Background on the Institutions Involved
CIBanco, Intercam, and Vector are Mexican financial institutions that have recently come under scrutiny due to allegations of money laundering by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
U.S. Allegations and Lack of Evidence
FinCEN, a bureau of the U.S. Department of the Treasury, issued orders identifying CIBanco, Intercam, and Vector as “primary concerns” in money laundering related to fentanyl trafficking. These orders prohibit certain fund transfers involving these Mexican institutions.
However, the U.S. Department of Treasury has not provided concrete evidence to support these allegations, according to Mexico’s Secretariat of Finance and Public Credit (SHCP).
Mexico’s Response
In response to the U.S. allegations, Mexico’s Secretariat of Finance and Public Credit (SHCP), led by Edgar Amador Zamora, stated that they have requested evidence from the U.S. Department of Treasury to verify any links between these institutions and illicit activities.
The SHCP reported that the U.S. Department of Treasury only provided information about electronic transfers between these institutions and legally established Chinese companies, which Mexico can verify.
Mexican Regulatory Measures
Despite the lack of concrete evidence from the U.S., Mexico’s National Banking and Securities Commission (CNBV) has initiated a review process of the mentioned institutions under Mexico’s national regulations.
Upcoming Legislative Changes
On the same day, Mexico’s Senate will discuss amendments to the Federal Law for the Prevention and Identification of Transactions with Illicit Origins, which will expand vulnerable activities, broaden the concept of controlling beneficiary, and include preventing “terrorism financing” among other actions.
SHCP’s Stance
The SHCP emphasized that if they obtain compelling evidence of illicit activities by these financial institutions, they will take appropriate legal action. However, as of now, no such evidence has been provided.
Contextual Significance
These developments highlight the ongoing collaboration between the U.S. and Mexico in combating financial crimes, particularly drug trafficking and money laundering. The U.S. has been leveraging its Fentanyl Sanctions Act and FEND Off Fentanyl Act to strengthen its efforts against money laundering associated with fentanyl and other synthetic opioids, even by drug cartels.
Key Questions and Answers
- What are the allegations against CIBanco, Intercam, and Vector? The U.S. Department of Treasury’s FinCEN has accused these Mexican financial institutions of money laundering related to fentanyl trafficking.
- Has the U.S. provided evidence? No, the U.S. Department of Treasury has not provided concrete evidence to support these allegations, according to Mexico’s SHCP.
- What is Mexico’s response? Mexico’s Secretariat of Finance and Public Credit (SHCP) has initiated a review process by the National Banking and Securities Commission (CNBV) under Mexico’s national regulations.
- What legislative changes are being discussed? Mexico’s Senate is discussing amendments to the Federal Law for the Prevention and Identification of Transactions with Illicit Origins, which will expand vulnerable activities, broaden the concept of controlling beneficiary, and include preventing “terrorism financing”.
- What is the significance of these developments? These events underscore the U.S.-Mexico collaboration in combating financial crimes, with the U.S. employing its Fentanyl Sanctions Act and FEND Off Fentanyl Act to tackle money laundering associated with fentanyl and other synthetic opioids, including those facilitated by drug cartels.
