Drug Trafficking

Examine the financial mechanisms behind drug trafficking, including money laundering techniques, and international collaboration to combat illicit trade.

Top 10: Cartel Finance & Chinese Money Laundering Networks

The Institute for Financial Integrity has identified the “Top 10” list of actionable resources for financial institutions to use to detect and respond to cartel finance and CMLNs. These can inform policies, processes, systems, controls, and training programs.

Debt & Duty

Chinese Money Laundering Networks target students to operate as money mules to launder cartel proceeds. Learn more about the methods used for recruitment and control, and the red flags that financial institutions can use to identify and respond.

Laundering Luxury

‘Daigou’ buyers purchasing luxury items in the U.S. for sale in China are often funded by Chinese Money Laundering Networks using financial proceeds of cartel activities. Learn how these methods operate, the red flags financial institutions can identify, and the actions to take in response.

Terrorist Drug Trafficking Organizations

This article provides background on designated cartels — their geographic reach, how they raise and move money, the risks they pose to financial institutions, and common red flags that may help financial institutions to identify suspicious activity.

Cartels & Crypto

Cartels and the professional money launderers that service them have integrated digital assets throughout the narcotics trade, from precursors to sales and laundering proceeds.

A Dangerous Alliance

Today, on United Nations International Day Against Drug Abuse and Illicit Trafficking, we spotlight a dangerous financial alliance accelerating the fentanyl crisis: transnational partnerships between Mexican cartels and Chinese money laundering networks.

Cartels, Cash, and Capital Flows

Cartels and their money laundering networks represent an increasing threat to our security and citizens, as well as being a priority for enforcement action. This article sets out five actionable steps a financial institution can take to ensure it is effectively identifying and responding to cartel risk.

Syndicates of Terror

Eight Latin American drug cartels were recently designated by the United States as Foreign Terrorist Organizations and Specially Designated Global Terrorists. The U.S. designation enhances compliance risks for financial institutions and other companies transacting in Latin America.

A $3 Billion Mistake

TD Bank was recently slammed with a record $3 billion fine for failing to comply with AML laws. With $18 trillion in unmonitored transactions, the bank became a hotbed for criminal activity. What went wrong, and what can other financial institutions learn from this?

Collaboration Between Chinese Money Laundering Organizations & Drug Cartels

Global regulators are highlighting the growing threat of Chinese money laundering organizations that help transnational criminal organizations—particularly drug cartels—access and move assets through the global financial system. Global financial institutions must enhance their due diligence efforts, given the growing scope of the problem and the increasingly sophisticated methods used to launder drug proceeds.