US targets three Mexican banks for fentanyl money laundering

The U.S. Treasury Department has accused three Mexican financial institutions—CIBanco, Intercam Banco, and Vector Casa de Bolsa—of helping drug cartels launder money linked to fentanyl trafficking. This marks the first time the U.S. has used new powers under the Fentanyl Sanctions Act and the FEND Off Fentanyl Act to crack down on such activities.

The sanctions block these firms from making transactions with U.S. banks, cutting them off from the American financial system. The Treasury claims these institutions played a key role in moving millions of dollars for cartels, including the Sinaloa and Gulf cartels, and helped pay for chemicals used to make fentanyl in Mexico. For example, CIBanco allegedly processed over $2 million in payments for fentanyl ingredients from China, while Vector is said to have laundered $2 million for the Sinaloa cartel between 2013 and 2021.

Intercam also faces accusations of handling $1.5 million in similar transactions. These actions are part of a broader U.S. effort to fight the fentanyl crisis, which has fueled opioid overdoses in the country. The sanctions could strain trade relations with Mexico, already tense due to U.S. tariffs aimed at stopping fentanyl smuggling. Mexico’s Finance Ministry said it has no evidence to support these claims but will act if proof is provided. Vector has denied the accusations, pledging to cooperate with authorities.