Discover

The 'Banco Mercantil del Norte, S.A.' ('Banorte') is a major bank in Mexico, based in Monterrey. Banorte is ranked in the 84th place out of 100 in the 2007 Great Place to Work List for Mexico.

Contents

History

Money Laundry Involvement in US Operation Casablanca

Banorte entering to the US banking market

Executive Board

References

History

Banorte is the primary subsidiary of 'Grupo Financiero Banorte', one of Mexico's largest and oldest financial institutions, which has been present in Mexico since 1899. The 'Banorte' trademark is a well-known mark in Mexico. The web domain name "banorte.com" was created on October 13, 1998.
It is a Forbes Global 2000 company, with more than 30 billion dollars in assets under management, 12,500 employees, and 950 branches. Currently, it is the only major bank in Mexico not owned by any foreign group. Banorte, with total consolidated assets of approximately $15.1 billion, is the fifth largest bank in Mexico.
It was established in 1889 as Banco Mercantil de Monterrey and in 1985 merged with Banco Regional del Norte to form 'Banco Mercantil del Norte' ('Banorte'). In late 2001, 'Banorte' acquired 'Bancrecer' in US$125 millions. 'Bancrecer' had been taken over in 1999 by IPAB. 'Bancrecer' had itself taken over another bank, Banoro, in 1997.
In 1992 it was purchased from the Mexican Government by a group of investors headed by the Mexican businessman Roberto Gonzalez Barrera. Banorte expanded their business to leasing services ('Arrendadora Banorte') in 1990, to factoring and warehousing services ('Almacenadora Banorte' and 'Factor Banorte') in 1991. In 1997, Banorte established an alliance with the Italian group Generalli, a main European insurance company, to offer insurances, pension funds and Afore's services through their subsidiaries 'Afore Banorte-Generalli', 'Seguros Banorte-Generalli' and 'Pensiones Banorte-Generalli'. Also, 'Banorte' has operations in New York ('Banorte Securities') and Grand Cayman ('Banorte Grand Cayman Branch').
In less than 10 years 'Banorte' has transforms itself from a regional bank, based mainly in the northern Mexico, to become one with nation-wide coverage. To achieve that Banorte, with a huge investment, bought four Mexican banks (among them 'Banco del Centro', and 'Bancrecer'). In order to set up a financial group with full services Banorte wanted a securities company under his control. 'Banorte' made an agreement to merge ' Casa de Bolsa Afin' in July 1993.
Key numbers for fiscal year ending December, 2004:
Sales: USD $2.5 billions
One year growth: (3.6%)
Net income: USD $165.6M
Income growth: (16.1%)

Money Laundry Involvement in US Operation Casablanca

'Operation Casablanca' was a three-year U.S. undercover investigation, where Americans investigated major Mexican banking institutions for laundering illicit drug profits. Mexican authorities were not informed about the investigation.
This operations led U.S. Customs agents to arrest 22 high-ranking and mid-level bankers from 12 of Mexico's largest banks when they traveled to the U.S. in mid-May while they thought there went to a banking conference. The investigation produced 160 indictments, including 3 Mexican banks and 26 Mexican bankers. The US Justice Department intended to prosecute the banks under US law, with maximum penalties, seizures, and revocation to operate in the United States.
'Banorte' was among the banks and bankers which were busted in money laundry according to the 'Operation Casablanca'. From June to July 1998 issue of Money Laundering Alert, 'Banorte' was suspected to have forfeited $7,323,103.51 US dollars, so 'Banorte' faced civil penalty lawsuit under Title 18, USC Sec. 1956(b) and civil forfeiture action under Title 18, USC Secs. 981 & 984.
On July 1, 1999, a U.S. federal judge in Los Angeles dismissed with "extreme prejudice" a $7.3 million forfeiture case against 'Banorte'. No criminal charges were filed and U.S. authorities gave them back $1.4 million seized in the operation.
As result to its involvement with money laundry, 'Banorte' implement anti-money laundering policies and procedures. These polices and practices enabled 'Banorte' to defend money laundering charges, and regain $1.4 million that had been seized by the U.S. government during the operation.

Banorte entering to the US banking market

In 2006, Banorte, the fourth-largest bank in Mexico and one of the few Mexican-owned banks, announced the acquisition for $259 million of 70% of the stock of INB Financial Corp, the Inter National Bank's parent company. The transaction is expected to be completed by the end of 2006. Banorte will have the option to acquire the remaining 30% for $370 million.
Inter National was founded in 1983 in McAllen. INB holds $940 million in deposits and employs 278 people at 16 branches in McAllen, Edinburg, Mission, Weslaco and El Paso
Until now, Inter National Bank will continue to operate in the US, and no significant strategic changes are anticipated.

Executive Board

Designed on the General Ordinary Stockholders' Meeting of April 28, 2005
Roberto González Barrera (major stockholder)
Chairman
'Rodolfo Barrera Villarreal'
Vice President
'Bertha González Moreno'
Patrimonial
'José G. Garza Montemayor'
Patrimonial
'David Villarreal Montemayor'
Patrimonial
'Magdalena García de Martínez Chavarría'
Patrimonial
'Francisco Alcalá de León'
Independent
'Eduardo Livas Cantú'
Independent Adviser
'Eugenio Clariond Reyes-Retana'
Independent
'Herminio Blanco Mendoza'
Independent
'Ricardo Martín Bringas'
Independent
'Antonio Chedraui Obeso'
Independent
'Jacobo Zaidenweber Cvilich'
Independent
'Javier Vélez Bautista'
Independent Adviser
'Luis Peña Kegel'
CEO of Grupo Financiero Banorte, S.A. de C.V.

References

Banorte http://www.banorte.com
INB Bank http://www.inbweb.com
Banorte Securities International Ltd. http://www.banortesecurities.com
Grupo Financiero Banorte and Banorte USA http://federalreserve.gov/boarddocs/press/orders/.../200610132/attachment.pdf
Narco News, "Operation Casablanca". http://www.narconews.com/casablanca1.html
Drug Trafficking in Mexico: A First General Assessment. http://www.unesco.org/most/astorga.htm
Mexican bank, Banorte, challenges U.S. and prevails in Casablanca http://www.moneylaundering.com/ArticleDisplay.aspx?ID=961
Kroll's Notable Cases. http://www.kroll.com/about/history/notable/
Mexico bank gets back funds seized in U.S. sting http://www.powmadeak47.com/mex/mex99dwbanks.html
http://cupcake.freeshell.org/profile2006/hh3newsprt.cgi?hh3news/web-060329-citibank-confia-acqusition.html
http://www.wipo.int/amc/en/domains/decisions/html/2000/d2000-1215.html
Adrian E. Tschoegl. "Foreign ownership in Mexican Banking: A Self- Correcting Phenomenon". The Wharton School of the University of Pennsylvania, Philadelphia, PA 19104, 23 October 2006.
TAEKO HOSHINO. PRIVATIZATION OF MEXICO’S PUBLIC ENTERPRISES AND
THE RESTRUCTURING OF THE PRIVATE SECTOR. The Developing Economies, XXXIV-1 (March 1996) http://www.ide.go.jp/English/Publish/De/pdf/96_01_02.pdf
http://www.greatplacetowork.com.mx/best/list-mx.htm