Introduction
The recent accusations of money laundering against three Mexican financial institutions—CIBanco, Intercam, and Vector—by the U.S. Department of the Treasury due to alleged connections with drug cartels have created a significant stress event for the rest of both banking and non-banking entities in Mexico, according to Fitch Ratings.
Impact of Money Laundering Allegations
Fitch Ratings highlighted that the risks associated with suspected money laundering and its consequences can rapidly erode the viability and operational continuity of a financial entity, undermining its business profiles and ultimately its revenues along with the confidence of consumers, investors, and counterparties.
- Business Distortion: The consequences may include asset freezing, transaction reversals, and legal uncertainty that could distort the financial entities’ business activities.
- Contagion Risk: If not contained, this risk could undermine confidence in the entire financial system, pressuring cross-border capital flows, increasing compliance costs, and potentially leading to customer exodus.
Current Impacts and Responses
Fitch mentioned that despite the Treasury Department’s accusations and subsequent temporary intervention by local regulators, these institutions continue as going concerns and are not subject to automatic liquidation.
However, starting July 21, 2025, U.S. financial institutions will be prohibited from conducting transactions with or from these entities. Key counterparties, including large U.S., local, and other market participants, have already started severing relationships and withdrawing funds, putting pressure on liquidity.
“Mexican fibras importantes are seeking substitutes for CIBanco as fiduciary, while Mexico’s Secretaría de Hacienda y Crédito Público (SHCP) has announced the temporary transfer of CIBanco and Intercam’s fiduciary businesses to local development banks to ensure operational continuity,” Fitch explained.
Limited Market Share Minimizes Disruption Risk
Fitch Ratings argued that both banks represent around 1.5% of the total assets and less than 1.0% of loans and deposits in Mexico’s banking system as of April 2025.
Their small market shares in credit and deposits, concentrated business models, and solid capital and liquidity positions limit the risk of broader disruption.
“Between 2021 and 2024, Intercam Banco and CIBanco were among the top ten market players in Mexico’s foreign exchange market, with a combined share of approximately 18% of private non-financial sector volume operations. Other banks could absorb their foreign exchange brokerage activities, as all banks can operate in this segment, though risk appetite varies among sector entities,” Fitch stated.
As of December 2024, Vector Casa de Bolsa’s market share was less than 1.0% of the total number of investment accounts and around 2.0% of custody transactions.
“Although its business model is relatively diversified, the current situation may negatively impact several lines of business due to reputational risk, potentially causing customer migration to competitors,” Fitch concluded.
