CIBanco Begins Liquidation After Losing License From CNBV

Just over three months after being accused by the US Department of the Treasury of allegedly facilitating money laundering, CIBanco has had its license revoked by the National Banking and Securities Commission (CNBV). The decision initiates the bank’s liquidation process. 

The Institute for the Protection of Bank Savings (IPAB) has authorized the payment of insured deposits, meaning savers will begin receiving compensation for protected funds starting Oct. 13. IPAB assured depositors that their funds are covered up to 400,000 Investment Units (UDIs), equivalent to MX$3.42 million (US$$190,000) per person as of the liquidation date. 

However, coverage does not extend to deposits held by shareholders, board members, senior executives, or general managers of CIBanco, regardless of account balances. These individuals retain the right to claim their funds directly from the institution in liquidation.

The institute also clarified that CIBanco’s shareholders voluntarily requested the CNBV to revoke the bank’s license, following an internal decision that deemed liquidation the best way to protect clients’ interests.

In late June, the US Treasury Department accused CIBanco, along with Intercam Banco and Vector Casa de Bolsa, of allegedly facilitating money laundering linked to fentanyl trafficking. Following these allegations, CIBanco began winding down its operations. Its trust business was subsequently acquired by Multiva, and its automotive loan portfolio was transferred to BanCoppel.