The Trump administration on Wednesday, for the first time, used a new authority to require U.S. financial institutions to cut ties with three Mexico-based banks for laundering money on behalf of cartels.
The Treasury Department identified cartels that have "exploited Mexico-based financial institutions to move money," which Treasury Secretary Scott Bessent said enables the "vicious fentanyl supply chain that has poisoned countless Americans." 
"Through the first use of a new powerful authority granted by Congress, Treasury will effectively require U.S. financial institutions to sever ties with 3 Mexico-based financial institutions for laundering money on behalf of cartels," Treasury Secretary Scott Bessent said Wednesday.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued orders identifying three Mexico-based banks—CIBanco S.A., Institution de Banca Multiple (CIBanco), Intercam Banco S.A., Institución de Banca Multiple (Intercam), and Vector Casa de Bolsa, S.A. de C.V. (Vector)—as being of "primary money laundering concern in connection with illicit opioid trafficking." 
The orders also prohibit certain transmittals of funds involving CIBanco, Intercam, and Vector. 
The orders are the first actions by FinCEN pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act. That act provides the Treasury Department with additional authorities to target money laundering associated with the trafficking of fentanyl and other synthetic opioids, including by cartels.
FinCEN said CIBanco and Intercam are commercial banks with more than $7 and $4 billion in total assets, respectively. Vector is a brokerage firm managing nearly $11 billion in assets.
An investigation resulted in the seizure of about 32,000 fentanyl pills with a street value of $1 million. (NYC Special Narcotics Prosecutor's Office / Fox News)
FinCEN said the financial institutions have "played a longstanding and vital role in laundering millions of dollars on behalf of Mexico-based cartels and facilitating payments for the procurement of precursor chemicals needed to produce fentanyl.

Treasury requires US financial institutions cut ties with Mexico-based banks tied to cartel money laundering

The Trump administration used a new authority to require U.S. financial institutions to sever ties with three Mexico-based banks linked to cartel money laundering, targeting illicit opioid trafficking and fentanyl supply chains. The Treasury Department identified CIBanco, Intercam, and Vector as primary money laundering concerns, citing their role in facilitating payments for precursor chemicals used in fentanyl production.