Mexico’s National Banking and Securities Commission (CNBV) has stepped in to take temporary control of two domestic banks—CIBanco and Intercam—following U.S. government accusations that the institutions helped launder money for drug cartels.

In a joint statement released Thursday, the CNBV, Finance Ministry (SHCP), Bank of Mexico (Banxico), and the Institute for the Protection of Bank Savings (IPAB) confirmed the intervention, explaining that the action replaces the banks’ administrative and legal leadership “to safeguard the rights of depositors and clients.”

The measure follows sanctions announced Wednesday by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which prohibited U.S. financial institutions from conducting certain transactions with CIBanco, Intercam, and the brokerage firm Vector Casa de Bolsa.

Mexican authorities said the intervention was a response to the potential impact of the U.S. sanctions but did not specify how long the measure will remain in place.

Background: U.S. Sanctions and Accusations

FinCEN accused the three financial institutions of playing a significant role in laundering millions of dollars for Mexican drug cartels and in facilitating payments for fentanyl precursor chemicals sourced from China.

Specifically, FinCEN claimed that Intercam executives met with suspected members of the Jalisco New Generation Cartel (CJNG) in 2022 to discuss money laundering operations. These allegations, if substantiated, could result in the removal of certain senior officials at Intercam, CIBanco, and Vector.

All three institutions have denied the accusations, and the SHCP said Wednesday that its internal review found only “administrative issues,” not evidence of criminal conduct. It added that the U.S. has not provided documentation to support its claims.

Authorities Reaffirm Confidence in the Financial System

Despite the gravity of the U.S. allegations, Mexican financial regulators emphasized their confidence in the broader financial sector. In their joint statement, the CNBV, SHCP, Banxico, and IPAB reaffirmed their commitment to the “stability, integrity, and proper functioning” of Mexico’s financial system.

Mexican Banking Association: Intervention Offers ‘Clarity and Stability’

The Mexican Banking Association (ABM) also issued a statement following the CNBV’s announcement, underscoring that the intervention does not signal a systemic risk.

“These specific situations do not represent a threat to the stability of the Mexican financial system, which remains solid and well-capitalized,” the ABM said.

It characterized the intervention as a precautionary step aimed at “creating an environment of certainty” that will allow CIBanco and Intercam to continue normal operations while ensuring compliance with regulatory standards.

The ABM reiterated that banks operating in Mexico place a high priority on combatting illicit activities and maintaining legal integrity. It added that its member banks follow strict compliance and auditing protocols aligned with international standards.