The Economist exposes: Chinese tycoons are teaming up with Mexican drug trafficking groups to launder money in the United States, and the operating methods are shocking!

Due to China's inability to freely transfer large amounts of funds overseas, the wealthy class has begun to rely on black market channels.

1. Drug trafficking groups use drug money to buy houses in the United States for wealthy Chinese Communist Party members.
The cartel is sitting on a pile of US dollars in cash that cannot be deposited.
So they used this money to purchase real estate in places like New York and Los Angeles, registering it for Chinese buyers.

2. The Chinese side provides "exchange goods" - fentanyl chemical precursors.
As a countermeasure, the Chinese underground network ships precursor chemicals for fentanyl to Mexico, which become raw materials for cartels to manufacture drugs, ultimately flowing into the United States.

This is the cross-border Money Laundering chain!

The Economist states that this underground banking system in China launders billions of dollars on U.S. soil each year.
The result is:

Chinese billionaires successfully "migrate" their money.

Drug trafficking organizations obtain raw materials for drugs.

The US housing market has become a Money Laundering channel.

The fentanyl crisis continues to worsen.

U.S. Treasury Secretary Becerra announced today a large-scale investigation into more than 100 money service businesses along the U.S. border.

He said: "This comprehensive action will help eradicate money laundering activities that may be related to drug trafficking organizations from the U.S. financial system." #btc