The US Department of the Treasury has imposed sanctions on a Mexican timeshare complex and a business network connected to the Jalisco New Generation Cartel (CJNG) as part of a broader effort to disrupt the cartel's funding sources. Kovay Gardens, a timeshare resort located in Puerto Vallarta, Jalisco, along with five individuals and 17 associated enterprises, were designated under these sanctions for their alleged participation in fraudulent timeshare operations. This action indicates a heightened focus by US authorities on the CJNG, which has been characterized as a "brutally violent terrorist organization" as it diversifies its illicit revenue streams beyond drug trafficking.

US authorities identified Puerto Vallarta as a strategic stronghold for the CJNG, which has reportedly expanded its operations into various forms of organized crime. The sanctions reflect a growing international effort to combat the financial underpinnings of the cartel, which has been involved in activities ranging from drug trafficking to timeshare fraud and fuel theft. The targeting of legitimate businesses associated with the cartel underscores the US government's commitment to eradicating organized crime networks that operate not only in Mexico but have implications for the United States and its neighboring countries.

This latest move by the US Treasury is part of a comprehensive strategy to financially weaken the CJNG and disrupt its operational capabilities. By targeting its business ventures, such as Kovay Gardens, the Treasury aims to cut off funding that facilitates the cartel's violent activities. This could potentially lead to a significant decrease in the cartel’s influence in the region and encourage a coordinated response with Mexican authorities to combat organized crime effectively.