Background on the Mexican Financial Institutions Involved
The United States Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), has extended the deadline for implementing measures that prohibit certain fund transfers to CIBanco, Intercam Banco, and Vector Casa de Bolsa. These Mexican financial institutions are accused of enabling money laundering operations related to fentanyl trafficking.
Second Extension of Implementation Deadline
This is the second time the US Treasury has postponed the implementation of these measures. The first delay was on July 9, with the previous extension set to expire on September 4. Now, the ban on specific fund transfers to CIBanco, Intercam, and Vector will commence on October 20, as announced by the US organization.
Details of the Extension
FinCEN stated, “Today, the Financial Crimes Enforcement Network (FinCEN) of the US Department of the Treasury extended the effective dates of orders issued on June 25, 2023, which prohibit certain fund transfers involving three Mexican financial institutions.”
They further explained, “The affected financial institutions now have until October 20, 2023, to implement the orders that prohibit certain fund transfers involving CIBanco, Intercam Banco, and Vector Casa de Bolsa, each of which FinCEN found to be a primary concern in money laundering related to the illicit trafficking of opioids.”
Reflecting Mexico Government’s Measures
In its statement, the Treasury Department mentioned that this extension reflects the ongoing measures taken by the Mexican government to address concerns raised in FinCEN’s orders, including temporarily maintaining the administration of affected institutions to promote regulatory compliance and prevent illicit funding.
The Treasury Department emphasized its continued close coordination with the Mexican government on these matters and careful consideration of all related facts and circumstances regarding order implementation.
Collaborative Efforts Between the US and Mexico
Jimmy Kirby, Deputy Director of FinCEN, commented, “The US Treasury and the Mexican government continue to advance their joint efforts to protect our financial institutions and economies from terrorist cartels and their money laundering activities.”
Kirby added, “This close collaboration is crucial in the Department of Treasury’s comprehensive efforts to safeguard the US financial system from illicit abuse and combat the financing of transnational criminal organizations and narcotraffickers.”
Key Questions and Answers
- What is the reason for this extension? The extension reflects the Mexican government’s ongoing efforts to address concerns raised by FinCEN regarding money laundering related to fentanyl trafficking.
- Which financial institutions are affected? CIBanco, Intercam Banco, and Vector Casa de Bolsa are the Mexican financial institutions involved in this situation.
- When will the measures take effect? The prohibition of certain fund transfers to these institutions will begin on October 20, 2023.
- Why is collaboration between the US and Mexico important? Close collaboration helps protect both nations’ financial systems from illicit activities and supports the fight against transnational criminal organizations.
