Chinese Networks Laundering Billions in Cartel Wealth Through USA

There appears to be a fair amount of cooperation between China and some of the Central and South American drug cartels. We've known for some time now that China has been supplying cartels with fentanyl and other drugs and drug precursors. Now it appears as though some Chinese interests are actually laundering cartel money through the American financial system.

Chinese networks are laundering billions of dollars in drug cartel cash through the U.S. financial system, according to a new report from the Treasury Department.
Treasury's Financial Crimes Enforcement Network said banks flagged about $312 billion in transactions from suspected Chinese money laundering networks from January 2020 to December 2024. That came from 137,153 Bank Secrecy Act reports from financial institutions. Treasury also linked Chinese money laundering networks to U.S. real estate transactions, casinos, human trafficking and even laundering through assisted living homes in New York. The networks also use Chinese students studying in the U.S. to help facilitate some schemes. Real estate alone accounted for about 13% of the total, but the vast majority was U.S. banks.
"Money laundering networks linked to individual passport holders from the People's Republic of China enable cartels to poison Americans with fentanyl, conduct human trafficking, and wreak havoc among communities across our great nation," Under Secretary for Terrorism and Financial Intelligence John Hurley said.

Well, that certainly puts a whole new spin on the term "Chinese laundry."

The Financial Crimes Enforcement Network (FinCEN) report makes it appear as though Mexico has tighter controls than the United States does, which leads to the use of the American, rather than the Mexican, system to carry out this money-laundering.

The FinCEN report noted that laws and regulations in Mexico and China also play a role.
"Mexico's currency restrictions prevent large amounts of U.S. dollars from being deposited into Mexican financial institutions, hindering the cartels' ability to launder funds through the formal Mexican financial system," according to the report. The [People's Republic of China] currency control laws limit the amount of money Chinese citizens can transfer abroad each year."

This is another piece of evidence we can add to the growing stack of "China is not our friend" indicators.

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These Chinese networks appear to be great in breadth and depth; it would seem as though hundreds, maybe thousands, of Chinese nationals (would they trust anyone else?) would have to be involved in all these transactions. This brings up another interesting question: What's in this for China? The Chinese Communist Party is, no doubt, wetting its beak in all this. Could this be the source of some of the money China is using to buy up American real estate, including farmlands which are, by what we are sure is an amazing chain of coincidences, located near U.S. military bases?

Ironically, it may be America's laws and regulations that are attracting some of these people.

Scott Greytak, an anticorruption attorney and the deputy executive director for Transparency International U.S., said the U.S. is considered one of the best places in the world for money laundering because of its strong property rights and rule of law.
"Even though they don't like the rule of law, they certainly like their money being protected by it," he told The Center Square. "So we just tend to attract a ton of dirty money."

China is up to something. They aren't working with the cartels and laundering money for entertainment. They aren't buying up farmland for no reason. The Chinese Communist Party under Chairman Xi wants to see China surpass the United States as the one major world power, and they know that time isn't necessarily on their side. They can't yet take us in a knock-down, drag-out fight: Thus, these kinds of things.

We do, to quote what is supposedly an old Chinese curse, live in interesting times.

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