Mexico Slams U.S. Sanctions on Banks \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Mexican President Claudia Sheinbaum rebuked U.S. sanctions targeting three financial institutions accused of laundering cartel money. She demanded evidence from the Trump administration, which cited links to fentanyl-related transfers. Mexico’s regulators found only minor infractions and temporarily seized two banks’ operations.
Quick Looks
- U.S. accuses three Mexican institutions of laundering cartel funds.
- Sheinbaum demands proof, denies U.S. claims of wrongdoing.
- Mexico takes over two banks to protect creditors.
- U.S. links banks to fentanyl precursor chemical payments.
- Tensions rise as Mexico asserts national sovereignty.
Deep Look
In a dramatic escalation of diplomatic tensions, Mexican President Claudia Sheinbaum delivered a fierce rebuke Thursday against the U.S. government’s decision to impose financial sanctions on three prominent Mexican institutions. The sanctions, announced by the U.S. Treasury Department under President Donald Trump’s administration, accuse the banks of facilitating multimillion-dollar money laundering schemes connected to Mexican drug cartels and the fentanyl trade. But Sheinbaum, in a sharply worded public statement, accused Washington of acting without providing concrete evidence.
“The Treasury Department hasn’t provided a single piece of evidence to show that any money laundering was taking place,” Sheinbaum said during her morning press briefing. “We aren’t going to cover for anyone—there isn’t impunity here. But they have to demonstrate these claims with strong evidence, not just assertions.”
The sanctions target CIBanco, Intercam Banco, and Vector Casa de Bolsa—a brokerage firm linked to Alfonso Romo, a key figure in the previous López Obrador administration. The U.S. claims that these institutions helped facilitate money transfers involving Chinese chemical suppliers, which allegedly provided precursors used in the production of fentanyl, the synthetic opioid fueling a deadly epidemic in the United States.
While the U.S. Treasury asserts there are “reasonable grounds” to believe the banks were involved in laundering drug money, it has declined to make public any supporting evidence or name the U.S. institutions allegedly connected to the transfers. Officials cited the need to act swiftly to block further financial transactions, saying the order would take effect within 21 days.
In response to the growing international pressure, Mexico’s National Banking and Securities Commission (CNBV) announced Thursday that it would temporarily assume management of CIBanco and Intercam Banco “to protect the interests of public savers and creditors.” While framed as a precautionary measure, the intervention signals the seriousness with which Mexican regulators are treating the U.S. allegations—even as they question their validity.
Sheinbaum emphasized that Mexican authorities were notified of the impending sanctions and had already conducted internal investigations. Their findings revealed some regulatory infractions but “nothing that would justify criminal accusations of laundering funds for drug cartels,” she said.
For the targeted institutions, the accusations came as a shock. Manuel Somoza, a senior executive at CIBanco, told Mexican media that the bank learned of the sanctions only when they were publicly announced. “Our books are open. We are available for full inspection,” Somoza said. “This isn’t a formal legal indictment—it’s an investigation. Rumors, true or not, damage reputations, and we want transparency.”
Vector Casa de Bolsa and Intercam Banco issued firm denials of any illicit activity. Vector’s statement categorically rejected any action that would compromise its institutional integrity, while Intercam said it had never engaged in “illegal practice.”
The controversy has cast a spotlight on an increasingly sensitive geopolitical intersection: the convergence of Mexico’s banking system, U.S. drug policy, and China’s economic reach into Latin America. The Trump administration alleges that Chinese firms used the Mexican banking system to discreetly fund fentanyl precursor shipments—a claim Mexico views as both politically charged and lacking in documentation.
President Sheinbaum dismissed such characterizations as an oversimplification of legitimate international trade. “Our investigation shows these institutions have strong ties with Chinese clients, which is a reflection of our growing trade relationship,” she said. “It does not constitute evidence of criminal collusion.”
Indeed, China remains the primary exporter of chemical ingredients used to synthesize fentanyl, and U.S. authorities have long voiced concerns about China’s role in the supply chain. However, Mexico’s government is increasingly sensitive to U.S. efforts to curtail Chinese economic activity in the region, viewing them as attempts to limit its sovereignty.
On Thursday, Sheinbaum made that point clear. “We are no one’s piñata,” she said defiantly. “Mexico must be respected as an equal partner.”
This statement reflects a broader diplomatic theme under Sheinbaum’s leadership: asserting Mexico’s autonomy while maintaining regional partnerships. Her government has thus far continued a pragmatic approach to U.S. relations—cooperating on trade, migration, and security—while rejecting any unilateral measures that bypass Mexico’s legal system.
The episode also raises broader questions about transparency in cross-border financial enforcement. The U.S. legal framework allows for sanctions based on classified intelligence and “reasonable suspicion,” which often leaves sanctioned entities unable to challenge allegations effectively in public forums. Critics argue this undermines due process and can lead to unjust reputational harm.
Meanwhile, the Sheinbaum administration is working behind the scenes to manage fallout within Mexico’s financial sector. By temporarily taking control of the two banks, Mexican regulators hope to reassure investors and creditors, stabilize the affected institutions, and prevent broader panic. At the same time, diplomatic channels are being engaged to request detailed evidence from U.S. authorities—a request that remains unanswered as of Friday.
If Washington fails to provide clarity, Sheinbaum has hinted at escalating the matter to international arbitration or turning to regional economic bodies for support. Such a step would mark a significant deterioration in U.S.-Mexico relations during Trump’s second term and could strain economic and security cooperation at a delicate time.
In the coming weeks, all eyes will be on whether the U.S. delivers proof or whether Mexico takes further steps to assert its financial and political independence. Either way, the clash marks one of the most high-profile challenges of Sheinbaum’s presidency—and a potentially pivotal moment in the evolving dynamic between two neighbors long bound by mutual dependence and mutual tension.
Mexico Slams U.S. Mexico Slams U.S.
You must Register or Login to post a comment.