OFAC Designates 27 Entities and Individuals in China, Plus One in Canada, for Involvement in Global Synthetic Drug Trafficking Network

The US Office of Foreign Assets Control (OFAC) has designated 27 China-based entities and individuals, along with one individual based in Canada, for their involvement in a global drug trafficking network responsible for distributing synthetic drugs and their precursors, including fentanyl. The action follows a series of US crackdowns and collaborative initiatives to combat illicit drug proliferation. Collaborative efforts from various US agencies led to the designation of entities and individuals involved in the syndicate’s operations. These entities engaged in various tactics, including exchanging funds via virtual currency and bank transfers, advertising synthetic drug precursor chemicals online, and conducting transactions with international drug cartels and dark web vendors. This case highlights the importance of establishing beneficial ownership information for business customers to uncover indirect links and red flags associated with money laundering. The Financial Action Task Force (FATF) has also issued a report on money laundering from fentanyl and synthetic opioids, detailing typologies used by criminal groups involved in synthetic opioid trafficking, including bulk cash smuggling, trade-based money laundering, wire transfers, cash couriers, funnel accounts, and money brokers.