President-elect Trump has pledged to designate Mexican drug cartels as Foreign Terrorist Organizations (FTOs). Providing “material support” to an FTO is a violation of federal law, which includes giving any property, tangible or intangible, or service, to the FTO. Given the added emphasis on corporate compliance from enforcement agencies, including the role of vendors and subsidiaries, and because the relevant statutes have enforcement authorities for overseas conduct, U.S. businesses should begin a careful analysis of their exposure, assessing the risks of their industry.

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