Mexico’s banking regulator said on Thursday it will temporarily take control of three financial institutions—CIBanco, Intercam Banco, and Vector Casa de Bolsa—after they were sanctioned by the U.S. Treasury for alleged involvement in money laundering linked to organized crime.
The regulator said the move is meant to protect creditors and depositors at CIBanco and Intercam Banco.
The U.S. sanctions, announced a day earlier, prohibit certain transactions with the three institutions as part of new measures related to fentanyl trafficking. The sanctions cut the firms off from the U.S. financial system. All three deny the allegations.
CIBanco said in a statement it will work with both U.S. and Mexican authorities and that customer deposits are protected under Mexican law. Vector’s CEO said the firm has not received a subpoena from U.S. authorities and is ready to provide information to clarify the claims.
Intercam Banco and Vector did not respond to requests for comment.
Mexican President Claudia Sheinbaum said the U.S. has not provided evidence and that Mexico will cooperate but will not yield under pressure. “We are no one’s piñata,” she said.
The banking and securities commission now has the authority to appoint its own personnel or hire others to manage the institutions. Mexican authorities and the national banking association said the broader financial system remains stable and there is no risk of widespread contagion.
CIBanco holds about $7 billion in assets, Intercam Banco about $4 billion, and Vector around $11 billion, according to U.S. data. Their medium size in the market has raised concerns about the potential impact if any of them were to fail.
