Ryan Knudson

cash.

This is that money broker business we mentioned a minute ago.

After that happens, laundering groups like Zhang's are left with a bunch of Chinese yuan, which they use to buy stuff in China and sell in Mexico.

What kinds of goods do you see them buy in this trade-based system?

To really make this system work, though, you can't be shipping around hundreds of thousands of dollars in cash.

You need to get that money into a bank.

Money launderers have always tried to sneak money into the banking system.

But what makes groups like Zhang's different is how reckless they are.

Usually, a money launderer would be careful not to exceed the bank's reporting limit of $10,000.

But like you heard about at the start of this episode, not these guys.

Banks are required to report suspicious activity.

These reports are one of many tools the U.S.

government has to combat money laundering.

But Dylan says that banks can take a long time to file those reports.

And Chinese money launderers have learned to take advantage of that slowness.

But even when a bank does flag suspicious activity, there are so many reports that authorities usually don't look at it.

And it rarely sparks an investigation.

Dylan says the reports usually get thrown into a database that cops might check after they get a tip.

It seems like this case sort of shows, at least from the banking standpoint, that the safeguards that have been put into the system actually don't really work that well.

For years, Zhang and his network allegedly exploited these vulnerabilities in the banking system.