{"id":9454,"date":"2025-07-02T03:59:42","date_gmt":"2025-07-02T07:59:42","guid":{"rendered":"https:\/\/latinamericasecurityreport.com\/?p=9454"},"modified":"2025-07-02T03:59:42","modified_gmt":"2025-07-02T07:59:42","slug":"mexican-banks-face-cascading-consequences-following-u-s-sanctions","status":"publish","type":"post","link":"https:\/\/latinamericasecurityreport.com\/?p=9454","title":{"rendered":"Mexican Banks Face Cascading Consequences Following U.S. Sanctions"},"content":{"rendered":"
The Treasury Department building is seen, March 13, 2025, in Washington. (AP Photo\/Alex Brandon, File)<\/figcaption><\/figure>\n

 Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels.<\/p>\n

The U.S. Treasury Department<\/a><\/span> announced that it was blocking transactions between U.S. banks and Mexican branches of CIBanco and Intercam Banco, as well as the brokering firm Vector Casa de Bolsa. All three have fiercely rejected the claims.<\/p>\n

Mexico\u2019s President Claudia Sheinbaum<\/a><\/span> accused U.S. officials of providing no evidence to back their allegations, though the sanctions announcement made specific accusations on how money was transferred through the companies. It detailed how \u201cmules\u201d moved money through accounts in the U.S., as well as transactions carried out with Chinese companies that U.S. officials said provided materials to produce fentanyl.<\/p>\n

Mexico\u2019s banking authority has announced that it is temporarily taking over management of CIBanco and Intercam Banco to protect creditors.<\/p>\n

Sheinbaum said Tuesday that the Mexican government is doing everything within its power to ensure that creditors aren\u2019t affected, and said they were well \u201cwithin their right\u201d to pull their money from the banks.<\/p>\n

The U.S. Treasury Department said that the sanctions would go into effect 21 days after the announcement.<\/p>\n

Fitch Ratings has downgraded the three institutions and other affiliates, citing \u201canti-money laundering concerns\u201d and saying the drop \u201creflects the imminent negative impact\u201d that the sanctions could have.<\/p>\n

\u201cThe new ratings reflect the significantly more vulnerable credit profile of these entities in response to the aforementioned warnings, given the potential impact on their ability to meet their financial obligations,\u201d the credit rating agency wrote in a statement.<\/p>\n

On Monday, CIBanco announced that Visa Inc. had announced to them with little warning that it had \u201cunilaterally decided to disconnect its platform for all international transactions\u201d through CIBanco. The bank accused Visa of not complying with the 21-day grace period laid out by the sanctions.<\/p>\n

\u201cWe would like to reiterate that your funds are safe and can be reimbursed through our branch network,\u201d the bank wrote. \u201cWe reiterate to our customers that this was a decision beyond CIBanco\u2019s control.\u201d<\/p>\n

S&P Ratings also withdrew CIBanco from its ratings index, saying that it was because it had terminated its contracts with the bank following the U.S. Treasury announcement.<\/p>\n

– Megan Janetsky, AP News<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

 Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels. The U.S. Treasury Department announced that it was blocking transactions between U.S. banks and Mexican branches of CIBanco and Intercam Banco, as well as the…<\/p>\n","protected":false},"author":124,"featured_media":9456,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"fifu_image_url":"https:\/\/dims.apnews.com\/dims4\/default\/88e12a0\/2147483647\/strip\/true\/crop\/3128x2084+0+0\/resize\/980x653!\/format\/webp\/quality\/90\/?url=https%3A%2F%2Fassets.apnews.com%2Fd8%2F07%2F1d4bd1c68b4b9b31cda7c4dba2a8%2F7d16fe900141495688f7250bae052e2a","fifu_image_alt":"","footnotes":""},"categories":[189],"tags":[],"class_list":["post-9454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-borders-commerce"],"_links":{"self":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts\/9454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/users\/124"}],"replies":[{"embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9454"}],"version-history":[{"count":1,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts\/9454\/revisions"}],"predecessor-version":[{"id":9457,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/posts\/9454\/revisions\/9457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=\/wp\/v2\/media\/9456"}],"wp:attachment":[{"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/latinamericasecurityreport.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}