The designations expand US tools and jurisdictional reach, and raise the stakes for foreign financial institutions and non-US companies to avoid dealing with designated entities.

By Eric Volkman and Lucas Baker

On February 20, 2025, the US Department of State designated eight drug cartels as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs). This action implements Executive Order 14157 and is also in accordance with the US Attorney General’s February 5, 2025, Memo (“Total Elimination of Cartels and…