On June 25, 2025, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued unprecedented orders under the newly enacted 21 U.S.C. § 2313a authority, targeting three Mexico-based financial institutions: CIBanco, Intercam Banco, and Vector Casa de Bolsa. These entities were designated as “financial institutions of primary money laundering concern” in connection with illicit opioid trafficking activities, particularly involving fentanyl precursors sourced from China and distributed through Mexico-based cartels such as the CJNG, Gulf Cartel, and Beltrán-Leyva Organization.
It is worth mentioning that three Mexican financial institutions are not on the Specially Designated Nationals and Blocked Persons list (SDN List) and are not currently sanctioned in the broader sense. The FinCen is not the same as an OFAC designation.
These are the first actions issued under Section 2313a, a statute introduced under the FEND Off Fentanyl Act in 2024. The Orders prohibit all U.S.-based financial institutions — including banks, brokers, money services businesses, and crypto platforms — from engaging in funds transfers to or from the designated institutions once the Orders take effect in mid-July 2025.
Notably, the Orders are extraterritorial in application: they do not criminalize the Mexican institutions directly, but rather impose severe restrictions and compliance obligations on U.S. entities. The expected consequences include:
- Immediate disruption of cross-border fund flows with Mexico, particularly for individuals and businesses banking with the affected entities.
- Elevated compliance burdens for U.S. institutions, including enhanced screening, due diligence, and client outreach.
- Potential litigation risks and long-term market exclusion for the sanctioned Mexican entities, which could lose access to USD-denominated transactions and correspondent banking services globally.
According to FinCEN, the institutions knowingly facilitated laundering operations linked to opioid trafficking and chemical precursor imports. For example, CIBanco was found to have processed over USD $100 million in transfers from Mexico-based firms connected to precursor suppliers in Asia.
The Mexican Ministry of Finance and National Banking and Securities Commission have acknowledged the U.S.’s actions and have appointed receivers to each institution to verify legality of operations, management and saving by current clients of these financial institutions.
U.S. and international financial institutions should immediately evaluate their exposure to these institutions and take proactive steps to ensure compliance. Clients with banking ties to CIBanco, Intercam, or Vector should prepare for potential service disruptions and consider alternative arrangements.
Here are is a link to FinCEN’s FAQs on these particular orders.
Snell and Wilmer is monitoring these developments closely and are available to assist clients in navigating the regulatory, contractual, and litigation-related implications of these designations.
Conclusion
The situation remains fluid, and businesses should remain vigilant. Proactive planning and consultation with legal experts are essential to navigate the complexities arising from these developments.
