Image by SAN SALVADOR, El Salvador — The United States has imposed sweeping sanctions on three prominent Mexican financial institutions it accuses of laundering drug money for fentanyl traffickers.
This move deepens strains in the U.S.-Mexico security relationship at a critical moment of bilateral cooperation.
On June 25, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) sanctioned CiBanco, Intercam, and Vector Casa de Bolsa—two banks and a brokerage—for allegedly facilitating money laundering tied to Mexican criminal organizations and the procurement of fentanyl precursors from China.
The sanctions, issued under the Fentanyl Sanctions Act and the recently enacted FEND Off Fentanyl Act, mark the first time FinCEN has leveraged new powers to target foreign entities linked to fentanyl trafficking.
The designations label the institutions as “primary money laundering concerns,” a designation that effectively cuts them off from the global financial system.
According to FinCEN, the firms conducted numerous small-scale transactions over several years for Mexico’s most notorious criminal syndicates—including the Jalisco New Generation Cartel (CJNG), the Sinaloa Cartel, the Gulf Cartel, and the Beltrán Leyva Organization.
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Several of these groups were previously designated as foreign terrorist organizations by the Trump administration.
The financial transfers involved payments for chemical precursors from Chinese companies, which were allegedly used to manufacture fentanyl for the U.S. market.
All three financial institutions publicly denied the allegations and stated they had no involvement with organized crime.
They asserted compliance with anti-money laundering regulations and criticized the sanctions as unjustified.
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Despite U.S. claims of coordination with Mexican authorities, the move drew immediate backlash in Mexico.
President Claudia Sheinbaum condemned the sanctions the following day, arguing that the flagged transactions involved legally registered Mexican and Chinese companies and were based on records, not proof of illicit activity.
Mexico’s Finance Ministry launched its own review, stating that it had requested concrete evidence linking the firms to criminal operations. “No evidence was received,” the ministry said in a statement.
Security analysts say the sanctions reflect a broader pattern of unilateral U.S. enforcement measures that complicate bilateral cooperation.
“These types of actions fuel a narrative of asymmetry and imposition,” said Eunice Rendón, a Mexico-based analyst. “Mexico is treated less as a strategic partner and more as a suspect jurisdiction. That undermines cooperation and trust.”
Rendón warned that bypassing Mexican legal processes could hinder long-term efforts to combat organized crime jointly.
While U.S. designations may disrupt cartel financing in the short term, she said they weaken the principle of “shared responsibility,” a cornerstone of recent binational strategies.
The sanctions follow a series of controversial U.S. actions. In July 2024, U.S. forces arrested Ismael “El Mayo” Zambada, a founding figure of the Sinaloa Cartel, and Joaquín Guzmán López, a leader of its “Chapitos“ faction.
Though celebrated by U.S. authorities, the arrests—carried out without coordination—prompted outrage in Mexico and triggered internal cartel violence that destabilized the state of Sinaloa.
In February 2025, former President Donald Trump, now seeking reelection, designated six Mexican cartels as foreign terrorist organizations and threatened tariffs on Mexican imports if fentanyl and migration flows were not curbed.
Days later, U.S. Attorney General Pamela Bondi referred to Mexico as an “adversary” in a Senate hearing, refusing to confirm whether Sheinbaum’s government was cooperating adequately on security matters.
Sheinbaum, who succeeded Andrés Manuel López Obrador, has sought to improve ties with Washington.
Her administration has increased troop deployments to the northern border and intensified crackdowns on smuggling routes.
These efforts have coincided with reported declines in both migrant crossings and fentanyl seizures, according to U.S. Customs and Border Protection.
“On qualitative terms, cooperation between the current U.S. and Mexico governments is stronger than it was under the previous Mexican administration,” said Dr. Antonio Mena-Ortiz, Associate Professor at Georgetown University. “And that should not be overlooked.”
Still, analysts warn that continued pressure from Washington—particularly through unilateral sanctions and public accusations—risks eroding Sheinbaum’s credibility and weakening the collaborative foundation she is trying to build.
As the U.S. escalates its fentanyl crackdown, the challenge will be balancing enforcement with diplomacy, ensuring that efforts to curb trafficking do not come at the cost of bilateral trust.
