Mexican regulators imposed 185 million pesos in fines last month on three firms that were targeted by the US Treasury for potentially aiding drug traffickers, according to government data.
Intercam Banco SA and its brokerage were fined 92 million Mexican pesos for violations of anti-money laundering rules such as failing to have an automated registry of unusual activity or follow its own guidelines on high risk clients, according to newly released data in regulator CNBV’s database of fines. CIBanco SA and its brokerage were fined nearly 67 million pesos, also under anti-money laundering rules, for failing to maintain records and processing inordinate amounts of US dollars in cash.
Brokerage Vector Casa de Bolsa SA was not called out for breaking anti-money laundering rules, but was fined almost 27 million pesos for faults including failing to notify clients of changes in its fund information.
Last month, the US Treasury department’s Financial Crimes Enforcement Network slapped orders on the same firms that will prohibit transfers with them, using new powers for the first time from last year’s FEND Off Fentanyl Act. The bulk of Intercam’s fines were imposed on the same day as the US action while most of CIBanco’s and Vector’s were levied on June 26, one day later, suggesting coordination between the countries’ authorities.
After the US orders were published, President Claudia Sheinbaum said the US had not provided proof of money laundering to justify such a drastic move.
Last week, the US extended the deadline to cut off the firms to Sept. 4, citing Mexico’s cooperation and quick move to take over management of the banks.
With assistance from Jose Orozco.
This article was generated from an automated news agency feed without modifications to text.