Cartel-based foreign terrorist organization (“FTO”) theories rest on significantly weaker US constitutional and jurisdictional foundations, particularly when applied to foreign companies whose alleged conduct occurred abroad and lacked a meaningful US nexus.
In a recent Law360 article, written by Managing Director & Head of the Washington, DC Office David Raskin, the designation of drug cartels as FTOs is explored through the lens of legal risks that emerge indirectly when a company conducts business with an FTO – be it through a supplier, vendor, contractor, landlord or client.
According to David: “The real differentiator is facts. Companies that understand the fault lines in cartel-based terrorism theories and deliberately shape their operations, compliance, internal investigations and remediation procedures accordingly are best positioned to keep those risks contained —even in an enforcement environment that may, at the margins, favor U.S. companies over foreign ones.”
*Originally published in Law360 on 28 January 2026.
