Authorities highlight cooperative money-laundering schemes between Mexican cartels and Chinese groups.
Federal prosecutors charged 24 Los Angeles-based associates of Mexico’s Sinaloa cartel in a large-scale operation designed to launder over $50 million in drug profits using an underground banking network run by Chinese nationals in the United States. The indictment, issued on Tuesday, exposes the developing alliance between the Mexican cartel and Chinese organized crime groups.
Officials revealed that this partnership between the Sinaloa cartel and Chinese money launderers has grown through shared financial interests. According to U.S. Attorney Martin Estrada, both groups have identified ways to support each other’s criminal operations, merging their efforts to create a sophisticated laundering system that evades conventional financial detection.
The Drug Enforcement Administration (DEA) highlighted that this evolving relationship has strengthened the Sinaloa cartel’s financial infrastructure. Chinese nationals in the U.S. are key to laundering cartel funds by routing money through complex channels, often avoiding the scrutiny that more direct transactions would draw.
The case against these Los Angeles-based associates was detailed in a 10-count superseding indictment, showcasing the scope and organization involved in these cross-national crimes. The operation involved intricate financial transactions, revealing the extent to which these groups collaborate across borders.
DEA Administrator Anne Milgram underscored that this joint investigation is a crucial breakthrough, demonstrating the cartel’s adaptive methods for sustaining its operations. The alliance with Chinese nationals has enabled the cartel to fund and sustain its trafficking networks more securely.
Milgram’s remarks at the press conference emphasized the seriousness of this emerging alliance, highlighting the pressing need for enhanced cooperation between law enforcement agencies globally. The investigation reflects a significant step forward in understanding and addressing the complex dynamics fueling international drug trafficking and money laundering.
