Fibra Inn cuts ties with CIBanco over U.S. money laundering probe

Mexico City, Mexico — Fibra Inn, a Mexican real estate investment trust specializing in hotel properties, announced on Friday that it has initiated the process to remove CIBanco as its fiduciary investor. The decision comes after the U.S. Department of Treasury identified the financial institution as a "source of concern" for money laundering linked to drug trafficking.

Unanimous Decision to Sever Ties

In a formal statement, Fibra Inn notified CIBanco that its Technical Committee had unanimously agreed during a session on Thursday, June 26, to terminate their relationship. The trust emphasized that it has begun the process of selecting a new fiduciary but clarified that CIBanco will continue in its role until a replacement is appointed.

Fibra Inn assured investors that CIBanco manages the trust's assets separately from its own and can only use these funds for purposes directly instructed by Fibra Inn. The trust stated that CIBanco is prohibited from utilizing the assets for unrelated matters.

Commitment to Investor Protection

The real estate trust, which manages hotels such as Courtyard by Marriott and Hampton by Hilton, pledged to implement "prudent measures deemed necessary to safeguard the interests of its holders and maintain business continuity."

U.S. Sanctions and Regulatory Actions

The move follows the U.S. Department of Treasury's announcement on Wednesday prohibiting fund transfers involving CIBanco, Intercam Banco, and Vector Casa de Bolsa due to their alleged involvement in money laundering tied to drug trafficking.

On Thursday, June 26, Mexico's National Banking and Securities Commission (CNBV) disclosed plans to replace the administrative bodies and legal representatives of CIBanco, Intercam, and Vector Casa de Bolsa.

Edgar Amador Zamora, Mexico's Secretary of Finance and Public Credit (SHCP), acknowledged on Friday that the three institutions faced issues with their financing lines.

The developments mark a significant shift in Mexico's financial landscape as authorities and businesses respond to heightened scrutiny over money laundering risks.