Introduction to FinCEN’s Concerns
The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has expressed significant concerns regarding the risks exposed publicly through actions against Intercam, CIBanco, and Casa Vector. These Mexican financial institutions have been found to play a crucial and prolonged role in money laundering millions of dollars for Mexican drug cartels and facilitating payments for acquiring precursor chemicals necessary for fentanyl production.
Insignificant Market Share and Weak Controls
Although the market share of these three institutions is relatively small, investigators suggest this might indicate weak controls. Despite this, substantial illicit fund flows were transferred by these entities by operators of three Mexican cartels now classified as terrorist organizations.
FinCEN’s Findings on Intercam
Based on non-public information, FinCEN placed Intercam—marketed as “the nearshoring bank”—at the top of the weighted analysis of potentially illicit activity among Mexican financial institutions.
Mexican Regulator’s Response
The Mexican Secretariat of Finance attempted to downplay the significance of U.S. financial authorities’ action. They stated that no probative evidence was provided linking these institutions to illicit activities, which could be verified by Mexico’s Unit for Intelligence and Financial Information (UIF) or the National Banking and Securities Commission (CNBV).
History of Intercam’s Irregularities
Since 2015, FinCEN reported various irregularities to the Mexican regulator concerning Intercam. The CNBV had already sanctioned Intercam for 14 offenses from 2013 to 2017 due to inadequate compliance. Consequently, multiple U.S.-based financial institutions ended their relationships with the Mexican bank.
Financing Metamphetamine and Fentanyl Production
FinCEN discovered that the production of metamphetamine and fentanyl was financed through resources transferred by these financial institutions to intermediaries of precursor chemicals located across various continents. Some cases involve identified amounts and operations (over 1,000 transfers totaling more than $8 million between 2021 and 2024 involving transportation companies in countries like Singapore and Hong Kong), while others refer to executives meeting directly with alleged CJNG members to discuss fund transfers from China in late 2022.
Intercam’s Role in Funding Fentanyl Production
Intercam has played a decisive role in processing fund transfers to Chinese-based companies known for sending precursor chemicals illicitly to Mexico. This includes 120 international fund transfers totaling over $4 million.
Scandalous Examples
Two years ago, a CIBanco employee allowed the opening of an account to launder $10 million for a Gulf Cartel member and facilitate illicit opoid trafficking. Between 2022 and 2024, there were 150 recorded operations in the Mexican bank transferring over $100 million to companies based in Taiwan and Switzerland allegedly involved in acquiring precursor chemicals through a Mexican firm.
Money Laundering and Bribery
Money laundering by criminal organizations is a recurring theme in the three cases highlighted by FinCEN. Genaro García Luna’s activities at Vector, which involved $40 million in transactions between 2013 and 2019, only scratches the surface of one of the most intriguing bribery stories involving Mexican officials and the Sinaloa Cartel. Soon, it will be known that high-ranking former officials from the extinct Secretariat of Public Security and prominent companies appear in the brokerage’s files.
Key Questions and Answers
- What is FinCEN’s primary concern? Protecting U.S. financial institutions from risks exposed publicly through actions against Intercam, CIBanco, and Casa Vector.
- Why are the market shares of these Mexican banks insignificant? It might indicate weak controls, despite substantial illicit fund flows transferred by these entities.
- What irregularities has Intercam been involved in? Various irregularities have been reported to the Mexican regulator since 2015, leading to CNBV sanctions for 14 offenses from 2013 to 2017.
- How have these Mexican banks financed drug production? By transferring resources to intermediaries of precursor chemicals across continents, financing the production of metamphetamine and fentanyl.
- What are some examples of these banks’ involvement in illicit activities? CIBanco enabled laundering of $10 million for a Gulf Cartel member, and Intercam processed fund transfers to Chinese companies involved in sending precursor chemicals illicitly to Mexico.
