Prohibition on Fund Transfers Involving Certain Financial Institutions Due to Money Laundering Risks Related to Opioids

On June 25, 2025, the United States Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury issued an order directed at financial institutions operating within the United States, such as banks, brokerage houses, currency exchange businesses, and casinos, among others (the “Order”).

This Order prohibits the execution of fund transfers to or from three Mexican financial institutions: CIBanco S.A. (“CI Banco”), Intercam Banco S.A. (“Intercam”), and Vector Casa de Bolsa, S.A. de C.V. (“Vector” and, together with CI Banco and Intercam, the “Designated Financial Institutions”) since, according to the Order, they have been identified as primary sources of concern regarding money laundering in connection with the illicit trafficking of opioids, including fentanyl.

The Order is specifically addressed to U.S. financial institutions, designated as “covered financial institutions,” which include banks, brokerage houses, currency exchange businesses, and casinos, among others. These institutions must implement internal procedures to ensure compliance with the prohibition and take necessary measures to prevent any transfer of funds with these Mexican entities.

The Order is not a criminal action against the involved Designated Financial Institutions; rather, it is an administrative measure that imposes restrictions on the covered U.S. financial institutions. It is important to note that the Order does not affect transactions conducted before its effective date; it only applies to transactions carried out after the effective date.

The Order is not a criminal action against the involved Designated Financial Institutions; rather, it is an administrative measure that imposes restrictions on the covered U.S. financial institutions. It is important to note that the Order does not affect transactions conducted before its effective date; it only applies to transactions carried out after the effective date. The Order is scheduled to take effect 21 days after its publication in the Federal Register, which took place on June 30, 2025. This period is intended to provide "covered financial institutions" with a transition period to adjust their systems and internal procedures. During this time, institutions must prepare to halt any fund transfers related to CIBanco, Intercam, or Vector, and consider this situation in fulfilling their anti-money laundering and counter-terrorism financing obligations.

Legal Considerations

Although the Order is expressly directed at “covered financial institutions” under U.S. law, it is foreseeable that its observance will extend to Mexican and foreign financial institutions that have points of contact with the U.S. financial system.

Due to the global interconnectedness of banking systems and the significance of U.S. jurisdiction in international operations, it is predictable that Mexican and foreign banks, directly or indirectly, will be compelled or will voluntarily decide to implement the stated restrictions to avoid sanctions, operational restrictions, or inclusion on lists of entities subject to restrictive measures. Therefore, even though the Order is not formally addressed to Mexican institutions, compliance may be required de facto by correspondents, counterparties, or intermediaries operating in or with the United States.

The Order, although referring to transfers to and from the Designated Financial Institutions, could have collateral effects on accounts held by these institutions in other financial institutions, both domestic and foreign. This includes accounts opened as direct holders, as well as those where the institutions act as trustees.

Accounts in which the Designated Financial Institutions act as trustees could be affected, to the extent that the Order is interpreted as applicable to funds managed under trust arrangements, which could compromise the availability of such funds for trustees or beneficiaries.

The issuance and dissemination of the Order could trigger a loss of confidence in the solvency and liquidity of the Designated Financial Institutions, generating a phenomenon known as a “run on the bank,” consisting of the massive and simultaneous withdrawal of deposits by clients. If the Designated Financial Institutions are unable to meet their payment obligations, this could result in grounds for revocation of their authorization and/or banking intervention.

In this regard, on June 26, 2025, the National Banking and Securities Commission (“CNBV”) decreed the temporary managerial intervention of CIBanco and Intercam. This was done to protect the interests of the public depositors and creditors by replacing the administrative bodies and legal representatives of both institutions, given the implications the Order may have on them.

Recommended Preventive Actions

Considering the recent Order, it is essential for those with relationships with the Designated Financial Institutions to take preventive measures and carefully review their operations and business relationships to strengthen risk management and regulatory compliance:

• Evaluate Commercial and Transaction Risks: Review business relationships, accounts, investments, and operations maintained with the Designated Financial Institutions.
• Identify Possible Risks: Such as blocking, withholding, or rejection of transfers, especially if there are links to the U.S. financial system or international counterparties.
• Interruption of Operations: Consider the impact that the interruption of operations with these entities could have on the liquidity and continuity of your business.
• Review and Strengthen Compliance Programs: Update and reinforce anti-money laundering, anti-corruption, and counterterrorism financing programs, ensuring they include specific controls to identify and manage relationships with these institutions.
• Implement Internal Procedures: Continuously monitor national and international sanctions lists, and ensure all relevant personnel are trained to detect and report unusual or suspicious transactions.
• Proper Documentation: Maintain adequate documentation of the origin and destination of funds, as well as the identity of clients and ultimate beneficiaries, to facilitate defense in the event of investigations or requests from authorities.
• Analysis of Fiduciary Links: Review trusts in which the Designated Financial Institutions act as trustees, as they could be affected by restrictions or intervention by authorities. Consider: (i) replacing the trustee or creating new trusts, as the ability of these institutions to properly fulfill their fiduciary functions may be compromised; (ii) the trustee’s inability to continue administering the trust in question, as the liquidity and solvency of the Designated Financial Institutions may be affected; and (iii) non-compliance with payment obligations—in this scenario, it is advisable to anticipate the need to negotiate waivers or agreements with creditors to avoid the enforcement of guarantees or acceleration of obligations, allowing time to restructure obligations and seek solutions that minimize the impact for trustees and beneficiaries.

It is important to note that the Order, although directed at U.S. institutions, may have collateral effects on Mexican institutions and their fiduciary operations, increasing scrutiny and the possibility of sanctions.

In this context, it is important to clarify that trust assets constitute a separate and segregated estate from the general balance sheet of these institutions, in accordance with the principle of the autonomous estate of the trust. Therefore, the assets affected by trusts are not included into the assets of the Designated Financial Institutions and must be managed for the benefit of the trustees or beneficiaries, except where there are credits granted to these institutions derived from fiduciary administration.