{"id":411,"date":"2026-06-05T19:08:47","date_gmt":"2026-06-05T19:08:47","guid":{"rendered":"https:\/\/movingandmortgagehub.com\/?p=411"},"modified":"2026-06-05T19:08:47","modified_gmt":"2026-06-05T19:08:47","slug":"trumps-gift-to-drug-cartels-money-launderers-and-terrorists","status":"publish","type":"post","link":"https:\/\/movingandmortgagehub.com\/?p=411","title":{"rendered":"Trump\u2019s Gift to Drug Cartels, Money Launderers, and Terrorists"},"content":{"rendered":"
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A version of the below article first\u00a0appeared\u00a0in David Corn\u2019s newsletter,\u00a0<\/em>Our Land. The newsletter comes out twice a week (most of the time) and provides behind-the-scenes stories and articles about politics, media, and culture. Subscribing costs just $5 a month\u2014but you can\u00a0sign up for a free 30-day trial.<\/em><\/p>

Read more In Bizarre Attack on Solar Power, Lawmakers Spread Myths About Spud Farms<\/a><\/p>\n

There has justifiably been<\/span> much attention paid to Donald Trump\u2019s personal corruption: cutting sleazy crypto deals, trading stocks in companies affected by his administration\u2019s decisions, doling out pardons to fraudsters who make hefty donations to his political organizations, and so much more. But what\u2019s even more significant is how Trump is perverting the federal government to allow wealthy individuals and corporations engaged in crooked conduct to escape scrutiny, prosecution, and punishment. Corporate scumbags and felonious plutocrats have never had it so good.<\/p>\n

At the Securities and Exchange Commission, enforcement actions have\u00a0fallen precipitously, and the commission ended several high-profile cryptocurrency inquires that involved Binance, Coinbase, and other firms. The workforce for the SEC\u2019s enforcement division was\u00a0cut by a fifth\u00a0last year, with many experienced attorneys and accountants given the boot. The IRS, too, has been hammered by layoffs, and the number of audits of people with $10 million or more in income\u00a0dropped by two-thirds\u00a0from 6,786 in 2025 to 2,264 in 2026. With new priorities established at the Justice Department\u2014such as essentially shutting down the pursuit of cases under the Foreign Corrupt Practices Act\u2014the number of white-collar prosecutions has fallen to its lowest level in at least 40 years,\u00a0according to the\u00a0Financial Times<\/em>.<\/p>\n

But beyond this, the Trump administration has taken steps to make sure that the United States is a safe space for money launderers, drug cartels, and international financial rogues. Who says so? The US Government Accountability Office. It recently released a report assessing Trump\u2019s decision to loosen reporting requirements for shell companies. These are corporations that can have legitimate uses but are also set up so people or entitites can evade taxes, launder money, hide assets, and obscure the true beneficiaries of financial transactions. For instance, a sanctioned Russian oligarch might be able to use a shell company\u2014or a string of them\u2014to buy real estate in the United States and keep secret his ownership of the property.<\/p>\n

The Corporate Transparency Act, a bipartisan bill passed in 2021, required most US firms to disclose to the Treasury Department\u2019s Financial Crimes Enforcement Network (FinCEN) their \u201cbeneficial owners\u201d\u2014that is, the real people who control or own them. (In many instances, shell companies do not have to reveal their true owners and are registered in the name of others.) The aim of the legislation was to create a registry of owners and impede illegal financial activities, such as money laundering. An\u00a0estimated 32 million businesses\u00a0would have to register and note their real owners. (Several categories of business were exempted because disclosure requirements already applied to them\u2014such as banks, credit unions, and securities dealers.)<\/p>\n

But one month into Trump\u2019s second term, his administration essentially eviscerated this reporting requirement, when FinCEN issued rules exempting domestic companies and Americans from this disclosure. As the GAO put it, this new exemption applied \u201cto over 99 percent of entities that were previously targeted.\u201d<\/p>\n

The\u00a0\u2014in exceedingly dry language\u2014notes this exemption is a boon for assorted malfeasants:<\/p>\n

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U.S.-based shell companies, often structured as LLCs or corporations, can pose significant risks of illicit finance activity. Treasury\u2019s 2026 National Money Laundering Risk Assessment identified several cases in which shell companies were used to facilitate financial crimes, including laundering the proceeds of drug trafficking, cybercrime, and fraud, among others, indicating the continued risk posed by shell companies. The 2025 domestic reporting company exemption may perpetuate these risks.<\/p>\n<\/blockquote>\n

Sen. Elizabeth Warren of Massachusetts, the senior Democrat on the Senate Banking, Housing, and Urban Affairs Committee, quickly jumped on the GAO report and cited it as evidence Trump is on the side of the bad guys:<\/p>\n

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The Trump Administration continues to put cartels and criminals ahead of law enforcement, opening the door for them to move millions of dollars through our financial system. Today\u2019s GAO report confirms that Treasury gutted a bipartisan law designed to crack down on the abuse of shell companies, exempted 99 percent of the entities previously required to report, and has failed to address the \u201csignificant risks\u201d this rollback created. Law enforcement groups have warned that it will be harder to go after drug traffickers, sanctions evaders, and major criminal enterprises.<\/p>

Read more Trump\u2019s Justice Department Is Suing Cities and States to Dismantle Gun Laws<\/a><\/p>\n<\/blockquote>\n

Warren noted that one of the main forces behind passage of the Corporate Transparency Act was a former senator named Marco Rubio. In 2020, he\u00a0tweeted, \u201cMy \u2018Corporate Transparency Act\u2019 [is] the most significant anti-corruption and money-laundering legislation in decades [and] forces anonymous shell companies to disclose their true owners.\u201d<\/p>\n

Republican and Democratic senators have opposed the Trump administration\u2019s wipeout of the Corporate Transparency Act, as have law enforcement organizations, business groups, and national security\u2013minded think tanks of the right and left. The hawkish and neocon-ish Foundation for Defense of Democracies issued a\u00a0statement\u00a0last year that said, \u201cAnonymous U.S. shell companies are not a theoretical vulnerability\u2014they are a proven vehicle for illicit finance, sanctions evasion, corruption, terrorism, and transnational crime\u2026FinCEN\u2019s decision to exempt domestic entities would allow these practices to continue unchecked.\u201d<\/p>\n

Last year, Warren, Sen. Chris Van Hollen (D-Md.), and other Democratic senators\u00a0wrote\u00a0the Treasury to complain about the weakening of this requirement,\u00a0noting, \u201cThere is growing evidence that [Chinese money laundering networks] are taking advantage of shell companies to help cartels move billions through the U.S. financial system.\u201d<\/p>\n

The Trump administration claims this disclosure obligation was too onerous for businesses, but it entailed minimal effort for the corporations compelled to register. So why kill this requirement? Warren and other legislators suspect Elon Musk had something to do with this. In a\u00a0\u00a0sent to Treasury Secretary Scott Bessent in April 2025, she and 18 other congressional Democrats asserted the Trump administration\u2019s decision to neuter the Corporate Transparency Act was \u201cseemingly triggered by a single Elon Musk social media comment.\u201d<\/p>\n

They pointed out that Musk, who at that time was a key adviser to Trump and engaged in a reckless dismantling of various government agencies, might have been \u201cbenefiting from foreign investments made through legal entities designed to hide the identities of the foreign investors.\u201d They cited the\u00a0Financial Times<\/em>: \u201cWealthy Chinese investors are quietly funneling tens of millions of dollars into private companies controlled by Elon Musk\u201d through \u201copaque structures\u201d and \u201can arrangement that shields their identities from public view.\u201d<\/p>\n

Responding to the recent GAO report, Warren asserted that this disclosure requirement would be beneficial for efforts to combat transnational crime, drug trafficking (including fentanyl smuggling), sex trafficking, the evasion of sanctions imposed on Iran, the theft of US technology by China and others, and fraud that targets US government programs. (The criminals that stole federal funds in Minnesota relied on shell companies.)<\/p>\n

This may well be a personal issue for Trump. His Trump Organization is a collection of hundreds of shell companies. (Such entities are commonly used for real estate transactions.) And during the 2020 presidential race, Trump\u2019s campaign,\u00a0according to the Campaign Legal Center, deployed an LLC to launder \u201c$170 million in spending to conceal payments to people close to the Trump family and campaign.\u201d<\/p>\n

Corporate reporting rules may seem like a wonkish topic. It certainly is not as visceral as Trump selling pardons or pocketing billions in crypto grift. But it may be more important, for Trump\u2019s decision to protect the secrecy of shell companies\u2014perhaps at the urging of Musk\u2014has more far-ranging consequences than his own sticky-fingers corruption. It\u2019s another way Trump is making America great for plutocrats, oligarchs, fraudsters, and scoundrels.<\/p>

Read more The Delaney Hall Strikers Are Hitting GEO Group Where It Hurts<\/a><\/p>\n<\/article>","protected":false},"excerpt":{"rendered":"

Making America a safe space for fraudsters, crooks, and national security threats.<\/p>\n","protected":false},"author":1,"featured_media":409,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nTrump\u2019s Gift to Drug Cartels, Money Launderers, and Terrorists - Moving and Mortgage Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/movingandmortgagehub.com\/?p=411\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s Gift to Drug Cartels, Money Launderers, and Terrorists - Moving and Mortgage Hub\" \/>\n<meta property=\"og:description\" content=\"Making America a safe space for fraudsters, crooks, and national security threats.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/movingandmortgagehub.com\/?p=411\" \/>\n<meta property=\"og:site_name\" content=\"Moving and Mortgage Hub\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-05T19:08:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/movingandmortgagehub.com\/wp-content\/uploads\/2026\/06\/c4cce7bde1e050593ed2bfc961e47675.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1124\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/#\\\/schema\\\/person\\\/6b7c79bcfd888d98f34c5413df7e81a2\"},\"headline\":\"Trump\u2019s Gift to Drug Cartels, Money Launderers, and Terrorists\",\"datePublished\":\"2026-06-05T19:08:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411\"},\"wordCount\":1343,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/movingandmortgagehub.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/e389a80632fb341b7a13eb808bfe4862.webp\",\"articleSection\":[\"Politics\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411\",\"url\":\"https:\\\/\\\/movingandmortgagehub.com\\\/?p=411\",\"name\":\"Trump\u2019s Gift to Drug Cartels, Money Launderers, and Terrorists - 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