Mexico Seizes Control of Sanctioned Banks Amid U.S. Money Laundering Allegations

Mexico’s banking regulator announced it will temporarily take control of CIBanco, Intercam Banco, and brokerage firm Vector Casa de Bolsa after the U.S. Treasury sanctioned them for alleged involvement in money laundering tied to organized crime and fentanyl trafficking. The move aims to protect depositors and creditors while investigations continue.

The U.S. Treasury's sanctions effectively severed the firms from the American financial system, heightening concerns over the potential impact on Mexico’s banking sector due to close cross-border financial ties. CIBanco and Intercam Banco are medium-sized institutions, with assets of approximately $7 billion and $4 billion, respectively. Vector Casa de Bolsa, holding $11 billion in assets, is also affected.

All three institutions have denied the allegations. CIBanco issued a statement pledging cooperation with authorities and assuring clients their deposits remain safe under Mexican law. Vector CEO Edgardo Cantu told Reuters the firm had not received a subpoena and is ready to provide evidence to refute the accusations.

Mexican President Claudia Sheinbaum pushed back against the U.S. claims, stating no proof had been shared and affirming Mexico’s willingness to cooperate while defending its sovereignty. “We will collaborate, but we will not bend. We are no one’s piñata,” she said.

Mexico’s Banking and Securities Commission now has the authority to appoint new management for the banks to stabilize operations. Local financial experts warn of a possible systemic risk if the institutions collapse, despite official reassurances that the broader banking system remains stable.

The sanctions come amid growing U.S. efforts to crack down on financial networks linked to fentanyl trafficking. While Mexican authorities continue to challenge the legitimacy of the accusations, the regulatory intervention signals a serious response to protect financial integrity.