Chinese money laundering organizations provide ‘cheap, fast, and almost guaranteed’ services to cartels, DEA agent Brian Clark told The Epoch Times.

By Terri Wu for The Epoch Times

Summary by Probe International

For the original article this summary is based on, see the publisher’s website here.

Chinese money laundering organizations have emerged as dominant players in the global market, providing “cheap, fast, and almost guaranteed” services to drug cartels, according to DEA agent Brian Clark. Since 2015, these networks have significantly undercut traditional laundering services, charging minimal fees and increasing cartel profits by billions.

The Chinese Communist Party (CCP) is believed to support these operations, which pose a serious threat to the U.S. by fueling drug trafficking and related violence. Experts estimate that Chinese networks launder around $2 trillion annually, accounting for about half of global money laundering activities.

Former Treasury special agent John Cassara told The Epoch Times that targeting Chinese criminal activities presents a unique opportunity to challenge the Chinese Communist Party, as these crimes reveal the CCP’s malign nature.

“It is straightforward. It has nothing to do with ideology. It is right or it is wrong,” he is quoted as saying. “And people know that; it’s in your gut.”

How It Works

The Epoch Times reports the laundering process often involves “mirror transactions,” where wealthy Chinese individuals use drug trafficking proceeds to bypass foreign exchange limits for U.S. investments, complicating law enforcement efforts. The CCP’s Belt and Road Initiative has also been linked to increased corruption and illicit trade in developing countries, with most of the 150 participating nations classified as highly corrupt in the 2024 Bribery Risk Matrix by TRACE. The Foundation for Defense of Democracies suggests that the CCP does not prioritize transparency, viewing it as a political risk.

A 2018 IMF report cited by The Epoch Times estimates that global money laundering accounts for 2% to 5% of the world’s GDP, equating to $1.6 trillion to $4 trillion annually. The OECD notes that as Chinese investment grows, so does the export of counterfeit goods, further entrenching China’s role in global money laundering, The Epoch Times continues. It says experts warn that the integration of Chinese illicit enterprises with legitimate markets creates a “threat multiplier,” increasing global violence and instability, prompting the U.S. to focus on dismantling these networks to counter the CCP’s influence and protect national security.

The U.S. Fights Back

The Epoch Times explores the various measures the United States has taken to combat transnational crimes associated with “CCP Inc.,” a term that highlights the Chinese Communist Party’s support for such activities, distinguishing them from the general Chinese populace.

In February, President Trump declared the narcotics crisis a national emergency and imposed a 20% tariff on Chinese goods due to China’s role in supplying fentanyl precursors and laundering money for drug cartels. This tariff remains despite CCP negotiations and is currently under review by the Supreme Court.

The Trump administration has also designated eight Latin American cartels as foreign terrorist organizations, which allows the DEA to access defense and intelligence resources to combat drug trafficking and money laundering, notes The Epoch Times. Meanwhile, the Justice Department has increased scrutiny of Chinese money laundering schemes, with recent cases leading to guilty pleas from individuals involved in laundering over $92 million. An advisory from the Financial Crimes Enforcement Network indicated that Chinese money launderers likely moved $312 billion through U.S. financial institutions from 2020 to 2024, prompting banks to flag suspicious activities.

The Epoch Times highlights warnings from U.S. officials that these networks facilitate drug and human trafficking, posing significant national security threats. Anti-money laundering discussions were included in recent U.S.-China trade talks, with potential accountability measures for the upcoming APEC summit in 2026. The Epoch Times concludes that despite recent changes to China’s anti-money laundering laws, the State Department reports ongoing implementation issues and insufficient cooperation with U.S. law enforcement, leading experts to call for a stronger U.S. stance against “CCP Inc.” to effectively tackle these transnational crimes.