Mexico Fines US-Sanctioned Banks $9.8 Million for Compliance Failures

Mexico’s banking regulator has fined three financial institutions—CIBanco, Intercam Banco, and Vector Casa de Bolsa—a total of 185 million pesos ($9.8 million) for administrative non-compliance related primarily to anti-money laundering rules. These fines follow U.S. sanctions and designations under the FEND Off Fentanyl Act, which labeled the firms as primary money laundering concerns tied to drug cartels, particularly in fentanyl trafficking. Intercam received the largest fine for multiple violations, including failing to maintain an automated registry of unusual activity and facilitating illicit transfers, while CIBanco was penalized for record-keeping failures and processing large cash transactions. Despite these actions, Mexican authorities have stated there is no conclusive evidence proving illegal activity by the institutions and have criticized the U.S. for not providing sufficient proof. The U.S. Treasury has called out these institutions for enabling cartel operations and has mandated U.S. banks to cease certain transactions with them following a compliance period. Mexican regulators took control of the firms' operations in late June as a precautionary measure amid ongoing investigations.