China and Mexico cited by US for financial networks enabling fentanyl trafficking
Treasury Department says the two nations are leaders in sophisticated global system supporting the illegal opioid trade
China and Mexico are the leading players in a robust and sophisticated global financial system supporting the fentanyl trade, the US Treasury Department claimed Wednesday in a report on bank secrecy that could provide more ammunition as Washington targets Beijing in a potentially devastating trade war.
The picture that develops – from the compilation of filings that banks are required to submit on potentially shady transactions – includes a resilient and shadowy network of wire transfers, social media marketing, casinos, cash transactions, money laundering, e-commerce, call centres and illegal online pharmacies, all to finance the deadly opioid trade.
“Hong Kong-based companies were often reported in conjunction with [mainland]-based subjects conducting similar financial activity or operating within the same financial networks,” the report said.
“In some instances, Hong Kong-based entities were identified as branches or subsidiaries.”
While little in the report is groundbreaking, its release comes less than three months into a second Donald Trump administration that cited fentanyl trafficking as justification for tariffs it placed on China, Mexico and Canada.