Mexican President Claudia Sheinbaum has responded sharply to U.S. government sanctions blocking transfers from three Mexican financial institutions, saying Washington hasn’t shown evidence of its allegations of money laundering.

The Trump administration on Wednesday restricted US banks from making transactions with three Mexican financial firms over concerns that they are laundering money for drug cartels. The sanctions – the first implemented under the Fentanyl Sanctions Act and the FEND Off Fentanyl Act – targeted Mexican banks CIBanco and Intercam Banco and the brokerage firm Vector Casa de Bolsa,

Mexico's banking regulator will temporarily step in to replace the administration of two banks sanctioned by the U.S. for alleged involvement in money laundering linked to organized crime, it said on Thursday.