COLD WAR II: Chinese networks use U.S. to launder billions for Mexican cartels.

“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,” Under Secretary for Terrorism and Financial Intelligence John Hurley said.

The report comes after Treasury Secretary Scott Bessent suspended a Biden-era small business rule in March designed to curb money laundering that small businesses had challenged in court. President Donald Trump said the Corporate Transparency Act, which Congress passed in 2021, was “outrageous and invasive.” Bessent said it was costly for small businesses. The CTA would have required small businesses to report information about their beneficial owners to Treasury’s FinCEN. The rules remain in place for foreign businesses.

The FinCEN report noted that laws and regulations in Mexico and China also play a role.

“Mexico’s currency restrictions prevent large amounts of U.S. dollars from being deposited into Mexican financial institutions, hindering the cartels’ ability to launder funds through the formal Mexican financial system,” according to the report. The [People’s Republic of China] currency control laws limit the amount of money Chinese citizens can transfer abroad each year.”

The two groups have learned to work well together in recent years. FinCEN refers to Chinese money laundering networks as CMLNs.

If you think of the CCP as a multitrillion-dollar crime family, it all makes sense.