US Treasury FinCEN Designates Two Mexican Banks & Brokerage Firm for Laundering Cartel Funds

“Socalj” for Borderland Beat

Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued orders identifying three Mexico-based financial institutions—CIBanco S.A., Institution de Banca Multiple (CIBanco), Intercam Banco S.A., Institución de Banca Multiple (Intercam), and Vector Casa de Bolsa, S.A. de C.V. (Vector)—as being of primary money laundering concern in connection with illicit opioid trafficking, and prohibit, respectively, certain transmittals of funds involving CIBanco, Intercam, and Vector.

These orders are the first actions by FinCEN pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act, which provide Treasury with additional authorities to target money laundering associated with the trafficking of fentanyl and other synthetic opioids, including by cartels.

CIBanco and Intercam, commercial banks with over $7 and $4 billion in total assets, respectively, and Vector, a brokerage firm managing nearly $11 billion in assets, have collectively played a longstanding and vital role in laundering millions of dollars on behalf of Mexico-based cartels and facilitating payments for the procurement of precursor chemicals needed to produce fentanyl.

“Financial facilitators like CIBanco, Intercam, and Vector are enabling the poisoning of countless Americans by moving money on behalf of cartels, making them vital cogs in the fentanyl supply chain,” said Secretary of the Treasury Scott Bessent. “Through the first use of this powerful authority, today’s actions affirm Treasury’s commitment to using all tools at our disposal to counter the threat posed by criminal and terrorist organizations trafficking fentanyl and other narcotics.”

These actions were taken within the broad context of the strong U.S.-Mexico inter-governmental relationship, the hallmarks of which include close collaboration and timely information exchange. Both the United States and Mexico are committed to financial systems with strong anti-money laundering/countering the financing of terrorism (AML/CFT) controls that effectively protect their citizens from the transnational illicit finance threats of cartels trafficking fentanyl and other drugs.

CIBanco

CIBanco is headquartered in Mexico City, Mexico, and as of 2024 had over 200 known branches in Mexico.

As set out in the order, FinCEN determined that CIBanco, a foreign financial institution operating outside the United States, is of primary money laundering concern in connection with illicit opioid trafficking based on its long-standing pattern of associations, transactions, and provision of financial services that facilitate illicit opioid trafficking by Mexico-based cartels, including the Beltran-Leyva Cartel, Jalisco New Generation Cartel (CJNG), and Gulf Cartel. CIBanco has also facilitated the procurement of precursor chemicals from China for illicit purposes.

For example, a CIBanco employee in 2023 knowingly facilitated the creation of an account to purportedly launder $10 million on behalf of a Gulf Cartel member.

From 2021 through 2024, CIBanco processed over $2.1 million in payments on behalf of Mexico-based companies to China-based companies that shipped precursor chemicals to Mexico for illicit purposes.

A copy of FinCEN’s CIBanco order is available here.

Intercam

Intercam is headquartered in Mexico City, Mexico, has over 70 branches across Mexico, and provides U.S. dollar (USD) correspondent banking services through at least two U.S. financial institutions. Intercam is wholly owned by a Puerto Rico, US based subsidiary bank Intercam Banco Internacional.

As set out in the order, FinCEN determined that Intercam, a financial institution operating outside the United States, is of primary money laundering concern in connection with illicit opioid trafficking as a result of its long-standing pattern of associations, transactions, and provision of financial services that facilitate illicit opioid trafficking by Mexico-based cartels, including CJNG.

Intercam has also processed USD-denominated funds transfers that finance the procurement of precursor chemicals from China on behalf of drug trafficking organizations for illicit purposes.

For example, Intercam executives in late 2022 met directly with suspected CJNG members to discuss money laundering schemes, including transferring funds from China.

From 2021 through 2024, a China-based company associated with an individual shipping precursor chemicals from China to Mexico for illicit purposes received over $1.5 million from Mexico-based companies through Intercam.

A copy of FinCEN’s Intercam order is available here.

Vector

Vector is the 9th largest brokerage firm in Mexico, worth $10.67 billion and has been around for over 50 years.

As set out in the order, FinCEN determined that Vector, a financial institution operating outside of the United States, is of primary money laundering concern in connection with illicit opioid trafficking due to its facilitation of money laundering activities of Mexico-based cartels, including the Sinaloa Cartel and Gulf Cartel. Vector has also facilitated the procurement of precursor chemicals from China for illicit purposes.

For example, from 2013 through 2021, a Sinaloa Cartel money mule employed various methods to launder $2 million from the United States to Mexico through Vector.

Additionally, the order describes how from 2018 through 2023, Vector was found to have completed over $1 million in payments on behalf of Mexico-based companies to China-based companies known to have shipped precursor chemicals to Mexico for illicit purposes. These payments illustrate significant failings in Vector’s AML/CFT controls.

A copy of FinCEN’s Vector order is available here

Combating drug cartels and stopping the flow of deadly drugs into the United States is one of the Trump Administration’s highest priorities. In January 2025, President Trump issued an Executive Order creating a process by which certain cartels and other organizations would be designated as Foreign Terrorist Organizations (FTOs) and/or Specially Designated Global Terrorists (SDGTs). Accordingly, in February, the U.S. Departments of the Treasury and State designated eight organizations, including six major Mexico-based drug cartels, as FTOs and SDGTs, including the CJNG, Gulf Cartel, and Sinaloa Cartel. Today’s actions complement these designations, as a further step to deny individuals and entities associated with cartels access to the U.S. financial system.

As described in FinCEN’s orders, covered financial institutions are prohibited from engaging in transmittals of funds from or to CIBanco, Intercam, or Vector, or from or to any account or convertible virtual currency address administered by or on behalf of CIBanco, Intercam, or Vector. These prohibitions become effective 21 days after publication in the Federal Register.