Mexico Intervenes in Two Banks After US Sanctions

Mexican financial authorities have enacted a temporary managerial intervention at CIBanco and Intercam Banco following U.S. Treasury Department accusations of money laundering for drug cartels and facilitating payments for fentanyl production. The intervention, led by the National Banking and Securities Commission (CNBV), specifically involves replacing the banks' management to protect depositors and maintain financial stability in light of U.S. sanctions. Both banks, which account for less than 1% of Mexico’s banking assets, deny the allegations. Mexican authorities assert that the U.S. Treasury has not provided convincing evidence. The intervention is not expected to threaten the stability of Mexico’s financial system, according to banking officials. Authorities continue to coordinate closely with U.S. regulators while emphasizing the protection of clients' interests.