US sanctioned banks in Mexico have blocked transfers and capped withdrawals, leaving customers in limbo as they scramble for workarounds.
Puerto Vallarta, Mexico – In late June 2025, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued its first ever orders under the 2024 FEND Off Fentanyl Act (FOFA), formally declaring CIBanco and Intercam—alongside Vector Casa de Bolsa—as “primary money laundering concerns” in connection with illicit opioid trafficking. Under these “special measures” (akin to those available under Section 311 of the USA PATRIOT Act), covered U.S. financial institutions are barred from engaging in any transmittal of funds—direct or indirect—to or from these Mexican entities.
The sanctions stem from allegations that both banks facilitated money laundering for major drug cartels, including funneling payments to Chinese suppliers of fentanyl precursors. In announcing the designations, Treasury Secretary Scott Bessent warned that “financial facilitators like CIBanco, Intercam, and Vector are enabling the poisoning of countless Americans by moving money on behalf of cartels,” underscoring a zero-tolerance stance toward transnational narcotics financial networks.
Originally set to take effect on July 21, 2025, the U.S. deadline was pushed back when Mexico’s government appealed for more time to stabilize the institutions. On July 9, Treasury extended the effective date to September 4, 2025—granting a 45-day reprieve after Mexico temporarily intervened in the banks’ fiduciary operations and transferred their trust services to state-owned Nacional Financiera.
Mexico’s financial authorities have moved swiftly. The Comisión Nacional Bancaria y de Valores and Banco de México have both urged local banks to maintain customer access and liquidity. Meanwhile, the Secretaría de Hacienda officially took control of CIBanco’s and Intercam’s managed trusts, pledging to spin them off to private institutions under robust oversight once the immediate crisis subsides.
A recent small sample survey of expat bank customers from those sanctioned banks reveal unsettled banking routines. Among those surveyed, over 75% bank with Intercam and less thank 25% bank with CIBanco.
Nearly half of expat surveyed Intercam clients (48%) plan to keep their account. 41% are weighing whether to close, and 10% have decided to leave. CIBanco customers are more cautious: 31% will stay, 62% remain undecided, and 7% have chosen to close their accounts.
Customers report that U.S.-to-Mexico and Mexico-to-U.S. wire transfers via Intercam often fail. One expat in Mexico City waited days for a contractor payment. CIBanco clients say Mexican authorities canceled transactions preemptively, leaving funds in limbo.
ATM withdrawals add to the frustration. Intercam branches have capped daily withdrawals at 20,000 pesos (about US $1,070) and sometimes limit in-branch cash to 10,000 pesos. CIBanco users describe ATMs that reject routine deposits and fail to dispense cash.
To keep bills paid, some customers prepay homeowner association fees or lock funds into certificates of deposit. Others open new accounts with Banorte, Actinver or use fintech services like Wise. A handful remain optimistic. They point to past hiccups—such as HSBC’s 2022 wire-hold issues—that resolved after regulatory talks.
Banking experts recommend planning alternative payment routes now. They advise opening backup accounts at major domestic banks and exploring digital wallets for cross-border transactions. For expats and businesses that rely on reliable transfers, immediate action may be the only way to avoid being caught off guard when sanctions formally begin.
