US and Mexico Relations: What the Latest Bank Sanctions Mean for Americans in Mexico

by Justin Keltner  - July 1, 2025

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US and Mexico relations took another sharp turn recently after the United States sanctioned several Mexican financial institutions, leaving thousands of expats without access to their funds. If you’re living in Mexico or planning to move, this situation highlights why strategic financial planning and legal residency are essential. In this post, we’ll break down what happened, who’s affected, and what you can do right now to protect your money and your future.


What Happened: The Sanctions That Disrupted US and Mexico Relations

On June 25th, 2025, the United States sanctioned three Mexican banks — Intercam, Banco Accendo, and Vector Casa de Bolsa — over alleged money laundering activities tied to organized crime. Whether or not these banks are guilty, the reality is that the US and Mexico relations landscape just shifted again, and expats are caught in the crossfire.

These sanctions, which take effect on July 21st, block any transaction between these banks and the US financial system. That includes ACH transfers, international wires, crypto transactions, and more. If it even touches a US intermediary or network — it’s blocked.


Why Americans in Mexico Are Feeling the Impact

If you’re an American living in Mexico without a residency permit, this move affects you the most. Intercam was one of the few banks still allowing non-residents to open accounts without an RFC (Mexico’s tax ID). Thousands of foreigners used Intercam to pay rent and transfer funds from the U.S.

With the recent sanctions, those accounts are essentially frozen — not by the bank, but by financial restrictions that stem from US and Mexico relations deteriorating on the compliance front.


Residency is No Longer Optional — It’s Strategic

Here’s the bottom line: If you want to maintain access to your money and live with some degree of financial independence in Mexico, you need Mexican residency.

At Entrepreneur Expat, we’ve been saying this for over a year — and every prediction is coming true. The Mexican government is tightening visa rules, canceling regularization programs, and increasing financial thresholds. It’s not going to get easier.

Without residency and an RFC, your banking options will be severely limited. And if US and Mexico relations continue to strain, the risk grows even more.

Ready to make the move legally and securely? Book a free consultation at entrepreneurexpat.com/consult to get help with immigration, banking, tax ID setup, and more.


How to Protect Yourself Financially

The sanctions are a wake-up call. Here are three ways to insulate yourself:

1. Use Non-Bank Transfer Services

Platforms like Wise, Remitly, Revolut, and WorldRemit continue to offer better exchange rates and avoid US-involved intermediary banks — a smart hedge as US and Mexico relations remain tense.

2. Leverage US Brokerages with ATM Perks

Brokerage accounts like Charles Schwab and Fidelity let you withdraw cash globally with:

  • No foreign transaction fees

  • No ATM usage fees

  • Full ATM fee reimbursement

If you’re stuck without access to a Mexican bank, this is a solid emergency option.

3. Open Accounts at Trusted Mexican Banks

We use BBVA, one of Mexico’s largest and most stable banks. No issues transferring or accessing funds. But again — they require you to be a resident with a valid RFC.


Financial Freedom Tied to Residency and Diversification

Residency in Mexico isn’t just about living legally — it’s about access. Access to:

  • Banking systems

  • Investment opportunities (many offering 8–10%+ APR)

  • Real estate deals

  • Fintech platforms

  • Long-term stability outside the US system

And most importantly, it’s about reducing exposure to unilateral US policy changes.

The ongoing shifts in US and Mexico relations aren’t just political headlines — they’re financial landmines. But you can sidestep them.


Mexico’s Response and What It Means for the Future

The Mexican government is pushing back, criticizing the sanctions as heavy-handed and citing a lack of evidence. This aligns with a growing frustration across Latin America: many see these financial moves as the US asserting global control through its banking networks.

Whether you’re skeptical of the claims or not, the larger story is clear: US and Mexico relations are becoming more volatile, and that volatility affects anyone relying on traditional financial systems between the two countries.


Your Next Step: Residency, Diversification, and Peace of Mind

Living abroad isn’t about escaping — it’s about intelligent positioning. If you’re serious about relocating to Mexico or anywhere in Latin America, now is the time to get your legal and financial house in order.

That starts with:

  • Mexican residency

  • RFC registration

  • Strategic banking

  • Contingency plans for fund access

At Entrepreneur Expat, our legal, real estate, and financial experts help expats like you move with confidence and create a resilient life abroad.

Book your free consultation now at entrepreneurexpat.com/consult before more restrictions hit.


Final Thoughts on US and Mexico Relations

These recent sanctions underscore a long-term truth: You can’t afford to have all your eggs in one basket — especially if that basket is tied solely to the United States. The best time to diversify was years ago. The second-best time is now.

Don’t wait until the next round of sanctions. Plan smart. Live free. We’ll show you how.

Disclaimer: The content provided on Entrepreneur Expat is for informational and educational purposes only. Nothing on this site should be construed as legal, accounting, tax, immigration, or other professional advice. We are not licensed advisors and do not provide professional services in any of these areas. Always consult with a qualified professional in the country or jurisdiction relevant to your situation before making any decisions or taking action.

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