Representative Abe Hamadeh (R-AZ) warned of the Chinese Communist Party's (CCP) ties to the Mexican drug cartels via money laundering in a recent post to X (formerly Twitter).
Just The News covered a recent report describing numerous suspicious bank transactions totaling $312 billion through apparent China-linked money laundering networks between January 2020 and December 2024.
Dirty cash has been laundered through U.S. real estate transactions, casinos, human trafficking, and even laundering through assisted living homes in New York, making use of Chinese students studying in the United States and the cartels.
This is because China and Mexico both have currency restrictions that have enabled the relationship between the cartels and Chinese citizens. Mexican laws impose limits on U.S. Dollar deposits, preventing the cartels from laundering money through the Mexican financial system.
Similarly, China restricts its citizens from sending more than $50,000 annually for investment and financial purposes, creating an underground banking network.
"Ultimately, Chinese citizens' demand for large quantities of U.S. dollars and the cartels' need to launder their illicit U.S. dollar proceeds has resulted in a mutualistic relationship wherein the cartels sell off their illicitly obtained U.S. dollars to CMLNs who, in turn, sell the U.S. dollars to Chinese citizens seeking to evade China's currency control laws," the report said.
On X, Rep. Hamadeh said, "The Treasury's FinCEN discovered that Chinese networks have been using our country to launder billions of dollars for the Mexican cartels."
"This is only part of a continued & concerted effort from a hostile CCP regime to undermine America's public safety," Rep. Hamadeh added.
Last February, Representative Cory Mills (R-FL) similarly warned of China supposedly taking advantage of the border crisis during the Biden Administration through this mutually beneficial relationship by either ignoring it at best or actively enabling it at worst to harm the United States.
Additionally, over twenty thousand Chinese military-age men crossed into America and were concentrated in Panama's Darien Gap.
