US Cracks Down on Cartels, TCOs: New Enforcement Priorities Drive Regulatory Evolution

The US government has intensified its focus on cartels and transnational criminal organisations (TCOs), labelling them as security threats to the country and the wider Americas. This shift in enforcement priorities is driven by a desire to reinforce US dominance in the global economy, with regulatory frameworks and investigative methodologies evolving rapidly.

US regulators have begun operationalising new enforcement priorities announced last year, leveraging existing statutes and regulations such as the False Claims Act (FCA) as enforcement hooks. The Trump Administration's focus on national security, protection of US economic interests, and public welfare is likely to impact cross-border business operations.

The Department of Justice has issued memoranda underscoring its commitment to prosecuting white-collar crimes, including healthcare fraud, trade and customs fraud, and conduct that supports TCOs. Meanwhile, the SEC has indicated a pro-innovation stance towards cryptocurrency, aiming to support innovation through rules and regulations.

Companies operating in cartel-influenced areas of Latin America face increased scrutiny, with potential exposure to cartels leading to multi-pronged enforcement risks under the FCPA, anti-money laundering regimes, and sanctions. The Scoular Company's $10 million deferred prosecution agreement for bribing Mexican officials highlights regulators' use of the FCPA to target cartel support.