Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels.
The U.S. Treasury Department announced that it was blocking transactions between U.S. banks and Mexican branches of CIBanco and Intercam Banco, as well as the brokering firm Vector Casa de Bolsa. All three have fiercely rejected the claims.
Mexico's President Claudia Sheinbaum accused U.S. officials of providing no evidence to back their allegations, though the sanctions announcement made specific accusations on how money was transferred through the companies. It detailed how "mules" moved money through accounts in the U.S., as well as transactions carried out with Chinese companies that U.S. officials said provided materials to produce fentanyl.
Mexico's banking authority has announced that it is temporarily taking over management of CIBanco and Intercam Banco to protect creditors.
Sheinbaum said Tuesday that the Mexican government is doing everything within its power to ensure that creditors aren't affected, and said they were well "within their right" to pull their money from the banks.