The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) unveiled a Financial Trend Analysis highlighting the patterns and trends related to fentanyl-related illicit finance as seen in the Bank Secrecy Act (BSA) data. In 2024, financial institutions submitted 1,246 BSA reports revealing approximately $1.4 billion in suspicious transactions suspected of being linked to fentanyl activities. The analysis shed light on the fentanyl supply chain, touching on precursor chemical procurement, trafficking, and money laundering across the U.S. financial system.
“As Treasury continues to prioritize combating the illegal production and trafficking of fentanyl, our public-private partnerships are vital,” stated Scott Bessent, Secretary of the Treasury. “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.”
According to the analysis, illicit fentanyl primarily enters the United States via Mexican cartels, notably the Sinaloa Cartel and the Cartel Jalisco Nueva Generacion. These organizations are categorized as Foreign Terrorist Organizations, Specially Designated Global Terrorists, and Drug Trafficking Organizations and oversee the fentanyl supply chain from Mexico. They obtain precursor chemicals and equipment mainly from the People’s Republic of China (PRC) to produce fentanyl illicitly.
It was noted that Mexico and the PRC appeared frequently in the subject address fields of fentanyl-related BSA reports last year.
Further observations from FinCEN’s analysis revealed that the cartels and associated chemical brokers used various methods to source fentanyl precursor chemicals from PRC-based suppliers, including front companies and money mules. The PRC-based chemical suppliers utilize various payment methods and advertise through e-commerce platforms.
Within the United States, fentanyl-related activities were prevalent in populous states with extensive drug distribution networks and southwest border counties of California and Arizona. These areas serve as collection points for illicit funds, with domestic sales largely conducted through cash and peer-to-peer transactions, as referenced in 54% and 51% of BSA reports, respectively.
Suspicious methods for laundering fentanyl proceeds reflected varying sophistication, with some reports indicating the involvement of suspected Chinese money laundering entities assisting in the movement of illicit funds for the cartels.
The Administration prioritizes disrupting drug cartels and halting the influx of dangerous drugs into the United States. To support this, FinCEN urges financial institutions to review its relevant advisories laid out in August 2019 and June 2024 concerning fentanyl and its analogues, as well as the requisite precursor chemicals and equipment.
