Background on the Institutions Involved
Ten days have passed since the U.S. Department of Treasury, through the Financial Crimes Enforcement Network (FinCEN), identified CiBanco, Intercam, and Vector Casa de Bolsa as a “primary concern” regarding money laundering related to controlled substance trafficking. These Mexican financial institutions have been under intense scrutiny following these accusations.
Government Actions Taken
Hacienda to Temporarily Transfer Fiduciary Business
On the night of April 4, the Secretariat of Finance and Public Credit (SHCP) initiated a process to separate the fiduciary business of CiBanco and Intercam to Mexican development banking entities. This action aims to ensure the continued operation of the fiduciary businesses for the benefit of their beneficiaries and third parties, according to financial regulations and in close coordination with supervisory authorities.
Vector’s Safety Under Indeval Custody
Vector Casa de Bolsa has stated that its clients’ investments are secure as they are held by the Institute for the Deposit of Values (Indeval), which is part of the Mexican Stock Exchange (BMV). As a result, the Mexican Securities Brokers Association (AMIB) has clarified that Vector’s clients’ assets are not at risk.
CiBanco Fiduciary Assets to be Managed by Nacional Financiera
Following the temporary intervention of CiBanco by the National Banking and Securities Commission (CNBV), many Fibras (Real Estate Investment Trusts) fiduciary assets were left in a dilemma. However, legal experts and brokerage specialists have stated that these fiduciary operations will not be affected in their daily activities. Given the importance of CiBanco’s fiduciary assets, it is expected that Nacional Financiera will manage them.
Visa Disconnects CiBanco’s Platform for International Transactions
On the night of June 29, Visa decided unilaterally to disconnect its platform for all international transactions of cards issued by CiBanco, specifically CICash Multicurrency. This decision came after the U.S. Department of Treasury’s announcement on June 25.
Industry and Rating Agencies Response
Association of Banks of Mexico (ABM) Defends Institutions
Following the U.S. Treasury’s accusations, the ABM once again defended the financial institutions and stated that there are no restrictions for any other local banks, intermediaries, physical or legal persons, and/or national trusts to conduct operations with CiBanco and Intercam. The ABM clarified after a meeting on July 1 that there are no restrictions now or after July 21, 2025. CiBanco and Intercam can continue operating with different financial institutions, including acting as fiduciaries in various operations.
Fitch Ratings and HR Ratings Lower Credit Ratings
HR Ratings downgraded the ratings of CiBanco and Intercam Banco, placing them on negative watch. This came after the CNBV’s Governing Board decreed a temporary intervention of both banks on Thursday. HR Ratings mentioned that a rating decrease would occur if the temporary intervention implies payment defaults by CiBanco, Intercam, and/or their subsidiaries towards creditors.
Fitch Ratings also announced a downgrade of the credit ratings for CiBanco, Intercam Banco, and Vector Casa de Bolsa after being accused by the U.S. Treasury of alleged money laundering related to fentanyl trafficking.
Both rating agencies highlighted that the negative outlook on ratings reflects uncertainty about a more significant negative impact on the financial entities’ credit profiles.
