Background on the Institutions Involved
CiBanco, Intercam, and Vector Casa de Bolsa are three Mexican financial institutions currently under investigation by the Financial Crimes Enforcement Network (FinCEN) for alleged money laundering activities related to drug trafficking. These institutions have been identified as “a matter of concern” by FinCEN, prompting various actions and reassurances from Mexican authorities.
Government Actions and Reassurances
Hacienda Transfers Fideicomisos Temporarily:
On April 4, the Mexican Secretariat of Finance and Public Credit (SHCP) initiated a process to separate the fiduciary business of CiBanco and Intercam from development bank entities. This move aims to ensure the continuity of operations for the fideicomisos (trusts) currently managed by these institutions, benefiting their fideicomitentes (beneficiaries), beneficiaries, and third parties involved.
The transfer will be carried out under existing financial regulations and in close coordination with supervisory authorities.
Vector’s Safety Under Indeval Custody:
Vector Casa de Bolsa has assured its clients that their investments are secure, as they are held by the Instituto para el Depósito de Valores (Indeval), which is part of the Mexican Stock Exchange (BMV). The Association of Mexican Brokers (AMIB) has echoed this sentiment, stating that Vector’s clients’ assets are not at risk.
CiBanco Fideicomisos to be Managed by Nacional Financiera:
Following the temporary intervention by the National Banking and Securities Commission (CNBV), a significant number of CiBanco’s investment real estate trusts (Fibras) faced the dilemma of seeking modifications. However, legal experts and industry professionals have stated that these trusts’ daily operations will not be affected.
Given their importance, it is expected that Nacional Financiera will manage the fideicomisos administered by CiBanco, according to sources consulted by El Economista.
Visa Disconnects CiBanco’s Platform for International Transactions:
On June 29, Visa decided to disconnect its platform for all international transactions involving cards issued by CiBanco, specifically CICash Multicurrency. This decision came after the U.S. Treasury Department’s announcement on June 25.
CiBanco confirmed Visa’s action but reassured its clients that their funds are safe and can be refunded through their branch network.
Associations’ Stances
Asociación de Bancos de México (ABM) Defends Institutions:
Following the U.S. Treasury Department’s accusations, the ABM once again defended the financial institutions and stated that there are no restrictions preventing any other bank, intermediary, physical or legal person, or national trusts from conducting operations with CiBanco and Intercam.
After a meeting on July 1, the apex banking organization emphasized that no such restrictions exist now or after July 21, 2025. CiBanco and Intercam can continue operating with financial institutions other than those in the U.S., including fiduciary operations.
Credit Rating Agencies Downgrade Ratings
HR Ratings and Fitch Ratings Lower Ratings:
After the CNBV’s Governing Board decreed the temporary intervention of both CiBanco and Intercam on Thursday, HR Ratings downgraded the ratings for both institutions, placing them under negative outlook.
HR Ratings explained that a rating decrease would occur if the temporary intervention led to payment defaults by CiBanco, Intercam, or their subsidiaries towards creditors.
Fitch Ratings also adjusted downward the credit ratings for CiBanco, Intercam Banco, and Vector Casa de Bolsa following accusations by the U.S. Treasury Department for alleged money laundering related to fentanyl trafficking.
Fitch Ratings explained that the negative outlook on ratings reflects uncertainty about a more significant negative impact on the financial entities’ credit profiles.
