Welcome to the award-winning FCPA Compliance Report, the longest-running podcast on compliance. In this episode, Tom welcomes Tim O’Toole and Matt Ellis from Miller & Chevalier Chartered to discuss the significant implications of President Trump’s executive order designating Mexican drug cartels as foreign terrorist organizations (FTOs).

Tim and Matt elaborate on the heightened compliance risks and operational challenges now faced by companies operating in these regions. The conversation delves into the legal distinctions between Specially Designated Nationals (SDNs) and FTOs, the broad-ranging impact on industries such as agriculture and logistics, and the urgent need for robust risk assessment strategies to mitigate civil and criminal liabilities under U.S. law. They also explore the broader Latin American context and potential collateral consequences for U.S. and Latin American companies amid anticipations of increased regulatory scrutiny and enforcement actions. The discussion concludes with timely observations on recent U.S. Treasury directives aimed at curbing cartel money laundering activities, showcasing the lengths the administration is willing to go to combat these criminal enterprises.

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Resources:

Designation of Cartels as FTOs Creates Heightened Risks for Companies Operating in Latin America

Miller & Chevalier

Tim O’Toole

Matt Ellis

Tom Fox

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