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 the illicit trafficking of fentanyl and other synthetic opioids.
Actions Taken by the US Treasury Department
The US Treasury Department has prohibited certain fund transfers involving CIBanco, Intercam, and Vector. These actions are the first under the Fentanyl Sanctions Act (FEND), granting additional powers to combat money laundering associated with fentanyl and other synthetic opioids trafficked by cartels.
Context and Collaboration
These actions reflect the strong intergovernmental relationship between the US and Mexico, characterized by close collaboration and timely information exchange.
The prohibitions will take effect 21 days after publication in the Federal Register.
Financial Institutions Under Scrutiny
CIBanco, Intercam, and Vector have collectively played a significant 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 determined in a report that CIBanco is a primary concern for 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, the Cártel Jalisco Nueva Generación (CJNG), and the 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 the Sinaloa Cartel and the 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?
CIBanco and Intercam are Mexican commercial banks with total assets of over $7 billion and $4 billion, respectively. Vector is a brokerage firm managing nearly $11 billion in assets.
- What are they accused of?
They are accused of knowingly laundering millions of dollars for Mexican cartels and facilitating payments for acquiring precursor chemicals necessary for fentanyl production.
- What actions has the US Treasury Department taken?
The Treasury Department has prohibited certain fund transfers involving CIBanco, Intercam, and Vector under the Fentanyl Sanctions Act.
