The US Department of Justice has accused Chinese “underground bankers” of assisting Mexico’s Sinaloa cartel in laundering over $50 million from drug trafficking.
An indictment unsealed in California has charged 24 individuals with conspiracy to distribute cocaine and methamphetamine, as well as money laundering offenses.
Drug Enforcement Administration (DEA) chief Anne Milgram announced that a prolonged investigation known as Operation Fortune Runner revealed a collaboration between the Sinaloa cartel and a Chinese criminal syndicate operating in both Los Angeles and China to launder drug money.
According to the Department of Justice, the Chinese “underground bankers” facilitated the transfer of drug profits from the United States to Mexico.
The DOJ noted that Chinese law prohibits individuals from transferring more than $50,000 a year out of China, leading some to seek “informal alternatives” to move larger amounts of money.
The DOJ explained, “Drug traffickers have increasingly partnered with Chinese underground money exchanges to exploit the high demand for US dollars from Chinese nationals.”
The Department of Justice stated that 20 of the 24 defendants named in the indictment are scheduled to appear in court in Los Angeles in the near future.
Homeland Security adviser Liz Sherwood Randall reported that China and Mexico have each arrested one person in relation to the case.
She added that China’s actions reflect a commitment made by President Biden and President Xi at the Woodside summit in November 2023 to enhance bilateral cooperation against global illicit drug manufacturing and trafficking.
The DOJ also revealed that $5 million in narcotics proceeds had been seized during the investigation, along with 302 pounds (137 kilograms) of cocaine, 92 pounds of methamphetamine, and 3,000 ecstasy pills.
