FinCEN Flags $1.4 Billion in Fentanyl-Linked Transactions in 2024

Financial institutions in the United States reported over $1.4 billion in suspicious transactions tied to fentanyl activity in 2024, according to a new report issued by the Financial Crimes Enforcement Network (FinCEN). Between January and December, a total of 1,246 reports were filed under the Bank Secrecy Act (BSA), each identifying potential connections to the illegal fentanyl supply chain.

FinCEN stated that the reports revealed financial activity spanning multiple components of the fentanyl trade, including the sourcing of chemicals, trafficking operations, and associated money laundering schemes. “The reported financial activity highlighted various aspects of the illicit fentanyl supply chain that have touchpoints across the U.S. financial sector,” the agency said in its report.

U.S. Treasury Secretary Scott Bessent emphasized the role of financial institutions in combating the crisis. “The information we receive from financial institutions is a critical element in our ability to more effectively investigate and disrupt the malicious actors that profit off this unprecedented epidemic,” Bessent said.

FinCEN’s findings detailed how drug cartels and chemical brokers relied on networks of front companies, money mules, and intermediaries based in the United States to acquire precursor chemicals from suppliers in China. These vendors accepted a range of payment options and frequently marketed their products through online channels, including e-commerce websites.

The report noted that the bulk of fentanyl-related financial activity took place in major urban centers and along the border regions of California and Arizona. These areas have become central hubs for the distribution of fentanyl and the collection of illicit proceeds. According to the BSA filings, most domestic sales were carried out using cash or peer-to-peer money transfer apps, with such payment methods cited in more than half of the reports.

Financial institutions also documented sophisticated money laundering techniques. In certain cases, Chinese-based laundering networks were suspected of playing a direct role in facilitating the movement of cartel profits.

FinCEN concluded by encouraging banks and other financial service providers to revisit its earlier advisories, published in August 2019 and June 2024. These documents provide detailed red flags and compliance guidance for identifying transactions related to fentanyl trafficking and the procurement of its chemical components.

By fLEXI tEAM