Mexico’s IPAB Starts CIBanco Payouts Following License Revocation

Mexico’s Institute for the Protection of Bank Savings (IPAB) began Oct. 13the repayment process for depositors with funds in CIBanco, following the revocation of the bank’s license and its subsequent liquidation.

The move comes after the National Banking and Securities Commission (CNBV) approved the cancellation of CIBanco’s authorization to operate as a multiple banking institution.

According to IPAB, depositors can recover insured funds of up to 400,000 Investment Units (UDIs), roughly MX$3.4 million (US$184,200), through the agency’s online portal.

CIBanco was mentioned in a June report by the US Department of the Treasury, alongside Intercam Banco and Vector Casa de Bolsa, for allegedly facilitating money laundering linked to fentanyl trafficking. While the other institutions sold most of their operations within three months, CIBanco became the first to enter liquidation.

IPAB stated that the bank’s shareholders voluntarily requested the revocation of its authorization, which the CNBV approved. The agency clarified that deposits held by shareholders, board members, and senior executives are not insured, though these individuals retain claims against the liquidated institution.

Borrowers were reminded that credit obligations with CIBanco remain valid and payments must continue. Branches remain closed as of Oct. 10, except those designated for information or payment requests.

Tenedora CI, CIBanco’s majority shareholder, said the decision to revoke the license was difficult but necessary to protect depositors, employees, creditors, suppliers, and the stability of Mexico’s financial system.

“During the intervention and oversight process, shareholders and bank executives fully cooperated with financial authorities, providing all required documentation,” Tenedora CI said. The group added that, despite the US Treasury’s Financial Crimes Enforcement Network (FinCEN) order, no evidence of illicit activity was found, confirmed by independent national and international reviews.

Tenedora CI said liquidity constraints and the impact of the US order caused material asset losses, impairing the bank’s operations and leaving liquidation as the only viable solution for an orderly resolution.