Mexico acted swiftly to mitigate the potential impact of U.S. Department of the Treasury sanctions imposed on three Mexican financial institutions, accused of helping launder millions of dollars for drug cartels.
The Financial Crimes Enforcement Network (FinCEN) identified two banks—CIBanco and Intercam Banco—and a brokerage firm, Vector Casa de Bolsa, as being of “primary concern” in relation to money laundering tied to illicit opioid trafficking. As a result, the sanctions effectively severed these institutions from the U.S. financial system.
In response, Mexico’s banking regulator — the Comisión Nacional Bancaria y de Valores (CNBV) — quickly intervened, temporarily assuming control of the institutions and assuring clients that their funds were secure.
U.S. authorities have not provided evidence to support their claims, which has led to criticism from Mexican President Claudia Sheinbaum.
Reports indicate that many customers have already withdrawn their funds from the three institutions, which Sheinbaum has said they “have every right to do.”
This week, CI Banco announced that Visa had informed them it would disconnect its platform for international transactions on cards issued by the bank. This has particularly impacted Mexican students abroad who rely on their debit and credit cards. There are no such restrictions within Mexican territory.
The future of the three institutions remains uncertain. S&P Global Ratings announced that it had downgraded both the long- and short-term issuer credit ratings for CIBanco, with some analysts warning that the bank now faces a real risk of operational closure. Meanwhile, Fitch Ratings stated that its downgrades of all three institutions “reflect the imminent negative impact on the entities’ business and financial profiles.”
On Wednesday, Sheinbaum downplayed the effects of the U.S. sanctions, emphasizing that they “represent a very small percentage of the entire national financial system.”
According to Reuters, CIBanco holds approximately US$7 billion in assets, Intercam US$4 billion, and Vector nearly US$11 billion.
All three institutions have issued statements denying any wrongdoing.
Sheinbaum pointed to the strong peso (currently 18.78 to the dollar) as a sign of international confidence in the Mexican economy, adding that “any problems that may have occurred with these three banks are being addressed and are under daily review.”