The U.S. Department of the Treasury is stepping up its efforts to identify the ways that drug cartels move their funds. Most recently, Treasury officials identified the presence of Chinese money laundering networks that are working with Mexican drug cartels and other criminal entities to move large sums of cash.
In a series of notices from the U.S. Treasury’s Financial Crimes Enforcement Network, authorities warned financial institutions about the methods that criminal organizations are using to launder money. According to FinCEN, investigators reviewed 137,153 Bank Secrecy Act reports from 2020 to 2024, identifying $312 billion in suspicious transactions tied to Chinese money laundering networks.
Of significant concern to FinCEN is the apparent ties between Mexican drug cartels and Chinese money laundering groups. The report comes just weeks after FinCEN and the U.S. Treasury sanctioned two Mexican banks and one brokerage firm that they alleged had been laundering money for various drug cartels and had also been helping funnel money into China to pay for fentanyl precursors, Breitbart Texas reported at the time.
The ties between drug cartels and Chinese groups are fueled in part by currency laws in both Mexico and China, which limit the amount of U.S. dollars that can be deposited and moved in Mexico, as well as China’s control of international currency within its country. Treasury officials claim that money laundering groups from China buy U.S. dollars from drug cartels and then sell them further ahead to Chinese individuals or businesses who are trying to evade China’s cash control laws.
The money laundering groups rely on U.S.-based Chinese nationals to make regular cash deposits. In an attempt to counter this tactic, authorities warned banks to be on the lookout for Chinese students, retired individuals, housewives, or laborers who begin making large cash deposits without having a way to prove the source of income.
Ildefonso Ortiz is an award-winning journalist with Breitbart News Foundation. He co-founded Breitbart News Foundation’s Cartel Chronicles project with Brandon Darby and senior Breitbart management. You can follow him on Twitter and on Facebook. He can be contacted at [email protected].
Brandon Darby is the managing director and editor-in-chief of Breitbart Texas. He co-founded Breitbart News Foundation’s Cartel Chronicles project with Ildefonso Ortiz and senior Breitbart management. Follow him on Twitter and Facebook. He can be contacted at [email protected].
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