The Journal. Drug Cartels' New Weapon: Chinese Money Launderers
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Dec 22, 2025 
Dylan Tokar, an investigative reporter for The Wall Street Journal, dives into the vast world of Chinese money laundering networks, revealing how over $300 billion has flooded U.S. banks. Joining him is Julie Shemitz, a former DOJ prosecutor, who shares her insider perspective from Operation Fortune Runner. They discuss the rise of underground brokers, how cartels exploit these networks, and intricate investigative tactics used to connect the dots. Their insights underline a critical crackdown on a significant but just the beginning of a sprawling criminal enterprise.
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Range Rover Bank Drops Expose Laundering
- Agents tailed Jiayong Yu as he made multiple bank deposits and pulled stacks of cash from his backpack at a teller window.
- The bank teller estimated a deposit around $100,000, revealing blatant high-value laundering activity.
China Capital Controls Fueled Underground Brokers
- Chinese money brokers grew because China caps outbound transfers around $50,000 and tightened enforcement in 2016.
- Brokers with U.S. accounts used that demand to expand into laundering cartel cash by offering currency conversion services.
Two-Sided Market Gives Pricing Edge
- Chinese underground-banking provided a steady legal revenue stream from migrants and students, letting them undercut rival launderers.
- That dual market allowed Chinese groups to charge 1–2% to launder cartel funds, far below competitors.