Cibanco States Its Operations in Mexico Are Unaffected

Cibanco States Its Operations in Mexico Are Unaffected

In a statement released on June 19, 2025, Cibanco, one of the three Mexico-based financial institutions recently sanctioned by the U.S. Treasury Department, has asserted that its operations in Mexico remain unaffected by the new restrictions. The sanctions, imposed under the FEND Off Fentanyl Act, aim to disrupt the financial networks behind fentanyl and other synthetic opioids [1].

Cibanco's statement follows the U.S. Treasury's designation of the bank as a primary money laundering concern linked to opioid trafficking. The designation prohibits U.S. financial institutions from conducting fund transfers to or from Cibanco, as well as transactions involving convertible virtual currencies associated with the bank [1].

The bank's statement emphasizes that the sanctions do not impact its day-to-day operations in Mexico. Cibanco maintains that it has robust compliance measures in place and that it is committed to preventing money laundering and financial crimes. The bank has also expressed its willingness to cooperate with Mexican and U.S. authorities to address any concerns [1].

The sanctions, which include CIBanco, Intercam, and Vector Casa de Bolsa, are part of a broader crackdown on transnational criminal organizations. The U.S. Treasury has stated that the measures aim to cut off financial support for the organizations driving the fentanyl crisis [1].

Despite the sanctions, the U.S. Treasury has noted that the actions are part of ongoing cooperation between U.S. and Mexican authorities. The Treasury emphasized that information sharing and cross-border enforcement remain core pillars of the two nations' anti-narcotics efforts [1].

The impact of the designations is expected to be severe for the targeted institutions. Any U.S. financial institution that continues to process transactions involving the named entities may face significant penalties, including loss of access to the U.S. banking system [1].

The designations also signal a more aggressive approach to attacking cartel finances at their source. While the Biden administration has not adopted Trump's proposal to formally designate Mexican cartels as foreign terrorist organizations, the recent sanctions suggest a more proactive stance against cartel finances [1].

For now, Cibanco and the other sanctioned institutions have not publicly responded to the designations. Mexican regulators and government officials are expected to weigh in as the full implications of the U.S. orders are assessed.

References:
[1] https://www.vallartadaily.com/us-accuses-cibanco-intercam-and-vector-banks-as-primary-money-laundering-sources-for-cartels-in-mexico/