US Grants 45-Day Sanctions Delay for CIBanco, Intercam, Vector

The US Department of the Treasury has granted a 45-day moratorium to CIBanco, Intercam Banco, and Vector Casa de Bolsa, delaying the enforcement of sanctions that would bar US financial institutions from conducting transactions with the three Mexican firms.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) announced that the new enforcement date is set for Sep. 4, citing progress by Mexican authorities in combating money laundering tied to drug cartels.

The sanctions were originally announced in June under the FEND Off Fentanyl Act, a US law aimed at disrupting the financial networks of transnational criminal organizations. FinCEN alleged that the three institutions had been used to launder money for drug trafficking groups, including the financing of chemical precursors used in fentanyl production.

Andrea Gacki, director of FinCEN, said the decision to postpone reflects ongoing collaboration between the United States and Mexican governments. “The Treasury will continue to take all necessary steps to protect the US financial system from abuse by illicit actors, with a focus on the financing of transnational criminal organizations and drug traffickers,” Gacki said in a statement.

The original designations caused widespread disruption in Mexico’s financial sector. Businesses in both countries suspended ties with the sanctioned firms, and uncertainty spread to private equity funds and real estate trusts managed by them.

In response, Mexico’s banking regulator, the National Banking and Securities Commission (CNBV), imposed temporary management oversight at the three institutions. Shortly after, the Ministry of Finance and Public Credit (SHCP) announced it would transfer the fiduciary operations of CIBanco and Intercam to development banks, with plans to eventually spin off those businesses.

The Mexican government has pushed back against the US allegations. President Claudia Sheinbaum stated that no evidence of wrongdoing has been presented and reaffirmed her administration’s commitment to due process. All three institutions have denied the accusations and expressed their willingness to cooperate with regulators.

The FinCEN action marks the first use of the FEND Off Fentanyl Act against financial institutions. While US officials maintain the designations are necessary to safeguard the financial system, Mexican authorities have sought to downplay the broader economic impact, noting that the combined deposits of the sanctioned firms account for less than 1% of the country’s banking sector.