What you should know about money laundering in BC
While Canada seems to be a wonderful and safe place to live, it is not void of crime and illegal activities; including money laundering that has a profound effect on the economy, causing significant changes to the housing market among others. This warrants a review of the anti-money laundering compliance programs, to identify and report suspicious activity and design more efficient policies to combat illegal money transactions.
The amount of money laundered each year in Canada is difficult to track. According to a report, an estimated $46.7 billion was laundered in Canada in 2018, but the Criminal Intelligence Service Canada says that the annual figure is estimated to be anywhere from $45 billion to $113 billion. According to financial crime specialists there is a trend of deficiencies in financial audits, as real estate related money laundering audits have decreased from 200 audits to just 53 in just two years.
An initiative to inquire and track the movement of illicit money flow was started in 2019 by the Honorable Austin Cullen, a B.C. Supreme Court judge and former prosecutor, launching a public inquiry referred to as the Cullen Commission. (cullencommission.ca.)
Public hearings were scheduled in 2020 through 2021, hearings testimonies and reports of over 200 real estate, legal, financial and gambling experts. Upon review, the findings of the report were hardly conclusive. There were particular inconsistencies around BCLC corporation, who defended their position about the corporation’s involvement in money laundering while the effectiveness” of the BCLC’s anti-money-laundering program was being questioned.
At the same time an expert panel on real estate money laundering suggested that nearly five percent of the provincial real estate transactions are involved in money laundering investments, – a statement the B.C. Real Estate Association questioned
Commissioner Cullen has submitted his final report to the Province of British Columbia on June 3, 2022, to be carefully reviewed and publicly released by the government. A press conference is scheduled for June 15, 2022 to answer media questions about the report. He stated: “My final report is the culmination of
three years of dedication and commitment to this important task by the commission team. It is a substantial report and puts forward findings of facts and recommendations that are focused on making positive changes in many areas, addressing serious issues that the people of British Columbia care about.”
The Cullen Commission’s mandate is to make inquiries, report findings in relation to money laundering in Canada as well as make recommendation for policy changes and public accountability measures.
Written by: Christa Lazar