Chinese Money Laundering Networks Fuel Cartel Operations Across North America

A recent U.S. financial trend analysis reveals that Chinese Money Laundering Networks (CMLNs) moved more than $300 billion in suspicious transactions between 2020 and 2024.
These networks provide a crucial service to Mexico based cartels, purchasing bulk U.S. dollars generated from drug sales and converting them into pesos or Chinese yuan through complex trade and banking schemes.
CMLNs rely on methods such as trade based money laundering, mirror transactions, shell companies, and cash deposits made by seemingly low risk individuals to disguise the origin of illicit funds.
By exploiting legitimate commerce, real estate, and international trade, they create a hidden pipeline that moves drug proceeds from U.S. cities to Mexico and onward to China, fueling the production and trafficking of fentanyl and methamphetamine.

Why it matters
This convergence of Mexican cartels and Chinese laundering networks shows how criminal organizations exploit cross border trade and financial loopholes to hide drug profits. Banks, investors, and companies engaged in U.S. Mexico trade face significant compliance and reputational risk when these hidden flows touch their operations.

How OGA Can Help
● Obsidian Group Analytics provides targeted financial intelligence to identify suspicious trade patterns and complex ownership structures linked to laundering networks.

● We analyze public filings, customs data, and proprietary sources to trace cross border payments, detect shell companies, and uncover relationships between U.S. businesses, Chinese facilitators, and Mexican cartels.

● Our enhanced due diligence services help clients strengthen compliance programs and protect against exposure to high risk money flows.

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Fraud Protection Is Now the Top Priority for Mexican Bank Customers

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Mexican Cartel Networks Now Reach Every U.S. State