Mexico disputes U.S. money laundering charges against banks allegedly linked to fentanyl trafficking

Los Angeles Times

5 hours ago

MEXICO CITY — President Trump's vow to 'wage war' on drug cartels has resulted in bombshell accusations of money-laundering against three Mexican financial institutions — allegations that produced a defiant pushback from Mexican President Claudia Sheinbaum.
'There's no proof, just words,' a clearly agitated Sheinbaum told reporters on Thursday. 'There has to be proof to know if there was money laundering or not. Therefore, we don't deny it or accept it.'
A day earlier, the U.S. Department of the Treasury issued what it called 'historic' sanctions against CiBanco, Intercam Banco and Vector Casa de Bolsa. The department accused the three of laundering millions of dollars in narco-cash to facilitate the trafficking of fentanyl and other synthetic opioids into the United States.
The orders 'affirm Treasury's commitment to using all tools at our disposal to counter the threat posed by criminal and terrorist organizations,' Treasury Secretary Scott Bessent said in a news release.
The Treasury Department move would largely prohibit U.S. financial institutions from dealing with the three sanctioned entities, effectively shutting them out from access to the world's largest market.
The Treasury accused the three firms of laundering funds for various Mexican drug cartels and 'facilitating payments for the procurement of precursor chemicals needed to produce fentanyl.'
U.S. authorities say Mexican cartels use chemicals imported from China to produce fentanyl in clandestine laboratories and then smuggle the potent opioid into the United States. Black-market fentanyl has led to tens of thousands of overdose deaths in the United States, officials say.
Sheinbaum has been widely lauded for her non-confrontational, 'cool-headed' approach with the Trump administration, despite many disagreements — including on Trump's imposition of 25% tariffs on some Mexican imports, a levy meant to prompt Mexico to crack down further on fentanyl smuggling.
But Sheinbaum signaled her clear displeasure with Treasury's punitive actions.
'Mexico is not subordinate to anyone,' Sheinbaum said. 'We coordinate, collaborate — we have said this many times — but we will not subordinate ourselves.'
In Mexico, some analysts have called the Treasury moves a broadside against Mexico's economic well-being. U.S. authorities have frequently sanctioned Mexican companies and individuals for alleged links to drug smuggling, but experts say targeting of banks is much less frequent.
'The accusation is the gravest news for the Mexican financial system in decades and represents a point of no return for these three firms,' wrote columnist Carlos Mota of the El Heraldo de México newspaper. 'The entire Mexican financial system entered into shock.'
But the Treasury said that 'any burden and disruption should be relatively minimal,' since none of the three firms is a dominant player in Mexico.
All institutions — two banks and a brokerage house, all medium-sized firms — denied any wrongdoing.
Vector Casa de Bolsa said it 'categorically rejected any imputation that compromises its institutional integrity.' Vector manages about $11 billion in total assets, according to U.S. officials.
The case against Vector has drawn special scrutiny in Mexico because of the firm's ties to Alfonso Romo, a businessman who served for two years as chief of staff for former President Andrés Manuel López Obrador, Sheinbaum's predecessor, mentor and the founder of Mexico's dominant Morena political bloc.
After leaving the chief of staff position, Romo remained a top economic advisor to López Obrador.
Mexican media accounts have described Romo as the honorary president and co-founder of Vector. Romo has not commented publicly. According to Mexican media reports, Mexico's current finance minister, Edgar Amador, is a former analyst with Vector.
Among other allegations against Vector, the Treasury said that from 2013 to 2016 'a suspected Sinaloa cartel money mule' transferred more than $1.5 million to the brokerage firm. Vector was also allegedly linked to millions of dollars in Sinaloa cartel payouts to Genaro García Luna, Mexico's former top federal security official.
García Luna was convicted in 2023 U.S. district court of colluding with the Sinaloa mob and receiving millions of dollars in graft. He is serving a 38-year prison sentence.
The U.S. order against the three Mexican financial institutions is to take effect in 21 days. It is a civil action and does not involve criminal charges.
Special correspondent Cecilia Sánchez Vidal contributed to this report.