Money laundering In Canada

Money laundering in Canada is a problem described by professionals in 2019 as a "national crisis," and which has attracted international attention.[1] As of July 2022, a public inquiry is currently being held to gauge the extent of the problem.[2]

Economic impact

Canadian intelligence estimates between $45 and $113 billion of funds are laundered annually.[3]

Housing

Canadian housing is a frequently used tool for money laundering that often involves organized crime, according to Criminal Intelligence Service Canada, one of the country's intelligence agencies. Canada is uniquely targeted due to a lack of beneficial ownership, meaning the true owner of property is never collected by authorities.

Luxury vehicles

Canada's lack of vehicle purchasing regulations have made luxury passenger vehicles a common tool for money laundering. Luxury vehicles are purchased with illicit cash since payments are only regulated in some provinces, and then sold. The depreciation is a relatively small price to obtain clean money that can be deposited into a bank account with a clear source of funds.

Snow washing
Further information: Snow washing

Snow washing is the process of routing illegal activity through Canada to capitalize on its reputation as a “boring” and safe place.[4]

The Vancouver Model

The Vancouver Model is the name anti-money laundering experts gave to a unique model observed in Vancouver, Canada.[5] It involves taking illicit cash earned through crime to a casino (often a VIP room), and gambling some of the proceeds.The chips are then cashed out of the casino as clean cash. To further obfuscate the funds in a money laundering process known as layering, the funds are then used to buy assets such as real estate.[6]

References
  1. "Money laundering is a national crisis. What now?". www.cpacanada.ca. Retrieved 2022-05-09.
  2. Kane, Laura (2020-02-24). "Money laundering in B.C.: Public inquiry begins in Vancouver". British Columbia. Retrieved 2022-04-16.
  3. "As Canada's home prices soared during COVID-19, real-estate money laundering audits fell 64% | Globalnews.ca". Global News. Retrieved 2022-04-22.
  4. "Canada is the world's newest tax haven | Toronto Star". thestar.com. Retrieved 2022-05-05.
  5. "How Chinese gangs are laundering drug money through Vancouver real estate | Globalnews.ca". Global News. Retrieved 2022-04-16.
  6. "How criminals used Canada's casinos to launder millions". the Guardian. 2018-10-15. Retrieved 2022-04-16.


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