The recent vow by President Donald Trump to ‘wage war’ on drug cartels has led to significant accusations against three Mexican financial institutions.
The U.S. Department of the Treasury announced sanctions against CiBanco, Intercam Banco, and Vector Casa de Bolsa, alleging that these entities were involved in laundering millions of dollars in drug trafficking funds, particularly related to fentanyl and other synthetic opioids that flood into the United States.
Mexican President Claudia Sheinbaum responded with indignation, stating, ‘There’s no proof, just words.’ She emphasized the necessity of evidence to substantiate the claims of money laundering.
Sheinbaum noted, ‘Therefore, we don’t deny it or accept it,’ reflecting a clear defiance against the U.S. allegations.
The sanctions issued by the Treasury are described as ‘historic,’ and Treasury Secretary Scott Bessent asserted that they exemplify a firm commitment to combat criminal and terrorist threats.
As a result of these sanctions, U.S. financial institutions will be largely barred from interacting with the three sanctioned entities, effectively isolating them from access to the U.S. market, the largest in the world.
The accusations state that these financial institutions facilitated transactions for Mexican drug cartels and enabled payments for the procurement of precursor chemicals essential for producing fentanyl.
Authorities in the U.S. claim that Mexican cartels rely on chemicals imported from China to manufacture fentanyl in secret facilities before smuggling it into the United States.
Such black-market fentanyl has contributed to the staggering toll of tens of thousands of overdose deaths across the U.S., prompting heightened scrutiny from law enforcement.
President Sheinbaum has generally been praised for her methodical and diplomatic approach with the Trump administration, notwithstanding numerous disagreements.
Among these disagreements was Trump’s imposition of a 25% tariff on select Mexican imports, designed to pressure Mexico into intensifying its efforts against fentanyl smuggling.
However, Sheinbaum’s reaction to the recent sanctions hinted at escalating tensions, stating, ‘We aren’t anyone’s piñata.’ She reiterated, ‘We coordinate, collaborate — we have said this many times — but we will not subordinate ourselves.’
In the context of Mexico’s economy, analysts have described the Treasury’s actions as potentially detrimental to the financial landscape of the country.
While past sanctions have targeted individuals and smaller companies, targeting banks on this scale is uncommon and raises serious concerns about the implications for the financial system.
Carlos Mota, a columnist for El Heraldo de México, observed, ‘The accusation is the gravest news for the Mexican financial system in decades and represents a point of no return for these three firms.’
He added, ‘The entire Mexican financial system entered into shock.’ Despite the gravity of these allegations, the U.S. Treasury department maintained that the actual disruptions would be minimal, highlighting that none of the sanctioned firms are dominant players within the Mexican financial market.
The institutions involved, which include two banks and a brokerage house, all medium-sized entities, have categorically denied any wrongdoing.
Vector Casa de Bolsa, which manages approximately $11 billion in assets, stated it ‘categorically rejected any imputation that compromises its institutional integrity.’
The case against Vector particularly stands out due to its connections with Alfonso Romo, a prominent businessman and former chief of staff for ex-President Andrés Manuel López Obrador, who is viewed as a mentor to Sheinbaum.
Romo’s role as honorary president and co-founder of Vector has come under scrutiny in light of the Treasury’s allegations.
Reports suggest that from 2013 to 2016, a suspect linked to the Sinaloa cartel transferred over $1.5 million to Vector.
Additionally, the Treasury accused Vector of involvement in numerous payouts to Genaro García Luna, Mexico’s former top security official, who was convicted in 2023 for his collusion with the Sinaloa cartel.
The sanctions are set to take effect in 21 days and represent a civil action, focusing on these institutions rather than criminal charges.
image source from：latimes
