onlyTrustedInfo.comonlyTrustedInfo.comonlyTrustedInfo.com
Notification
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Reading: Mexican banks face cascading consequences following US sanctions
Share
onlyTrustedInfo.comonlyTrustedInfo.com
Font ResizerAa
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
Search
  • News
  • Finance
  • Sports
  • Life
  • Entertainment
  • Tech
  • Advertise
  • Advertise
© 2025 OnlyTrustedInfo.com . All Rights Reserved.
News

Mexican banks face cascading consequences following US sanctions

Last updated: July 1, 2025 4:35 pm
Oliver James
Share
3 Min Read
Mexican banks face cascading consequences following US sanctions
SHARE

Mexico City (AP) — Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels.

It comes after the U.S. Treasury Department announced that it was blocking transactions between American banks and Mexican branches of CIBanco and Intercam Banco, as well as the brokering firm Vector Casa de Bolsa.

In presenting the sanctions on June 25, officials provided no evidence to back their claims, fueling criticism from Mexican President Claudia Sheinbaum.

Shortly after, Mexico’s banking authority announced that it was temporarily taking over management of CIBanco and Intercam Banco to protect creditors.

Sheinbaum said on Tuesday that the Mexican government is doing everything within it’s power to ensure that creditors aren’t affected, but said they were well “within their right” to pull their money from the banks. The U.S. Treasury Department said that the sanctions would go into effect 21 days after the announcement.

All three companies have fiercely rejected those claims.

Despite that, the financial institutions have been dealt economic blows following the announcement, which are set to have stretching impacts on the companies.

Days after the announcement Fitch Rating downgraded the three institutions and other affiliates, citing “anti-money laundering concerns” and saying the drop “reflects the imminent negative impact” that the sanctions could have.

“The new ratings reflect the significantly more vulnerable credit profile of these entities in response to the aforementioned warnings, given the potential impact on their ability to meet their financial obligations,” the credit rating agency wrote in a statement.

On Monday, CI Banco announced that Visa Inc. had announced to them with little warning that it had “unilaterally decided to disconnect its platform for all international transactions” through CIBanco. The bank accused Visa of not complying with the 21-day grace period laid out by the U.S. Treasury Department sanctions.

“We would like to reiterate that your funds are safe and can be reimbursed through our branch network,” the bank wrote. “We reiterate to our customers that this was a decision beyond CIBanco’s control.”

S&P Ratings also withdrew CI Banco from its ratings index, saying that it was because it had terminated its contracts with the bank following the U.S. Treasury announcement.

You Might Also Like

Factbox-US corporate heads who got involved in politics

Now’s Not the Time to Eat Bagged Lettuce

Democratic governors seek to roll back state-funded health care for undocumented immigrants

Texas midwife, medical assistant arrested for providing illegal abortions near Houston, state AG Ken Paxton says

Trump’s $96B Qatar Jet Deal Signals Diplomatic Shift

Share This Article
Facebook X Copy Link Print
Share
Previous Article The 10 Carolyn Bessette-Kennedy Outfits We Want to See on American Love Story The 10 Carolyn Bessette-Kennedy Outfits We Want to See on American Love Story
Next Article Federal judge halts the Trump administration from dismantling the US African Development Foundation Federal judge halts the Trump administration from dismantling the US African Development Foundation

Latest News

30 Most Expensive Retirement Towns in America
30 Most Expensive Retirement Towns in America
Finance July 9, 2025
Social Security Cuts Could Cost You 8K: Here’s How Much More You’ll Need To Save
Social Security Cuts Could Cost You $138K: Here’s How Much More You’ll Need To Save
Finance July 9, 2025
Healthcare expert warns of coverage shock under ‘One Big Beautiful Bill’
Healthcare expert warns of coverage shock under ‘One Big Beautiful Bill’
Finance July 9, 2025
Here’s the Best 0 Retirees Can Spend To Get Their Finances on Track
Here’s the Best $200 Retirees Can Spend To Get Their Finances on Track
Finance July 9, 2025
//
  • About Us
  • Contact US
  • Privacy Policy
onlyTrustedInfo.comonlyTrustedInfo.com
© 2025 OnlyTrustedInfo.com . All Rights Reserved.