The Mexico banking regulator entered to temporarily manage Cibanco SA and Intercam Banco SA, an extraordinary measure aimed at protecting clients after the accusations of US authorities. The allegations that the lender shooters could possibly facilitate the money laundering of drug cartels have sent shockwaves through a country that has been joined by bank scandals and asked questions whether more institutions could become targets for Washington. Mexico’s bank foyer rushed to say that the interventions would not affect the country’s financial system. The National Banking and Securities Commission, or CNBV, said in a statement on Thursday that it replaces management at the Cibanco and Intercam “in order to protect the rights of these institutions’ savers and clients, given the possible implications for these banks with the measures announced by the US Department of the Treasury.” Cibanco said in a statement that it would work with the intervention and ensure clients that their funds were safe under Mexican law. “We will work with regulatory authorities in Mexico and the United States at all times, within the legal framework regarding financial institutions, to address any potential problems identified by the CNBV and FinCen,” Cibanco said. Intercam did not immediately respond to a request for comment, but denied the accusations on Wednesday. The US Treasury’s Financial Crimes Handhaving Network, or Fincen, has slapped Cibanco, Intercam and Brokerage Vector Casa de Bolsa SA with orders that will prohibit certain fund transfer to US entities. Vector, who is not a bank, is not subject to such intervention as they do not have deposits. The orders come into effect with 21 days after the publication in the US Federal Register. The Register’s website does not yet contain the publication of the orders. The move of the regulator comes amid the risks that clients can be elicited by the allegations, even though President Claudia Sheinbaum has responded defiantly to the US measures, arguing that she saw no evidence to support the directions. Mexicans saw their fair part of bank scandals, from failures linked in the 1990s to related party loans to HSBC Holdings PLC’s admission to violating the money laundering and the sanctions that facilitated the laundry of at least $ 881 million in drug yields. The Asociacion de Bancos de Mexico, or ABM, said the bank interventions would not affect the stability of the country’s banking system. “The announced intervention seeks to create an environment of certainty that will allow to work normally for the time needed to ensure that they meet the regulatory standards,” ABM said in a statement. Investors were also little concerned that US measures are a major risk for Mexico, with the peso currency putting its fourth day of profits. With the economic fundamentals of Mexico still intact, long -term investors are not worried about the news, said Karocy Capital’s chief investment officer Haris Khurshid, even if bank shares can see some pressure. “This is a serious reputation hit for Mexico’s banking system, even if the fundamentals remain stable,” he said. “The actual risk is infection, not just outflow of the client, but a broader pressure on the border -border capital flow and compliance costs.” While the three US -labeled firms are small, they are all known for foreign exchange operations and overseas branches that invest the wealth of Mexicans. Vector was founded by an important ally of former President Andres Manuel Lopez Obrador. Intercam is known for its FX Exchange traded funds. Cibanco has a nocturnal segment on Milenio TV that explains market movements. Cibanco CEO Manuel Somoza had to abandon his routine -TV slot to defend his bank. He said that Cibanco was not contacted by US authorities before the announcement and that he immediately resolved any concerns. He said he was on the phone with clients all afternoon and assured them that their investments were safe. “Rumors hurt you more than formal accusations,” he said. “That’s why we want them to do the investigation as quickly as possible.” © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text.
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