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.
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