https://www.wttlonline.com/stories/doj-touts-cartel-arrests-in-aml-policy-speech,14283

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division used his keynote address at the Association of Certified Anti-Money Laundering Specialists (ACAMS) Assembly to discuss the Department's priorities, from Mexican cartels and Chinese laundering networks to North Korea and Iran.   

“Our work has led us to identify myriad threats to our nation,” Galeotti told the gathering of compliance officers and financial-crime professionals. “Most relevant to the financial services industry, these include cartels and transnational criminal organizations, particularly those operating in Mexico and the Western Hemisphere; Chinese money laundering organizations; and rogue nation-states like North Korea and Iran.”

Galeotti highlighted recent successes, noting that since February “the Department has taken custody of more than 50 cartel bosses and high-level targets … one of the greatest takedowns in law enforcement history.” He cited the guilty plea of Sinaloa Cartel co-founder Ismael “El Mayo” Zambada García to charges carrying a mandatory life sentence.

The Justice Department is also targeting the financial facilitators enabling cartels. “Chinese money laundering organizations, or CMLOs, are critical to cartel profitability,” Galeotti said, detailing schemes from shell accounts to trade-based laundering. In May, three CMLO members pleaded guilty in a $92 million laundering case.

Corporate accountability remains a core focus. Galeotti pointed to last year’s “ground-breaking prosecution of TD Bank for facilitating money laundering for drug traffickers,” underscoring DOJ’s willingness to pursue institutions as well as individuals.

Beyond narcotics, the Criminal Division is pursuing sanctions evasion and cybercrime. Galeotti described a June forfeiture action seizing $7.74 million in cryptocurrency tied to North Korean IT worker schemes, as well as a $225 million crypto forfeiture linked to U.S. investment scams. “Sanctions evasion committed by, or on behalf of, our foreign adversaries poses a critical threat to our national security,” he said.

Turning to Iran, Galeotti warned that Tehran continues to seek illicit access to U.S. markets: “Iran and its proxies still seek to exploit the U.S. dollar and abuse our economy, using shadow banking, front companies, layered transactions, and complex financial networks.”

Galeotti's speech did not mention Russian or Balkan sanctions or related criminal enterprises.

Galeotti urged compliance professionals to act as the first line of defense. “You see the suspicious transactions, you know when red flags are raised,” he said.

He encouraged institutions to self-report misconduct under DOJ’s revised Corporate Enforcement Policy, adding: “When companies self-report, they will receive the most favorable resolution we can offer.”

He also touted DOJ’s expanded whistleblower program, which in four months has received 313 tips, one-third of which merited further investigation. “White-collar enforcement remains a priority,” Galeotti emphasized. “Where companies do not come forward, do not cooperate, or do not remediate, they will face consequences.”