A Chinese underground banking network bought dollars at a discount from Mexico’s Sinaloa drug cartel and sold them at a premium, largely to Chinese nationals in the US.
The network allegedly handled some $50 million in proceeds from drug trafficking over four years, depositing a portion of the tainted cash at ATMs and teller windows at branches of major banks including Chase, Bank of America and Citibank in cities around Los Angeles County.
Similar money-laundering operations operate in plain sight around the US, hiding the staggering returns which are the sole reason cross-border cartels smuggle the fentanyl, methamphetamine, cocaine and other illegal drugs consumed by millions of Americans.
Chinese money-laundering operatives in some cases open dozens of bank accounts at multiple banks, using counterfeit passports to disguise their identity or recruiting local business owners and students. They charge traffickers 1% to 2% on the dollar, undercutting competitors.
wsj.com/us-news/china-
