US Treasury Targets Chinese Money Laundering Networks Linked to Mexican Cartels

The U.S. Treasury Department, through its Financial Crimes Enforcement Network (FinCEN), has issued an advisory urging financial institutions to be vigilant against Chinese money laundering networks (CMLNs) that collaborate with Mexico-based drug cartels to facilitate the distribution of fentanyl and other illicit activities, including human trafficking. These networks exploit currency conversion systems and underground banking to bypass Chinese currency restrictions, with individuals such as students, retirees, and housewives sometimes unknowingly involved. FinCEN's analysis of over 137,000 Bank Secrecy Act reports revealed approximately $312 billion in suspicious activity linked to these operations, which have expanded beyond drug trafficking to include other money laundering schemes across the U.S. The Treasury Department emphasizes its commitment to dismantling these global and pervasive networks, which pose a serious threat to the U.S. financial system and public safety. Despite these concerns, President Trump supports Chinese students studying in the U.S., reflecting a nuanced approach to bilateral educational exchanges amid security efforts. The Chinese Embassy in Washington has not commented on the advisory.