US Treasury Warns $312B Chinese Money Laundering Aids Drug Cartels

The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has issued a warning about Chinese money laundering networks (CMLNs) facilitating approximately $312 billion in illicit transactions through U.S. banks between 2020 and 2024. These networks are heavily used by Mexico-based drug cartels, including those linked to fentanyl distribution and human trafficking, with Chinese nationals often acting as money mules or intermediaries to bypass currency controls. FinCEN's advisory urges financial institutions to monitor suspicious activities, such as unusual fund transfers inconsistent with a customer's occupation or repeated use of Chinese passports with inconsistent visa details. The Treasury highlights the significant threat CMLNs pose to U.S. communities and the financial system, emphasizing ongoing efforts to dismantle these global networks. The Trump administration is actively pressuring banks to identify and report suspicious activities connected to these laundering schemes to disrupt the flow of illicit funds. This coordinated alert underscores the scale and complexity of the laundering operations linking Chinese expatriates and Mexican cartels.