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Time Business News
19-05-2025
- Business
- Time Business News
Cash, Cartels, and the Chinese Connection: How Drug Money Flows into American Banks
Federal Investigators Uncover a Sophisticated Laundering Network Fueling the U.S. Drug Trade Through Teller Windows Across Los Angeles LOS ANGELES — In a sweeping federal investigation that reads like a thriller, U.S. law enforcement has exposed a transnational money laundering operation linking Chinese underground bankers with Mexico's deadliest drug cartels. The operation, which involved the regular deposit of six-figure sums—often in gym bags stuffed with cash—into major U.S. financial institutions, highlights a dangerous evolution in global financial crime. The laundering ring's primary targets? Mainstream bank branches belonging to JPMorgan Chase, Citibank, and Bank of America, across Los Angeles County. The financial system, it seems, has become the silent accomplice in a multi-billion-dollar drug and capital flight scheme stretching from Shanghai to Sinaloa to California. A Modern Money Laundering Blueprint At the center of the conspiracy is a mutually beneficial relationship between Chinese money brokers and Mexican cartels. The cartels needed to 'clean' the massive amounts of U.S. currency made from fentanyl, methamphetamine, and cocaine sales. Simultaneously, Chinese nationals, restricted by China's strict capital controls, sought methods to get large sums of money out of the country. The method is simple, yet devastatingly effective: Drug money in U.S. dollars is handed to Chinese operatives on American soil. That money is deposited into U.S. bank accounts under front companies or borrowed names. Chinese citizens inside China pay the equivalent value in yuan to launderers through apps like WeChat Pay or Alipay. Cartels retrieve clean funds in pesos, bitcoins, or property from Chinese-controlled accounts in Mexico or other jurisdictions. By separating the currency movements from physical cross-border transactions, criminals bypass customs enforcement, anti-money laundering (AML) systems, and traditional detection models. Bags of Cash and Teller Blind Spots Federal court documents reveal that over $300 million was laundered using this strategy between 2019 and 2023. Deposits were frequently made in structured amounts just below the $10,000 CTR (Currency Transaction Report) threshold to avoid automatic reporting. Individuals often walked into retail bank branches across Alhambra, Monterey Park, Arcadia, and other L.A. suburbs with grocery bags, backpacks, or duffel bags filled with tightly rubber-banded $100 bills. A former branch manager, speaking anonymously, recalled, 'The deposits didn't make sense. We saw someone walk in with $200,000 in cash, claiming it was for a 'retail export business,' but there were no corresponding wire transfers or invoices. We flagged it, but nothing ever came of it internally.' The same pattern repeated across institutions, and whistleblower reports indicate internal compliance teams either missed or ignored red flags in dozens of locations. Case Study: U.S. v. Chen & Zhen (2024) A major federal indictment filed in Los Angeles in late 2024 highlights the operations of Justin Zhen, a Chinese-American real estate developer, and his associate, Hao Chen, an international logistics manager. According to the Department of Justice, the two operated a network of couriers—mostly international students or recent immigrants-who deposited cartel cash into more than 50 different accounts in 12 banks across Southern California. Case Facts: Total laundered funds: $84 million $84 million Banks used: Chase (Alhambra), Bank of America (Pasadena), Citibank (Rowland Heights) Chase (Alhambra), Bank of America (Pasadena), Citibank (Rowland Heights) Period: 2021–2023 2021–2023 Seized evidence: 27 burner phones, 11 fake passports, and $2.1 million in U.S. currency Undercover agents captured footage of couriers rehearsing deposit conversations, being trained to avoid suspicion, and using rotating IDS. Zhen allegedly boasted on a recorded call, 'You can launder $10 million without a single wire transfer.' Underground Banking Meets High-Stakes Laundering Chinese underground banking systems, often called fei qian (flying money), have existed for centuries. But today's version has gone digital, blending cryptocurrency, WeChat payments, and virtual private wallets. These networks thrive in the grey areas of international finance, notably where Chinese law prohibits outbound transfers over $50,000 per year per citizen. The cartels have capitalized on this by offering access to offshore liquidity, promising launderers quick profits for helping cycle dirty money into Asia's shadow economy. The result is a parallel global economy in which vast sums move without touching the regulated financial system but still manage to pass through trusted institutions. National Response and Policy Failures The U.S. Treasury Department, the Federal Bureau of Investigation, and the Office of the Comptroller of the Currency have launched joint investigations into the banks involved. While no charges have been filed against the financial institutions as of May 2025, the scrutiny is intense. Senator Elizabeth Warren (D-MA) called for immediate hearings, stating, 'This is not just a regulatory failure. It's a national threat when fentanyl profits are flowing freely through American banks.' A joint task force, including the FBI, DEA, and Homeland Security Investigations (HSI), has since been established to focus solely on Chinese money laundering and cartel collaborations in the U.S. Case Study: The Fresno Drop-Off In another ongoing case, DEA agents intercepted a courier who had driven from Las Vegas to Fresno carrying $600,000 in cash wrapped in heat-sealed food storage containers. The courier had instructions to deposit the funds in $9,000 increments across five banks within two days. Digital logs show that the operation was coordinated via WeChat voice notes, using code names like 'water delivery' and 'temple donations.' Surveillance later uncovered a dozen similar couriers operating in California's Central Valley, each believed to have laundered between $2 million and $5 million over a year. The Human Cost of Dirty Money Behind every laundered dollar is a trail of overdose deaths, broken communities, and shattered families. Fentanyl, the cartels' product of choice, has killed more than 70,000 Americans per year, according to the CDC. When drug profits are laundered successfully, cartels reinvest in larger shipments, deadlier chemicals, and more sophisticated smuggling techniques. By facilitating laundering—knowingly or not—banks indirectly enable the scourge law enforcement is fighting to stop. Amicus International Consulting's Role in Financial Defence Amicus International Consulting offers solutions grounded in compliance, security, and legal integrity in an environment where individuals and institutions can become unknowing enablers of criminal networks. Amicus provides: Strategic consulting for high-risk account monitoring Corporate structuring services to prevent shell-company fraud Legal second citizenship and offshore banking setup compliant with FATF/OECD standards Intelligence briefings on geopolitical laundering threats AML and KYC training for financial institutions 'Today, the line between criminal and legitimate financial activity has never been thinner,' said a senior compliance advisor at Amicus. 'Our job is to ensure clients never cross it—intentionally or otherwise.' A Call for Reinforcement, Not Just Reform The Chinese cartel laundering pipeline has revealed gaping holes in the U.S. anti-money laundering regime—holes that have allowed billions in criminal proceeds to pass through the front doors of some of America's largest banks. As regulators scramble to modernize detection systems and enforce stricter oversight, financial institutions must shift from reactive to proactive, from automated red flagging to human-centred risk evaluation. Because when cartels walk in with bags of cash and walk out with digital legitimacy, the system is broken. 📞 Contact InformationPhone: +1 (604) 200-5402Email: info@ Website:
Barnama
19-05-2025
- Barnama
- Tapping, Riding, Gliding – the Everyday Ease of Getting Around in China
Opinions on topical issues from thought leaders, columnists and editors. Public transportation here doesn't just move people – it empowers them. Before arriving in China, I had heard much about its high-speed trains and sprawling cities, but nothing quite prepared me for how seamlessly everything functions together. From subways and high-speed rail (HSR) to ride-hailing apps and bike-sharing systems, China's infrastructure is impressively fast, affordable and well-organised. However, traffic regulations appear to be less strictly observed. Pedestrians often cross at zebra crossings even when the light is red, and some vehicles continue through crossings despite green pedestrian signals – posing risks to both walkers and cyclists. Take the Beijing Subway, for instance. With 27 lines and over 500 stations, it is one of the busiest metro systems in the world, yet it runs with remarkable efficiency and punctuality. This occurs despite the presence of hundreds of surveillance cameras monitoring the roads. Smarter Transportation Integration – All in One App Navigating China's vast cities has never been easier, thanks to real-time updates on apps like Baidu Maps and AMAP. Fares are remarkably affordable – starting as low as 1 yuan (about 60 sen) for short bicycle rides and 3 yuan (around RM2) for a subway trip – all payable through contactless methods like WeChat Pay or Alipay. Need a bus? Just check AMAP or Baidu Maps. Want a ride? Didi appears within seconds. Fancy a bike ride along tree-lined lanes? Shared bicycles are readily available, even in less touristy areas. Looking for an e-scooter? Just scan and go. While Malaysia is making progress with platforms like Touch 'n Go and Grab eWallet, the experience remains fragmented. Separate apps for MRT access, ride-hailing, and parking mean that travel is not yet as fluid or integrated. Effortless Transportation – Beyond the Mega Cities In Beijing, the subway system runs like clockwork, with stations so well-connected that transferring between lines feels almost effortless. What truly struck me, however, was that this level of convenience isn't confined to China's mega cities. I recently had the chance to visit Inner Mongolia under a programme organised by the China International Press Communication Centre (CIPCC), and even in Hohhot – the capital of the autonomous region – the transportation experience was just as smooth. The journey from bustling Beijing to the serene steppes of Hohhot was a masterclass in transport efficiency. It began at Beijing North Station, where I boarded the HSR to Hohhot. The train was punctual, comfortable and incredibly fast – covering the 400-km distance in just 2.5 hours. For comparison, that's almost the same time it takes to drive or go by train from Kuala Lumpur to Ipoh, a journey spanning just 200 km. The HSR train reached speeds of 250 to 300 km per hour, yet the ride was so smooth I could work on my laptop without any disruption. What stood out further was the quality of infrastructure in Hohhot and even in Ulanqab. Roads were immaculate – no potholes, no uneven patches, just smooth driving surfaces. And bike lanes were clearly marked and dedicated – not only in city centres but even on the outskirts – making cycling both safe and convenient. Of course, it might be unrealistic to expect widespread daily cycling in Malaysia, given our hot and humid climate. The encouraging news is that Malaysia is making strides. The upcoming MRT3 line, continued improvements to the Electric Train Service (ETS), and the East Coast Rail Link (ECRL) – slated to begin operations in June 2026 – signal promising progress. However, to truly elevate the commuter experience, Malaysia would benefit from enhanced last-mile connectivity – such as dedicated lanes for bicycles and e-scooters, walkable paths, and a unified digital platform integrating all transport modes into a single app. Such advancements would go a long way in making daily travel smoother, smarter, and more accessible. -- BERNAMA Kisho Kumari Sucedaram is a journalist with BERNAMA.
South China Morning Post
05-05-2025
- Business
- South China Morning Post
Alipay and WeChat Pay see booming inbound spending in China during Labour Day holiday
Early figures from China's two dominant mobile payment services, Alipay and WeChat Pay, showed strong inbound travel spending during the country's five-day Labour Day holiday. Advertisement Alipay, a unit under Ant Group , said in a statement on Monday that both the number of transactions and total spending by inbound travellers across 13 e-wallets in its network – including those from Hong Kong, Macau, Singapore, Pakistan and South Korea – doubled in the May 1 to 5 period from a year ago. It attributed the growth to China's updated tax refund and visa-free policies. Ant is the fintech affiliate of Alibaba Group Holding , owner of the South China Morning Post. The use of multiple mobile wallets from companies across Asia is enabled by Alipay+, a payment network that allows small and medium-sized businesses to accept electronic payments from international travellers. Ant's own AlipayHK topped the list for total spending, followed by Malaysia's Touch 'n Go e-Wallet and Kazakhstan's according to Alipay data. The number of transactions through WeChat , the messaging and mobile payments super app operated by Tencent Holdings , from foreign users in mainland China nearly tripled in the first three days of the holiday. Preliminary numbers for the full five-day holiday show the total transaction volume of Hong Kong WeChat Pay users doubled compared with a year ago, the company said. The number of transactions made with WeChat Pay by Chinese tourists travelling abroad increased 37 per cent year on year, according to Tencent. Advertisement The data reflected efforts by Chinese tech firms to facilitate cross-border travel as Beijing moves to boost inbound tourism and consumption amid economic headwinds.
Malaysiakini
02-05-2025
- Business
- Malaysiakini
Vietnam Airlines expands partnership with Adyen
Adyen, the financial technology platform of choice for leading companies, announced on 30 April 2025 an expanded partnership with Vietnam Airlines, Vietnam's flag carrier. The airline partnered with Adyen in 2017 for its gateway solution and in 2024, expanded the partnership to leverage Adyen's global acquiring capabilities, enabling seamless payment experiences in markets like Japan, Australia, the U.S., and Europe, among others. The single integration with Adyen allows faster, more reliable transactions in credit cards and selected local payment methods like Alipay and WeChat Pay. Adyen's acquiring capabilities connect businesses directly to Visa and Mastercard card schemes, helping the airline benefit from local market conditions and generate higher authorization rates and lower transaction fees. Since the expansion of partnership, Vietnam Airlines has seen up to a 5% uplift in authorization rates. 'Our strengthened partnership with Adyen represents a significant step forward in Vietnam Airlines' digital transformation. With Adyen's global reach and advanced payment solutions, we can offer travelers around the world a smooth, secure, and flexible payment experience—supporting major card networks and emerging payment methods alike. This collaboration enables us to elevate the passenger journey while boosting operational efficiency and fostering innovation,' said Bui Tran Cuong, Deputy Director of Finance and Accounting, Vietnam Airlines. 'We're honored to further our longstanding collaboration with Vietnam Airlines as their trusted payments partner and our work together is testament to how the right payment solutions can empower businesses to serve a global customer base at scale,' said Warren Hayashi, President, Asia-Pacific, Adyen. This content is provided by GO Communications. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini. Interested in having your press releases, exclusive interviews, or branded content articles on Malaysiakini? For more information, contact [email protected] or [email protected]
Jordan News
24-04-2025
- Business
- Jordan News
Fintech: Revolutionizing the World Financial System - Jordan News
In just a few decades, financial technology—commonly referred to as Fintech—has transformed from a niche segment to a global force reshaping how people, businesses, and governments interact with money. What was once the domain of traditional banks and financial institutions is now a dynamic ecosystem of startups, technology giants, and agile platforms offering services once thought impossible outside brick-and-mortar institutions. اضافة اعلان Fintech blends finance and technology, revolutionizing everything from banking, payments, and insurance to wealth management, lending, and regulatory compliance. Its growth has dramatically altered the landscape of the global financial system, delivering efficiency, inclusion, innovation, and new risks. This article delves deep into the evolution of Fintech, its core sectors, its impact on the global financial system, regulatory challenges, and the future outlook. 1. The Evolution of Fintech 1.1. The Early Days Fintech is not as new as it may seem. The roots go back to the 1950s, when credit cards were introduced to eliminate the need for carrying cash. This was followed by the emergence of ATMs in the 1960s, electronic stock trading in the 1970s, and online banking in the 1990s. 1.2. The Rise of Digital Finance The 2008 financial crisis created a gap in consumer trust and regulatory constraints that slowed down traditional banks. At the same time, advances in mobile technology, cloud computing, big data, and artificial intelligence gave rise to the Fintech startup boom. Today, Fintech is a global phenomenon, with billions of dollars invested annually in startups that are unbundling traditional financial services and reimagining them for the digital age. 2. Core Areas of Fintech Fintech covers a vast range of financial services. Here are some key sectors: 2.1. Digital Payments Mobile wallets (e.g., Apple Pay, Google Pay), peer-to-peer payment systems as cryptocurrency trading and QR-based payments (e.g., WeChat Pay) have made payments faster, cheaper, and more accessible. Impact: Reduced dependency on cash, enabled e-commerce growth, and facilitated financial inclusion. 2.2. Digital Banking and Neo-Banks Digital-only banks like Revolut, Chime, and N26 offer accounts, cards, and loans through mobile apps, without any physical branches. Impact: Lower fees, 24/7 access, and better user experiences. 2.3. Peer-to-Peer (P2P) Lending and Crowdfunding Platforms like LendingClub and Kickstarter connect borrowers directly with investors, bypassing traditional intermediaries. Impact: Broader access to capital, especially for small businesses and underserved consumers. 2.4. Robo-Advisors and WealthTech Platforms such as Betterment and Wealthfront use algorithms to provide automated, low-cost investment advice. Impact: Democratized investing for those with smaller portfolios. 2.5. Insurtech Startups like Lemonade and Oscar Health use data analytics and AI to streamline insurance services from underwriting to claims processing. Impact: Improved efficiency, transparency, and personalized pricing. 2.6. Blockchain and Cryptocurrencies Bitcoin, Ethereum, and other digital assets have introduced decentralized finance (DeFi), enabling transactions without centralized authorities. Impact: Disruption of currency systems, emergence of new financial products, and debate over regulation. 2.7. RegTech (Regulatory Technology) Uses AI and big data to help companies comply with financial regulations more efficiently. Impact: Reduced compliance costs, improved risk management, and faster reporting. 3. How Fintech is Transforming the Global Financial System 3.1. Financial Inclusion One of the most significant contributions of Fintech is its role in promoting financial inclusion: Mobile banking platforms in Africa (like M-Pesa in Kenya) provide banking services to people without access to traditional banks. Micro-loans and digital credit empower small businesses and low-income individuals in emerging markets. Biometric authentication and mobile ID verification make it possible to serve customers without formal documentation. Stat: According to the World Bank, Fintech has helped increase financial inclusion from 51% in 2011 to 76% in 2021 globally. 3.2. Lowering Costs and Increasing Efficiency Fintech companies operate on leaner structures: No physical branches Automated customer service through AI chatbots Cloud-based infrastructure This translates to lower fees, faster processing times, and personalized financial products. 3.3. Shaping Customer Expectations Fintech has raised the bar for customer experience: Instant account opening Real-time transaction updates AI-driven recommendations Seamless interfaces As a result, even traditional banks are forced to innovate or partner with Fintech firms to meet consumer expectations. 3.4. Encouraging Innovation in Legacy Institutions Fintech has driven a wave of digital transformation in legacy financial institutions: Banks now invest heavily in digital transformation and API banking . and . Many collaborate with or acquire Fintech startups to accelerate innovation. Example: Goldman Sachs launching its consumer digital bank 'Marcus.' 3.5. Cross-Border Financial Integration Fintech platforms facilitate international remittances, cross-border investing, and multi-currency accounts, enabling: Global e-commerce Remote workforce payments Financial globalization Services like TransferWise (Wise) offer cross-border money transfers at a fraction of the traditional cost. 3.6. Data-Driven Financial Services Fintech leverages big data, machine learning, and predictive analytics to: Assess creditworthiness more accurately Detect fraud in real time Offer customized investment portfolios Tailor insurance premiums to individual behaviors This personalization improves outcomes for consumers and reduces risk for institutions. 4. Challenges and Risks of Fintech Despite its benefits, Fintech introduces new complexities: 4.1. Regulatory Uncertainty Many Fintech products challenge existing financial regulations: Cryptocurrencies operate outside central banks' control. P2P lending bypasses traditional banking oversight. Neobanks may lack deposit insurance protections. Regulators are struggling to keep pace, often creating uncertainty that can hinder innovation. 4.2. Cybersecurity Risks With more data moving online, the threat of data breaches, hacking, and identity theft is real: Fintech firms, especially startups, may lack robust security frameworks. High-profile hacks (e.g., crypto exchange hacks) erode public trust. 4.3. Market Fragmentation With thousands of Fintech startups globally, the market can become fragmented: Multiple apps and platforms can confuse users. Lack of interoperability between services can hinder user experience. 4.4. Over-Reliance on Technology System failures, software bugs, or outages can disrupt financial services. Fintech users are vulnerable to: Internet connectivity issues Device loss Technical downtimes 4.5. Ethical and Privacy Concerns Fintech firms collect massive amounts of user data: Concerns about surveillance capitalism Unclear data usage policies Risks of algorithmic bias in lending and insurance 5. The Regulatory Response Governments and regulators are beginning to adapt: 5.1. Regulatory Sandboxes Countries like the UK, Singapore, and UAE have introduced Fintech sandboxes, allowing startups to test products under regulatory supervision. 5.2. Open Banking Frameworks Initiatives like PSD2 in Europe force banks to open their APIs to Fintech firms, fostering competition and innovation. 5.3. Crypto Regulation Many nations are now drafting clear policies for crypto assets, stablecoins, and DeFi protocols, although global coordination remains a challenge. 5.4. Licensing Digital Banks Regulators are creating frameworks for digital bank licenses to ensure consumer protection while promoting innovation. 6. The Future of Fintech and the Global Financial System Fintech is still in its early stages. Here are emerging trends that could shape the future: 6.1. Embedded Finance Financial services are increasingly embedded into non-financial platforms: Loans within e-commerce apps Insurance at checkout on travel websites Payments via social media platforms 6.2. Decentralized Finance (DeFi) DeFi platforms use blockchain to offer lending, borrowing, and trading without intermediaries: Lower fees 24/7 accessibility Greater transparency Yet, DeFi also brings high volatility, smart contract risks, and a lack of consumer protection. 6.3. Artificial Intelligence and Predictive Finance AI will play a growing role in: Credit scoring based on alternative data Fraud detection Real-time financial planning 6.4. Green Fintech and Sustainable Investing Fintech is also enabling the shift toward ESG (Environmental, Social, Governance) investing through: Carbon footprint tracking Impact investing platforms Green bonds trading 6.5. Central Bank Digital Currencies (CBDCs) Governments are exploring digital currencies issued by central banks to modernize payment systems and counter private cryptocurrencies. Examples: China's Digital Yuan European Central Bank's Digital Euro US exploration of a Digital Dollar Fintech is not just a technological innovation—it's a fundamental reshaping of how finance operates across the globe. By increasing access, reducing costs, improving efficiency, and enhancing personalization, Fintech is empowering individuals and disrupting traditional financial institutions. However, this transformation comes with new risks: cybersecurity threats, regulatory ambiguity, and ethical dilemmas. Balancing innovation with oversight will be the key to ensuring that Fintech contributes to a stable, inclusive, and resilient global financial system.
