US banks processed $312 billion in dirty money linked to Chinese money laundering networks between 2020 and 2024, according to a new FinCEN report.
FinCEN Issues Advisory and Financial Trend Analysis on Chinese Money Laundering Networks. Source: Financial Crimes Enforcement Network (FinCEN) The Financial Crimes Enforcement Network (FinCEN) analyzed more than 137,000 Bank Secrecy Act reports during this period. On average, over $62 billion each year flowed through the US banking system from Chinese money launderers.
FinCEN said these networks worked closely with Mexican drug cartels. Cartels needed to launder US dollar proceeds from drug sales, while Chinese groups sought US currency to bypass China’s strict capital controls.
FinCEN Director Andrea Gacki stated:
“These networks launder proceeds for Mexico-based drug cartels and are involved in other significant, underground money movement schemes within the United States and around the world.”
Real Estate and Fraud Connected to Chinese Money Launderers
The FinCEN advisory showed that Chinese money laundering networks were not only tied to drug money.
They were also connected to human trafficking, smuggling, healthcare fraud, and elder abuse schemes.
A major channel involved real estate money laundering. FinCEN identified $53.7 billion in suspicious real estate transactions linked to these groups. Converting illicit cash into property allowed networks to hide funds inside assets harder to monitor.
The report described these laundering operations as a shadow financial system, enabling organized crime to move money worldwide through US banks and other traditional channels.
Crypto Blamed Despite Smaller Role in Money Laundering
Despite the scale of money laundering in US banks, some lawmakers continue to focus on crypto money laundering.
Senator Elizabeth Warren, the ranking member of the Senate Banking Committee, said earlier this year: “Bad actors are also increasingly turning to cryptocurrency to enable money laundering,” calling for stricter oversight.
However, data highlights the gap between traditional banking and crypto money laundering.
According to Chainalysis, illicit crypto activity totaled $189 billion over the last five years. By comparison, the FinCEN data shows US banks processed that amount in less than one year.
Global Money Laundering Reaches $2 Trillion
The United Nations Office on Drugs and Crime (UNODC) estimates that more than $2 trillion is laundered globally every year. This amount far exceeds the figures tied to crypto money laundering.
TRM Labs head of policy and strategic partnerships Angela Ang said:
“Illicit activity is but a small fraction of the crypto ecosystem. We estimate that it is less than 1% of overall crypto volume.”
She added:
“FinCEN’s findings align with a broader pattern — these underground banking networks function as a shadow financial system for organized crime worldwide, operating at the seams of banking systems.”
Traditional Finance Overshadows Crypto in Dirty Money Flows
The data shows that money laundering through US banks and cash dominates global illicit flows, while crypto money laundering remains relatively small.
Charts from Zigram confirmed that traditional banks still account for the majority of global suspicious transactions, underscoring that most dirty money flows through regulated financial systems.
Editor at Kriptoworld
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Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: August 4, 2025 • 🔄 Last updated: August 4, 2025
