Chinese Money Launderers Boost Mexican Cartels

Recent investigations reveal that Chinese brokers, previously linked to laundering fentanyl proceeds, are now significantly involved in marijuana trafficking across the United States. This dual operation has bolstered Chinese criminal organizations at a time when marijuana laws are becoming more permissive and Mexican cartels are inundating the market with fentanyl. Experts, including former CIA officer Dennis Wilder, emphasize the need for U.S. authorities to explore potential connections between these illicit financial flows and China’s Ministry of State Security, which is known for its aggressive espionage activities targeting the U.S. Former DEA agents have expressed frustration over the lack of government resources dedicated to dismantling the Chinese money laundering networks that support the fentanyl trade. As fentanyl-related deaths surged during the pandemic, law enforcement prioritized tracking traffickers over the financial networks that sustain their operations. The laundering process typically involves Mexican cartel associates delivering cash from fentanyl sales to Chinese money brokers in the U.S., complicating efforts to combat the issue. The DEA has identified Chinese-run marijuana cultivation operations in 23 states, highlighting the extensive reach of these criminal networks. While Wilder notes that the Chinese Communist Party does not directly control these overseas operations, he and other experts argue that more proactive measures are necessary to address the situation. A congressional aide pointed out the irony of allowing Chinese money laundering to flourish in the U.S. while it simultaneously contributes to addiction and death among American citizens. Challenges in addressing these networks are exacerbated by a shortage of Mandarin speakers within federal law enforcement and the use of encrypted platforms like WeChat, which complicates investigations into the flow of drug proceeds.