Business meeting to consider the nominations of John Arrigo, of Florida, to be Ambassador to the Portuguese Republic, Christine Toretti, of Pennsylvania, to be Ambassador to the Kingdom of Sweden, Michael G. Waltz, of Florida, to be the Representative to the United Nations, with the Rank of Ambassador, and the Representative in the Security Council of the United Nations, to be Representative to the Sessions of the General Assembly of the United Nations during his tenure of service as Representative to the United Nations, all of the department of State; to be immediately followed by a hearing to examine dismantling transnational criminal organizations in the Americas.

2025-07-23

Summary

The United States Senate Foreign Relations Committee convened a meeting to address both internal nominations and the pressing issue of transnational criminal organizations (TCOs) in the Americas and the associated drug epidemic . The committee successfully moved forward the nominations of ambassadors to Portugal and Sweden, though one nomination was held . The subsequent policy hearing focused on the grave threats posed by drug trafficking and money laundering, emphasizing the need for comprehensive international and domestic responses [ 00:30:57-00:31:34 ]

[ 00:34:17-00:34:36 ] .

Business Nominations

The committee conducted a business session, voting on two nominations for ambassadorial posts . John Arrigo was successfully nominated as Ambassador to the Portuguese Republic, and Christine Toretti was nominated as Ambassador to the Kingdom of Sweden, both receiving "do pass" recommendations following roll call votes requested by Senator Shaheen [ 00:23:48 ]

. A third nomination, Michael G. Waltz, was held for further consideration .

The Drug Epidemic and Transnational Criminal Organizations (TCOs)

The policy hearing focused on the severe drug epidemic in the United States, marked by rising overdose deaths from fentanyl and other synthetic opioids [ 00:30:57-00:31:24 ]

. Mexican cartels and Colombian criminal organizations were identified as the primary sources of these deadly drugs driving U.S. overdose deaths [ 00:31:39-00:31:48 ] . Beyond drugs, TCOs have diversified their illicit activities to include migrant smuggling, illegal mining, scams, and cryptocurrency laundering, leveraging violence to terrorize communities across Latin America and internationally [ 00:34:36-00:34:42 ] . This expansion creates instability, threatens human rights, and fuels migration [ 00:34:52-00:35:04 ] .

China's Role and Policy Responses

China plays a critical role in the drug crisis by providing significant tax incentives to domestic producers of fentanyl precursors, allowing them to export freely to the U.S. and Mexico [ 00:31:53-00:32:34 ]

. The Chinese government's tacit endorsement and unwillingness to stop the flow of chemicals are major concerns, despite the Biden administration's attempts at cooperation [ 00:32:41-00:32:53 ] . Additionally, Chinese money laundering organizations fund Mexican drug traffickers and cyber scam industries, stealing billions from Americans [ 00:32:59-00:33:00 ] . Senator Shaheen expressed concern that recent administration policies have undermined the ability to pressure China, especially as China pledges to deepen law enforcement trainings in the Western Hemisphere, potentially influencing laws in Beijing's favor [ 00:35:24-00:35:42 ] . The "Bust Fentanyl Act" was introduced to leverage U.S. economic power against Chinese financial institutions facilitating drug exports [ 00:36:40-00:37:26 ] .

Mexico's Actions and Challenges

While Mexico has taken some positive steps, such as extraditing senior cartel members and deploying armed forces to secure borders, these actions are considered small compared to the scale of the problem [ 00:33:17-00:33:33 ]

. The Sheinbaum administration, since October 2024, has significantly increased law enforcement activities, including dismantling labs and making arrests, responding to a dramatically deteriorating security situation and the cartels' growing power [ 00:58:23-00:58:27 ] . However, the vast gap between cartel profits (estimated at $500 billion annually) and reported fraudulent transactions ($2.6 billion) highlights the challenge in combating money laundering [ 00:33:45-00:33:54 ] [ 00:48:56-00:49:20 ] . Cartels also use their profits to acquire sophisticated weapons, committing atrocities and expanding their reach globally [ 00:34:01-00:34:12 ] .

Combating Money Laundering and Sophisticated Criminal Networks

Experts emphasized that Chinese Money Laundering Organizations (CMLOs) have transformed narcotics trafficking by offering lower rates and quicker returns, primarily using encrypted apps like WeChat, which creates a "blind spot" for U.S. law enforcement [ 00:42:12-00:42:16 ]

. New authorities, such as the Fend-Off Act, are being used to designate and sanction financial institutions and companies involved in money laundering [ 00:41:58-00:41:58 ] . A comprehensive approach is required, focusing on the middle operational layer of criminal groups, money laundering networks, and other illicit activities like logging and mining, while fostering a culture of rule of law and accountability .

The Evolving Landscape of Synthetic Drugs

The world is undergoing a "synthetic drug revolution," with drugs like highly potent fentanyl, methamphetamine, and emerging nitrosines becoming increasingly lethal . These drugs are often produced in Mexico using precursors from China and India . Law enforcement and public health authorities face profound difficulties in addressing these changes . The discussion also highlighted the critical importance of treatment and research for substance misuse, particularly for methamphetamine, to help affected individuals .

Tone of the Meeting

The meeting maintained a serious and urgent tone, particularly during the policy hearing on transnational criminal organizations and the drug epidemic [ 00:30:57-00:31:03 ]

[ 00:34:17-00:34:36 ] . While professional, the discussion conveyed a sense of grave concern over the rising death tolls, the sophisticated nature of criminal networks, and the perceived inadequate responses from some international partners [ 00:32:49-00:32:53 ] [ 00:33:54 ] [ 00:35:24 ] . Speakers emphasized the critical need for more robust, comprehensive, and collaborative international efforts to combat these threats [ 00:33:28-00:33:33 ] .