US Department of the Treasury Sanctions Racetrack with Alleged Cartel Ties

The US Department of the Treasury has issued sanctions against a Mexican racetrack believed to be controlled by a drug cartel. The track was among several sanctioned properties and individuals targeted in a new crackdown. Treasury Sanctioned 4 Individuals and 11 Entities, Including a Racetrack The action was announced on October 13, with Treasury saying that 4 individuals and 11 entities believed to be connected to the US-designated Foreign Terrorist Organization (FTO) Cartel del Noreste (CDN) have been sanctioned by the Office of Foreign Assets Control (OFAC), CDN, for context, is a successor of Los Zetas, a notorious criminal syndicate and designated terrorist organization, responsible for some of the deadliest mass‑casualty attacks in Mexican history. The department added that CDN’s stronghold is situated directly across the border from Laredo, Texas, the busiest port of entry on the southern border, where roughly 40% of all commercial traffic between the United States and Mexico crosses. According to Treasury, the sanctioned entities were involved in diverse operations, such as horse racing, construction, trucking, and oil and gas commerce. It elaborated that quarter horse racing, in particular, has long been used for money laundering even before Los Zetas’ fragmentation. The latest action saw the OFAC sanction Club La Molienda, a horse racetrack, restaurant, and bar located on the outskirts of Nuevo Laredo. Owned by Miguel Ángel Treviño Morales (Z-40) and believed to be controlled by CDN, this enterprise is said to generate proceeds for the cartel via entrance fees. CDN leaders and members purchase horses, including many from the United States, to race at La Molienda. La Molienda is controlled by Z-40 but is ultimately overseen by various CDN leaders and associates while Z-40 is incarcerated in the United States. US Department of the Treasury Treasury suspects that the racetrack worked in cahoots with Casino Centenario, which allowed its players to wager on races at the track. The casino in question has previously been sanctioned for alleged drug trade and torture rooms. For reference, Miguel Ángel Treviño Morales and his brother, Oscar Omar Treviño Morales, were transferred to the US in 2025 and currently face various charges for alleged drug trafficking and money laundering. OFAC Vows to Sanction Criminal Organizations Since the beginning of 2025, Treasury’s OFAC has taken roughly 40 actions against over 500 individuals and entities. The latest crackdown was conducted following a joint investigation alongside the HSTF, with support from the Drug Enforcement Administration, the Federal Bureau of Investigation, US Immigration and Customs Enforcement Homeland Security Investigations, US Customs and Border Protection, including the US Border Patrol, the Internal Revenue Service Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and was assisted by the Federal Bureau of Prisons and the US Marshals Service. Treasury emphasized that the latest round of sanctions aligns with the body’s zero tolerance policy when it comes to border crime. Other sanctioned entities included a cartel leader known as Takia, a trucking business associated with alleged drug trade, and a construction company that backed politicians favored by CDN, among others. The sanctions mean that these entities and individuals can no longer do business with US entities. At the same time, their US assets will be frozen.