Trump’s Terrorist Label for Cartels Is Putting Banks on Edge
- Banks operating in Mexico may shut accounts, sever links
- Remittances, agriculture, transportation seen vulnerable
A car riddled with bullet holes after a shooting confrontation in Culiacan, Sinaloa State, Mexico, in 2024.
Photographer: Ivan Medina/AFP/Getty ImagesDonald Trump’s designation of Mexican cartels as terrorist organizations risks creating a chilling effect on financial firms and other companies over fears they could face severe penalties by even unwittingly serving or paying criminals.
Mexico’s banking industry is particularly likely to take a more conservative approach to lending and other services given its role as a go-between on transactions, according to former officials. The country’s banking sector — dominated by a handful of foreign firms — may curtail business in areas known to be connected to the drug trade, from mining and livestock to transportation and agriculture, they said.