Mexican banks facing sanctions from US Treasury for money laundering allegations

From Yahoo Finance: 2025-07-01 14:59:00

Three Mexican financial institutions, accused of laundering money for drug cartels, are facing sanctions from the U.S. Treasury Department. The banks deny the allegations. Mexico’s President Sheinbaum claims the U.S. provided no evidence. Fitch Ratings downgraded the institutions due to anti-money laundering concerns. The sanctions will take effect in 21 days.

Mexico’s banking authority is temporarily taking over management of the sanctioned banks to protect creditors. Sheinbaum assures that the Mexican government is working to prevent any negative impact on creditors. Visa Inc. has disconnected its platform for international transactions through CIBanco, causing further financial strain. S&P Ratings withdrew CIBanco from its index following the sanctions.

Read more: Mexican banks face cascading consequences following US sanctions