US Banks surpass the crypto market in Money Laundering Volume

08.08.2025

According to the US financial regulator FinCEN, between 2020 and 2024, American banks processed transactions worth over $312 billion linked to Chinese money-laundering networks. On average, more than $62 billion of suspicious funds moved through the banking system each year. The regulator analyzed over 137,000 reports filed under the Bank Secrecy Act. The report states that Chinese laundering networks actively cooperate with Mexican drug cartels, helping them legitimize profits from drug sales in US dollars. For Chinese groups, this also serves as a way to bypass China’s strict capital controls that limit large cross-border money transfers. FinCEN Director Andrea Gacki noted that these networks not only launder funds for cartels but also participate in large-scale money movements across and beyond the United States. Additionally, criminal groups are involved in human trafficking, healthcare fraud, and real estate schemes. The latter alone accounted for more than $53.7 billion in suspicious transactions. According to UN estimates, over $2 trillion is laundered globally each year. In comparison, cryptocurrencies make up only a small share of the shadow financial market. Chainalysis analysts found that over the past five years, the total amount of illicit transactions involving digital assets reached around $189 billion. Angela Ang, head of policy at TRM Labs, told Cointelegraph that illicit activity represents less than 1% of the total crypto ecosystem. She added that FinCEN’s findings confirm a broader pattern: the main risks to the global financial system stem from underground banking networks operating within traditional finance (TradFi). Experts emphasize that the combination of bank instruments, offshore accounts, and cash flows remains the most convenient method for criminal organizations. Despite increasing regulatory scrutiny, anti–money laundering mechanisms within traditional financial institutions still require significant strengthening.