Canadian Banks Tied to Chinese Fentanyl Laundering Risk U.S. Treasury Sanctions After Cartel Terror Designation | Sam Cooper, The Bureau
TD and other banks face new scrutiny under U.S. anti-terror laws as Chinese-linked superlabs in Canada churn out fentanyl, meth, and ecstasy for U.S. streets, expert tied to Trump administration warns
In an explosive, sweeping interview, former senior State Department investigator David Asherclosely connected to the Trump administration's financial and national security apparatuswarned that Canadian banks could soon face a "new universe" of regulatory scrutiny, including from the U.S. Treasury, due to the recent designation of Mexican cartels as foreign terrorist organizations.
Asher, who contends that the "command" for Western Hemisphere money laundering of synthetic narcoticsincluding fentanyl, methamphetamine, and ecstasy sourced from Chinese precursorsis "largely run by Chinese triads in Canada," also argues that this interconnected transnational network presents profound risks to Canadian financial institutions.
Speaking bluntly about the nexus between Chinese Triads and Mexican cartels operating in Canada, Asher said: "Of course, they're in bed with each other. This is why Tse Chi Lop lived in Toronto… These cartels are now designated as terrorist organizations. That changes everythinghow we prosecute them, and what tools we can use."
Asher, along with Canadian law enforcement experts such as former RCMP intelligence analyst Scott McGregor, believes a rarely discussed Canadian legal barrierStinchcombemust be overcome. They argue Canada could unlock powerful new authorities if it begins treating cartel-connected Chinese money laundering networks as accessories to terrorism.
The rule, derived from the 1991 Supreme Court case R. v. Stinchcombe, requires Canadian law enforcement to disclose nearly all investigative material to the defense. While intended to ensure a fair trial, critics say it severely hampers complex RCMP investigations, especially those relying on wiretaps or sensitive intelligence, and risks blowing the cover of international partners and covert operations.
Asher didn't mince words: "Every case I worked in Canada… the Stinchcombe thing ended up [inhibiting investigations]we were targeting phone numbers tied to Canadian money launderers who were Chinese. And they got told after 90 days that we were going after them. Then they just changed numbers and changed their OPSEC. It's a farce."
He sees the recent terrorism designation of Mexican cartels as a legal pivot point: "That whole Stinchcombe thing should be thrown out the door because we can now use counter-terrorism authorities."
Asher believes that if Canadian law enforcement engages more directly with U.S. authorities, the financiers and money launderers tied to Chinese triads in Canada can be directly linked to fentanyl-trafficking Mexican cartels. If Canadian banks are shown to be facilitating these funds, even passively, they may be subject to U.S. regulationsincluding terrorism finance sanctions.
The implications for Canadian institutions are profound. "If any of these financial institutions are picking up a dollar for the cartels at this stage and we can prove it, then they're engaged in terrorism financing."
Asher also pointed to marijuana trafficking from Canada into the United Statesnot as a separate criminal enterprise, but as part of the same transnational fentanyl networks. He said Chinese Triads, with ties to the Chinese Communist Party, sit atop this narcotics pyramid and are exploiting Canada's legal marijuana system.
"The illegal potmarijuana from Canada that comes into the New York State tri-state area and into the Pacific Northwest states of the United States is huge. And now we're seeing the integration of fentanyl into marijuana in some cases."
The flow of narcotics south and criminal proceeds north continues largely unabated, Asher warned, with superlabs in British Columbia and other areas of Canada producing meth, ecstasy, and fentanyl.
On Canada's enforcement efforts and the outcomes of official inquiries into Chinese criminal and influence networks, Asher was scathing: "What have you done to follow up on [the Cullen Commission]? Nothing. And then you had this Hogue inquiry about Chinese influence in politics. What have you done about that? It looks to me like practically nothing."
He called on Canada to show resolve on investigations that impact the United States: "Frankly, one of the first things you still need to do is: why is TD Bank Canada not being charged? And do we have charges against some of the executives, whether they've been publicly named or not?"
His core message is that Canada must shake off legal and political inertia: "Why wouldn't Canada want to protect itself? You're losing thousands of people every year, sometimes tens of thousands, due to overdoses and poisonings and basically murder in the form of these narcotics networks."
The consequences of inaction, Asher warned, could be direnot only for Canadian sovereignty and public health, but for its banking sector's international standing. "Canadian money laundering command and control remains a huge issue for drug trafficking across the United States… That's just the bottom line."