Texas Politics

Trump Admin Sanctions Mexican Banks Aiding Cartels

The US Treasury Department recently announced new sanctions against Mexican banks allegedly helping cartels finance and profit from their criminal activities. 

Specifically, Treasury is sanctioning the banks for assisting Mexican gangs to launder profits gained through fentanyl trafficking. 

Treasury’s Financial Crimes Enforcement Network (FinCEN) identified three Mexico-based financial institutionsas being of primary money laundering concern in connection with illicit opioid trafficking.”

Consequently, the new sanctions prohibit certain funds transmittals involving CIBanco, Intercam, and Vector. 

FinCEN shared several incidents that they claim evince the banks’ involvement in Mexican gangs’ criminal activity. 

CIBanco, for example, knowingly facilitated the creation of an account in 2023 to purportedly launder $10 million on behalf of a Gulf Cartel member. 

Concomitantly, FinCEN claimed Intercam executives in 2022 met directly with suspected Jalisco New Generation Cartel (CJNG) members to orchestrate money laundering schemes.

Finally, Vector was exposed as helping a Sinaloa Cartel money mule launder $2 million from the United States to Mexico. 

Treasury Secretary Scott Bessent derided the cartels’ noxious activity and stated that the new sanctions demonstrate the US’s commitment to eradicating illegal fentanyl operations. 

Through the first use of this powerful authority, today’s actions affirm Treasury’s commitment to using all tools at our disposal to counter the threat posed by criminal and terrorist organizations trafficking fentanyl and other narcotics,said Secretary Bessent. 

Treasury’s sanctions follow President Donald Trump's order, earlier this year, for sundry cartels and criminal organizations to be designated as FTOs. 

President Trump’s anti-cartel initiatives mark a new era in the US’s efforts to combat Mexican gangs and the FTO designation expands the national government’s toolbox for dealing with gang activity, including military action.

The use of military force against cartels operating in Mexico is unlikely, however, as Mexico President Claudia Sheinbaum has opposed the idea and criticized it as a violation of Mexico’s sovereignty.

State Department Secretary Marco Rubio explained that the FTO designation wouldprotect our nation, the American people, and our hemisphere.”

Mateo Guillamont

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