The Trump administration announced on Wednesday that it has barred US banks from engaging with three Mexican financial institutions due to suspicions they were facilitating money laundering for drug cartels.
The Ministry of Finance stated that the sanctions targeted Cibanco, Intercam Banco, and Vector Casa de Bolsa, as part of the enforcement of the Fentanyl Sanctions Act.
In a post on X, Treasury Secretary Scott Bescent commented that “the cartel exploited Mexico-based banks to transfer money, supporting a harmful fentanyl supply chain that has harmed countless Americans.”
Bescent further emphasized that, using new powers granted by Congress, the Treasury Department is mandating US financial institutions to sever ties with these Mexican entities involved in laundering money for the cartel. “Both the US and Mexico are dedicated to a financial framework that robustly counters money laundering and terrorism financing, and these steps reinforce our commitment to addressing threats from terrorist organizations,” Bescent added.
The sanctions followed a determination from the Financial Crime Enforcement Network (FINCEN) under the Ministry of Finance, which noted that Cibanco, Intercam, and Vector were essential in facilitating transactions on behalf of the cartel, thereby integrating them into the fentanyl supply chain.
A study from FINCEN revealed long-standing connections and financial service offerings between Cibanco, Intercam, and various Mexican drug trafficking organizations, notably the Jalisco New Generation Cartel (CJNG) and the Gulf Cartel. From 2021 to 2024, these banks reportedly processed over $3.6 million in purchases of fentanyl precursor chemicals shipped from China to Mexico for illicit use.
Moreover, FINCEN alleged that executives at Intercam physically met with CJNG members in 2022 to discuss laundering operations, which included fund transfers from China. Cibanco employees allegedly facilitated the establishment of accounts to launder $10 million on behalf of a Gulf Cartel member in 2023.
FINCEN’s investigation traced Vector’s interactions with drug cartels as far back as 2013, discovering that members of the Sinaloa Cartel had laundered around $2 million from the US to Mexico through the brokerage. In 2021, Vector reported conducting over $17 million in suspicious wire transfers to multiple China-based entities tied to an international drug lord.
Since 2019, the Vector Processing Fund has allegedly forwarded fentanyl precursor chemicals to over 20 companies in China shipping such substances to Mexico.
“Based on private information and the total funds processed by Vector over the years, these transactions are likely contributing to illegal opioid trafficking from Mexico,” stated the Ministry of Finance Bureau.
FINCEN further noted that Vector had been involved in payments linked to the Sinaloa cartel’s dealings with a former Mexican law enforcement officer who was convicted of corruption in 2023.
The Treasury Department’s objective is to restrict individuals associated with Mexican drug cartels, classified as foreign terrorist organizations and/or specially designated global terrorists, from accessing the US financial system.
