Mexico fines US-sanctioned banks nearly US $10M for compliance failures

Mexican regulator, the National Banking and Securities Commission (CNBV), fined CIBanco, Intercam and brokerage steadfast Vector connected Tuesday aft the U.S. announced sanctions connected the 3 fiscal institutions for alleged wealth laundering successful June.

CNBV fined the 3 firms a full of 185 cardinal pesos (US $9.8 million), owed to “non-compliance successful administrative processes,” Mexico’s Finance Ministry said successful a press statement connected Tuesday. 

Intercam was fined 92.15 cardinal pesos ($4.9 million), CIBanco 66.61 cardinal pesos ($3.55 million) and Vector 26.46 cardinal pesos ($1.4 million). 

The Finance Ministry reiterated that contempt the announced U.S. sanctions connected CIBanco, Intercam and Vector, nary grounds of wrongdoing has been forthcoming.

“If we person conclusive accusation that proves illicit activities of these 3 fiscal institutions, we volition enactment with the afloat unit of the law,” the ministry’s property connection read. “However, to date, we person nary specified information.” 

Most of the fines connected Intercam and CIBanco related to money-laundering prevention, portion Vector faced fines for nonaccomplishment to people mandatory information.  

The fines reportedly corresponded to June, erstwhile the CNBV took control of the 3 fiscal institutions. 

CIBanco, Intercam and Vector triumph impermanent reprieve from US wealth laundering sanctions

On June 25, the U.S. prohibited the execution of money transfers to and from Mexico’s CIBanco, Intercam and Vector aft they were recovered to person laundered wealth successful transportation with illicit opioid trafficking by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). All 3 person denied FinCEN’s allegations of wealth laundering.

An estimated 30% to 40% of clients with important funds successful the affected fiscal institutions had alternate slope accounts and withdrew their funds successful the archetypal 2 days aft the FinCEN accusation, according to CNBV’s vice-president José Antonio Quesada. 

On July 9, FinCEN announced that CIBanco, Intercam and Vector would person an further 45 days, until September 4, to conscionable definite standards earlier receiving sanctions. 

“It is precise hard to spot what aboriginal these institutions whitethorn person if the authorisation contented is not resolved quickly, and from experience, I tin accidental that these things are not resolved quickly,” Victor Manuel Herrera, the president of the National Committee for Economic Studies of the Mexican Institute of Finance Executives (IMEF), said successful a property conference.  

With reports from Reuters and El Financiero