mexico: Key Strategies to Mitigate Risks Following the U.S. Designation of Cartels as Foreign Terrorist Organizations](/en_GB/new/mexico-key-strategies-mitigate-risks-following-us-designation-cartels-foreign-terrorist) 

# Mexico: Key Strategies to Mitigate Risks Following the U.S. Designation of Cartels as Foreign Terrorist Organizations





México - 03 / 05 / 2025

















- <a aria-label="Link" class="fs-5" data-content="Copied link" data-placement="top" data-toggle="popover" data-trigger="focus" data-url="https://www.garrigues.com/en_GB/new/mexico-key-strategies-mitigate-risks-following-us-designation-cartels-foreign-terrorist" id="get-app-artwork" role="button" tabindex="0"></a>
- [](https://www.linkedin.com/sharing/share-offsite/?url=https://www.garrigues.com/en_GB/new/mexico-key-strategies-mitigate-risks-following-us-designation-cartels-foreign-terrorist)
- [](<https://twitter.com/intent/tweet?text=Mexico: Key Strategies to Mitigate Risks Following the U.S. Designation of Cartels as Foreign Terrorist Organizations&url=https://www.garrigues.com/en_GB/new/mexico-key-strategies-mitigate-risks-following-us-designation-cartels-foreign-terrorist>)
- [](<https://www.facebook.com/sharer.php?u=https://www.garrigues.com/en_GB/new/mexico-key-strategies-mitigate-risks-following-us-designation-cartels-foreign-terrorist&t=Mexico: Key Strategies to Mitigate Risks Following the U.S. Designation of Cartels as Foreign Terrorist Organizations>)

 







   Previous    Next  







 ![](/sites/default/files/noticias/img/bandera_mexico.jpg)













**The recent decision by the United States to designate Mexican cartels as Foreign Terrorist Organizations (FTOs) marks a significant shift in the risk landscape for multinational companies with interests in Mexico and Latin America. Below, we analyze key strategies for mitigating these risks.**





The [classification of Mexican cartels as Foreign Terrorist Organizations (FTOs)](https://www.state.gov/terrorist-designations-of-international-cartels/) requires companies to reassess and recalibrate their compliance strategies, shifting from a reactive or routine approach to the adoption of a proactive, targeted, and strategic strategy.

Multinational companies operating in Mexico or Latin America that provide "material support" (such as services, tangible or intangible assets, money, transportation, or accommodation) to entities designated as FTOs could face criminal and civil liabilities. Among the possible consequences are the freezing of bank accounts or the inability to conduct financial transactions with the United States.

Additionally, it is important to note that, with this new designation, the jurisdiction of U.S. authorities has been expanded. Therefore, companies must be aware that any operation conducted with such entities could be considered material support, even when there is no connection to the United States.

In this new scenario, executives and compliance and legal teams should drive key actions such as:

- **Properly document reasonable efforts** to avoid even the slightest connection with an entity designated as an FTO, designing a comprehensive, multi-area strategy.
- **Refine due diligence**: expand the scope of risk assessment by meticulously analyzing each level of the value chain to identify potential vulnerabilities. Similarly, in mergers and acquisitions (M&amp;A) processes, enhance due diligence by ensuring the inclusion of appropriate measures to effectively detect potential risks. Additionally, incorporate processes for Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF), even if not mandatory subjects.
- **Strategic intelligence**: use advanced methodologies for early detection of warning signals, enabling the anticipation and mitigation of potential risks.
- **Strengthen supply chain resilience**: ensure that business partners share your commitment to risk mitigation by establishing rigorous compliance standards.
- **Optimize talent management**: enhance background check processes to minimize exposure to internal risks, safeguarding the integrity of your team.
- **Educate and prepare executives and staff**: equip your teams with the knowledge and skills necessary to address risk scenarios confidently and effectively.
- **Establish solid response protocols**: develop detailed action plans to effectively manage any unwanted interactions, protecting your assets and reputation.

In summary, the adoption of proactive actions could help mitigate potential penalties in the event of an investigation by authorities.









[México](/en_GB/tags/mexico), [Corporate](/en_GB/tags/corporate)







 

 



 

 

### Contacts

 

 ![Daniel Maldonado Alcántara](/sites/default/files/styles/medium/public/team/photo/daniel-maldonado-alcantara_v2.jpg?itok=29ld9SDo)

[Daniel Maldonado](/en_GB/team/daniel-maldonado-alcantara)




![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact](<mailto:daniel.maldonado@garrigues.com >)

- +52 442 296 6400
    
    [Queretaro](https://www.garrigues.com/en_GB/office/queretaro)
 










 ![Ana Olivares Cervantes - Garrigues](/sites/default/files/styles/medium/public/team/photo/ana-eugenia-olivares-cervantes.jpg?itok=HphQq-VY)

[Ana Olivares](/en_GB/team/ana-olivares-cervantes)




![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact](<mailto:ana.olivares@garrigues.com >)

- +52 55 5029 8500
    
    [Mexico City](https://www.garrigues.com/en_GB/office/mexico-city)
 










 ![Paola Cárdenas Núñez - Garrigues](/sites/default/files/styles/medium/public/team/photo/america-paola-cardenas-nunez.jpg?itok=9JQwOA1A)

[Paola Cárdenas](/en_GB/team/paola-cardenas-nunez)




![](/themes/custom/garriguestheme/img/iconos/email-contacto.svg)[Contact](<mailto:america.paola.cardenas@garrigues.com >)

- +52 55 5029 8500
    
    [Mexico City](https://www.garrigues.com/en_GB/office/mexico-city)
 










 

[Find more professionals](../team)

 

 



 

### Related services 

 

- [Corporate and M&amp;A ](/en_GB/services/corporate-and-ma)
 


 

 



 

### Related offices

 

- - [Mexico City](/en_GB/office/mexico-city)
    - [Queretaro](/en_GB/office/queretaro)
    - [Monterrey](/en_GB/office/monterrey)
 


 

 



 

## Find a publication

   

- [Administrative and Constitutional Law](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1422)
- [Agribusiness and Food](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1417)
- [Automotive](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1419)
- [Banking and Finance](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1443)
- [Corporate and M&amp;A](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1441)
- [Corporate Governance and Sustainable Development](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A12823)
- [Criminal Law and Internal Investigations](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1434)
- [Data Economy, Privacy and Cybersecurity](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A10913)
- [Dispute Resolution: Litigation and Arbitration](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1412)
- [Energy](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A10916)
- [EU and Antitrust Law](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1416)
- [Family Business](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1413)
- [Fashion Law](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1435)
- [Financial Regulation](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A10915)
- [G-advisory](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A12821)
- [Human Capital Services](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1431)
- [Infrastructure](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A10914)
- [Insurance](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1438)
- [Intellectual Property](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1421)
- [Labor and Employment](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1424)
- [Life Sciences and Healthcare](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1429)
- [Media and Entertainment](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1433)
- [Planning, Zoning and Environment](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1444)
- [Private Equity](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1439)
- [Real Estate](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A10927)
- [Restructuring and Insolvency](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1420)
- [Securities Markets](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1442)
- [Sports](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1430)
- [Startups &amp; Open innovation](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1426)
- [Sustainability](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A10921)
- [Tax](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1425)
- [Technology, Communications and Digital](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1436)
- [Tourism and Hotels](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1432)
- [Transport, Logistics and Shipping](/en_GB/markdownify/node/14638?f%5B0%5D=service%3A1428)

 Facet Services detail

 



- [Publications](/en_GB/markdownify/node/14638?f%5B0%5D=publication_type%3A794)
- [Newsletters](/en_GB/markdownify/node/14638?f%5B0%5D=publication_type%3A107)
- [Garrigues collection](/en_GB/markdownify/node/14638?f%5B0%5D=publication_type%3A101)
- [Laws: amendments at a glance](/en_GB/markdownify/node/14638?f%5B0%5D=publication_type%3A104)
- [News](/en_GB/markdownify/node/14638?f%5B0%5D=publication_type%3A105)

 Facet Publication type detail

 



  Min  

 Max  

 







 

## News search engine