FinCEN Uncovers $1.4 Billion in Fentanyl-Linked Money Laundering Activity in 2024

The Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of the Treasury, has issued a detailed Financial Trend Analysis revealing a significant increase in fentanyl-linked money laundering. Based on 2024 Bank Secrecy Act (BSA) reports, financial institutions identified approximately $1.4 billion in suspicious transactions tied to the production, distribution, and proceeds of illicit fentanyl.

Financial Institutions on the Front Line Against Money Laundering

FinCEN’s analysis of 1,246 BSA reports filed between January and December 2024 highlights how illicit fentanyl operations intersect with legitimate financial channels. These reports uncover critical information about money laundering methods used by transnational criminal organisations to conceal the origins of drug trafficking profits.

“As Treasury continues to prioritise combating the illegal production and trafficking of fentanyl, our public-private partnerships are vital,” said Treasury Secretary Scott Bessent. “The data we receive from financial institutions is instrumental in identifying money laundering patterns and disrupting the networks that profit from this devastating epidemic.”

China & Mexico Central to Fentanyl Money Laundering Networks

The report underscores the dominant role of Mexican cartels, specifically the Sinaloa Cartel and Cartel Jalisco Nueva Generacion, in synthesising and smuggling fentanyl into the United States. These groups are designated as Foreign Terrorist Organisations and Drug Trafficking Organisations, and they rely heavily on precursor chemicals and lab equipment sourced from the People’s Republic of China (PRC).

Mexico and the PRC were the most frequently cited foreign jurisdictions in the subject addresses of fentanyl-related BSA filings, highlighting their central role in global supply chains and cross-border money laundering schemes.

Illicit Financial Techniques & Laundering Operations

Cartels and their chemical suppliers employ a variety of money laundering techniques to disguise the movement of funds. These include the use of front companies, money mules, and US-based intermediaries to purchase precursor chemicals and distribute profits.

PRC-based suppliers advertise openly on e-commerce platforms and accept a wide array of payment methods, further complicating detection. Within the US, transactions are often conducted in cash (54 percent) and through peer-to-peer transfers (51 percent), methods favoured for their opacity and speed.

FinCEN also identified sophisticated laundering operations involving suspected Chinese money laundering organisations. These entities play a growing role in helping cartels clean vast sums of illicit fentanyl proceeds, operating as essential facilitators of transnational drug finance.

Geographic Trends & Regulatory Guidance

Suspicious fentanyl-related financial activity is concentrated in large metropolitan states with robust drug trafficking networks. High levels of activity were also detected in border counties in California and Arizona, which serve as collection hubs for cash generated through domestic drug sales.

To aid financial institutions in strengthening their AML frameworks, FinCEN continues to promote the use of its August 2019 and June 2024 advisories. These documents outline key red flags and transaction typologies associated with the trafficking of fentanyl and related synthetic opioids.

Read the press release here.