AIForeign Relations examines transnational criminal organizations and Chinese money laundering

Defense Posture and Global ThreatsSenate Foreign Relations · July 23, 2025 · 119th Congress
The Senate Foreign Relations Committee first held a brief business meeting to advance three ambassadorial nominations before turning to a hearing on dismantling transnational criminal organizations (TCOs) in the Americas. Begins at ▶ 0:26:26
Transcript
Highlights

Title

Foreign Relations examines transnational criminal organizations and Chinese money laundering

Purpose

The Senate Foreign Relations Committee first held a brief business meeting to advance three ambassadorial nominations before turning to a hearing on dismantling transnational criminal organizations (TCOs) in the Americas. Witnesses Chris Urben (Nardello & Co., former DEA senior official) and Vanda Felbab-Brown (Brookings Institution) testified on cartel drug trafficking, Chinese money laundering networks, and U.S. policy options including extraditions, sanctions, and law enforcement funding. Begins at▶ 0:26:26

Who spoke

• Chair Jim Risch (R-ID)▶ 0:21:15: Opened the business meeting on three nominations, then delivered an opening statement calling fentanyl a "scourge," citing 264 opioid deaths in Idaho in 2023▶ 0:26:49 and China's subsidization of fentanyl precursor exports▶ 0:28:13; noted cartels may take in $500 billion annually while Mexico reported recovering just $2.6 billion in fraudulent transactions from 2019-2020▶ 0:29:23; later questioned witnesses on money laundering gaps▶ 0:47:39, encryption▶ 0:53:06, and Chinese-controlled ports [1:04:06 handoff].

• Sen. Jeanne Shaheen (D-NH), Ranking Member▶ 0:30:27: Cited a Council on Foreign Relations figure of over 30,000 cartel-related killings a year in Mexico since 2018▶ 0:30:52; criticized Trump administration program cuts that let China pledge expanded law enforcement training in the hemisphere▶ 0:32:10; later noted a bill cutting INL funding by 83% and pressed on treatment access for meth versus fentanyl▶ 1:33:34▶ 0:59:55.

• Chris Urben, Managing Director, Nardello & Co.▶ 0:36:19: Described Treasury's FEND Off Act designations of three Mexican financial institutions and 2025 terrorist designations of cartels as driving compliance changes▶ 0:38:20; said Mexico extradited 29 cartel leaders/managers in 2025▶ 0:39:10; explained Chinese money launderers use WeChat, an encrypted system beyond U.S. wiretap reach, to move funds without crossing borders▶ 0:51:54; recommended monthly extraditions and DEA remaining independent from ATF▶ 1:24:20▶ 1:08:54.

• Vanda Felbab-Brown, Brookings Institution▶ 0:42:12: Testified TCOs have diversified into logging, mining, fisheries and wildlife trafficking▶ 0:43:12; said the Sheinbaum administration substantially increased enforcement since October 1, 2024▶ 0:44:23; warned tying tariffs to fentanyl goals could dilute effectiveness if Mexico feels penalized regardless▶ 0:57:59; discussed pink cocaine and rising Chinese/Indian-sourced meth▶ 0:59:07; called President Bukele an unreliable partner over MS-13 collusion revelations▶ 1:18:41.

• Sen. Angus King (I-ME)▶ 1:04:01: Asked what additional pressure could sustain Mexico's improved enforcement trajectory▶ 1:04:29.

• Sen. Tim Kaine (D-VA)▶ 1:04:57: Noted Mexico's poor record on journalist murders▶ 1:04:57; raised concerns that State Department reorganization moving human trafficking and narcotics functions into regional offices would weaken response to global TCOs▶ 1:06:08; asked Urben's opinion on a proposed DEA-ATF consolidation, which Urben opposed▶ 1:08:42.

• Sen. Pete Ricketts (R-NE)▶ 1:10:23: Raised concerns about Chinese-operated ports at Balboa and Cristobal in Panama as gateways for organized crime, referencing a pending BlackRock deal to acquire 90% of the Panama Ports Company▶ 1:10:23; asked about accountability for port operators▶ 1:12:19.

• Sen. Chris Van Hollen (D-MD)▶ 1:16:37: Detailed a 2021 Treasury sanction on Salvadoran officials for negotiating deals with MS-13▶ 1:17:31 and a 2025 Trump-Bukele exchange in which gang members in U.S. custody were returned to El Salvador in exchange for imprisoning deportees, avoiding trial testimony on collusion▶ 1:19:41.

• Sen. John Cornyn (R-TX)▶ 1:22:40: Argued the U.S. is "losing" the fight against TCOs and asked what should change; praised Plan Colombia as the most successful past effort▶ 1:23:11; asked about additional U.S.-based training for vetted Mexican military units▶ 1:27:27.

Key moments

• Risch said cartels may generate as much as $500 billion annually while Mexico recovered only $2.6 billion in fraudulent transactions between 2019-2020, calling the gap "simply unbelievable"▶ 0:29:23.

• Urben testified Chinese money laundering organizations move funds through three separate pools of money — in the U.S., Mexico, and China — without money physically crossing borders, largely via the encrypted app WeChat, which U.S. law enforcement cannot wiretap▶ 0:48:35▶ 0:51:54.

• Mexico handed over 29 cartel leaders and managers to the U.S. in 2025; Urben said replicating that monthly over 18 months would have a "dramatic impact" on cartel operations▶ 0:39:10▶ 1:24:20.

• Van Hollen and Felbab-Brown discussed a 2025 Trump-Bukele arrangement in which the U.S. dropped charges against and returned MS-13 members in U.S. custody in exchange for El Salvador imprisoning deportees, preventing trial testimony that could expose Bukele government collusion with the gang▶ 1:19:41▶ 1:20:24.

• Ricketts highlighted a pending deal for BlackRock to acquire 90% of the Panama Ports Company from a Hong Kong-based operator, tying Chinese-controlled ports to organized crime and corruption▶ 1:10:23.

• Shaheen noted the administration's proposed budget would cut the State Department's INL bureau by 83%; Urben agreed this would hurt international law enforcement cooperation "unless it's funded through some other mechanism"▶ 1:33:34▶ 1:33:46.

• Felbab-Brown cited an estimated 30,000 lives saved in the U.S. last year through opioid treatment such as buprenorphine, and roughly 20,000 U.S. meth overdose deaths▶ 1:00:59▶ 0:58:42.

• Cornyn called Plan Colombia the most successful U.S. counter-drug effort, and Felbab-Brown credited it with rebuilding Colombia's justice system and police, exposing political collusion scandals▶ 1:23:11▶ 1:26:54.

• Kaine warned that State Department reorganization folding counter-narcotics and anti-trafficking functions into regional offices may be unable to handle TCOs that operate globally, spanning Mexico, China, Panama, Colombia, Africa and Southeast Asia▶ 1:06:08▶ 1:07:56.

• Felbab-Brown warned that linking tariffs to broader U.S. objectives beyond fentanyl could dilute Mexico's enforcement effectiveness if Mexico concludes tariffs will continue regardless of its actions▶ 0:57:59.

Metadata

Official titleBusiness meeting to consider pending calendar nominations; to be immediately followed by a hearing to examine dismantling transnational criminal organizations in the Americas.
CommitteeSenate Foreign Relations
Chamber / CongressSenate · 119th Congress
DateJuly 23, 2025
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript210 caption blocks · 8,968 words · 1:34:32 runtime
EventCongress.gov 337272