Beautiful Virgin Islands

Wednesday, Aug 27, 2025

How Chinese Criminals Secretly Move Millions for Mexico Cartels

How Chinese Criminals Secretly Move Millions for Mexico Cartels

While the involvement of Chinese money-laundering rings in handling drug proceeds from Mexico is nothing new, a number of recent court cases in the United States have revealed crucial information about how these schemes work.

InSight Crime looks at how colossal amounts of money are being laundered, the seemingly legitimate businessmen behind it all and why US prosecutors are stumped about how to proceed.

1. The Launderers


In late April, a US-based Chinese citizen, Gan Xianbing, was sentenced to 14 years in prison for running a scheme where money from Mexican criminal groups was picked up in Chicago, transferred to bank accounts in China and then ultimately sent back to Mexico.

In 2018, Gan handled approximately $534,206 in drug money before being arrested at Los Angeles Airport in November 2018, during a layover while flying from Hong Kong to Mexico.

Gan has since become the most well-known, but far from the only, Chinese money launderer connected to some of Latin America’s most dangerous criminal groups, including the Sinaloa Cartel.

“The defendant was part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” stated Assistant US Attorneys Sean J.B. Franzblau and Richard M. Rothblatt in Gan’s sentencing document.

Two other key figures have emerged since Gan’s arrest, two Chinese citizens, Pan Haiping and Long Huanxin. Both men are believed to have been working with Gan, handling the drug money proceeds received in Chicago and ensuring their laundering through Chinese bank accounts. They ensured that no money was ever transferred between China and the United States, helping them to avoid detection. Long was arrested in February 2020 at Vancouver airport in Canada before being extradited to the United States on charges related to Gan’s. Pan Haiping has been arrested in Mexico and is awaiting extradition to the United States.

These men presented themselves as legitimate businessmen and had little to no entanglements with the law. Long was the purchasing manager for his family’s toy and clock business, selling products in Mexico, where he had investments in hotels and restaurants. Gan owned a seafood business in Guadalajara, exporting jellyfish to China, according to Reuters.

“Many of these brokers are also engaged in legitimate business, and use that business as cover for and to further money laundering activity,” said US attorneys in Gan’s sentencing memorandum.

While this ring is the latest involving Chinese money launderers, it is not the only one to be uncovered.

Last September, Wu Xueyong was sentenced to five years in prison by a federal court in Virginia and agreed to forfeit over $4.2 million in laundered drug proceeds coming from cocaine trafficking in the United States. Wu’s scheme worked identically to Gan’s with the money never actually being transferred from China to the United States.

2. The Techniques


Large sums of money being transferred between China and the United States on a regular basis might raise suspicion. Therefore, these launderers chose a scheme that ensured this would never happen.

One of Gan’s associates, a Singaporean national named Seok Pheng Lim testified to prosecutors that she was coordinating several weekly pick-ups from representatives of Mexican criminal groups, made in cash ranging between $150,000 and $1 million, with an average of $500,000. These were made in large cities including Chicago, New York and Atlanta. Lim’s involvement lasted an estimated 63 weeks between March 2016 and May 2017, during which time she and her other couriers picked up in excess of $25 million, prosecutors estimated.

Once the cash was in the hands of the launderers, they contacted one among a network of Chinese-owned businesses in the United States and Mexico. They asked them to transfer a correspondent amount of money through Chinese banking apps. This happened entirely through the Asian country’s domestic banking system and outside the purview of US authorities.

Gan actually mentioned this in his defense, according to Reuters. His lawyers stated that, far from being a money launderer himself, he had been duped by Pan Haiping and allowed his Chinese bank account to be used for these transfers.

This technique also allows the laundering process to avoid scrutiny in China. The country’s financial regulators limit private individuals from handling more than $50,000 in foreign currency and any transfers surpassing this limit must be granted special dispensation. However, there is no such limit on domestic transfers.

3. China’s Silence


The sheer amounts of dirty money being laundered in this way are a cause for alarm among US prosecutors. And yet these schemes are not new. In October 2020, an unsealed indictment from the US Justice Department charged six Chinese nationals with laundering over $30 million for Mexican drug traffickers over a period of 12 years.

But regulating the use of Chinese banking apps from the United States and Mexico is no easy task.

China has not seemed eager to help. Two sources within the US justice system told Reuters in December that requests for support had not been answered.

The Chinese government disputed this account and stated no such request was received. According to a statement from the country’s Ministry of Foreign Affairs, other requests from the United States related to money laundering had concerned “legitimate enterprises and individuals” in China.

It is currently uncertain to what extent the businesses and people used to move this money within China are even aware of the illegal nature of these transactions, making it all the more difficult to crack down on these schemes.

“It’s the most sophisticated form of money laundering that’s ever existed,” one of the US sources told Reuters.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
Nurse who raped woman continued working for a year despite police alert
Drought forces closures of England’s canal routes, canceling boat holidays
Sweet tooth scents: food-inspired perfumes surge as weight-loss drugs suppress appetites
Experts warn Britain dangerously reliant on imported food
Family of Notting Hill Carnival murder victim call event unmanageable
Bunkers, Billions and Apocalypse: The Secret Compounds of Zuckerberg and the Tech Giants
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
×