Latest news with #CiBanco
Yahoo
7 hours ago
- Business
- Yahoo
Mexico disputes U.S. money-laundering charges against banks allegedly linked to fentanyl trafficking
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. "We aren't anyone's piñata," Sheinbaum said, adding, "We coordinate, collaborate — we have said this many times — but we will not subordinate ourselves." Read more: U.S. imposes sanctions on powerful Mexican cartel linked to drug trafficking 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. Read more: Immigrant protests, unrest in L.A. reverberate in Mexico 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. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Los Angeles Times
9 hours ago
- Business
- Los Angeles Times
Mexico disputes U.S. money laundering charges against banks allegedly linked to fentanyl trafficking
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.
The Guardian
10 hours ago
- Business
- The Guardian
Mexican president demands proof after US accuses banks of laundering drug money
Mexican president Claudia Sheinbaum expressed frustration at US sanctions against three Mexican financial institutions accused of laundering drug money, and said the US has not yet provided any evidence of criminal activity. 'Until now, the treasury department has not sent any proof that indicates there is money laundering,' Sheinbaum said. 'We will act if there is proof.' She then publicly requested the treasury department 'send proof, if they have it, so we can accompany them in the process'. The US treasury department announced on Wednesday it was placing sanctions on three separate Mexican financial institutions, accusing them of being used to launder money for organized crime. The three institutions identified by the treasury's financial crimes unit (FinCen) are the large commercial banks CiBanco and Intercam, and the brokerage firm Vector Casa de Bolsa. FinCen is accusing them of laundering money linked to fentanyl trafficking. 'Financial facilitators like CiBanco, Intercam, and Vector are enabling the poisoning of countless Americans by moving money on behalf of cartels, making them vital cogs in the fentanyl supply chain,' treasury secretary Scott Bessent said in a statement. 'Through the first use of this powerful authority, today's actions affirm [the] 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.' Wednesday's announcement represents a further escalation by the Trump administration towards organized crime in Latin America. After Trump's inauguration, the administration declared a number of Mexican criminal groups as terrorist organizations. Other actions by the US have led to friction between the Mexican government and the Trump administration. Earlier this year, the Trump administration imposed 25% punitive tariffs on many imports from Mexico, in an attempt to pressure the country to halt fentanyl trafficking and migration towards the US. Additionally, the administration began revoking visas for some Mexican political figures, preventing them from traveling to the US. According to reporting by ProPublica, the administration has a list of a number of politicians accused of having ties to the drug trade, including allies of Sheinbaum. The treasury department says its actions come after acts passed by Congress provided the department additional authority to target money laundering networks linked to fentanyl trafficking. Fentanyl leads to tens of thousands of overdose deaths in the US every year. The drug is primarily manufactured in Mexico by criminal groups using precursor chemicals from China. It is typically pressed into pills, trafficked into the US and distributed nationwide. According to Sheinbaum, Mexican financial investigation agencies received information from the treasury department regarding the three financial institutions and transactions with Chinese businesses. Mexican officials, who viewed the evidence as insufficient, launched their own investigation and also requested further information from the US regarding the transactions. Sheinbaum says the US did not follow up in response to Mexico's request. 'We are not going to cover for anyone. There is no impunity,' Sheinbaum said. 'But it has to be demonstrated that, effectively, there was money laundering. Not with statements, but with hard evidence.' The treasury department, in its release, included different allegations against the institutions. In one instance, the department said, a CiBanco employee created an account in 2023 to launder $10m for a Gulf cartel leader. In another case, Intercam executives in 2022 allegedly met with suspected members of the New Generation Jalisco cartel 'to discuss money-laundering schemes, including transferring funds from China'. And in a third example, the department claimed that from 2013 through 2021, a Sinaloa cartel money mule laundered $2m from the US to Mexico through the Vector firm. 'CiBanco clarifies that it does not hold commercial relations outside of legality, and reiterates the compliance of all guidelines established by the relevant authorities,' CiBanco said in a statement on its website. 'CiBanco maintains constant communication with corresponding Mexican and United States authorities and underscores its willingness to collaborate.' Mexican banks are not the only financial institutions accused by the US of laundering dirty money for organized crime. Last fall, a US bank admitted to helping Colombian criminals launder money. The FinCen investigation led to a $1.3bn penalty, the largest penalty against a financial institution in history. Last year, the justice department unsealed an indictment, accusing a number of people of laundering money for the Sinaloa cartel and for 'groups linked to Chinese underground banking'. The multi-year DEA investigation, called Operation Fortune Runner, found that the alleged criminals used Citibank ATMs in California to launder drug money.
