The Mexican bank CIBanco filed a civil lawsuit before a federal court in the District of Columbia, Washington, against the U.S. Department of the Treasury and its financial intelligence unit, FinCEN, after being sanctioned and accused of allegedly facilitating money laundering operations linked to opioid trafficking. Meanwhile, Multiva announced the acquisition of CIBanco’s fiduciary business.
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The legal action seeks to overturn the order issued on June 25, 2025, in which the United States government, led by Donald Trump, blocked the bank’s access to the U.S. financial system, after considering it a financial collaborator of Mexican cartels.
In the lawsuit, CIBanco argues that the sanction was imposed without prior notice, without an opportunity to defend itself, and based on vague accusations. “CIBanco faces an institutional death sentence over accusations so lacking in specificity that they are nonexistent,” the document states.
What does CIBanco say about the money laundering accusations?
CIBanco denied having engaged in any illegal activities and accuses the Treasury Department of violating its right to due process. The bank claims it was never officially informed or given the opportunity to review or refute the alleged evidence against it.
“The FinCEN order puts the continuity of CIBanco as an international bank at risk and threatens to strand more than 40 billion U.S. funds managed by the bank… without a proper process to prove the falsity of these accusations, CIBanco faces imminent disappearance,” the institution stated in the lawsuit.
CIBanco also claims the accusations are “general and vague,” as they fail to identify individuals, accounts, or specific transactions, preventing any possibility of legal defense.
What consequences has the Treasury sanction had for CIBanco?
The decision by the United States government has had devastating effects on the Mexican bank. First, the payments company Visa terminated its commercial relationship with CIBanco on June 30, resulting in the deactivation of approximately 220,000 debit and prepaid cards issued by the institution.
In addition, another 70,000 cards, mainly for international use, were blocked—affecting thousands of customers in both Mexico and abroad.
Dozens of bank accounts that CIBanco held in about ten U.S. financial institutions were also frozen. These accounts contained more than 38 million dollars as part of its fiduciary operations.
“Since the order was issued, CIBanco has been unable to access many of these accounts, as U.S. financial institutions have begun complying with the order prohibiting the transmission of funds to and from CIBanco. Due to the structure of the trusts, beneficiaries cannot directly access them either, meaning the assets are effectively stranded,” the bank’s lawyers warned.
Who is affected by the sanction against the Mexican bank?
According to CIBanco, the Treasury Department’s decision not only threatens its operation as a banking institution but also potentially impacts thousands of third parties, including employees, clients, and fiduciary beneficiaries.
“People with deposits in the bank face a substantial risk of loss in the event of liquidation. Numerous U.S. investors, including state and local employees such as teachers and emergency personnel, will suffer losses due to the disorder in the fiduciary management of pension funds, investment funds, and other trusts,” the lawsuit warns.
CIBanco notes that the measure could also lead to the layoff of over 3,000 employees, as the bank faces the risk of shutting down its international operations and potentially being liquidated.
What is CIBanco requesting in its lawsuit?
In its lawsuit, CIBanco asks the federal court to temporarily—and then permanently—suspend the enforcement of the sanction imposed by FinCEN. It also requests that the Treasury Department revoke any actions stemming from the order, including the communications that led to the disconnection of its access to the U.S. financial system.
Finally, the bank seeks compensation for damages caused by the implementation of the sanction, which has already severely impacted its income, reputation, and customer base.
At the heart of its defense, CIBanco insists it never had access to concrete evidence, names of companies or clients, or records of illegal operations.
“CIBanco has desperately tried to identify which clients and transactions FinCEN is referring to, but it’s like looking for needles in hayfields,” reads the document submitted to the court.
The bank’s legal team argues that FinCEN based its decision on alleged operations with companies from Mexico and China, without providing dates, amounts, documents, or verifiable evidence. It further stresses that less severe measures were not considered before imposing a sanction that, in effect, represents an “institutional death sentence.”
Multiva acquires CIBanco’s fiduciary business
On Tuesday, August 19, Grupo Financiero Multiva announced it has reached an agreement to acquire the entirety of CIBanco’s fiduciary business, amid the scandal the institution is facing after being accused by the U.S. Treasury Department of alleged money laundering operations. The transaction was disclosed in a statement to the Mexican Stock Exchange (BMV) and is still subject to regulatory approval, but it represents a strategic move to ensure the operational continuity of the trusts managed by CIBanco under applicable regulations.
Through this operation, Multiva aims to provide stability to the participants in these fiduciary services and strengthen its footprint in a sector that, according to data from the CNBV, exceeded 11 trillion pesos by the end of the first half of 2025. CIBanco accounted for nearly 28% of the market with over 3 trillion pesos in fiduciary assets. However, no official data yet reflects changes in financial system indicators, nor has the formal transfer of the fiduciary business to another entity, including development banks, been confirmed.
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