Canadian authorities are facing pressure to take action against transnational crime groups operating from within their borders after U.S. agencies identified Chinese and Mexican criminal networks as key players in the fentanyl crisis. These groups are reportedly using Canada’s banks and legal loopholes to shield billions in illegal profits while fueling drug and human trafficking into the United States.
David Asher, a former official with the U.S. State Department who worked on national security and financial investigations, said criminal syndicates run by Chinese triads have embedded themselves in Canada and are coordinating with cartel partners to distribute drugs and launder the proceeds through Canadian institutions.
TD Bank has been penalized heavily after admitting that its anti-laundering program failed to stop hundreds of millions in cartel-linked transactions. The U.S. Department of Justice revealed that the bank’s internal controls missed thousands of warning signs and that employees accepted bribes to assist with laundering schemes.
The investigation has drawn attention to flaws in Canada’s justice system. A rule originating from a 1991 Supreme Court case forces prosecutors to turn over nearly all evidence to defense teams early in a case. Asher said this has derailed multiple cross-border investigations, as suspects often altered operations once they learned they were being watched.
U.S. officials have now designated several Mexican cartels as foreign terrorist organizations. That move allows American agencies to apply counterterrorism laws to banks, businesses and individuals who help move their money. Asher warned that banks in Canada could be next if they’re shown to play a role in these operations.
President Donald Trump has emphasized these issues in discussions surrounding tariffs that will begin April 2. The administration has said Canada’s weak enforcement and border security failures are part of the reason for the trade measures.
U.S. narcotics agents have identified cannabis shipments from Canada entering states like New York and Washington. Some of these shipments are reportedly tied to the same criminal groups and contain traces of fentanyl, according to American officials.
