U.S. and Canadian citizens living in Mexico alerted: Intercam and CIBanco face sanctions
U.S. and Canadian expats living in Mexico who bank with Intercam or CIBanco are currently facing challenges due to the U.S. sanctions imposed on June 25, 2025. The sanctions, imposed by the U.S. Department of the Treasury, accuse these institutions of money laundering for drug cartels. As a result, U.S. banks are prohibited from conducting transactions with these banks, with the ban set to take effect after a temporary reprieve until September 4, 2025.
Many expats have reported issues with their accounts, although most have not closed them yet. However, maintaining accounts with these institutions may hinder financial operations between Mexico and the U.S.
To help manage their finances, expats are advised to take the following steps:
## Diversify Banking Consider opening accounts with banks that are not under sanctions to ensure smoother international transactions. Having accounts in both U.S./Canadian and Mexican institutions can help manage cross-border finances more effectively.
## Monitor Financial News Stay informed about updates on the sanctions and any changes in the financial regulations affecting these banks.
## Alternative Payment Methods Use alternative payment systems or services for international transactions that do not rely on U.S. banks.
## Consult Financial Advisors Seek advice from financial experts familiar with cross-border banking to ensure compliance with regulations and optimal management of finances.
## Review and Adjust Financial Plans Assess how the sanctions might impact your financial plans and adjust accordingly. This could include revising investment strategies or setting up new financial structures.
By taking these steps, expats can mitigate the impact of the sanctions on their financial operations while ensuring compliance with evolving regulations. U.S. financial institutions are prohibited from conducting transactions with Intercam and CIBanco starting July 21, 2025.
Expats are encouraged to monitor updates from the U.S. Embassy and their financial institutions for further developments. Intercam, marketed as "Mexico's international bank", caters to a significant expat population, and the exact number of expats holding bank accounts at Intercam is not publicly available, but its focus on international clientele indicates a strong presence in the expat banking sector in Mexico.
[1] U.S. Department of the Treasury, "Treasury Sanctions Mexican Financial Institutions for Money Laundering and Fentanyl Precursor Trafficking," June 25, 2025,
[2] U.S. Department of the Treasury, "FAQs on the Designation of Intercam, CIBanco, and Vector," July 1, 2025,
[3] "U.S. Sanctions on Mexican Banks Affecting Expats," The Mexico Report, July 5, 2025,
- In light of the sanctions imposed on Intercam and CIBanco, it would be wise for U.S. and Canadian expats in Mexico to consider diversifying their banking by opening accounts with banks not under sanctions, enabling smoother international transactions.
- There is a need for expats to keep abreast of financial news, particularly updates on the sanctions and any changes in financial regulations affecting these banks, to stay informed and manage their finances effectively.
- To minimize the impact of the sanctions and ensure compliance with regulations, expats should also explore alternative payment systems or services for international transactions that do not rely on U.S. banks.
