By Anthony Harrup and Santiago Pérez

MEXICO CITY -- Mexican financial authorities said Thursday that they are taking over two small local banks that were identified by the U.S. Treasury Department as being involved in money laundering and facilitating payments for precursors used to make fentanyl.

The details

Mexico's Banking and Securities Commission decreed temporary management intervention in CIBanco and Intercam Banco to prevent a run on deposits. The commission said that the measures aim to protect the interests of savers and creditors given the implications that the measures announced by the U.S. Treasury could have for these banks.

CIBanco and Intercam each account for less than 1% of Mexico's banking system by assets, or roughly a combined $12 billion. Mexico's banking industry is led by BBVA and Santander of Spain, local financial group Banorte, Citigroup and HSBC.

The U.S. Treasury said Wednesday that it was prohibiting certain fund transfers by CIBanco, Intercam and local financial institution Vector Casa de Bolsa with U.S. companies. It identified the three Mexican companies as being "of primary money laundering concern in connection with illicit opioid trafficking."

The context

The Treasury said the measures imposed by its Financial Crimes Enforcement Network mark the first actions under the Fentanyl Sanctions Act and the FEND Off Fentanyl Act, part of a Trump administration effort to combat fentanyl smuggling. Earlier this year, the U.S. designated Mexico's main drug cartels as terrorist groups, a move that aimed to increase pressure on organized crime by directing more money to intelligence gathering and going after cartel financiers and allied businesses.

On Wednesday, Intercam denied any involvement in illicit practices, "particularly money laundering." The bank said it has been operating for 30 years in compliance with Mexican and international regulations. CIBanco also denied any involvement in illegal operations and said it is in constant communication with both Mexican and U.S. authorities. Vector Casa de Bolsa also rejected the U.S. assertions.

The back story

President Trump is pressuring Mexico to allow deeper U.S. involvement in the fight against drug cartels, making security a sticking point in bilateral relations. Mexico's president, Claudia Sheinbaum, has said that her administration supports increased cooperation to fight drug smuggling and illegal immigration, and opposes unilateral U.S. actions that have included punitive tariffs against Mexican goods.

The takeover of Intercam and CIBanco comes after Mexico's Finance Ministry said Wednesday that the Treasury Department hadn't provided convincing evidence of the alleged wrongdoing by the banks it identified. It said the information focused on transfers conducted through the banks with legally established Chinese companies.

Sheinbaum said Thursday that finance officials found no proof of illegal activity in their own investigations. "There is no evidence of money laundering," she said during her daily news conference.

The Mexican banks association, which represents the country's banking industry, said Thursday that the interventions "don't represent a systemic risk or affect the stability of the Mexican financial system, which remains solid and well capitalized."

Write to Anthony Harrup at anthony.harrup@wsj.com and Santiago Pérez at santiago.perez@wsj.com

(END) Dow Jones Newswires

June 26, 2025 16:17 ET (20:17 GMT)

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