US Sanctions Three Mexican Banks Over Fentanyl Links

The U.S. Treasury has sanctioned three Mexican financial institutions—CIBanco, Intercam Banco, and Vector Casa de Bolsa—for allegedly laundering millions for drug cartels and facilitating payments for fentanyl precursor chemicals. The sanctions, the first under the Fentanyl Sanctions Act and FEND Off Fentanyl Act, prohibit U.S. financial transactions with these banks, effectively cutting them off from the U.S. financial system. Treasury officials cited specific incidents, such as CIBanco opening accounts for cartel members and Intercam executives meeting with cartel leaders to discuss laundering schemes, with Vector also implicated in cartel-related activities. Mexican authorities have said they have not received conclusive evidence from the U.S. but pledged to act if proof is provided. The sanctions represent a major escalation in U.S. efforts to disrupt fentanyl trafficking and may further strain U.S.-Mexico trade relations. Collectively, the targeted banks manage over $22 billion in assets but are considered relatively small globally.