US Treasury Targets Mexican Banks for Money Laundering
The US Treasury has identified and sanctioned two Mexican banks along with one brokerage for their alleged involvement in laundering substantial sums linked to various cartels.
This week, the Financial Crime Enforcement Network (FINCEN) of the Treasury Department issued a range of orders designating three Mexican financial institutions as significant concerns for money laundering. This action follows new authorities granted under the Fentanyl Act.
The identified banks, Cibanco SA and Intercam Banco SA, have assets of approximately $7 billion and $4 billion, respectively. The brokerage firm, Vector Casa de Bolsa, manages around $11 billion. According to the Treasury, these institutions have played a critical, long-term role in laundering millions for Mexican drug cartels and have facilitated payments for precursors used in fentanyl production.
“Entities like Cibanco, Intercam, and Vector have effectively contributed to countless American addictions by transferring funds on behalf of cartels, functioning as vital components in the fentanyl supply chain,” the statement noted.
Specifically regarding Cibanco, it has reportedly collaborated with the Beltrán-Leyva Cartel, the Jalisco New Generation Cartel (CJNG), and the Gulf Cartel. Authorities pointed out that in 2023, members of the Gulf Cartel attempted to set up an account to launder $10 million and moved $2.1 million to Chinese companies between 2021 and 2024 for fentanyl precursor payments.
As for Intercam, Treasury officials allege that bank representatives met with CJNG leaders in 2022 to strategize on a money laundering operation. They have been implicated in transferring $1.5 million to Chinese firms from 2021 to 2024 to finance fentanyl precursor purchases.
In the case of Vector, authorities claim that from 2013 to 2021, a money manager associated with the Sinaloa cartel utilized the brokerage to transfer $2 million from the US to Mexico. Additionally, between 2018 and 2023, the firm is said to have transferred $1 million from Mexico to China for payments related to fentanyl precursor substances.
