WASHINGTON, D.C. — The U.S. Treasury Department moved across a wide front in mid-December, hosting high-stakes regulatory talks with Europe, finalizing tax rules aimed at boosting Tribal economies, warning consumers about a surge in holiday scams, and rolling out a series of sanctions targeting Mexican fuel-theft networks, Iran’s oil-export “shadow fleet,” and corruption-linked associates tied to Venezuela’s Maduro regime.
Treasury said the EU-U.S. Joint Financial Regulatory Forum met December 9–10 in Washington, D.C., as part of the regular dialogue between U.S. and European officials overseeing banks, capital markets, and financial stability. The forum was co-chaired by Treasury and the European Commission and drew U.S. participation from the Federal Reserve Board, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission. European participants included the European Central Bank and several EU supervisory bodies.
Treasury said the agenda centered on six areas: digital financial innovation, modernization and simplification of banking regulation and supervision, efforts to revitalize capital markets, updates on the Foreign Account Tax Compliance Act, U.S. G20 financial-sector priorities, and Europe’s push to strengthen the Savings and Investments Union and competitiveness. Officials said both sides emphasized ongoing engagement and said they would continue to discuss potential cross-border and extraterritorial effects of their respective policies. The next meeting is expected in mid-2026.
In domestic policy, Treasury and the Internal Revenue Service announced two final tax regulations described as pro-growth and deregulatory during a meeting of the Treasury Tribal Advisory Committee. The first implements the Tribal General Welfare Exclusion Act of 2014, confirming that Tribes may provide certain assistance to Tribal members and families that is excluded from federal income tax. Treasury said the regulation recognizes Tribal sovereignty to determine community needs and provides administrative flexibility for programs that may include mortgage assistance or grants for small business startups.
Treasury Secretary Scott Bessent said the rules provide clearer guidelines and reduce compliance costs. U.S. Treasurer Brandon Beach said a separate final regulation addresses long-running uncertainty about the tax status of business entities wholly owned by Tribes and chartered under Tribal laws, confirming those entities have the same federal income tax treatment as the Tribal government and are not subject to federal income tax. TTAC Chair W. Ron Allen, CEO of the Jamestown S’Klallam Tribe, said Tribes had sought clarity on general welfare for a decade and asked for confirmation of Tribal business tax status for three decades.
Treasury’s Office of Cybersecurity and Critical Infrastructure Protection also issued an annual holiday advisory warning consumers about a seasonal spike in cyber-enabled scams and online fraud. The office said fraud losses have climbed to tens of billions of dollars each year, and that scammers are increasingly using advanced technologies, including artificial intelligence, to impersonate trusted individuals and automate outreach. Cory Wilson, deputy assistant secretary for the office, urged consumers to verify unexpected messages or offers and act quickly if they believe they are being targeted.
On the enforcement side, Treasury’s Office of Foreign Assets Control announced several sanctions actions, including a December 17 designation of the Cartel de Santa Rosa de Lima, which Treasury said derives most of its revenue from fuel and oil theft in Mexico’s Guanajuato state. OFAC also sanctioned cartel leader Jose Antonio Yepez Ortiz, known as “El Marro.” Treasury described fuel theft, commonly called huachicol, as the most significant non-drug revenue source for Mexican cartels, alleging that stolen crude oil can be smuggled into the United States and mislabeled to evade scrutiny.
Treasury said the cartel’s conflict with the Cartel Jalisco Nuevo Generacion has contributed to escalating violence in Guanajuato and alleged the group has forged alliances with other criminal organizations. Bessent said Treasury is moving to cut cartel-linked actors off from the U.S. financial system.
A day later, on December 18, OFAC announced a new round of pressure on what Treasury described as Iran’s petroleum-export “shadow fleet,” targeting 29 vessels and associated management firms alleged to have transported Iranian petroleum and petroleum products through deceptive practices. Treasury also targeted an Egyptian businessman, Hatem Elsaid Farid Ibrahim Sakr, and companies linked to vessels alleged to have moved Iranian products. Treasury said the action was taken under an executive order aimed at Iran’s petroleum and petrochemical sectors and was tied to the administration’s “maximum economic pressure” approach.
On December 19, OFAC announced sanctions against several family members and associates tied to the Maduro-Flores family, which Treasury described as part of a broader effort to target corruption-linked networks supporting Venezuela’s Nicolás Maduro. Treasury said the action builds on a December 11 designation of Carlos Erik Malpica Flores and also targets family members of Panamanian businessman Ramon Carretero. Bessent said the department would continue targeting networks sustaining Maduro’s government.
Treasury also released Treasury International Capital data for October 2025, reporting a net TIC outflow of $37.3 billion when combining net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows. Treasury said foreign residents posted net purchases of $38.9 billion in long-term U.S. securities, including $49.0 billion in net private purchases offset by $10.1 billion in net sales by foreign official institutions. U.S. residents recorded net purchases of $21.4 billion in long-term foreign securities. Treasury said foreign holdings of U.S. Treasury bills increased by $21.8 billion, while banks’ own net dollar-denominated liabilities to foreign residents decreased by $76.3 billion.
The department said its December actions reflect parallel priorities of financial stability and market integrity, tax policy aimed at encouraging growth, consumer protection against fraud, and sanctions enforcement intended to disrupt illicit finance and constrain adversaries’ revenue streams.
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