Title: Mexican Crime Organizations and the Synthetic Drug Crisis Description: Thousands of Americans die each year after overdosing on illicit synthetic drugs, including synthetic opioids like fentanyl. Transnational criminal organizations have played a central role in fueling this health crisis here in the United States. In a new report, we look specifically at the role of Mexican criminal organizations in this crisis. We learn more from GAO's Triana McNeil and Mike Clements. Related work: GAO-26-107918, Illicit Synthetic Drugs: Trafficking Methods, Money Laundering Practices, and Coordination Efforts Released: December 2025 {Music} [Mike Clements:] These illicit, synthetic drug transactions are really extracting a tremendous economic and human toll on the United States. [Holly Hobbs:] Welcome to GAO's Watchdog Report, your source for fact-based, nonpartisan news and information from the U.S. Government Accountability Office--I'm your host, Holly Hobbs. Thousands of Americans die each year after overdosing on illicit synthetic drugs, including synthetic opioids like fentanyl. Transnational criminal organizations have played a central role in fueling this health crisis here in the United States. In a new report, we look specifically at the role of Mexican criminal organizations in this crisis. Here to tell us more about the work are GAO's Triana McNeil and Mike Clements. Thanks for joining us. [Triana McNeil:] Thanks for having us. [Mike Clements:] It's my pleasure. [Holly Hobbs:] Triana, maybe we can start with why did we look at Mexico specifically? [Triana McNeil:] So 90% of the fentanyl that's interdicted at the U.S. and Mexico border is trafficked by Mexican transnational criminal organizations. And so it's really important to understand what Mexico's role is. And that's what we outlined in our report. So, what we identified was that Mexico not only buys the precursors which are the ingredients for fentanyl and meth, which are the top two deadliest synthetic drugs in our country, but they also make it in Mexico. And they are using pill presses, die molds to create a large variety of different fentanyl, as well as meth, to meet the needs of a variety of users in the U.S. And, what they do, they'll buy the precursors, they'll make it, then they get it to the border. A lot of it's coming through Arizona, but it's the entire Southwest border that's very porous and allowing these drugs to come in. Then they'll meet up with U.S. drug traffickers that will then take that throughout the U.S.--first Miami, L.A., New York. And then it goes into the smaller, more rural areas in the U.S. [Holly Hobbs:] These Mexican criminal organizations, they're global organizations. How does that work? [Triana McNeil:] They have a strong relationship with China-based companies. These China-based companies are the source for the precursors. They're the source for the pill presses. The die molds that make these illicit drugs look like legitimate prescription pills. The internet is the way that they interface. These China-based companies will advertise. And they'll use tricky phrasing. But people that are in the market to purchase these, they understand what that phrasing is. Once they see that advertisement, they'll then contact that China-based company and get all the materials that they need to then make that in Mexico. [Holly Hobbs:] Mike, we didn't just look at how they're moving drugs. We also looked at how they're using financial technology to conduct business. How does that work? [Mike Clements:] That's right. So Triana talked about a couple of instances where money is going to change hands. First off, there's the purchase of those precursor chemicals and also the die presses and those type of techniques. Two primary mechanisms where that's happening. One are electronic funds transfers. And those could be things that many of our listeners might be familiar with relying on a depository institution, such as a bank or money services business. And the funds are simply transferred. The second approach, which is becoming more common, are virtual currencies, digital assets such as Bitcoin. Those have the advantage of being able to transfer large amounts of funds but also being somewhat anonymous, whereas the other approach you're working with a financial institution. When the drugs finally get into the United States, there's payments from the customer. And in that case, the primary mechanisms are still going to be cash, especially for street transfers. But in addition to that, there's peer-to-peer payment applications, again, that many of our listeners may use. And the virtual currencies are also an emerging source of payment. [Holly Hobbs:] Do we know what happens to the money? [Mike Clements:] Sure. So once the transnational criminal organization has the funds, they have dollars in the United States. But they, for example, might want to have pesos in Mexico. So they need to both transfer the funds and also convert it into a local currency. So, a few mechanisms that they may be able to move the funds out of the United States. One is bulk cash transfers. And that's exactly what the name would imply it is, right? The criminal organization gets a large amount of cash, and they move the cash out of the United States, either just driving it or flying it. There's a limit to how much they can transfer doing that approach. There's also risk to moving large amounts of currency. But it is anonymous. Increasingly, what we're seeing is these transnational criminal organizations relying on money-laundering specialists--essentially, enterprises whose sole purpose is to help criminals launder funds. And an emerging source of that is what are known as Chinese money laundering networks. So these really are just networks of organizations: the United States, China, Mexico and a few other countries. And they will help these transnational criminal organizations launder their funds. This mechanism has really exploded in recent years because they can do this at a fairly low cost. [Holly Hobbs:] So, Triana, what are federal agencies doing here in the U.S. to combat all this? [Triana McNeil:] They're really using an all-of-government approach. There's task forces, there's working groups, advisory groups, there's co-location of different agencies--federal, state, local. And there's also a lot of cooperation with other countries as well as private sector. There's this El Dorado task force. It's a great example. And it's led by the Department of Homeland Security. But it involves, of course, the Department of Justice, Treasury, and then states and localities as well. In 2023, they seized 200,000 fentanyl pills in New York City. So these different groups that come together to coordinate their efforts, they really are making an impact. And I think one other co-location example, because most of the agencies that we've met with--and it's primarily law enforcement, of course--they really talk about when they are co-located, they can check their hat at the door and they really become one synchronized unit. And the DEA Special Ops Division is an excellent example of that. And it's involving over 30 federal, state and local and also international agencies. And so I think it's really important to maintain the close coordination because they can leverage their different authorities. So, like, DEA has drug investigation authorities and Treasury has financial crime anti-money laundering authorities. And when they can combine those, it really helps with just the success of their efforts. And there's limited overlapping, and it's more joint investigations. [Holly Hobbs:] Have any of these efforts changed since President Trump took office? [Triana McNeil:] There was one entity that was a co-location entity and it's called OCDETF. That no longer exists. That was that was shut down a few months ago. Unfortunately, a lot of law enforcement said that OCDETF was very successful in combating illicit finance, especially as it related to drug trafficking. But there's also some new initiatives, some new tools in the toolbox. You've probably heard about the tariffs. So, Mexico, Canada, as well as China, there are tariffs on, imposed on some of their products because the administration really wants them to step up and help limit the amount of illicit drugs that are coming into the country. There's also, these new Homeland Security task forces. The administration stood that up with an executive order. It's too early to tell what the impact of those will be. But it is more coordination efforts amongst Homeland Security, DOJ, as well as state and locals. So, we'll be monitoring a lot of these new things that the administration is starting. [Holly Hobbs:] Mike, I'll give you the last question. What's the bottom line of this report? [Mike Clements:] These illicit, synthetic drug transactions are really extracting a tremendous economic and human toll on the United States. It really requires sophisticated public safety response. And as Triana had just mentioned at the agencies are coordinating and collaborating on both within themselves but also state, local, international partners to try to meet this threat head on. [Holly Hobbs:] Triana, Mike, thanks for sharing your report with us. [Triana McNeil:] Thank you. [Mike Clements:] Thank you. {Music} [Holly Hobbs:] And thank YOU for listening to the Watchdog Report. To hear more podcasts, subscribe to us on Apple Podcasts. And make sure you leave a rating and review to let others know about the work we're doing. For more from the congressional watchdog, the U.S. Government Accountability Office, visit us at GAO.gov.