Mexico temporarily hands CIBanco, Intercam trust businesses to development banks

MEXICO CITY (Reuters) -Mexico will temporarily transfer the trust-handling businesses of two financial institutions sanctioned by the U.S. for alleged involvement in money laundering, the finance ministry said on Friday.

Mexican development banks will temporarily take over the trust units of CIBanco and Intercam Banco, while the ministry looks for a permanent solution to transfer them over to private institutions, it said in a statement.

The transfer will allow “the trusts to continue operating uninterrupted, for the benefit of their settlors, beneficiaries, and third parties involved,” the ministry said.

(Reporting by Kylie Madry; Editing by William Mallard)