Introduction
The Financial Crimes Enforcement Network (FinCEN) of the United States Department of the Treasury issued orders on Wednesday, identifying three Mexican financial institutions—CIBanco, Intercam, and Vector Casa de Bolsa—as a primary concern in money laundering related to illicit opioid trafficking.
Actions Taken by the US Treasury Department
The US Treasury has prohibited specific fund transfers involving CIBanco, Intercam, and Vector. These actions are the first under the Fentanyl Sanctions Act (FEND), granting additional powers to the US Treasury to combat money laundering associated with fentanyl and other synthetic opioids, including by Mexican cartels.
Context of US-Mexico Relations
These actions occur within the broader context of strong intergovernmental relations between the US and Mexico, characterized by close collaboration and timely information exchange.
The financial institutions are prohibited from conducting fund transfers to or from CIBanco, Intercam, Vector, or any virtual currency account or address managed by or on behalf of these institutions. These prohibitions will take effect 21 days after publication in the Federal Register.
Key Players and Their Roles
CIBanco, Intercam, and Vector are significant players in the financial sector, with CIBanco holding over $7 billion and Intercam over $4 billion in total assets. Vector manages nearly $11 billion in assets.
These institutions have been accused of playing a crucial and prolonged role in laundering millions of dollars for Mexican cartels and facilitating payments for acquiring precursor chemicals necessary for fentanyl production, according to the Treasury Department.
CIBanco’s Involvement
FinCEN identified CIBanco as a primary concern in money laundering related to illicit opioid trafficking due to consistent patterns of associations, transactions, and financial services that facilitated illicit opioid trafficking by Mexican cartels, including the Cártel de los Beltrán Leyva, CJNG, and Cártel del Golfo.
CIBanco is also accused of facilitating the acquisition of illicit precursor chemicals from China.
- In 2023, a CIBanco employee knowingly facilitated the creation of an account to allegedly launder $10 million on behalf of a Cártel del Golfo member.
- Between 2021 and 2024, CIBanco processed over $2.1 million in payments on behalf of Mexico-based companies to Chinese companies sending illicit precursor chemicals to Mexico.
Intercam’s Involvement
Intercam is accused of processing fund transfers in US dollars to finance the acquisition of illicit precursor chemicals from China on behalf of narcotrafficking organizations.
- In late 2022, Intercam executives met with alleged CJNG members to discuss money laundering schemes, including fund transfers from China.
- Between 2021 and 2024, a China-based company associated with an individual sending precursor chemicals from China to Mexico received over $1.5 million from Mexico-based companies through Intercam.
Vector’s Involvement
Vector is accused of facilitating cartel money laundering activities, including those of the Sinaloa Cartel and Cártel del Golfo.
- Between 2013 and 2021, a Sinaloa Cartel “mule” used various methods to launder $2 million from the US to Mexico through Vector.
- Between 2018 and 2023, Vector made over $1 million in payments on behalf of Mexico-based companies to Chinese companies.
Key Questions and Answers
- Who are CIBanco, Intercam, and Vector? These are Mexican financial institutions with significant assets under management. CIBanco holds over $7 billion, Intercam over $4 billion, and Vector manages nearly $11 billion.
- What are they accused of? They are accused of playing a crucial role in laundering millions of dollars for Mexican cartels and facilitating payments for acquiring precursor chemicals necessary for fentanyl production.
- What actions has the US Treasury taken? The Treasury has prohibited specific fund transfers involving these institutions and is taking action under the Fentanyl Sanctions Act to combat money laundering associated with fentanyl and other synthetic opioids.
