US Department of the Treasury Targets Mexican Banks for Alleged Money Laundering

The U.S. Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), has issued orders against three Mexican financial institutions, alleging that they facilitated money laundering operations benefiting Mexican cartels, particularly in schemes related to fentanyl trafficking.

Mexico’s Ministry of Finance and Public Credit (SHCP) confirmed that Mexican authorities are cooperating with their U.S. counterparts in the ongoing investigations. On June 26, the National Banking and Securities Commission (CNBV) ordered the temporary managerial intervention of the three financial institutions involved.

In this context, it is important to highlight the proposed reform to the Federal Law for the Prevention and Identification of Operations with Illicit Proceeds (LFPIORPI), which was approved by the Senate on June 25, 2025. The reform is expected to be approved by the Chamber of Deputies and published in the coming days. This legislative initiative is being promoted amid growing international pressure, including the upcoming evaluation of Mexico’s anti-money laundering and counter-terrorism financing system by the Financial Action Task Force (FATF), the designation of Mexican drug cartels as foreign terrorist organizations by the U.S., and ongoing investigations by authorities such as the U.S. Department of the Treasury.

These investigations may extend beyond the traditional financial system to other sectors classified as vulnerable activities (such as real estate development, trade in precious metals, jewelry and artwork, property leasing, prepaid or service cards, among others).

In this context, it is essential for companies to review and strengthen their anti-money laundering and counter-terrorism financing compliance programs, ensuring alignment with international standards and regulatory best practices.

Key elements of the proposed reform include:

• Strengthening of Know Your Customer (KYC) and due diligence procedures.
• Mandatory risk-based assessments.
• Expansion of the definition of Beneficial Owner and mandatory registration with the Ministry of Economy.
• Requirement to maintain an internal compliance policy manual.
• Mandatory annual training for compliance and customer-facing personnel.
• Implementation of automated transaction monitoring systems.
• Annual audits to assess compliance effectiveness.

Non-compliance with LFPIORPI may result in administrative sanctions, including fines of up to 65,000 times the UMA (more than $7 million pesos), as well as the revocation of licenses or suspension of operations in cases of repeated violations.

At Cannizzo, we can advise you regarding this Law to remain in compliance and avoid possible sanctions. Our team of experts is available to provide personalized advice and support in the adoption of this new regulation.

For more information, please contact Karen Ortega at [email protected].

Yours sincerely,

Cannizzo