Intercam Cut Off from US Banks, Stranding Expat Clients

American expatriates living in Yucatán face a financial dilemma following Wednesday’s US Treasury sanctions against Intercam Banco, one of the few Mexican banks willing to serve foreign residents who struggle to obtain traditional banking services.

The Financial Crimes Enforcement Network (FinCEN) designated Intercam as a primary money laundering concern under new anti-fentanyl legislation, effectively cutting off the institution from the US financial system and leaving thousands of American retirees and expats scrambling for banking alternatives.

The Bottom Line: US citizens in Yucatán who rely on Intercam for basic banking services now face potential isolation from their US accounts, with few viable alternatives available.

Expat Banking Lifeline Severed

For years, Intercam has served as a crucial financial bridge for American expatriates in Mexico’s Yucatán Peninsula. Unlike traditional Mexican banks that often require extensive documentation, employment verification, and substantial deposits from foreigners, Intercam built a reputation for accommodating US citizens seeking to establish local banking relationships.

The bank’s English-speaking staff and streamlined account opening procedures made it particularly attractive to retirees and expats who found themselves shut out of Mexico’s more restrictive banking system. Many American residents used Intercam accounts to receive pension transfers and other US-sourced income.

“This is going to be devastating for the expat community,” said Maria Rodriguez, a financial advisor who works with American retirees in Mérida. “Intercam was often their only option when other banks turned them away.”

Intercam Response

Intercam issued an official statement categorically denying the allegations and asserting its commitment to regulatory compliance.

In its response, Intercam stated that it “has operated in full compliance with all regulations established by national and international authorities” for nearly 30 years, emphasizing its adherence to anti-money laundering and counter-terrorism financing principles.

The bank reassured clients that it “continues to operate normally and will continue supporting its clients, as we always have,” noting that deposits are protected by Mexico’s deposit insurance institute (INDEVAL) and that investment instruments remain safeguarded.

Intercam also confirmed it is maintaining “constant communication with the Ministry of Finance and Public Credit (SHCP), the Bank of Mexico, and the National Banking and Securities Commission (CNBV)” regarding the US allegations. The June 25 statement emphasized that Mexico’s banking regulator “has stated that, as of today, it has no information in this regard.”

The bank concluded by “categorically rejecting any allegations made against the institution concerning money laundering.”

The Allegations Behind the Sanctions

The Treasury’s action stems from serious allegations of cartel money laundering. According to FinCEN’s investigation, Intercam’s $4 billion institution allegedly facilitated financial services for Mexico-based cartels, including the notorious Jalisco New Generation Cartel (CJNG).

The most damaging allegations include Intercam executives meeting directly with suspected CJNG members in late 2022 to discuss money laundering schemes involving fund transfers from China. From 2021 through 2024, the bank allegedly processed over $1.5 million for China-based companies shipping precursor chemicals to Mexico for illicit drug manufacturing.

The institution also reportedly handled USD-denominated transfers that financed the procurement of chemicals used in fentanyl production, making it a target under the new Fentanyl Sanctions Act.

Intercam did not immediately respond to a request for comment from a Reuters journalist.

Immediate Impact on US Citizens

The sanctions, which take effect 21 days after Federal Register publication, prohibit US financial institutions from conducting business with Intercam. This means American banks cannot process wire transfers, direct deposits, or other transactions involving the Mexican institution.

“We’re talking about people on fixed incomes who may not have other banking options,” explained Carlos Mendez, a Mérida-based attorney who assists American residents. “Some of these individuals are elderly and don’t have the mobility or documentation to establish accounts elsewhere.”

Limited Alternatives for Foreign Residents

The expat community’s reliance on Intercam reflects broader challenges in Mexico’s banking sector. Traditional institutions like Banamex, BBVA Mexico, and Santander typically require foreign residents to provide extensive documentation, including:

Mexican tax identification numbers (RFC)
Proof of legal residency status
Employment verification or substantial asset documentation
Minimum balance requirements often exceeding $10,000 USD equivalent

Many American retirees, particularly those on tourist visas or temporary resident status, cannot meet these requirements. Intercam’s more flexible approach made it virtually the only option for thousands of US citizens seeking basic banking services.

Treasury’s Broader Crackdown

Wednesday’s action extends beyond Intercam to include CIBanco S.A. and Vector Casa de Bolsa, marking the first use of enhanced powers under recent anti-fentanyl legislation. Treasury Secretary Scott Bessent emphasized that these “financial facilitators are enabling the poisoning of countless Americans by moving money on behalf of cartels.”

The sanctions complement February 2025 designations that classified major Mexican drug cartels as Foreign Terrorist Organizations, representing an escalation in the US government’s approach to combating fentanyl trafficking through financial pressure.

Mexico’s Response and Diplomatic Tensions

Mexico’s Finance Ministry has launched its own investigation into the allegations, demanding substantial evidence before taking domestic action against the institutions. The Mexican government maintains that accusations alone are insufficient for legal measures without conclusive proof.

This stance could create diplomatic tensions as affected American citizens pressure both governments for solutions. The US Embassy in Mexico has not yet issued guidance for affected expatriates.

Seeking Solutions

Financial advisors working with the expat community are urgently exploring alternatives. Options under consideration include:

Credit unions that serve international members
Online banking platforms with Mexico operations
Establishing accounts through Mexican spouses or partners
Alternative payment systems for receiving US benefits

However, each option presents complications, costs, or eligibility requirements that may exclude many affected Americans.

Looking Ahead

The 21-day implementation period provides a narrow window for affected expats to establish alternative banking relationships. Community organizations in popular American enclaves like Mérida, Playa del Carmen, and Lake Chapala are organizing information sessions to help residents navigate their options.

The situation highlights the vulnerability of expatriate communities to geopolitical actions that, while targeting legitimate security concerns, create unintended consequences for law-abiding citizens caught in the crossfire.

For many American retirees who chose Yucatán for its affordability and quality of life, the Intercam sanctions represent a harsh reminder of their precarious position in Mexico’s financial system – and the complex challenges of living between two countries’ regulatory frameworks.