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.^{[citation needed]} Canada is uniquely targeted due to a lack of beneficial ownership, meaning the true owner of property is never collected by authorities.^{[citation needed]}

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.^{[citation needed]}

Snow washing

The Vancouver Model

The Vancouver Model is the name anti-money laundering experts gave to a unique model observed in Vancouver , Canada.^[4] 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.^[5]

References

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