The sanctions imposed by FinCEN establish that Vector, Intercam and CI Banco cannot carry out operations with any company in the United States.
The entry into force of these measures was postponed twice, giving the union and the government time to prepare and transfer some businesses to other financial institutions.
“The Treasury Department will continue to take all necessary measures to protect the US financial system from abuse by illicit actors and combat the financing of transnational criminal organizations and drug trafficking,” he highlighted in a statement last July.
CI Bank
The signs: The Treasury Department said it has records that it had a “consistent pattern of associations, transactions and provision of financial services that facilitate the illicit trafficking of opioids” by cartels such as the Beltrán Leyva Cartel, the Jalisco New Generation Cartel (CJNG) and the Gulf Cartel.
He was also singled out for the acquisition of chemical precursors from China; These accusations were denied by the bank, which even filed a lawsuit against the government and US authorities, which was voluntarily withdrawn a couple of days later.
He was the only one of the defendants to make public a lawsuit against the United States government and representatives of FinCEN and the Treasury Department.
The outcome: Last week it announced that it requested the National Banking and Securities Commission (CNBV) for the voluntary revocation of its license to operate as a bank.
The IPAB entered as liquidator of the bank so it will pay more than 4,000 million pesos to savers for amounts protected under bank savings protection insurance. Furthermore, upon entering into the liquidation process, the bank cannot sell this license to another entity.
Before the bank’s liquidation was resolved, the firm sold its trust portfolio to Multiva; However, before the transaction took place, the clients or owners of the trusts decided to move to other institutions such as Actinver, BBVA and Citi México.
The automotive loan portfolio was sold to BanCoppel, allowing this bank to venture into this type of financing.
Intercam
The accusations: FinCEN had determined that the bank, which only operates in Mexico, was linked to illicit opioid trafficking, due to its long-standing pattern of partnerships, transactions, and provision of financial services that facilitate illicit opioid trafficking by Mexico-based cartels, including CJNG.
The US agency also identified her for allegedly processing transfers of funds in US dollars that finance the acquisition of chemical precursors from China on behalf of drug trafficking organizations for illicit purposes.
The outcome: The physical infrastructure, as well as the brokerage house and fund operator license, was acquired by Kapital Bank, forming a new financial group in the country.
Kapital also acquired the physical infrastructure so the branches and employees are now under its management.
The license to operate as a bank is maintained and it has not yet been announced whether it will seek to withdraw it as CI Banco did.
Vector
The accusations: FinCEN stipulated that this brokerage facilitated the money laundering activities of Mexico-based cartels, including the Sinaloa Cartel and the Gulf Cartel, as well as the acquisition of precursor chemicals from China for illicit purposes.
The outcome: Although the brokerage house transferred some instruments such as investment funds, as well as part of the accounts to Finamex, the license to operate in Mexico and the United States remains.
It was announced this Monday that the analysis area that provided information on financial markets closed this week, but it has not been formally announced.
Players who grow
Multiva, Kapital, BanCoppel and Finamex were among the financial institutions that benefited from the sale of some of the assets of the aforementioned institutions, at least those that kept a large part of the businesses.
Multiva took over the trust business that Vector operated. Multiva hired the American firm Sidley Austin, which advises it on compliance and anti-money laundering matters. It also included the law firms White & Case, and Galicia y Abogados, to advise on the acquisition, while Ernst & Young helped them with the tax part.
Kapital became the new “medium” player in banking after becoming a Financial Group. With the bank and brokerage house licenses, the firm seeks to expand its product offering.
Finamex had said that if Vector’s 30,000 clients decide to stay with them and do not change financial institutions, the brokerage house will have 150,000 clients in total and 220,000 million pesos in assets.
