Mexican banks are aggressively reviewing and purging their client lists in an effort to shield themselves from U.S. sanctions tied to money laundering operations involving drug cartels, according to a new report.
Former Mexican stock exchange vice president José Antonio Quesada Palacios told Reforma that the country’s largest banks are currently engaged in a broad “de-risking” strategy—reducing exposure to clients who may not meet regulatory or compliance standards.
“It’s happening. I’ve seen it in at least three major institutions, and I have no doubt it’s extending to smaller firms as well,” Quesada said.
The crackdown comes in the wake of U.S. sanctions targeting three Mexican financial entities—CIBanco, Intercam Banco, and the brokerage firm Vector Casa de Bolsa—for allegedly helping to launder money for criminal organizations, including drug cartels.
Though the U.S. Treasury Department temporarily delayed enforcement of the sanctions, citing cooperation from the administration of Mexican President Claudia Sheinbaum, the restrictions are now set to take effect on September 4.
“Treasury will continue to take every action necessary to protect the U.S. financial system from abuse by illicit actors and target the financing of transnational criminal organizations and narcotics traffickers,” said Andrea Gacki, director of the Treasury’s Financial Crimes Enforcement Network (FinCEN), in a statement.
The sanctions represent the first enforcement action under both the Fentanyl Sanctions Act and the newly enacted FEND Off Fentanyl Act, which significantly expand the U.S. government’s ability to target financial networks linked to synthetic opioid trafficking, particularly operations run by Mexican cartels.
Bloomberg previously reported that the initial announcement sent shockwaves through Mexico’s financial sector. Despite U.S. officials downplaying the expected impact, both American and Mexican companies quickly moved to sever ties with the sanctioned institutions, causing disruption across multiple industries.
The rapid response by Mexican banks to purge high-risk clients underscores the growing pressure facing the country’s financial sector as the U.S. intensifies its efforts to disrupt cartel-related money flows.
