Treasury requires US financial institutions cut ties with Mexico-based banks tied to cartel money laundering

The Trump administration on Wednesday, for the first time, used a new authority to require U.S. financial institutions to cut ties with three Mexico-based banks for laundering money on behalf of cartels.

The Treasury Department identified cartels that have “exploited Mexico-based financial institutions to move money,” which Treasury Secretary Scott Bessent said enables the “vicious fentanyl supply chain that has poisoned countless Americans.”

TRUMP ADMIN SANCTIONS EL CHAPO’S CHILDREN, VIOLENT FENTANYL-TRAFFICKING CARTEL ARM LOS CHAPITOS

“Through the first use of a new powerful authority granted by Congress, Treasury will effectively require U.S. financial institutions to sever ties with 3 Mexico-based financial institutions for laundering money on behalf of cartels,” Treasury Secretary Scott Bessent said Wednesday.

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued orders identifying three Mexico-based banks—CIBanco S.A., Institution de Banca Multiple (CIBanco), Intercam Banco S.A., Institución de Banca Multiple (Intercam), and Vector Casa de Bolsa, S.A. de C.V. (Vector)—as being of “primary money laundering concern in connection with illicit opioid trafficking.

The orders also prohibit certain transmittals of funds involving CIBanco, Intercam, and Vector.  

US GOVERNMENT TAKING ‘DRAMATICALLY DIFFERENT APPROACH’ USING TERRORISM CHARGES AGAINST DRUG CARTELS: FBI ALUM

The orders are the first actions by FinCEN pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act. That act provides the Treasury Department with additional authorities to target money laundering associated with the trafficking of fentanyl and other synthetic opioids, including by cartels.

FinCEN said CIBanco and Intercam are commercial banks with more than $7 and $4 billion in total assets, respectively. Vector is a brokerage firm managing nearly $11 billion in assets.

FinCEN said the financial institutions have “played a longstanding and vital role in laundering millions of dollars on behalf of Mexico-based cartels and facilitating payments for the procurement of precursor chemicals needed to produce fentanyl.”

Bessent said that both the United States and Mexico are “committed to financial systems with strong anti-money laundering/countering the financing of terrorism controls.”

“These actions affirm Treasury’s commitment to using all tools at our disposal to counter the threat posed by terrorist organizations,” Bessent added.