FinCEN Alerts Banks to Chinese Crypto Money Laundering Networks Tied to Drug Cartels
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has issued a stark warning to financial institutions about sophisticated Chinese cryptocurrency networks facilitating large-scale money laundering. These operations allegedly move illicit funds for Mexican drug cartels and other criminal enterprises, with $312 billion in suspicious transactions flagged between 2020 and 2024.
Banks filed 137,153 suspicious activity reports tied to these networks, including $53.7 billion linked to real estate transactions. The advisory highlights how cartels exploit cryptocurrency to circumvent banking restrictions on bulk dollar movements, while Chinese nationals seek dollars to bypass capital controls—a symbiotic relationship undermining financial integrity.
