Chinese Launder Billions In Fentanyl Profits
The good news? We might actually be able to wrap our arms around this problem
Seeking a scapegoat for the fentanyl crisis, U.S. officials tend to blame China. And it’s not hard to understand why, since most illicit fentanyl originates in labs there.
But China makes very little off of this trade. The entire Chinese chemical industry probably profits less than $10 million per year from fentanyl chemicals.
When it comes to money laundering, however, the pie is much bigger, and in recent years Chinese brokers have revolutionized the process.
Yesterday, federal prosecutors announced charges against 24 people, accused of laundering more than $50 million in profits from fentanyl and other drugs. These include Sinaloa Cartel members working with Chinese brokers. Much of this business was conducted in and around Los Angeles.
“This investigation shows that the Sinaloa Cartel has entered into a new criminal partnership with Chinese nationals who launder money for the cartels,” said DEA administrator Anne Milgram.
But $50 million is just the tip of the iceberg.
How It Works
According to my interviews with federal agents and drug traffickers, the oft-ingenious money laundering techniques used by Chinese brokers are critical to facilitating the flow of fentanyl…