ARTICLE
4 August 2025

U.S. FinCEN's Order Targeting CIBanco Will Upend Mexican Fiduciary Market

FL
Foley & Lardner

Contributor

Foley & Lardner LLP looks beyond the law to focus on the constantly evolving demands facing our clients and their industries. With over 1,100 lawyers in 24 offices across the United States, Mexico, Europe and Asia, Foley approaches client service by first understanding our clients’ priorities, objectives and challenges. We work hard to understand our clients’ issues and forge long-term relationships with them to help achieve successful outcomes and solve their legal issues through practical business advice and cutting-edge legal insight. Our clients view us as trusted business advisors because we understand that great legal service is only valuable if it is relevant, practical and beneficial to their businesses.
In late June 2025, the U.S. Treasury's FinCEN (Financial Crimes Enforcement Network), under new authorities granted pursuant to the Fentanyl Sanctions Act...
Mexico Government, Public Sector

In late June 2025, the U.S. Treasury's FinCEN (Financial Crimes Enforcement Network), under new authorities granted pursuant to the Fentanyl Sanctions Act, the FEND Off Fentanyl Act, and in line with President Trump's administration enforcement priorities targeting cartels, fentanyl trafficking, and transnational criminal organizations, issued an order designating CIBanco as being of primary money laundering concern in connection with illicit opioid trafficking (the Order).

Beginning September 4, 2025, the Order's broad spectrum of relevant U.S. financial institutions and U.S.-based branches of foreign financial institutions will be prohibited from transmitting funds with CIBanco, the largest fiduciary service provider in Mexico with a 25% market share (similar orders targeted Intercam Banco with a 1% fiduciary market share, and Vector brokerage firm, the ninth largest brokerage firm in Mexico).

Following the issuance of such Orders, the Mexican Treasury announced the initiation of the splitting process of CIBanco's and Intercam Banco's fiduciary businesses to protect the continuous functioning of the trusts that they currently manage; they will be temporarily transmitted to the Mexican Government´s Development Banking System which, in parallel, will develop a process to permanently transmit them to other private financial institutions.

It is widely known that foreign investors in beachfront properties in Mexico—both corporations and individuals—must rely on fiduciary instruments to secure, utilize and benefit from their rights to such property, and a large number of relevant trusts (remember that just CIBanco alone participates with a 25% share of the Mexican fiduciary market) have begun a mandatory splitting process. 

Those hospitality sector players and individuals whose Mexican trust currently has CIBanco or Intercam Banco as trustees, should immediately initiate contacts with the Mexican Government's Development Banking System to assure a smooth transfer and, most importantly, to avoid any potential adverse consequences to their current and future rights and operations, and in turn, orderly initiate the trust's transmission to a new Mexican private financial institution. Our Hospitality & Leisure Industry team, along with our Mexico and U.S. legal teams, are readily available to provide additional information and counsel on the execution of the suggestions provided herein.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More