US Imposes Sanctions on Mexican Banks Linked to Drug Trafficking

The Biden administration has announced new restrictions on US financial institutions regarding three Mexican financial companies accused of facilitating money laundering for drug cartels. These measures are the first under the Fentanyl Sanctions Act and the FEND Off Fentanyl Act, targeting Mexican banks CIBanco and Intercam Banco, along with brokerage firm Vector Casa de Bolsa. Collectively, these entities hold approximately $22 billion in assets.

According to the Treasury Department, these banks have been exploited by drug cartels to transfer illicit funds, supporting the fentanyl supply chain responsible for poisoning many Americans. Treasury Secretary Scott Bessent stated that, through Congress’s new authorities, US banks are now required to sever ties with these institutions for their role in laundering cartel money. The move underscores a commitment to combat financial activities linked to terrorism and organized crime across borders.

Investigations by the Financial Crimes Enforcement Network (FinCEN) revealed longstanding links between these Mexican firms and organizations like the Jalisco New Generation Cartel (CJNG) and the Gulf Cartel. Between 2021 and 2024, CIBanco and Intercam processed over $3.6 million in transactions involving fentanyl precursor chemicals from China, shipped to Mexico for illegal use. FinCEN also identified financial ties involving high-level cartel operatives, including bribes paid to corrupt officials.

Further, Vector Casa de Bolsa has a history of illicit activity dating back to 2013, having processed over $17 million in suspicious wire transfers to Chinese companies involved in drug trafficking. Notably, some transactions facilitated the shipment of fentanyl precursors, crucial for illicit drug manufacture. FinCEN’s investigation disclosed that Vector was linked to bribes to a former Mexican law enforcement official convicted of corruption.

The Treasury Department intends to prevent those associated with designated foreign terrorist organizations from accessing the US financial system, aiming to cut off financial support for organized crime and terror groups involved in drug trafficking.