Citi, BNY Step Back From CIBanco, Intercam on US Drug Claims
Earlier this week, the US Treasury’s Financial Crimes Enforcement Network slapped CIBanco, Intercam and Vector with orders that prohibit certain transmissions with those firms.
Photographer: Al Drago/BloombergCitigroup Inc. and Bank of New York Mellon Corp. are starting to pause dealings with Mexican financial firms that are disputing US claims they facilitated money laundering for drug traffickers.
Citigroup has taken steps to cut ties with CIBanco SA and Intercam Banco SA, according to a person familiar with the matter. BNY has frozen the assets of those two banks, as well as brokerage Vector Casa de Bolsa SA, and is returning transactions from those firms and their affiliated entities, another person familiar with the matter said, asking not to be identified discussing private information.