Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade

The order declares a national emergency based on the threat that international drug trafficking — including fentanyl, synthetic opioids, and Internet-based drug sales — poses to national security, foreign policy, and the U.S. economy. It authorizes the Secretary of the Treasury, in consultation with the Secretaries of State and Homeland Security and the Attorney General, to designate foreign persons who materially contribute to illicit drug proliferation and impose a menu of sanctions: blocking all U.S.-held property and assets, prohibiting financial transfers and loans, barring foreign exchange transactions, restricting equity or debt purchases, and suspending U.S. entry. The same framework applies to leaders, facilitators, and entities that support sanctioned persons, and to foreign persons subject to the Fentanyl Sanctions Act.

The order does not itself designate any specific individuals or entities — that authority is delegated to the Treasury Secretary going forward. Existing statutes, regulations, licenses, or contracts do not override the prohibitions. Prior notice to designated persons is explicitly waived, and the Treasury Secretary is authorized to issue implementing rules and submit recurring reports to Congress on the national emergency.

Foreign nationals and entities involved in producing, distributing, financing, or facilitating illicit drug trafficking — including cartel leaders, money launderers, and chemical precursor suppliers. U.S. financial institutions, government contractors, and persons are prohibited from doing business with designated parties.

Foreign drug traffickers and their networks can have U.S. assets frozen, be cut off from the American financial system, and be barred from entering the country. U.S. banks, firms, and individuals face legal liability if they transact with anyone Treasury designates under this framework.

Treasury leads implementation, consulting State, Justice, and Homeland Security before making designations. Once a foreign person is designated, asset blocks and financial prohibitions take effect immediately — no prior notice is required. State implements visa restrictions and Homeland Security handles entry bars under separately established procedures. The Federal Reserve and relevant agencies enforce financial-institution-specific sanctions. Treasury must submit recurring reports to Congress under the National Emergencies Act and IEEPA, creating an ongoing oversight loop.