Minister of Border Security and Organized Crime Reduction Bill Blair stands during question period in the House of Commons in West Block on Parliament Hill in Ottawa on Tuesday, Feb. 5, 2019. THE CANADIAN PRESS/Sean Kilpatrick

Crackdown on money laundering does not include federal public inquiry: minister

An independent report commissioned concluded $7.4 billion was laundered in B.C. last year

The federal minister in charge of Canada’s fight against money laundering supports British Columbia’s public inquiry into dirty money but says a national examination is not necessary.

Organized Crime Reduction Minister Bill Blair said Tuesday money laundering is occurring across Canada and internationally, but the federal government has already started implementing measures to combat illegal money.

“From my perspective, we’ve already identified some very significant things that need to be done,” he said. “It’s been ongoing work. These types of measures, I think, will send a very clear message that Canada is cracking down.”

Blair said the most recent federal budget included extra anti-money laundering spending for the RCMP, Canada’s financial intelligence unit, the Financial Transactions and Reports Analysis Centre of Canada, and the creation of a task force to identify threats and loopholes.

The Canada Revenue Agency received funding to create four new residential and commercial real estate teams to hunt for money laundering in the property sector, he said. The government is also amending current anti-money laundering laws to better track who owns property and monitor property sales.

“We need to have a better understanding of who owns which corporations and who has money in there,” said Blair. “If someone comes in with a hockey bag full of cash, you can’t just pretend you’re indifferent and don’t know its origins. You have a responsibility of due diligence. For those who are reckless, there could be criminal consequences.”

READ MORE: B.C. holding public inquiry to track rise of money laundering

But the author of a recent C.D. Howe Institute report on money laundering says Canada is behind the times when it comes to fighting the crime.

Kevin Comeau’s report, “Why We Fail to Catch Money Launderers 99.9 per cent of the Time,” said Canada’s anti-money laundering policies are among the weakest of Western democracies and billions are laundered in Canada annually.

“It’s a 20th Century solution to a 21st Century problem,” said Comeau in a telephone interview from Oakville, Ont.

The retired corporate lawyer said the amended federal legislation to track property ownership to discourage money laundering in the real estate sector is too weak because the valuable information to deter the flow of dirty money is not widely enough available.

“The whole idea of anti-money laundering is to shine as much light on it as possible so you can have other people viewing saying, ‘Ah-ha, there’s the bad guy’,” said Comeau. “Anything less than a public registry is saying we don’t want to bring it up to best standards.”

British Columbia’s government introduced legislation last month aimed at preventing tax evasion and money laundering by looking to identify anonymous property owners through a registry that will be public in 2020.

An independent report commissioned by the B.C. government concluded $7.4 billion was laundered in B.C. last year out of an estimated total of $47 billion across Canada. The report by former B.C. deputy attorney general Maureen Maloney said money laundering contributed to a five per cent increase in real estate values in the Metro Vancouver area in 2018.

A second report by former RCMP deputy commissioner Peter German said money laundering led to a frenzy of buying real estate.

B.C. Premier John Horgan called a public inquiry days after the release of the German and Maloney reports.

“I have assured them they will have our full co-operation in the conduct of their inquiry,” said Blair. “This is not a victimless crime. This is a crime that affects all Canadians. It affects the quality of our lives. It’s had an impact in B.C., but we can see its potential impact in other jurisdictions in Canada as well.”

READ MORE: B.C. must set clear terms, timeline if it holds money-laundering inquiry, expert says

Dirk Meissner, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Nanaimo Ladysmith Public Schools passes $164.3M budget

School district decides against reducing number of community school coordinators

Hospice gets some help thanks to community hike

Nanaimo Community Hospice Society’s Hike for Hospice was held Saturday at Westwood Lake

LETTER TO THE EDITOR: Prevent ‘reno-victions’

Lack of vacancy control results in rent hikes far exceeding allowable increases, says letter writer

Space rock band Possum will make Nanaimo debut

This month the group releases its first full-length record, ‘Space Grade Assembly’

Dogs, dogs and more dogs in Nanoose this weekend

Nanaimo Kennel Club hosts annual show

Dogs, dogs and more dogs in Nanoose this weekend

Nanaimo Kennel Club hosts annual show

B.C. VIEWS: When farmland protection doesn’t protect farmers

Secondary residences aren’t mansions, families tell Lana Popham

Bombers down B.C. Lions 33-23 in season opener

Former Lion Andrew Harris leads Winnipeg with 148 rushing yards

Every cigarette and lottery ticket stolen from Parksville’s Log Cabin General Store

Break-in, theft occurred late on June 10 or early June 11

Monkey spotted on late-night jaunt in Campbell River

Conservation officers also apparently looking for cougar in the area

Suspect arrested following gunpoint robbery in Qualicum Beach

Stop and Shop Grocery was robbed June 5; man now in custody

Vancouver Island Chamber Music Festival comes to Nanaimo

Performances to take place over two days at St. Paul’s Anglican Church

Truck loaded with culverts tips over on highway exit in Nanaimo

Crash blocks northbound access to Trans Canada Highway from Duke Point Highway

Northern B.C. family remembers murdered Indigenous woman with memorial walk

Still no closure for Ramona Wilson’s family 25 years later

Most Read