WASHINGTON, D.C. - This afternoon, the Select Committee on the Chinese Communist Party's Fentanyl Policy Working Group, led by Rep. Dan Newhouse (R-WA) and Rep. Jake Auchincloss (D-MA), held its third meeting to discuss how the United States can counteract People's Republic of China (PRC) money laundering and illicit finance, which facilitates the flow of fentanyl and fentanyl precursors to the United States.
Members heard from experts including Mr. Don Im, Former Assistant Special Agent in Charge with the Drug Enforcement Administration (DEA) Special Operations Division; Mr. John Cassara, Former Central Intelligence Agency officer and Special Agent with the U.S. Department of the Treasury; and Mr. Alex Zerden, Founder of Capitol Peak Strategies.
Rep. Dan Newhouse opened the meeting with remarks on modern money laundering techniques: "Chinese money launderers have taken the 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."
He further emphasized that this system largely evades traditional anti-money laundering tools but runs through Chinese banks with CCP knowledge: "Retired Admiral Craig Faller... has warned that the Chinese government is 'at least tacitly supporting' money laundering. I’d go one step further: The illicit financing of the fentanyl trade is state-sponsored by the PRC."
Mr. Don Im described how drug profits are laundered through various bank accounts and businesses: “So now what happens to that million dollars held by the Chinese New York network? That person in their network will then structurally deposit that million dollars of cash throughout various bank accounts... This happens every day... you're seeing literally half a trillion to three-quarters of a trillion dollars worth of drug proceeds generated every year."
Mr. John Cassara discussed China's involvement in transnational crime: “In 12 most significant categories of transnational crime, I found criminal activity has become part of the CCP’s overall strategy to grow its power... China leads the world in all criminal categories… CCP inks involving in transnational crime is at least $2 trillion dollars.”
Mr. Alex Zerden highlighted bipartisan efforts against China's role in fentanyl trafficking: “As a national security professional I’m incredibly encouraged to see bipartisan, bicameral efforts... However we must collectively continue to move beyond admiring the problem… and really take concrete actions.”
