U.S. Exposes CJNG’s Fuel Theft and Smuggling Scheme

Mexico City, Mexico — The U.S. Embassy in Mexico has publicly denounced a sophisticated fuel smuggling operation known as "huachicol fiscal," involving the Jalisco New Generation Cartel (CJNG). The scheme entails the theft, export, refining, and illegal reimportation of Mexican crude oil using falsified documentation.

A Transnational Criminal Operation

According to a video released by the embassy on its official X (formerly Twitter) account, the operation follows a five-stage process:

1. Theft and Transport: Crude oil is stolen in Mexico and smuggled into the U.S. via clandestine pipelines or ground transportation.
2. Money Laundering and Legalization: Intermediaries disguise the fuel's origin using falsified paperwork.
3. Refining: The stolen crude is processed in U.S. refineries.
4. Fraudulent Re-export: The refined fuel is shipped back to Mexico as if legally sourced.
5. Final Sale: The product is sold at Mexican gas stations, often blended with legitimate fuel.

"Behind every illegal liter lies tax evasion, corruption, and funded violence," the embassy warned in its video statement.

Binational Response and Sanctions

The U.S. Department of the Treasury, through the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), has already imposed sanctions against Mexican companies and individuals linked to the scheme. Joint operations with Mexican authorities have also been deployed at ports and border crossings to strengthen fuel traceability measures.

"Treasury will continue using all available tools to relentlessly pursue drug cartels and foreign terrorist organizations to make America safe again," stated Scott Bessent, head of the Department of the Treasury.

A More Profitable Venture Than Drug Trafficking

The "huachicol fiscal" operation generates hundreds of millions of dollars annually for organized crime. Unlike traditional fuel theft, this model relies on corporate and financial networks to conceal the illicit origins of the product.

The embassy concluded its message with a call to public awareness: "You’ve likely heard about huachicol, but do you know what 'huachicol fiscal' is? Here we explain it and share the actions the U.S. and Mexico are taking to stop it. Stay informed!"

The case highlights the growing challenges both governments face in combating transnational organized crime, which has expanded its revenue streams beyond drug trafficking.