Good morning. Chinese money launderers appear to have moved some $312 billion in illicit transactions through U.S. banks and other financial institutions in recent years to aid Mexican drug cartels and other criminals, the Treasury Department said.

This growing marketplace connecting dirty cash from Mexico’s drug cartels to Chinese expats looking to get their savings out of China is drawing scrutiny from the Trump administration, which wants banks to help crack down.

• The details: Chinese money-laundering networks are now the dominant player in an illicit money-services industry that criminal groups like the Jalisco New Generation and Sinaloa cartels use to move profits from drug sales, according to the Treasury.
   
• The context: Chinese money-laundering networks have come to play a bigger role in the illegal drug trade thanks to laws in China that restrict the amount of money Chinese citizens can take out of the country. Those laws have prompted Chinese nationals to turn to a black market for U.S. currency operated by underground brokers, according to law-enforcement officials.
   
• Big fines: Banks can face big fines if they don’t do enough to detect and report illicit money flows. Last year, TD Bank agreed to pay more than $3 billion after U.S. prosecutors found the bank had been used by a Chinese money-laundering network in New York and New Jersey to launder more than $470 million.

The Morning Risk Report will be taking a break on Monday for the Labor Day holiday in the U.S. We’ll be back on Tuesday.

Europe moves to reimpose sanctions on Iran for nuclear work.

The U.K., France and Germany moved to reimpose all the international sanctions on Iran that had been lifted under the 2015 nuclear deal, a decision that European governments hope will compel Tehran to resume nuclear negotiations with the Trump administration.

The European countries said they had triggered the so-called sanctions snapback because of Iran’s broad breaches of the terms of the 2015 deal. The U.S. left the agreement in 2018 but the three European countries, Iran, Russia and China remained part of it.

Australian regulator issues first fines over whistleblower violations.

The Australian Securities and Investments Commission has fined mining company TerraCom for allegedly victimizing a whistleblower, the regulator’s first enforcement action related to whistleblower protections.

TerraCom will pay a penalty of 7.5 million Australian dollars, equivalent to about $4.5 million, to resolve the action, Risk Journal reported. Brisbane, Australia-based TerraCom also agreed to pay another 1 million Australian dollars to cover the securities regulator’s legal costs.

• The U.K.’s Financial Conduct Authority is investigating renewable energy company Drax Group’s sourcing methods and annual disclosures.
   
• President Trump fired Robert Primus, a board member of the railroad regulator that is weighing the proposed megamerger between Union Pacific and Norfolk Southern.

Russia’s deadliest attack on Kyiv since Trump-Putin summit damages EU building.

Russia launched a deadly barrage across Ukraine on Thursday, punctuating a lull in attacks on Kyiv during President Trump’s peace efforts and damaging buildings at the heart of the capital, including those used by European officials, prompting an angry response from the continent’s leaders.

The large-scale attack left at least 18 people dead, the worst death toll in the capital since Trump held talks in Alaska earlier this month with Russian leader Vladimir Putin. 

EU Commission President Ursula von der Leyen pledged to respond to the attacks by hastening a new package of sanctions that could tighten restrictions on foreign firms doing business with Russia and the shadow vessel fleet Moscow uses to export its oil.

U.S. economy grew faster in second quarter, new estimate shows.

The U.S. economy grew at a faster pace than previously thought in the second quarter, helped by healthy consumer spending and signs of spending on the booming AI sector.

Gross domestic product expanded at a seasonally and inflation-adjusted annual rate of 3.3% in the quarter, the Commerce Department said in an updated estimate Thursday. The department had previously said the economy grew by 3%. The economy’s growth reflected in part a drop in imported goods after companies front-loaded purchases earlier in the year to get ahead of new tariffs. Trade can cause swings in quarterly growth because of the way GDP is calculated.

• Israeli troops carried out an overnight raid on a site near Damascus, a rare ground operation deep inside Syrian territory that comes amid U.S. efforts to end hostilities between the two countries.
   
• The European Union will move to eliminate all tariffs on U.S. industrial imports and expand access for American farm products, part of an effort to shield European automakers from steeper duties on their exports to the U.S. Confidence in the eurozone’s economic outlook fell back as sluggish growth weighed on sentiment, surveys showed.
   
• The Danish government has summoned the top U.S. envoy to Copenhagen over an alleged covert influence campaign in Greenland aimed at driving a wedge between Denmark and the autonomous territory that President Trump has sought to control.

• The Trump administration is weighing the use of a naval base north of Chicago as an ICE operations center, border czar Tom Homan said Thursday.
   
• Federal Reserve governor Lisa Cook sued President Trump on Thursday, seeking to block his move to fire her from the central bank, in an unprecedented legal battle testing the president’s power over the independent central bank’s seven-member board.
   
• Amtrak is launching a new high-speed Acela train, but there is one wrinkle: It isn’t actually faster, yet.
   
• Thailand’s Constitutional Court on Friday removed Prime Minister Paetongtarn Shinawatra citing serious ethical breaches related to a phone call this summer with the former strongman of neighboring Cambodia.

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