The US government’s designation of Mexican drug cartels as Foreign Terrorist Organizations (FTOs) “[seeks] the total elimination of these organizations’ presence in the United States…” and reinforces US policy treating the cartels among the top US national security threats.

The Administration’s approach to the cartels, embodied in its use of FTO designation authority, the Fend Off Fentanyl Act, and other measures, could have major implications for individuals and companies throughout Mexico and the United States, as US and Mexican government officials – and cartel victims and their counsel – seek to use these new legal authorities to investigate, prosecute, and bring civil claims against members of the cartels and the companies and individuals suspected of aiding and abetting their unlawful activities. The designation of cartels as FTOs significantly expands the risk profile for individuals and companies with potential exposure to the cartels, in part because the Administration’s approach vastly expands the tools the government is using to detect activity linked to drug trafficking organizations, and to address the threat, leveraging intelligence and defense authorities and capabilities used against the likes of Al-Qaida and ISIS to the fight against cartels.

The Administration’s approach also significantly expands potential areas of liability for companies, including under the Anti-Terrorism Act. Even in instances where a bank or business did not know of a connection to illicit activity or members of cartels, there is a risk of exposure to investigation, reputational risk, as well as civil litigation in US courts, where victims of the cartels now have private rights of action against any company or individual that allegedly aids or abets the cartels.

Join panelists from WilmerHale and Kharon to discuss the new enforcement framework and the value of intelligence and technology in both powering government operations and guiding industry controls to detect risk.