Regulatory Takeover: Mexico's Banking Giants Face U.S. Sanctions

Mexico's banking regulators have taken temporary control of CIBanco and Intercam Banco following U.S. sanctions for alleged money laundering activities linked to organized crime. This decisive intervention aims to safeguard the banks' creditors and depositors, according to Mexico's banking and securities commission.

The U.S. Treasury, enforcing severe fentanyl-related sanctions, banned specific transactions involving these banks and Vector Casa de Bolsa. All accused parties deny the allegations. The sanctions disconnect them from the U.S. financial system, potentially destabilizing Mexico's banking landscape due to deep financial ties with the U.S.

CIBanco pledged to work with regulators, assuring depositors of protection under local laws. Meanwhile, Mexican officials argue that the U.S. has not substantiated its claims, insisting there will be no contagion effect on the national financial system. Vector CEO Edgardo Cantu stated readiness to provide information to clarify allegations.

(With inputs from agencies.)