BREAKING: US Treasury names two Mexico banks as cartel money launderers; transactions with both lenders and a brokerage blocked

By AML Intelligence Correspondents

THE U.S. Treasury today identified three Mexico-based financial institutions as primary money launderers for drug cartels.

The two banks and a brokerage were named by the Financial Crimes Enforcement Network (FinCEN) as:

• 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)

The U.S. Treasury said it was blocking “certain transmittals of funds involving CIBanco, Intercam, and Vector.”

CIBanco and Intercam are significant commercial banks with over $7 and $4 billion in total assets, respectively.

Vector is a brokerage firm managing nearly $11 billion in assets.

All three are alleged to have collectively played a longstanding and vital role in laundering millions of dollars on behalf of the cartels and facilitating payments for the procurement of precursor chemicals needed to produce fentanyl.  

“Financial facilitators like CIBanco, Intercam, and Vector are enabling the poisoning of countless Americans by moving money on behalf of cartels, making them vital cogs in the fentanyl supply chain,” said Treasury Secretary Scott Bessent. 

“Through the first use of this powerful authority, today’s actions affirm Treasury’s commitment to using all tools at our disposal to counter the threat posed by criminal and terrorist organizations trafficking fentanyl and other narcotics,” he added.

These orders are the first actions by FinCEN pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act, which provide Treasury with additional authorities to target money laundering associated with the trafficking of fentanyl and other synthetic opioids by the cartels.

“Both the United States and Mexico are committed to financial systems with strong anti-money laundering/countering the financing of terrorism (AML/CFT) controls that effectively protect their citizens from the transnational illicit finance threats of cartels trafficking fentanyl and other drugs,” Treasury said in a statement. 

Here are the allegations made in today’s announcement by FinCEN:

CIBanco

As set out in the order, FinCEN determined that CIBanco, a foreign financial institution operating outside the United States, is of primary money laundering concern in connection with illicit opioid trafficking based on its long-standing pattern of associations, transactions, and provision of financial services to Mexico-based cartels, including the Beltran-Leyva Cartel, Jalisco New Generation Cartel (CJNG), and Gulf Cartel.  CIBanco has also facilitated the procurement of precursor chemicals from China for illicit purposes.

For example, a CIBanco employee in 2023 knowingly facilitated the creation of an account to purportedly launder $10 million on behalf of a Gulf Cartel member.  From 2021 through 2024, CIBanco processed over $2.1 million in payments on behalf of Mexico-based companies to China-based companies that shipped precursor chemicals to Mexico for illicit purposes. 

A copy of FinCEN’s CIBanco order is available here.

Intercam

As set out in the order, FinCEN determined that Intercam, a financial institution operating outside the United States, is of primary money laundering concern in connection with illicit opioid trafficking as a result of its long-standing pattern of associations, transactions, and provision of financial services that facilitate illicit opioid trafficking by Mexico-based cartels, including CJNG.  

Intercam has also processed USD-denominated funds transfers that finance the procurement of precursor chemicals from China on behalf of drug trafficking organizations for illicit purposes.

For example, Intercam executives in late 2022 met directly with suspected CJNG members to discuss money laundering schemes, including transferring funds from China.  From 2021 through 2024, a China-based company associated with an individual shipping precursor chemicals from China to Mexico for illicit purposes received over $1.5 million from Mexico-based companies through Intercam.

A copy of FinCEN’s Intercam order is available here.

Vector

As set out in the order, FinCEN determined that Vector, a financial institution operating outside of the United States, is of primary money laundering concern in connection with illicit opioid trafficking due to its facilitation of money laundering activities of Mexico-based cartels, including the Sinaloa Cartel and Gulf Cartel.  Vector has also facilitated the procurement of precursor chemicals from China for illicit purposes.

For example, from 2013 through 2021, a Sinaloa Cartel money mule employed various methods to launder $2 million from the United States to Mexico through Vector. 

Additionally, the order describes how from 2018 through 2023, Vector was found to have completed over $1 million in payments on behalf of Mexico-based companies to China-based companies known to have shipped precursor chemicals to Mexico for illicit purposes.  These payments illustrate significant failings in Vector’s AML/CFT controls. 

A copy of FinCEN’s Vector order is available here

As described in FinCEN’s orders, covered financial institutions are prohibited from engaging in transmittals of funds from or to CIBanco, Intercam, or Vector, or from or to any account or convertible virtual currency address administered by or on behalf of CIBanco, Intercam, or Vector. 

These prohibitions become effective 21 days after publication in the Federal Register.

Any questions about these orders should be directed to www.fincen