U.S. Treasury Extends Sanctions on Mexican Financial Institutions Linked to Money Laundering

The U.S. Treasury announced an extension to the deadline for prohibiting certain transactions with three Mexican financial institutions linked to alleged money laundering activities associated with fentanyl trafficking. The new deadline is set for September 4.

The institutions involved, CiBanco, Intercam Banco, and Vector Casa de Bolsa, were labeled by the Treasury as "primary money laundering concerns." This decision emerged from collaboration between U.S. financial authorities and the Mexican government, according to Mexico's finance ministry.

Initially, Mexico resisted the sanctions, claiming they were imposed unilaterally without evidence. In response to the sanctions, Mexico has taken temporary control of the firms to safeguard the interests of creditors and depositors.

(With inputs from agencies.)