38 sats \ 1 reply \ @2big2fail 12 Oct 2022 \ on: How a Chinese American Gangster Transformed Money Laundering for Drug Cartels bitcoin
this is very true...without being able to given details that reveal my employer this is indeed how it works..
  1. drug cartel has $1mil in USD
  2. cartel meets with chinese national and chinese national takes USD and sends equivalent Yuan from their chinese bank to a chinese business' account
  3. Chinese launderers uses onshore yuan to "buy" 1mil in goods within china but send goods to mexico
  4. Cartel receives goods and sells 1mil in goods and now has clean money
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16 sats \ 0 replies \ @cryptocoin 12 Oct 2022
cartel meets with chinese national and chinese national takes USD and sends equivalent Yuan from their chinese bank to a chinese business' account
And then they use that cash to buy a house. From the article:
"In the United States, there is little if any customer due diligence by real estate agents.”
Indirectly then, the capital controls in China are enriching the drug cartel leaders as they figured out this alternate method that essentially moves the proceeds of their drug sales through China.
And to go further, the reason the drug cartels are profiting in the first place is because with these drugs being illegal they receive a high margin selling them due to lack of competitors in the space.
So the bottom line is that regulations on certain drugs in the U.S. led to drug cartels flush with cash but with the situation that the cash is located where it was hard to move. And then capital controls (regulations) in China led to a solution that ultimately let those drug cartels have access to that cash locally.
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