Trump urges banks to intensify surveillance of funds linked to China's money laundering associated with fentanyl distribution

The United States government has called on American banks and financial institutions to increase their monitoring of suspected Chinese money-laundering networks, according to a recent advisory. The advisory, however, does not explicitly mention a 20 per cent across-the-board tariff on Chinese imports in relation to the money-laundering issue.

John Hurley, the undersecretary for terrorism and financial intelligence at the Treasury Department, stated that these networks enable cartels to poison Americans with fentanyl, conduct human trafficking, and cause havoc in communities across the US. The advisory does not specify whether the flagging of Chinese customers is a new policy or an extension of existing practices.

The operations are designed to bypass financial safeguards, and the Chinese customers flagged may include students, retirees, and housewives. The advisory does not mention any specific Chinese entities or individuals suspected of money laundering, nor does it provide details on the consequences for financial institutions that fail to comply with the flagging requirements.

The "know your customer" US banking rules have been strengthened, originally in response to the September 11 attack. The US President Donald Trump's administration has emphasized the importance it assigns to the issue of Chinese money-laundering networks, as highlighted by the recent advisory. Analysts have also emphasized this point.

The money-laundering operations work in a symbiotic relationship with several Mexican drug cartels, including the Jalisco New Generation, Sinaloa, and Gulf cartels. These networks are alleged to fund fentanyl addiction in the United States. It is important to note that there are no publicly available or credible statements from the US Treasury explicitly naming specific Chinese institutions or individuals linked to money laundering associated with fentanyl addiction in the US under Donald Trump's presidency.

The advisory does not immediately raise the bar in terms of actionable measures, but it does pressure financial institutions to flag Chinese customers who may fit the "unexplained wealth" profile of money launderers. The advisory does not indicate whether the flagging of Chinese customers is a response to specific incidents or a proactive measure.

In conclusion, the US administration is urging banks to be vigilant in monitoring Chinese money-laundering networks, which are suspected of funding fentanyl addiction and other illicit activities in the US. The advisory does not provide detailed methods for identifying and preventing such laundering connected to China, nor does it name any specific entities or individuals. The advisory also does not specify the consequences for financial institutions that fail to comply with the flagging requirements.

Trump urges banks to intensify surveillance of funds linked to China's money laundering associated with fentanyl distribution