U.S. government imposes financial penalties on three Mexican money institutions, alleging ties to drug trafficking organizations
Feds Crack Down on Mexican Financiers Accused of Laundering Cartel Money
In a bold move, the Trump administration has slapped sanctions on three Mexican financial institutions — CIBanco, Intercam Banco, and Vector Casa de Bolsa — over allegations they've been laundering cash for drug cartels funneling fentanyl into the US.
This is the first time the Fentanyl Sanctions Act and the FEND Off Fentanyl Act have been activated, targeting these money mules and the brokerage firm Vector Casa de Bolsa, whose combined assets total a whopping $22 billion, as per the Treasury Department.
Treasury Secretary Steve Mnuchin took to X to announce, "Cartels have exploited Mexico-based financial institutions to move money, enabling the deadly fentanyl supply chain that has poisoned countless Americans."
These sanctions sever ties between these Mexican financial entities and US financial institutions, effectively shutting them out of our financial system. Mnuchin added, "We'll use all tools at our disposal to counter the threat posed by terrorist organizations."
Investigations carried out by the Treasury Department's Financial Crimes Enforcement Network (FinCEN) found a long-standing relationship between CIBanco, Intercam, and several drug trafficking groups, including CJNG and Gulf Cartel.
Between 2021 and 2024, these two banks processed over $3.6 million in purchases of fentanyl precursor chemicals from China, destined for illicit purposes. FinCen's probe further accused Intercam executives of meeting cartel members and discussing money laundering schemes, while a CIBanco employee knowingly set up an account to launder $10 million for a Gulf Cartel member.
Vector's ties with drug cartels date back to 2013, with FinCen discovering that a Sinaloa Cartel "money mule" laundered at least $2 million from the US to Mexico through the brokerage firm. In 2021 alone, Vector remitted over $17 million in suspicious wire transfers to China-based companies linked to an international drug trafficking organization. Since 2019, Vector processed fund transfers to Chinese companies that shipped fentanyl precursor chemicals to Mexico.
Evidence also suggests that Vector processed "bribes" paid by the Sinaloa Cartel to a former top Mexican law enforcement official, who was later convicted of corruption charges.
The Trump administration aims to deny anyone associated with Mexican drug cartels access to the US financial system, effectively disrupting the flow of cash needed for their deadly operations.
- The sanctions imposed by the Trump administration on CIBanco, Intercam Banco, and Vector Casa de Bolsa, following allegations of laundering cartel money, fall under the 'crime-and-justice' and 'general-news' categories.
- These sanctions, which involve severing ties between the Mexican financial entities and US financial institutions, can also be linked to the 'banking-and-insurance' and 'finance' sectors.
