US Targets Three Mexican Banks for Alleged Cartel Laundering

This week in finance news, the United States sanctioned CIBanco, Intercam Banco, and Vector Casa de Bolsa over alleged involvement in laundering funds tied to fentanyl trafficking. Mexico’s economy grew 0.5% in April, rebounding from a March contraction, while the peso strengthened amid shifting expectations for the Fed and Banxico. Banco del Bienestar earned a top credit rating, Amazon Mexico launched a no-fee digital account with INVEX and Mastercard, and the Fed held rates steady while hinting at two potential cuts in 2025.

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US Sanctions CIBanco, Intercam, Vector for Money Laundering

The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has sanctioned CIBanco, Intercam Banco, and Vector Casa de Bolsa, alleging their involvement in laundering funds linked to fentanyl trafficking. The move bans US financial institutions from conducting transactions with these entities.

Mexico’s Economy Grows 0.5% in April Amid Global Uncertainty

Mexico’s economy showed signs of recovery in April, growing 0.5% compared to March, according to data from INEGI. The Global Indicator of Economic Activity (IGAE) rebounded after a 0.2% contraction in March, surpassing the 0.3% contraction previously projected by INEGI’s Timely Indicator of Economic Activity (IOAE). 

Peso Rises as Markets Eye Fed, Banxico Amid US-Iran Tensions

The Mexican peso rebounded on Monday, closing higher as the US dollar weakened amid geopolitical uncertainties and shifting expectations for US monetary policy. The exchange rate ended at MX$19.1453 per dollar, according to Mexico’s Central Bank (Banxico), gaining 2.30 centavos or 0.12% compared to Friday’s close of MX$19.1683.

Banco del Bienestar Earns Moody’s AAA.mx Rating, Stable Outlook

Moody’s Local Mexico has assigned Banco del Bienestar a long-term local currency issuer rating of “AAA.mx” with a Stable outlook, citing the bank’s explicit government guarantee and its role in expanding financial inclusion across Mexico. The rating agency noted that this top-tier rating on its national scale reflects the bank’s operational transformation since January 2022.

Fed Keeps Rates Steady, Eyes Two 2025 Cuts Amid Inflation

The Federal Reserve on Wednesday held its benchmark interest rate steady at 4.25% to 4.5%, citing persistent inflation and slower economic growth, while reaffirming expectations for two rate cuts in 2025. The Federal Open Market Committee (FOMC) unanimously approved the decision.

Amazon Mexico, INVEX, Mastercard Launch No-Fee Digital Account

Amazon Mexico has launched Amazon Access, a new digital account developed in partnership with INVEX Banco and Mastercard. The account allows users to manage funds directly through Amazon’s shopping app and is designed with no commissions or minimum balance requirements.