Key takeaways
Under orders issued by FinCEN, pursuant to its authority under the US FEND Off Fentanyl Act and based on its finding that three financial institutions are entities of "primary money laundering concern," US financial institutions are "prohibited from engaging in any transmittal of funds from or to" the three Mexican financial institutions.
The order will take effect 21 days after its publication in the Federal Register (which, as of the publication of this alert, has not yet occurred).
Although FinCEN's finding did not specifically identify criminal activities related to trusts established in Mexico (with no ties to the US) and managed by these Mexican financial institutions, the DoT's order will have adverse implications for the daily operations of these Mexican trusts, including asset flows that involve payments to or from US banks. Among other things, risks must be assessed regarding the continuation of these trusts, implications for the trustee and beneficiaries, and the consequences of potentially changing the trustee institution.
In more detail
In general, individuals should assess their exposure to these three financial institutions and consider whether the prohibitions will have an impact on assets held with them. To the extent winding down relationships with these financial institutions is deemed necessary or prudent, wind-down activities that may require transfers of US dollars (or any other assets) to or from banks in the United States must be completed prior to the order taking effect in (approximately) 21 days.
What are the repercussions in Mexico?
On 26 June 2025, the National Banking and Securities Commission (CNBV) announced its temporary intervention in the management of the two flagged banks to safeguard the rights and interests of their clients and the investing public.
We understand that many Mexicans hold accounts in Mexico, so our experts at Baker McKenzie, both in Mexico and the US, are at your service to address any questions and potential impacts on your business, as well as to develop a tailored strategy to protect your activities in Mexico and the US and mitigate any operational risks.
For legal advice on a specific matter, please contact the Baker McKenzie team, who will be happy to assist you.
