Three Mexico-based financial institutions—CIBanco, Intercam, and Vector—have been granted an additional 45 days to meet regulatory standards before facing sanctions from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the agency announced on Wednesday.

The sanctions, originally scheduled to take effect this month, would have prohibited fund transfers to and from the three institutions. That implementation is now delayed until September 4.

The extension follows Mexico’s response to the June 25 FinCEN order, which designated the banks as “of primary money laundering concern” due to alleged links to illicit opioid trafficking. The accusations are part of enforcement under the Fentanyl Sanctions Act and the FEND Off Fentanyl Act.

A statement from the U.S. Treasury noted that “the Government of Mexico has taken further steps to address the concerns raised in FinCEN’s orders,” prompting the extension.

On June 26, Mexico’s National Banking and Securities Commission (CNBV) took temporary control of CIBanco and Intercam in a move aimed at ensuring compliance with financial regulations.

While the sanctions stop short of freezing assets or banning all international dollar transactions, they would bar U.S.-based fund transfers involving the institutions’ Mexican operations. According to a recent Mexico News Daily reader survey, some customers have already experienced disruptions, and many anticipate further complications if the sanctions take full effect.

President Claudia Sheinbaum has strongly criticized the U.S. actions, demanding concrete evidence to support the money laundering allegations.

Though the U.S. frequently sanctions individuals and businesses tied to Mexican organized crime, it is rare for such actions to target entire financial institutions. This is the first time FinCEN has used its authority under the Fentanyl Acts to do so.

FinCEN said it will “continue to coordinate closely with the Government of Mexico” and will weigh “all facts and circumstances” before deciding whether to extend the deadline further.

CIBanco and Intercam—both commercial banks—hold combined assets of over US $11 billion, while brokerage firm Vector manages nearly $11 billion on its own.