Background on Key Players and Relevance
The Asociación de Bancos de México (ABM) is the leading organization representing Mexico’s banking sector. It comprises numerous commercial banks operating in México, with a combined network of over 40,000 branches and ATMs. The recent developments involve two specific institutions: CIBanco and Intercam.
CIBanco, or Banco de Comercio, is a mid-sized private bank established in 1967. It offers a range of financial services, including retail and corporate banking, investment banking, and treasury services. Intercam, on the other hand, is a smaller financial institution founded in 1985. It specializes in consumer banking, wealth management, and financial advisory services.
The relevance of these institutions stems from the recent accusations by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) regarding alleged money laundering activities. These accusations led to temporary interventions by Mexico’s National Banking and Securities Commission (CNBV) in CIBanco and Intercam.
ABM’s Statement on the Matter
In response to these developments, ABM issued a statement clarifying that there are no restrictions preventing other local financial institutions from conducting operations with CIBanco and Intercam.
According to ABM, this means that CIBanco and Intercam can continue their business activities with financial institutions outside the United States, including acting as fiduciaries in relevant transactions.
Details of ABM’s Statement
- No restrictions: ABM emphasized that no other national banks, intermediaries, physical or legal persons, or trusts are restricted from conducting operations with CIBanco and Intercam.
- Ongoing contractual obligations: ABM highlighted that all existing contractual obligations, including margin calls, collateral compliance, derivative contracts, and other credits, remain in force and must be adhered to as per the agreed terms.
- Temporal and operational intervention:
- The Mexican authorities’ intervention is both temporary and operational, aiming to ensure the continuous daily operations of CIBanco and Intercam while safeguarding the interests of depositors, clients, and the financial system.
- The Bank of Mexico (Banxico) confirmed that the system has ample liquidity, ensuring banks’ operational capacity to meet their commitments and maintain financial market stability.
ABM’s Commitment and Current Banking Situation in Mexico
ABM reaffirmed its commitment to maintaining open communication with national and international authorities as well as clients in the banking sector. They will continue channeling concerns from the gremio to relevant regulators.
ABM also stated that Mexico’s banking system remains robust, with strong regulation aligned to the highest international standards for preventing illicit activities. The organization emphasized their dedication to working closely with authorities to ensure financial stability and maintain the confidence of depositors, users, and investors.
