How President Trump’s Battle Against Cartel Funding Can Disrupt Fentanyl Networks and Protect American Lives

“China and the Mexican cartels are not aiming to create drug addicts — they are actively and successfully killing our people, predominantly young men. If we were facing a conventional war with over 100,000 fatalities annually from firearms and explosives, our citizens would be demanding that Congress and the president put an end to it.”

— Rebecca Kiessling, mother of two sons who died on the same day due to counterfeit prescription pills containing fentanyl.

President Trump made history by signing more Day One executive orders than any other president before him. However, for the millions of Americans impacted by the fentanyl epidemic, one order stood out: He designated international cartels as terrorist organizations, initiating unrestricted financial assaults on Mexican drug syndicates, their enablers, and the Chinese money-laundering groups that manage and funnel the proceeds of fentanyl.

This is promising news for law enforcement and the multitude of families affected by fentanyl. It is crucial for the Trump administration and Congress to allocate the necessary resources to enforce this initiative.

The fentanyl crisis has already resulted in nearly half a million American deaths and has put a tremendous strain on the U.S. healthcare system, costing trillions, while cartels profit immensely. More than 80% of New York City’s annual drug overdoses involve fentanyl.

Often, victims are young adults or children attempting to self-medicate for anxiety or seeking help with focus through counterfeit prescription medication unknowingly purchased online.

The DEA confiscated enough fake prescription pills tainted with fentanyl in 2022 to kill every American, and it’s probable that an equivalent number of lethal pills evaded capture.

Caleb, 20, and Kyler Kiessling, 18, tragically died alongside their friend Sophia Harris, 17, in Michigan after ingesting what they believed was Percocet. Just a day prior, Kyler had graduated high school. Logan Rachwal, 19, also succumbed in Wisconsin to the same fatal error.

The Drug Enforcement Agency has indicated that fentanyl overdose is the leading cause of death for Americans aged 18 to 45.

Disturbingly, fentanyl-related fatalities among children under five are also increasing.

Ezekiel Rivera died from acute fentanyl toxicity in California at just 2 years old, his father’s drug use contributing to the tragedy.

In recognition of the severity of the fentanyl crisis, Trump’s executive order elevates this public health emergency to a matter of national security — a reality it truly embodies.

This action also aids in targeting organizations involved in laundering cartel profits. Many in the law-enforcement community have pointed out that these criminal groups, including Chinese triad gangs, seem to operate with relative impunity within the United States and across North America.

Just last year, TD Bank agreed to pay $3 billion in penalties after pleading guilty in a federal court in New Jersey for insufficient oversight related to the laundering of fentanyl profits tied to Chinese activities. Several bank employees were aware of the operations.

The reality is that criminal enterprises cannot function in America or elsewhere without the financial and legal facilitators who help manage and conceal their funds. It requires a whole network of wrongdoers.

Trump’s designation increases the risks for cartels and their financial teams — bankers, accountants, and attorneys — who may soon face terrorism-related charges for what were previously considered mere criminal or commercial activities. These facilitators may also become subject to civil lawsuits from the families of overdose victims.

But first, we must identify these willing collaborators.

The designation of cartels as terrorist organizations also restricts their access to precursor chemicals essential for fentanyl production. These precursor chemicals originate from a China-centric supply chain that infiltrates the upper echelons of the Chinese Communist Party. Over the years, the CCP has often ignored — and even encouraged — the illegal distribution of these substances. The new order permits any actions taken to bolster this activity to be classified as support for a terrorist faction.

To effectively eliminate the illegal fentanyl trade, the United States must expose both the cartels and their facilitators.

Reports have established a direct connection between anonymous shell corporations and fentanyl trafficking. These obscure corporate entities act as fronts for bogus pharmacies and cartel money laundering, obscuring the drug transport process. Chinese gangs employ shell companies to conceal criminals behind multiple layers of corporate anonymity.

Acknowledging this danger, the initial Trump administration collaborated with law enforcement and Congress to implement the bipartisan Corporate Transparency Act in January 2021, which bans anonymous shell corporations.

Nonetheless, the small-business lobby’s misguided attempts to overturn the CTA now threaten to undermine Trump’s critical new executive order and hinder law enforcement’s capacity to track the money.

We cannot afford to loosen investigators’ restrictions only to blindfold them. The Department of Justice and other law-enforcement agencies will require beneficial ownership information to expedite the prosecution of cartels and their enablers and seize their assets.

Moving forward, the Trump administration and Congress should devise a strategy to initiate unrestricted financial warfare against the cartels and their accomplices, including boosting the number and power of “financial cops on the beat” to counter the cartels’ hordes of lawyers, advisors, and accountants.

Monitoring, tracing, and terminating these financial lifelines will also necessitate modernizing the government’s financial-crime framework using artificial intelligence and specialized expertise to sift through millions of existing financial records.

Federal, state, and local authorities need adequate funding and personnel to act on these leads before more lives are lost.

With the costs of the fentanyl epidemic soaring into the trillions, it’s difficult to comprehend why Congress and the states wouldn’t allocate more funds for law enforcement officers along with the necessary tools and technologies — a mere fraction of the costs already borne by the American public.

America cannot tackle this battle in isolation. The Secretary of State should appoint a special envoy to coordinate international collaborations and facilitate intelligence sharing, law enforcement, and financial regulations to disrupt money laundering networks.

Equally important, as Trump recognizes, Mexican and Canadian officials must engage proactively with the United States to unveil and address the financial, commercial, and corruption challenges linked to cartels while fostering secure and safe trade across North America. The success of a comprehensive crackdown on cartel finances will depend on mutual trust and accountability — alongside a robust North American strategy.

In addition to governmental actions, the terrorist designation opens new avenues for restitution. Families impacted by fentanyl may soon have the opportunity to pursue lawsuits against those aiding the cartels under terrorism laws. Congress should bolster this initiative by enabling private individuals to litigate against cartels on behalf of the government and potentially partake in any penalties awarded. This approach would enhance enforcement while minimizing costs. Additionally, expanding whistleblower incentive programs could motivate insiders to report wrongdoings.

President Trump’s decision to label foreign drug cartels as terrorist organizations is a significant step forward, but it’s merely the beginning. What truly matters now is whether the government will leverage the full extent of its resources, from sanctions and prosecutions to seizing cartel assets.

Strong enforcement and adequate funding will be critical in preventing cartels from continuing to inundate America with fentanyl.

“Please don’t allow my sons’ deaths to be in vain,” Rebecca Kiessling implored Congress, expressing her hope that sharing their story would “humanize the extensive losses stemming from our border crisis.”

For families like hers, who have endured unimaginable loss in this battle, there may finally be a glimmer of justice when Washington transforms promises into tangible actions. This could represent the turning point at which the cartels’ hold on our communities begins to wane for good.

Elaine Dezenski is the Senior Director and Head of the Center on Economic and Financial Power at the Foundation for Defense of Democracies.