Puerto Vallarta (PVDN) – If the drug trade were a legitimate business, people would marvel at the accomplishments of Mexican cartels as multinational corporations. Today, they generate revenues that rival the combined global operations of General Motors and Ford Motor Company.
Synthetic drugs, in particular, have made cartels immensely wealthy. The cost-benefit ratio is astounding: it costs less than 10 cents for cartels to produce a counterfeit fentanyl-laced pill, which can sell for $10 to $30 per pill in the United States.
The Sinaloa Cartel and the Jalisco New Generation have a presence in 45 countries. Their operations have evolved beyond natural drugs from South America and now heavily involve synthetic substances. According to the United States Senate, in 2019, the illegal drug market’s profits exceeded $39 billion annually for these two cartels. With fentanyl, that income has grown to an estimated $67 billion.
While the Drug Enforcement Administration (DEA) continues to investigate cartel operations across 45 countries, both the Sinaloa Cartel and the Jalisco New Generation are in the crosshairs of the US government. The DEA operates with a strong national and international presence to map and target all global networks.
Intelligence shared with Congress indicates that the two Mexican cartels are the largest in the Americas, but they’re not alone. Furthermore, the cartels’ most crucial partners are not only in Mexico but also in China. This relationship has grown to evade cash movement regulations, creating a money-laundering submarket centered in China.
As the US follows the money trail, it uncovers those involved in drug transportation and smuggling into the country, as well as those in Mexico who receive funds to protect the cartels with political power. The fentanyl crisis has caused many American parents to recognize that their children’s futures are in the hands of Mexican drug traffickers, resulting in immense pressure on Congress to address the issue.
The DEA has formed two strike groups to infiltrate the Sinaloa Cartel and the Jalisco New Generation. Information from these operations has revealed the cartels’ sophisticated and diversified methods of moving their products. The DEA now possesses a worldwide analysis of the networks and their members.
The cartels’ power extends to their distribution chains, which employ local cells in each country with assigned functions and territories. These cells often include ex-military and ex-police officers who are well-trained, heavily armed, and knowledgeable about government operations.
The DEA’s Operation “Overdrive” uses digital intelligence methods to identify and dismantle drug distribution networks operating in the US. This operation includes two phases, covering 91 locations across the country. Local police forces are also identifying criminal networks and their members.
Fentanyl production still occurs in Mexico, but it has become easier for cartels to acquire precursors and chemicals in the US and manufacture the drug locally. The DEA, FBI, and various local law enforcement agencies are routinely raiding private homes in upscale neighborhoods where drugs are discreetly manufactured and prepared for distribution.
Both the Sinaloa and Jalisco cartels have found Chinese partners willing to launder their money, resulting in an underground financial system and a shadow banking network in China. This partnership simplifies international money laundering operations and expedites the purchase of chemical precursors for drug production.
The US government is now well-aware of how cartels acquire US dollars and how they supply clients in China. DEA Chief Anne Milgram has faced pressure from Congress to label Mexico a narco-state but has resisted publicly discussing the lack of cooperation with her agency. President Joe Biden seems to prefer seeking the Mexican government’s cooperation in the fight against cartels, but there are limits to maintaining this relationship without tangible signs of collaboration.
The battle against cartels extends to the internet and social media platforms, where associates use these channels to distribute their products. President Joe Biden has faced criticism for his reluctance to confront the fentanyl issue in Mexico and China more aggressively. However, it is essential to consider the complex web of relationships that fuel the drug trade.
The DEA’s efforts to dismantle these cartels have led to accusations against 28 members and associates of the Sinaloa Cartel in Mexico, Guatemala, and China. These individuals, including leaders, suppliers, intermediaries, smugglers, and money launderers, are linked to the production and trafficking of a significant portion of the fentanyl entering the United States. Mexico has already received specific extradition requests for over a dozen suspects on its soil.
For the first time, the DEA is directly combating the cartels’ partners within the US. The agency has managed to identify and dismantle several drug distribution networks operating in areas with high rates of violence and drug-related deaths. Local law enforcement agencies are working closely with the DEA, identifying and targeting criminal networks and their members in various regions.
As the DEA continues to gather intelligence and take action against the cartels, it has become evident that the organizations have members with specific functions in conquered territories. The Sinaloa Cartel operates in 15 of Mexico’s 32 states, while the Jalisco New Generation operates in 21 of those states, with some dominance shared between them.
The collaboration between Mexican cartels and Chinese money launderers has facilitated the exchange of millions of dollars and other currencies, making it easier to purchase the precursors necessary for drug production. Additionally, it allows Chinese millionaires, who face restrictions on moving money out of China, to transfer large sums of money to bank accounts worldwide.
As the US and Mexican governments navigate the delicate balance of cooperation, it is crucial to recognize that the fight against drug cartels is a multifaceted challenge. International collaboration is vital to dismantle these networks, but it requires transparency, trust, and a genuine commitment from all parties involved. Furthermore, addressing the underlying issues of drug demand, socio-economic disparities, and corruption within law enforcement and political systems is essential to make a lasting impact on the global drug trade.
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