WSJ What’s News How Chinese Money Launderers Are Moving Billions Through U.S. Banks
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Aug 28, 2025 A recent Treasury report uncovers a sophisticated Chinese money laundering network that has funneled billions through U.S. banks, aiding criminals, including drug cartels. The conversation delves into how these networks operate and the regulatory measures the Trump administration is considering to tackle this issue. Additionally, a Federal Reserve governor is taking legal action against the President, highlighting tensions in regulatory bodies. New tariffs on low-value shipments are also discussed, impacting both consumers and businesses.
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De Minimis Suspension Affects Small Parcels
- Ending the $800 de minimis exemption forces import duties on many small cross-border parcels.
- Merchants can prepay duties or pass costs to consumers, and smaller sellers may stop shipping to the U.S.
Operational Steps For Merchants
- If you hold foreign inventory, move it into U.S. warehouses to avoid new import fees.
- Smaller sellers should consider pausing U.S. sales if they lack customs brokers or fulfillment options.
Scale And Role Of Chinese Laundering Rings
- Treasury estimates Chinese money-laundering networks moved up to $312 billion through U.S. banks in recent years.
- These networks now dominate an illicit market and help funnel cartel cash into cross-border mirror transactions.