Canadian Banks Linked To Cartel Cash As Drug Deaths Surge In US
A growing criminal alliance between Chinese triads and Mexican cartels is using Canadian banks to move drug profits, U.S. officials say, as deadly fentanyl and meth continue to cross the northern border. With overdose deaths surging in American cities, law enforcement experts are warning that Canada’s lax enforcement and weak legal tools are allowing the crisis to deepen.
David Asher, a former State Department official with experience targeting global narcotics financing, said the command network behind much of the laundering activity is based in Canada. He pointed to Chinese criminal groups embedded in cities like Toronto and Vancouver, working directly with cartels to handle profits from drug sales across the United States.
Asher singled out TD Bank for its role in one of the largest money laundering cases in U.S. history. The bank admitted wrongdoing and paid a $3.1 billion settlement after authorities discovered its systems allowed massive deposits of drug money to go unreported for years. U.S. officials revealed that five employees were tied to one scheme moving tens of millions through ATM cards and bribes.
Critics argue that Canada’s justice system is making the problem worse. A legal requirement stemming from a 1991 court ruling forces police to share nearly all evidence with defense lawyers early in an investigation. Asher said this policy repeatedly disrupted joint efforts with U.S. agencies by tipping off suspects and giving them time to evade law enforcement.
The United States has designated Mexican cartels as foreign terrorist organizations, a move that could bring terrorism finance sanctions down on banks and individuals involved in laundering for them. Asher said that any financial institution shown to have moved even a dollar for these groups could now face harsh penalties under U.S. law.
President Donald Trump has linked Canada’s failure to stop cross-border trafficking to upcoming tariffs, which take effect April 2. The trade penalties are aimed in part at forcing Canada to take stronger action to control its borders and combat transnational crime that fuels America’s overdose crisis.
Illegal cannabis shipments from Canada have also become a concern. U.S. agents report that large volumes of marijuana — some mixed with fentanyl — are being trafficked into states like New York and Washington. The funds from those sales are then laundered through networks that include Canadian banks.
