December 13, 2023

Brown Presses Biden Admin On Its Strategy To Fight Fentanyl Trafficking

WASHINGTON, D.C. – Today, U.S. Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, called on the Biden Administration to detail its strategy to address the role the governments of China and Mexico play in illicit fentanyl trafficking. In a letter, Brown called on Treasury Secretary Janet Yellen to lay out specific benchmarks for the administration’s strategy for combating fentanyl trafficking and the opioid crisis and ensure accountability from China and Mexico.

Brown specifically calls on the administration to lay out the outcomes they are expecting from diplomatic talks with the Chinese and Mexican governments and how the Treasury Department’s new Counter-Fentanyl Strike Force will measure its goals and objectives and effectively combat the fentanyl crisis. Brown also calls onTreasury to do more to crack down on Chinese actors who have come to play an increasing role in laundering money for Mexican cartels, including the principal distributors of fentanyl to the United States.

“The international trafficking of fentanyl and fentanyl precursors constitutes an extraordinary threat to our national security and is a national emergency. Task forces alone are insufficient to curb the flow of deadly fentanyl into the United States.  Rather, it is critical that the Administration define benchmarks and metrics to assess the effectiveness of its strategy for combating fentanyl trafficking and the opioid crisis and ensure accountability from the Governments of China and Mexico,” said Brown.

“We have a huge problem in the United States with Fentanyl, and it has bled into every corner of our nation. It’s not a city problem, or a suburban problem, or a rural problem – it’s a national problem. My jail, and jails nationwide, are filled with individuals suffering with addiction issues, many of whom also suffer with coexisting mental health issues and use illicit drugs to self-medicate. This is not a sustainable course that we are on,” said Summit County Sherrif Kandy Fatheree. “I support Senator Brown’s efforts to address the fentanyl crisis, and his insistency on getting measurable, tangible results.”

Last year, the Drug Enforcement Administration seized over 379 million doses of fentanyl—enough to kill every American. In 2021, nearly 107,000 Americans died from an overdose, and 65% of overdose deaths were caused by fentanyl. The supply of illicit fentanyl making its way into communities across Ohio is facilitated by the chemical suppliers in China drug cartels in Mexico.

Brown is leading the fight to address the fentanyl crisis, most notably through his Fentanyl Eradication and Narcotics Deterrence (FEND) Off Fentanyl Act. Brown’s legislation is a sanctions and anti-money laundering bill that imposes new sanctions and anti-money laundering penalties targeting the illicit fentanyl supply chain, from the chemical suppliers in China to the cartels that produce and transport the drugs in from Mexico. The legislation passed unanimously out of the Banking and Housing Committee earlier this year and it passed the Senate with overwhelming bipartisan support in July. The Fraternal Order of Police, National Association of Police Officers, the National Sheriff’s Association, and the Federal Law Enforcement Officers Association have called for the passage of the legislation.

A copy of the letter can be found HERE or below.

Dear Secretary Yellen:

I am writing regarding the recent launch of the Department of the Treasury’s Counter-Fentanyl Strike Force. The described goal is the targeting of the global illicit fentanyl supply chain by imposing sanctions, working with international partners, and engaging with the private sector to share financial intelligence other information. Given the jurisdiction of the Banking, Housing and Urban Affairs Committee, the passage of the FEND Off Fentanyl Act by the Senate, and the toll that illicit fentanyl has taken on Ohioans, I want to ensure the effectiveness of our country’s strategy for stopping this deadly drug at the source.

The United States is facing the worst drug crisis in its history. In 2021, nearly 107,000 Americans died from an overdose, and 65% of overdose deaths were caused by fentanyl. Last year, the Drug Enforcement Administration seized over 379 million potentially deadly doses of fentanyl—enough to supply a lethal dose every American. Given the sharp increase in fentanyl- related deaths, it is clear that the amount of illicit fentanyl making its way into our country is facilitated both by the chemical suppliers in the People’s Republic of China (PRC) and transnational criminal organizations and drug cartels in Mexico. The international trafficking of fentanyl and fentanyl precursors constitutes an extraordinary threat to our national security and is a national emergency.

Last year, the Financial Action Task Force, (FATF) released a report on the prevalence of money laundering from fentanyl and synthetic opioids trafficking. Treasury officials, citing the report, recognized drug trafficking as a significant proceeds-generating offense for money laundering, and Treasury officials identified drug trafficking as one of eight national priorities for combating illicit finance.

In your recent comments at the Financial Institution Leaders Roundtable in Mexico, you noted that “by some estimates drug trafficking alone generates nearly $100 billion a year that flows through the U.S. financial system” and highlighted that of paramount focus are “efforts to target the illicit finances of transnational criminal organizations and the networks of enablers and service providers laundering money on their behalf.”

Last month, President Biden and the Chinese leader, Xi Jinping, agreed to resume bilateral cooperation to counter the narcotics trade. At their meeting in San Francisco, China agreed to help curb the flow of precursor chemicals used to make fentanyl. However, in addition to supplying precursor chemicals, Chinese actors have come to play an increasing role in laundering money for Mexican cartels, including the principal distributors of fentanyl to the United States. While the PRC has committed to take law enforcement action against illicit precursor suppliers and to restart key law enforcement cooperation, this bare minimum, first step needs constant monitoring.

Task forces alone are insufficient to curb the flow of deadly fentanyl into the United States. Rather, it is critical that the Administration define benchmarks and metrics to assess the effectiveness of its strategy for combating fentanyl trafficking and the opioid crisis and ensure accountability from the Governments of China and Mexico. Particularly:

  1. What specific outcomes are expected from the Chinese government as a result of President Biden and President Xi’s meeting? What role will the Strike Force have in monitoring the efforts?
  2. What specific outcomes are expected from the Mexican government after your trip last week? Will the Strike Force have any responsibility in monitoring the efforts?
  3. What action will the Governments of China and of Mexico take regarding entities or persons designated under Executive Order 14059 for fentanyl trafficking?
  4. What is the clear objective, plan and measurable goal(s) of the Counter-Fentanyl Strike Force and what additional tools, resources, and/or aid, if any, are needed that are not already available to complete those goals?
  5. When and how will Congress be updated on the progress of the Counter-Fentanyl Strike Force?

Administration officials have regularly emphasized the necessity for action against drug cartels, transnational crime organizations, and their facilitators—particularly on national security concerns such as fentanyl trafficking and related money laundering. Congress will continue to perform its oversight functions diligently to ensure that the administration is directing its resources towards addressing the fentanyl crisis and that the strike force is meeting its goal of redoubling Treasury’s existing work streams, including mapping transnational criminal organization (TCO) financial networks. To that end, I request responses to the questions above by January 16th and that you, or a Treasury Department designee, provide timely and consistent updates on the goals, actions, and plans for the Counter-Fentanyl Strike Force.

Thank you for your prompt attention to this matter. I look forward to your response.

###