Chinese Networks Laundering Billions in Cartel

There seems to be a truthful quantity of cooperation between China and some of the Central and South American drug cartels. We’ve identified for some time now that China has been supplying cartels with fentanyl and other medicine and drug precursors. Now it seems as though some Chinese pursuits are literally laundering cartel money through the American financial system.

Chinese networks are laundering billions of {dollars} in drug cartel money 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 got here from 137,153 Bank Secrecy Act stories from financial establishments. Treasury also linked Chinese money laundering networks to U.S. real estate transactions, casinos, human trafficking and even laundering through assisted dwelling houses in New York. The networks also use Chinese college students finding out in the U.S. to help facilitate some schemes. Real property alone accounted for about 13% of the entire, but the overwhelming 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 violent extremism and Financial Intelligence John Hurley said.

Well, that definitely places a entire new spin on the time period “Chinese laundry.”

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

The FinCEN report famous that legal guidelines and laws in Mexico and China also play a position.

“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 legal guidelines restrict the quantity of money Chinese residents can switch overseas each 12 months.”

This is another piece of evidence we can add to the growing stack of “China just isn’t our buddy” 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 government director for Transparency International U.S., said the U.S. is taken into account one of the best locations 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 one thing. They aren’t working with the cartels and laundering money for leisure. They aren’t shopping for up farmland for no cause. The Chinese Communist Party under Chairman Xi needs to see China surpass the United States as the one major world energy, and they know that time is not essentially on their aspect. They cannot yet take us in a knock-down, drag-out battle: Thus, these sorts of issues.

We do, to quote what is supposedly an previous Chinese curse, live in fascinating instances.

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