Reported by FinCEN

Summary shared here. To read full report, click and download below:

A newly released FinCEN Financial Trend Analysis unmasks the staggering scale of Chinese Money Laundering Networks (CMLNs) operating inside the U.S. Between 2020–2024, over 137,000 suspicious activity reports tied to CMLNs revealed $312 billion in illicit financial flows. What investigators found is both shocking and urgent:

🔑 Key Takeaways:

Banks sound the alarm: 85% of reports came from U.S. banks, flagging cash deposits, shady transfers, and account misuse linked to Chinese nationals. Drug cartels + CMLNs = deadly partnership: CMLNs move Mexican cartel drug proceeds through U.S. banks, blending them with other illicit cash streams. Real estate as a laundering machine: Over $53.7B flowed into U.S. property, with layered transactions and cashier’s checks fueling luxury market distortions. Exploiting students & daigou buyers: Nearly $14B tied to Chinese students coerced or recruited as money mules. Luxury shopping sprees and “daigou” buyers moving electronics and handbags overseas are now laundering pipelines. Healthcare fraud & elder abuse: Shockingly, adult daycare centers in New York were flagged for laundering $766M, tied to fraud, elder exploitation, and even illicit gaming. Human trafficking links: $4.2B in suspicious transactions flagged possible ties to trafficking and smuggling, with massage parlors and escort services frequently named. Trade-based schemes: From bulk electronics to luxury watches, $9.7B in TBML cases were reported—CMLNs are globalizing laundering through supply chains.

💡 Why this matters: CMLNs aren’t just laundering money—they’re reshaping U.S. real estate markets, fueling narcotics networks, exploiting vulnerable populations, and undermining financial integrity. Their low-cost, highly efficient operations now rival traditional cartels as the world’s preferred laundering partner.

👉 The FinCEN report is a wake-up call: U.S. institutions must tighten AML controls, scrutinize high-value real estate, and monitor unusual flows tied to Chinese nationals. Anything less risks leaving the financial system wide open to criminal capture on a $300B scale.