What sparked Mexico’s new financial crime law and who’s involved
Mexico’s Congress has passed a new law to tighten controls on money laundering just days after the United States accused three Mexican financial institutions of helping drug cartels move money.
The bill was approved by a wide margin in the lower house, with 349 lawmakers voting in favour and only 38 against.
It aims to improve how authorities track and stop financial crimes involving illegal funds.
The move comes after the US Treasury sanctioned CIBanco, Intercam Banco and Vector Casa de Bolsa, claiming they were involved in laundering money for cartels behind the cross-border fentanyl trade.
The US said these banks helped move millions of dollars and made payments for chemicals used to make the synthetic drug.
Washington's actions were taken under new laws focused on fighting fentanyl trafficking, including the Fentanyl Sanctions Act and the FEND Off Fentanyl Act.
The penalties could block the accused banks from making transfers with US institutions, although the full impact of the sanctions is not yet clear.
Mexico's Finance Ministry said it had not yet seen proof of the allegations.
“We want to be clear: If we have conclusive information proving illicit activities by these three financial institutions, we will act to the fullest extent of the law,” it said in a statement.
Vector, one of the accused companies, denied any wrongdoing and said it was ready to cooperate.
“Vector categorically rejects any accusation that compromises its institutional integrity,” the firm said.
This story is written and edited by the Global South World team, you can contact us here.
