US Lawmakers Discuss Chinese Money Laundering Tactics
The US-based Select Committee on the Chinese Communist Party’s (SCCCP) Fentanyl Policy Working Group (FPWG) recently held a session to discuss how the Chinese Communist Party (CCP) is allegedly helping drug trade-based money laundering into the US. The session was led by US lawmakers Jake Auchincloss and Dan Newhouse, with former members of the Drug Enforcement Administration (DEA) and the Central Intelligence Agency (CIA) also participating.
Key Points Discussed
During the session, several negative aspects of the CCP’s tactics to bypass US law enforcement and banking systems were highlighted. These tactics are reportedly used to support the drug trade in the US. The session emphasized the need for changes in the current system to counter these tactics.
Statements from US Lawmakers
Dan Newhouse explained how Chinese money launderers use modern technologies and the opaque Chinese banking system to move large sums of money. He stated, “Chinese money-launderers have taken terrorist money-laundering playbook and digitized it. They use modern technologies, messaging and payment apps, e-commerce sites, digital assets, and the opaque nature of the Chinese banking system to move large sums of money and facilitate trade-based money laundering with impunity.”
Newhouse also mentioned that the CCP’s financing system runs through Chinese banks and that the CCP is aware of it. He added that Beijing’s illicit financing of the fentanyl trade is state-sponsored and protected by state actors in China.
Insights from Former DEA and CIA Members
Don Im, a former DEA member, explained how the CCP uses an elaborate system to launder money from the US to China. He provided an example involving the Sinaloa cartel and Chinese-Mexican businessmen who operate as money launderers.
John Cassara, a former CIA agent, stated that Chinese money launderers avoid US anti-money laundering measures and financial intelligence. He emphasized that the CCP’s involvement with transnational crime and money laundering is part of its overall strategy to grow its power.
Cassara added, “The CCP is an ideological, military, economic, commercial, high-tech, intelligence, and diplomatic rival of the US and the West. And while these threats are known, the CCP’s involvement with transnational crime and money laundering is not. We cannot look at the fentanyl issue in a vacuum or as an isolated concern.”
Doubts Revealed
Jake Auchincloss -: Jake Auchincloss is a US lawmaker, which means he is a person who helps make laws in the United States. He is part of the government and works to create rules that people in the country must follow.
Dan Newhouse -: Dan Newhouse is also a US lawmaker. Like Jake Auchincloss, he helps make laws in the United States and works in the government to ensure the country runs smoothly.
Chinese Money Laundering -: Money laundering is when people try to hide where money really comes from, often because it was earned in illegal ways. In this case, it means that some people in China are trying to hide illegal money by moving it to the US.
Select Committee on the Chinese Communist Party (SCCCP) -: This is a special group of people in the US government who focus on issues related to the Chinese Communist Party. They study and discuss how the actions of the Chinese government affect the US.
Fentanyl Policy Working Group (FPWG) -: This is a group that focuses on policies related to fentanyl, a very strong drug that can be dangerous. They work on ways to control and reduce problems caused by this drug.
Chinese Communist Party (CCP) -: The Chinese Communist Party is the main political party in China. It controls the government and makes important decisions for the country.
DEA -: DEA stands for Drug Enforcement Administration. It is a US government agency that works to stop illegal drug use and drug trafficking.
CIA -: CIA stands for Central Intelligence Agency. It is a US government agency that gathers information about other countries to help keep the US safe.
Opaque Chinese banking system -: Opaque means not clear or hard to see through. The opaque Chinese banking system means that it is difficult to understand or see what is happening with money in Chinese banks, which can make it easier to hide illegal activities.
