Quick Breakdown
- $312 billion laundered through US banks between 2020–2024 by Chinese money laundering groups.
- Networks partnered with Mexico’s drug cartels, exploiting US banks to clean cartel cash.
- Real estate fraud, human trafficking, and healthcare scams tied to Chinese laundering rings.
FinCEN Flags $312 Billion Laundered Through US Banks
US banks processed over $312 billion in illicit funds linked to Chinese money laundering networks from 2020 to 2024, according to a new advisory from the Financial Crimes Enforcement Network (FinCEN) released Thursday.
The watchdog said its findings came from analyzing more than 137,000 Bank Secrecy Act filings, revealing that on average $62 billion per year was funneled through the American banking system by Chinese groups.
Symbiotic Ties With Mexican Cartels
FinCEN highlighted a growing alliance between Chinese money laundering syndicates and Mexico-based drug cartels. While cartels need to clean their dollar-denominated drug proceeds, Chinese networks demand dollars to bypass Beijing’s strict currency controls.
“These networks launder proceeds for Mexico-based drug cartels and are involved in other significant underground money movement schemes within the US and around the world,” said FinCEN Director Andrea Gacki. “
FinCEN’s Advisory and Financial Trend Analysis support Treasury’s continuing efforts, alongside our law enforcement and international partners, to bankrupt transnational criminal organizations and their enablers.”
Beyond Drug Proceeds: Real Estate and Fraud
The report said Chinese laundering groups are not limited to cartel operations. They are also linked to human trafficking, elder abuse, healthcare fraud, and real estate-based laundering schemes. Suspicious property transactions alone were valued at $53.7 billion over the four-year period. Meanwhile in August 2024, China’s top court and prosecutors included crypto in updated anti-money laundering laws.
Crypto Faces Scrutiny Despite Smaller Role
The findings reignite debate over money laundering narratives, with cryptocurrency often singled out by regulators despite its comparatively small footprint in illicit finance. Earlier this year, Sen. Elizabeth Warren called for stricter crypto regulation, saying “bad actors are increasingly turning to cryptocurrency.”
But data paints a different picture. According to the United Nations Office on Drugs and Crime, the estimated amount of money laundered globally in one year is more than $2 trillion. In comparison, the entire cryptocurrency space’s illicit crypto volumes added to around $189 billion over the last five years, according to Chainalysis.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
