Mexico President Claudia Sheinbaum Criticises US Sanctions on Mexican Banks Over Money Laundering Allegations

Mexican President Claudia Sheinbaum expressed strong disapproval of US sanctions against three Mexican financial institutions, citing a lack of evidence for the allegations. The US Treasury Department had imposed these sanctions on CIBanco, Intercam Banco, and Vector Casa de Bolsa, accusing them of facilitating money transfers for drug cartels. Sheinbaum stated that the US had not provided proof to support its claims.

The US Treasury's announcement on Wednesday alleged that these banks helped transfer millions of dollars to Mexican drug cartels. However, Sheinbaum highlighted during her Thursday briefing that the administration of former US President Donald Trump had failed to present any evidence despite repeated requests. "The Treasury Department hasn't provided a single piece of evidence to show that any money laundering was taking place," she said.

Financial Institutions Deny Allegations

The accused banks have also denied the allegations, pointing out the absence of evidence. Vector Casa de Bolsa released a statement rejecting any claims that could harm its integrity. Similarly, Intercam Banco denied involvement in any illegal activities. Vector is owned by Alfonso Romo, who was once chief of staff to ex-President Andrés Manuel López Obrador.

CIBanco's president of strategies, Manuel Somoza, mentioned that they learned about the sanctions at the same time as the public. He clarified that it was not a formal legal accusation but an investigation. "Our books are open," he stated, urging American authorities to conduct an investigation.

US Sanctions and Mexican Response

The Treasury Department's order will take effect in 21 days. According to US law officials, such actions can be taken without public evidence if there are "reasonable grounds" to suspect money laundering related to trafficking. Sheinbaum noted that Mexican regulators conducted their investigations and found only administrative infractions, not matching the US accusations.

The Trump administration claimed these institutions facilitated transactions with Chinese companies for chemicals used in fentanyl production. However, Sheinbaum argued that their investigation showed strong trade relationships with Chinese clients rather than illicit activities. The US has been wary of China's growing influence in Latin America.

Mexico's Sovereignty and International Relations

Sheinbaum expressed frustration over the situation, emphasizing Mexico's sovereignty and demanding equal treatment from the US government. "We're no one's piñata," she asserted, calling for respect towards Mexico as a sovereign nation.

The Treasury Department alleged that these institutions transferred funds to US banks but did not disclose which ones were involved or provide additional details. Meanwhile, China remains a primary source of chemical precursors for fentanyl production in Mexico according to US authorities.

With inputs from PTI