The U.S. Department of the Treasury’s Office of Foreign Assets Control recently designated the eight individuals and twelve entities in Mexico that are associated with Los Chapitos, a powerful faction of the Sinaloa Cartel run by the four sons of Joaquin “El Chapo” Guzman Loera. OFAC reported that it designated the network on October 6, 2025 for supplying the Sinaloa Cartel with illicit fentanyl precursor chemicals. According to OFAC, the Sinaloa Cartel is responsible for trafficking a significant portion of fentanyl and other deadly drugs into the United States. On February 20, 2025, the United States designated the Sinaloa Cartel – one of the oldest and most powerful cartels in Mexico – as a Foreign Terrorist Organization and as a Specially Designated Global Terrorist. On June 9, 2025, Los Chapitos was designated pursuant to U.S. counterterrorism and counternarcotic authorities for being owned, controlled or having purported to act on behalf of the Sinaloa Cartel.
OFAC reported that the new designations include Sumilab, S.A. de C.V., a chemical and laboratory equipment company that was previously designated by OFAC in 2023 for providing and shipping precursor chemicals and lab equipment to and for the Sinaloa Cartel and its associates. While Sumilab’s tactics have allegedly changed since 2023, OFAC reported that the company continues to supply precursor chemicals to support the cartel’s fentanyl production. Sumiliab is run by the Favela Lopez family and, as a result, OFAC designated several members of that family, including Victor Andres Favela Lopez and his brothers Francisco and Jorge Luis Favela Lopez. Several agriculture-related companies operated by the Favela Lopez family were also sanctioned, including Favelab, S.A. de C.V., Qui Lab, S.A. de C.V., and Storelab, S.A. de C.V. OFAC also sanctioned a Sinaloa Cartel-affiliated chemical broker Martha Emilia Conde Uragua and several Mexico-based businesses that she owns or controls.
The designations were imposed pursuant to the counterterrorism authority Executive Order 13224, as amended, and EO 14059 for having engaged in or materially contributing to the international proliferation of illegal drugs or their means of production. As a result of these designations, all property and interests in property of the designated person within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.
U.S. Department of Treasury Press Release | OFAC – Sinaloa Cartel/Los Chapitos Chart