CIBanco Drops Lawsuit Against US Treasury, FinCEN

CIBanco has voluntarily withdrawn its lawsuit against the US Department of the Treasury, the Financial Crimes Enforcement Network (FinCEN), and their respective leaders, according to a filing disclosed Thursday.

The bank initially filed the case in a district court in Columbia after US authorities alleged in June that it had facilitated money laundering. CIBanco said the decision to drop the lawsuit was due to the negative impact the allegations have had on its business.

The notice, dated Aug. 21 and signed by law firm White & Case on behalf of Alvarez & Marsal México, the court-appointed administrator of CIBanco, confirms the voluntary dismissal without prejudice, meaning the bank reserves the right to take further legal action. The defendants had not yet filed a response or a motion for summary judgment.

The filing also cites a recent FinCEN order issued on Aug. 19 modifying its previous June 25 order prohibiting certain fund transfers involving CIBanco. The order, previously amended on July 11, now extends the effective date of the prohibition until Oct. 20, 2025.

CIBanco is currently under provisional administration by Alvarez & Marsal México, appointed by Mexico’s Institute for the Protection of Bank Savings (IPAB). The administrator holds full authority of the board and CEO to manage and represent the institution, including litigation oversight.