Factbox: Step by step - How Chinese 'money brokers' launder cash for Mexican drug cartels [View all]

[Judi Lynn]

DECEMBER 3, 20206:07 AMUPDATED 6 HOURS AGO

By Drazen Jorgic

3 MIN READ


MEXICO CITY (Reuters) - Chinese “money brokers” have emerged as vital partners for Latin American drug cartels, becoming key cogs in their multi-billion-dollar empires and upending the way narcotics cash traditionally has been laundered, according to U.S. authorities.

Based on Reuters reporting and details that U.S. prosecutors presented at the recent trial of a Chinese businessman convicted of laundering cartel drug money, here is a popular method Chinese brokers employ to launder U.S. drug proceeds of Mexican crime groups:

STEP 1
A Mexican cartel wants to bring proceeds from U.S. drug sales back to Mexico. It contacts Chinese money brokers operating in Mexico to see who offers the cheapest rates.

STEP 2
The parties agree on a commission and the amount to be laundered, say $150,000.

STEP 3
The Chinese broker, using encrypted phone messages, would send the cartel three things:

1. a code word

2. the number of a U.S. burner phone

3. the unique serial number of an authentic $1 bill

More:
https://www.reuters.com/article/us-mexico-china-cartels-factbox/factbox-step-by-step-how-chinese-money-brokers-launder-cash-for-mexican-drug-cartels-idUSKBN28D1LW