FinCEN: $312 billion passed through US banks in Chinese money laundering schemes

Key points:

• FinCEN has identified $312 billion in suspicious transactions linked to Chinese money laundering networks.
• These networks help Mexican cartels circumvent currency controls and launder drug trafficking proceeds.
• The scheme involves $53,7 billion in real estate transactions and human trafficking reports.

The US Financial Crimes Enforcement Network (FinCEN) has published a report on the activities of Chinese money laundering networks (CMLNs), calling them a serious threat to the US financial system. The analysis covered the period from 2020 to 2024 and more than 137 000 reports under the Bank Secrecy Act. The total volume of suspicious transactions exceeded $312 billion.

Under Secretary for Terrorism and Financial Intelligence John Hurley said:

“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.”

How Chinese networks operate

CMLNs act as professional intermediaries: they accept dollars from Mexican cartels and resell them to Chinese clients seeking to circumvent currency controls. The scheme benefits both sides: cartels cash out their earnings in the US, while Chinese clients gain access to dollar liquidity that cannot be transferred directly through the Chinese banking system.

FinCEN Director Andrea Gacki emphasized:

“Chinese money laundering networks are global and pervasive, and they must be dismantled.”

In addition to drug trafficking, cartels use these channels for other schemes, including human trafficking, healthcare fraud, and smuggling.

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Areas of CMLN’s illegal activity

Real estate and other methods

Money laundering through the real estate market has become a separate area of focus. Between 2020 and 2024, financial institutions reported 17 389 suspicious transactions totaling $53,7 billion. These transactions were often carried out through front men and companies, which allowed illegal proceeds to be integrated into the US market.

Experts note that CMLNs use a wide range of methods: trade laundering, front men, and even planting their own people in US banks to facilitate operations.

Growing threats and the global context

FinCEN notes that Chinese networks have become key partners of Mexican drug cartels. Through them, the cartels not only cash out their profits, but also purchase chemical precursors for the production of fentanyl from Chinese suppliers.

In June 2025, the agency imposed sanctions against three Mexican banks — CIBanco, Intercam Banco, and Vector Casa de Bolsa. According to FinCEN, they assisted the CJNG, Gulf Cartel, Beltran-Leyva, and Sinaloa cartels in laundering drug proceeds and facilitated international transfers, including transactions with Chinese companies.