For the second time, the Financial Crimes Enforcement Network has extended the effective dates for three orders targeting Mexico-based financial institutions with alleged ties to fentanyl trafficking.
The June orders involved CIBanco S.A., Institución de Banca Multiple (CIBanco); Intercam Banco S.A., Institución de Banca Multiple (Intercam); and Vector Casa de Bolsa, S.A. de C.V. (Vector). Covered financial institutions are prohibited from engaging in transmittals of funds from or to CIBanco, Intercam or Vector, or from or to any account or convertible virtual currency address administered by or on behalf of the three institutions. Covered institutions are also directed to consider the finding of primary money laundering concern when complying with other Bank Secrecy Act obligations, including BSA program rule obligations.
The orders were initially scheduled to take effect in July but that was pushed back to September earlier this year. Under a notice filed yesterday, the effective date was again pushed back, this time to Oct. 20. The extension reflects continued steps taken by Mexico to meaningfully address the concerns raised in the orders, according to FinCEN.
In related news, CIBanco voluntarily dismissed its recent lawsuit in federal court challenging FinCEN’s decision, according to the news site Merca2.0. The bank denied having engaged in anti-money laundering activities. CIBanco’s new provisional administrator, appointed under Mexican banking law, directed the dismissal of the case.
Editor’s note: This story has been updated since publication to reflect CIBanco’s recent dismissal of its lawsuit.
