US Treasury sanctions Mexican racetrack Club La Molienda over alleged Cartel del Noreste links

The US Department of the Treasury has sanctioned a Mexican horse racetrack that it believes is controlled by a drug cartel. The action, announced on October 13 by the Office of Foreign Assets Control (OFAC), covers four individuals and 11 entities linked to Cartel del Noreste (CDN), a US-designated Foreign Terrorist Organization.

Treasury describes CDN as a successor to Los Zetas, a criminal syndicate responsible for some of the deadliest mass-casualty attacks in Mexican history. The cartel's stronghold lies 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 US and Mexico crosses. The sanctioned entities operate in horse racing, construction, trucking, and oil and gas. Treasury said quarter horse racing in particular has long been used for money laundering, a practice that predates the fragmentation of Los Zetas.

Among the targets is Club La Molienda, a racetrack, restaurant and bar on the outskirts of Nuevo Laredo. It is owned by Miguel Ángel Treviño Morales, known as Z-40, and is believed to be controlled by CDN, generating proceeds for the cartel through entrance fees. Cartel leaders and members buy horses, many of them from the United States, to race there. While Z-40 is incarcerated in the US, the venue is overseen by various CDN leaders and associates. Treviño Morales and his brother Oscar Omar Treviño Morales were transferred to the US in 2025 and face charges including drug trafficking and money laundering.

Treasury also suspects the racetrack worked with Casino Centenario, which allowed its players to wager on races at the track. That casino was previously sanctioned over alleged drug trade activity and torture rooms. Other designations include a cartel leader known as Takia, a trucking business tied to the alleged drug trade, and a construction company that backed politicians favored by CDN.

The action followed a joint investigation with the Homeland Security Task Force, supported by agencies including the DEA, FBI, ICE Homeland Security Investigations, Customs and Border Protection, IRS Criminal Investigation and ATF. Since the start of 2025, OFAC has taken roughly 40 actions against more than 500 individuals and entities. Under the sanctions, the designated parties can no longer do business with US entities and their US assets will be frozen.