January 1, Chinese Networks Funnel Billions for Cartels in US

Wyatt’s Take

• Chinese networks help Mexican cartels launder billions through US banks.
• Real estate, casinos, and students are all tools in these illegal money flows.
• Tougher rules are stalled while criminals find new loopholes.

Billions from drug cartel cash have been pushed through US banks by Chinese money laundering networks, says a Treasury Department report. The networks tie into real estate, casinos, and even use students and elderly homes to move dirty funds around.

“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,” said Under Secretary John Hurley.

Banks flagged $312 billion in suspicious money from these networks between January 2020 and December 2024. Real estate alone made up 13% of these flows, but most went through big US banks. Some operations use students as helpers, and others take advantage of assisted living homes.

A Biden-era rule to fight money laundering got suspended in March after complaints from small businesses. The law would have made these businesses report who really runs them, but critics said it was costly and too invasive. Foreign businesses still fall under those regulations.

The report says Mexico and China’s strict laws also shape how these networks operate. “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,” the report explained. “The [People’s Republic of China] currency control laws limit the amount of money Chinese citizens can transfer abroad each year.”

Chinese underground banking also gets used, moving money through informal contacts instead of going through regular banks. This helps both the cartels and wealthy Chinese get around laws.

Scott Greytak, an anticorruption attorney, pointed out, “Even though they don’t like the rule of law, they certainly like their money being protected by it.” He warned that without stronger reporting laws, dirty money will keep flowing in the US.

Read more here

Wyatt Matters

This scheme puts honest Americans and their communities at risk, all while crooks take advantage of legal loopholes and weak rules. We need tough enforcement to protect families and stop foreign criminals from using our country as a playground for dirty money.