Treasury Department publishes investigation into fentanyl finance – Washington Examiner
The U.S. Department of the Treasury published a report detailing an investigation into the financial operations behind the fentanyl trade, marking it as a groundbreaking effort. The report, released by the Financial Crimes Enforcement Network (FinCEN), identifies the Sinaloa Cartel and the Cártel de Jalisco Nueva Generación as the main players in controlling the fentanyl supply chain from Mexico.These cartels source precursor chemicals and manufacturing equipment from China, utilizing covert laboratories to produce fentanyl for distribution in the United States.
Treasury Secretary Scott Bessent emphasized the importance of collaboration with financial institutions in disrupting the illegal production and sale of fentanyl, which has significantly contributed to the U.S.opioid crisis—resulting in over 250,000 overdose deaths as 2018. The report also highlights the use of refined money-laundering tactics by Chinese suppliers and facilitators in the U.S., and points out that fentanyl trafficking is concentrated in populous urban areas, particularly in states like California and Arizona. This pressing issue remains a focal point in U.S. diplomatic negotiations with China, Mexico, and Canada.
Treasury Department publishes ‘first-of-its-kind’ investigation into fentanyl finance
The Treasury Department published a “first-of-its-kind” investigation into the financial angle of the proliferation of fentanyl in the United States.
On Wednesday, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network released a report detailing the different legs of the fentanyl trade. According to the report, the Sinaloa Cartel and the Cártel de Jalisco Nueva Generación primarily control the fentanyl supply chain in Mexico. The groups obtain precursor chemicals and manufacturing equipment primarily from China, the report alleged, and use secret laboratories to produce fentanyl, which is then sent to the U.S.
Treasury Secretary Scott Bessent praised the work of FinCEN in a statement.
“As Treasury continues to prioritize combating the illegal production and trafficking of fentanyl, our public-private partnerships are vital,” he said. “As today’s analysis shows, the information we receive from financial institutions is a critical element in our ability to more effectively investigate and disrupt the malicious actors that profit off this unprecedented epidemic, and ultimately aids in the effort to save American lives.”
FinCEN found that China-based chemical suppliers market fentanyl precursor chemicals through public advertisements and e-commerce platforms. They also accept a wide range of payment methods.
The cartels and their chemical brokers purchase the manufacturing equipment and precursor chemicals through front companies known as “money mules” and even U.S.-based intermediaries, according to the report, which suspected the use of sophisticated Chinese money-laundering organizations involved in fentanyl trafficking.
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Fentanyl trafficking and sales in the U.S. were centered in populous states with sizable urban areas, including a notable presence in California and Arizona. Sales are primarily done in cash through individual, in-person transfers.
Fentanyl has emerged as a major sticking point in the U.S.’s negotiations with China, Mexico, and Canada, with President Donald Trump accusing the three of facilitating the drug’s trafficking into the U.S. Over a quarter of a million Americans have died from a fentanyl overdose since 2018, more than every U.S. soldier killed in every war since World War II combined.
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