Cartel-Linked Bank Loses License Amid Controversy

A bank linked to drug cartels, once supported by Mexican President Claudia Sheinbaum, has had its operating license revoked in Mexico and is now in the process of selling off its assets. This decision follows recent sanctions from the U.S. Treasury, which targeted the bank and two others for allegedly facilitating money laundering for drug cartels and transferring funds to China for fentanyl precursors.

This week, the Mexican Bank Savings Protection Association (IPAB) announced that CI Banco is liquidating its assets after the National Banking Commission of Mexico (CNBV) revoked its license. IPAB is working to safeguard customer savings during this transition.

According to prior reports, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) disclosed in June that CI Banco was part of a money laundering network associated with drug cartels.

The initial report from U.S. officials indicated that CI Banco had connections with the Beltrán Leyva Cartel, the Gulf Cartel, and the Jalisco New Generation Cartel. For instance, in 2023, it was noted that members of the Gulf Cartel opened an account used to launder $10 million. Authorities also claimed that CI Banco transferred $2.1 million from Mexico to China to cover the costs of fentanyl precursors.

Shortly after the U.S. Treasury’s revelations, Mexico’s Treasury and Public Credit Secretariat responded by requesting evidence of these allegations, asserting that it hadn’t found any signs of criminal wrongdoing by the banks, only administrative issues.

President Claudia Sheinbaum has repeatedly attempted to downplay these claims, mentioning that American authorities have not provided sufficient evidence to back their accusations. The sanctions from the U.S. government have sparked considerable debate in Mexico, especially since several politicians have ties to these financial institutions.