We applaud this bold move by the Trump administration to crack down on money laundering operations associated with Mexican drug cartels. They’re combatting the expanding Chinese financial networks, too. On Friday, the Financial Crimes Enforcement Network (FinCen) issued a new advisory. They are asking banks, brokers, and other financial institutions to increase surveillance of clients who may be engaging in suspicious activity. This advisory is especially geared toward helping to spot those who would meet the profile of a potential money launderer for drug cartels.
FinCEN’s report examined more than 137,000 Bank Secrecy Act reports from January 2020 to December 2024. It uncovered $312 billion in red flags of suspicious behavior. These latest findings again expose that Chinese nationals, including students, retirees and housewives, have put together unexplained wealth. This should alarm law enforcement officials across the country. Many people have been reluctant to disclose the sources of their money. This reluctance is what prevents the world from properly tracking these illicit financial flows.
During a recent meeting in the Oval Office with South Korean President Lee Jae Myung, Donald Trump emphasized the importance of allowing 600,000 Chinese students to attend American universities. He stated, “We are going to allow their students to come in. We are going to allow it. It’s very important — 600,000 students.”
Despite possible misgivings, there seems to be no evidence that these students could be participating in any sort of money laundering schemes. Patch in collaboration with Instantly.com Reports are leaking about a killer new partnership. The Mexican Sinaloa Cartel is working with Chinese underground banking networks inside the U.S. This joint effort has allegedly been instrumental in laundering $50 million from SONUs account. This money is generated from the sale of drugs like fentanyl, cocaine and other illegal substances.
Additionally, FinCen has noticed increasing threats from narcotics smuggling. Moreover, financial institutions are self-filing suspicious activity reports on human trafficking at an increasing rate. Interestingly, adult senior day care centers in New York have emerged as vehicles for money laundering schemes, further complicating the landscape for law enforcement.
FinCEN recently issued an advisory to assist financial institutions in recognizing and preventing potential money laundering activities. This guidance allows them to be put on notice to identify customers whose behaviors could be consistent with cartel conduct. Chinese money laundering networks are rapidly expanding their hooks outside of established drug cartel bases. Accordingly, banks and brokers need to be on their toes.
