US Justice Department Accuses Chinese ‘Underground Bankers’ of Laundering Millions for Sinaloa Cartel

By Madz Dizon

Jun 20, 2024 07:18 AM EDT

US Justice Department Accuses Chinese ‘Underground Bankers’ of Laundering Millions for Sinaloa Cartel

(Photo : Drew Angerer/Getty Images)

The US Justice Department has made allegations against individuals involved in illicit financial activities, claiming that they have helped the Sinaloa Cartel in laundering a significant amount of money derived from drug trafficking.

California Drug and Money Laundering Ring

A recently unsealed indictment in California has brought charges against 24 individuals for their alleged involvement in a conspiracy to distribute cocaine and methamphetamine, as well as money laundering offenses.

According to Japan Times, the Justice Department has revealed that individuals involved in illicit financial activities have facilitated the transfer of drug profits from the United States to Mexico.

According to the laws of that country, Chinese nationals are restricted from transferring more than $50,000 a year out of China. 

Authorities have confiscated approximately $5 million, along with firearms and significant quantities of cocaine, methamphetamine, and ecstasy pills. The close co-operation between the DoJ and law enforcement agencies in Mexico and China has been highlighted, with both sides echoing this message.

The US claims that the Sinaloa cartel has contributed to a severe crisis by inundating the nation with fentanyl, a synthetic opioid that is significantly more potent than heroin.

As a result, some individuals who wish to move larger amounts of money explore "informal alternatives" to facilitate the transfer of funds.

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Ex-Car Dealer Arrested in US for Money Laundering

According to a statement from Beijing, it seems that there has been an unusual level of cooperation with the US.  The statement mentioned that authorities in the US have apprehended an individual suspected of money laundering.

The individual in question had prior experience managing a US car dealership before transitioning to engaging in unauthorized foreign exchange trading.

The DoJ stated that the majority of the 24 suspects mentioned in the indictment will be making court appearances in Los Angeles soon, BBC reported.

China has consistently denied the US' accusations of being responsible for flooding the country with dangerous drugs like fentanyl.

READ MORE: US Pushes for Stricter Semiconductor Export Limits to China, Official Heads to Japan

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