China and Mexico are the leading players in a robust and sophisticated global financial system supporting the fentanyl trade, the US Treasury Department claimed Wednesday in a report on bank secrecy that could provide more ammunition as Washington targets Beijing in a potentially devastating trade war.
The picture that develops – from the compilation of filings that banks are required to submit on potentially shady transactions – includes a resilient and shadowy network of wire transfers, social media marketing, casinos, cash transactions, money laundering, e-commerce, call centres and illegal online pharmacies, all to finance the deadly opioid trade.
“Hong Kong-based companies were often reported in conjunction with [mainland]-based subjects conducting similar financial activity or operating within the same financial networks,” the report said.
“In some instances, Hong Kong-based entities were identified as branches or subsidiaries.”
While little in the report is groundbreaking, its release comes less than three months into a second Donald Trump administration that cited fentanyl trafficking as justification for tariffs it placed on China, Mexico and Canada.
