Background on CIBanco and the Lawsuit
CIBanco, a Mexican financial institution, recently withdrew its lawsuit against the U.S. Department of Treasury and Financial Crimes Enforcement Network (FinCEN). The decision comes after CIBanco faced negative impacts on its business due to allegations of money laundering operations in June.
Key Players and Law Firms Involved
The withdrawal was announced in a document dated August 21, signed by White & Case, a law firm separate from those who initially filed the lawsuit. The original complaint was handled by Álvarez & Marsal México, acting as the provisional administrator of CIBanco.
Reasons for Withdrawal
CIBanco voluntarily withdrew the lawsuit, according to the document, while reserving its rights. The defendants have yet to submit their response or request for summary judgment.
FinCEN’s Order and Its Impact
The withdrawal follows FinCEN’s August 19 order, which modified the June 25 order prohibiting certain fund transfers involving CIBanco. This previous order had already been amended by a July 11, 2025, order. FinCEN extended the prohibition’s enforcement date to October 20, 2025.
Provisional Administrator’s Authority
The provisional administrator of the plaintiff, officially appointed by Mexico’s Institute for Bank Savings Protection (IPAB), holds the board of directors’ and CEO’s powers, along with full authority to manage and represent CIBanco, including litigation direction.
Key Questions and Answers
- What was the lawsuit about? CIBanco sued the U.S. Department of Treasury and FinCEN, alleging that the agencies’ actions negatively affected its business due to money laundering accusations.
- Who were the law firms involved? Álvarez & Marsal México initially handled the case for CIBanco, while White & Case represented them in the withdrawal announcement.
- Why did CIBanco withdraw the lawsuit? CIBanco withdrew the case voluntarily, reserving its rights. The defendants have not yet responded or requested a summary judgment.
- What changes did FinCEN’s order bring? FinCEN modified the June 25 order, which prohibited certain fund transfers involving CIBanco. The new enforcement date for the prohibition is October 20, 2025.
- Who appointed the provisional administrator? The provisional administrator was officially appointed by Mexico’s Institute for Bank Savings Protection (IPAB) to manage CIBanco’s affairs, including litigation.
