MEXICO CITY—Mexican federal police say they have arrested a man they believe is a high-level financial operator for the Knights Templar drug cartel.

Juan Reza Sanchez is suspected of being a longstanding member of the cartel and its predecessor, the La Familia gang.

There is a 5 million-peso ($380,000) reward for his capture. The two gangs have been active in the western state of Michoacan, but Reza Sanchez was captured Tuesday in the north-central state of Queretaro.

Some members of the Knights Templar gang may have moved to other states to avoid a federal police offensive and vigilante movement in Michoacan.

Police say the 52-year-old Reza Sanchez had methamphetamines and an assault rifle with him when he was captured.