Chinese Money Laundering Networks Fuel Organized Crime Expansion in Latin America and the Caribbean

Chinese money laundering networks have become a significant financial force behind transnational organized crime in Latin America and the Caribbean. These networks facilitate the movement of billions of dollars in illicit funds through various channels, including informal value transfer systems, underground banking, international trade, and cryptocurrencies. ## The 'Flying Money' System At the heart of this financial architecture is the 'flying money' system, an informal value transfer mechanism based on trusted networks and historically associated with the Chinese diaspora. This system allows large sums of illicit money to be moved without using the formal banking system and without physically transferring cash across jurisdictions. According to organized crime researcher Sebastián Rotella, the model is highly efficient for criminal economies, enabling billions of dollars to be moved for international cartels in multiple directions simultaneously within days. The primary advantage of the 'flying money' system is its low cost. While traditional intermediaries may charge up to 20 percent, these networks reduce fees to less than 5 percent. The system emerged from the convergence of two needs: Chinese citizens seeking to circumvent China's annual $50,000 overseas transfer limit, and Latin American criminal organizations requiring fast and discreet money laundering mechanisms. The system also incorporates foreign trade, maritime logistics, imports, and real estate, adding additional layers of opacity. ## Cryptocurrencies and Accelerating Risk The expansion of the digital asset ecosystem has strengthened the operational capabilities of these networks. According to Chainalysis, a blockchain analytics company, illicit cryptocurrency-related money laundering flows increased from $10 billion in 2020 to $82 billion in 2025. Within that total, Chainalysis estimates that Chinese-speaking money laundering networks processed approximately $16.1 billion in illicit assets during 2025, accounting for roughly 20 percent of the globally identified cryptocurrency money laundering volume. The illicit activity extends far beyond direct digital transfers, including over the counter (OTC) broker networks, online gambling platforms, money mules, and encrypted communication channels such as secure messaging applications, making detection increasingly difficult. ## Operational Expansion Across the Hemisphere Recent investigations reveal the sustained expansion of these networks across multiple countries in the region. In Colombia, authorities arrested Haibo Zhang, alias 'Chokan,' in late May, accused of leading a transnational money laundering network. The organization operated between Bogotá and Valle del Cauca, moving cash and cryptoassets through connections in China, Mexico, Guatemala, Canada, and the United States, while maintaining possible links to dissident factions of the Revolutionary Armed Forces of Colombia (FARC). In Brazil, also in May, Operation Dark Trader dismantled a network linked to Chinese businessmen and the First Capital Command (PCC), allegedly using electronics import schemes, cross-invoicing, and shell companies to launder more than $190 million in just seven months. ## Implications for Hemispheric Security The growth of these networks highlights the gradual shift of organized crime from territorial control toward financial control. This paradigm shift reduces the visibility of criminal economies and complicates the use of traditional interdiction tools. Governments must strengthen their capacity to analyze financial flows, improve interagency cooperation, and integrate cyber intelligence tools. More than incremental adjustments, the challenge requires a structural transformation in how states confront transnational criminal networks. International cooperation will be essential to counter the continued expansion of these criminal networks.