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 U.S. government is prohibiting transactions with three Mexican financial institutions it claims are involved with drug smuggling operations.

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.