Meuser: Chinese Money Laundering Networks are the Dominant Money Laundering Partner for Drug Cartels

Today, the House Financial Services Committee is holding an Oversight and Investigations Subcommittee hearing, led by Subcommittee Chairman Dan Meuser (PA-09), to examine how Chinese money laundering networks are helping drug cartels move illicit funds and how Congress can combat these threats.

Read Subcommittee Chairman Meuser's opening remarks as prepared for delivery:

"I now recognize myself for four minutes to give an opening statement.

"I would like to thank the witnesses for being here today to discuss Chinese money laundering networks, known as CMLNs, and how they enable cartel drug trafficking.

"Importantly, CMLNs also finance scam centers and other fraud against Americans, so this directly ties in with our other oversight work.

"These networks are not comprised of petty criminals. They are professional money launderers who move billions through our financial system.

"Today, Chinese money laundering networks are the dominant money laundering partner for drug cartels. These groups offer near-instant transfers, charge fees low enough to undercut every other competitor, and assume the risk of laundering money.

"Additionally, the money laundering organizations often guarantee payment to the cartels, even in cases where law enforcement seizes the illicit funds. For cartels, the appeal is obvious: lower costs, zero risk, faster access to their illegal drug profits.

"According to FinCEN, between 2020 and 2024, approximately $312 billion in suspicious activity was associated with cartel-linked Chinese money laundering activity.

"That is $312 billion flowing through 489 unique depository institutions, over 200 money service businesses, and dozens of other financial institutions right here in the United States.

"More concerning, that figure likely represents only a fraction of the true scale, given it only captures suspicious activity that was detected and reported.

"These networks are also key to the cartel’s procurement of precursor chemicals that produce fentanyl.

"Fentanyl remains the leading cause of death for Americans aged 18 to 45. Families have been destroyed, communities ruined, and our healthcare systems overwhelmed. At the origin of that devastation are Chinese money launderers.

"Thankfully, the Trump Administration is taking action. Eight cartels have been designated as foreign terrorist organizations. In July of last year, six members of a money laundering ring entered guilty pleas for funneling over $92 million in funds for cartels. 

"In January of this year, the DOJ charged Yan Lin, alleging him of laundering at least $27 million in fentanyl, cocaine, and methamphetamine proceeds.

"Accordingly, the FSC Oversight & Investigations Subcommittee will begin investigating Chinese money laundering organizations to determine the full extent of their operations and how best to dismantle them.

"Today’s hearing is about understanding the full scope of this threat, their connection with drug cartels, and the tactics and methods these groups employ.

"As well, during the course of our questioning, I’d like to hear about what can be done to defeat the CMLNs through legislation, increased penalties, or something else. 

"Thank you, I look forward to your testimony. I yield back."

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