The United States has formally designated the Venezuela-based Cartel de los Soles as a Foreign Terrorist Organization, blocking its assets under U.S. jurisdiction and prohibiting any transactions with individuals linked to the group.
The decision took effect after publication in the Federal Register.
U.S. Secretary of State Marco Rubio said Cartel de los Soles, along with Tren de Aragua and the Sinaloa Cartel, is responsible for hemisphere-wide violence and drug trafficking into the US and Europe.
The Treasury Department had already sanctioned the group in July.
Washington accuses Venezuelan President Nicolas Maduro and senior officials of leading the cartel and links Maduro to drug trafficking.
The U.S. has set a $50 million reward for his alleged ties to the organization and to terrorist groups. Venezuela rejected the designation, calling the cartel “nonexistent” and the US move a “ridiculous fabrication.”
Foreign Minister Yvan Gil said Washington is inventing accusations to justify “illegitimate and illegal intervention.”
Caracas accused the US of pursuing “regime change” plans and said previous US “attacks” had also failed.
The designation comes as the US expands military operations across Latin America, deploying Marines, warships, submarines and aircraft.
Caracas has mobilized 4.5 million militia members in response.
Despite heightened tensions, President Donald Trump has told advisers he plans to speak directly with Maduro, according to US officials cited by Axios.
No date has been set yet.
In a separate move, Trump signed an executive order directing the State and Treasury departments to assess whether certain Muslim Brotherhood chapters, including those in Lebanon, Egypt and Jordan, should be designated as Foreign Terrorist Organizations or Specially Designated Global Terrorists.
The agencies must report back and act within 45 days if designations are deemed appropriate.