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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

VIDEO: Masset Dance Troupe presents beachfront ‘promenade performance’

Troupe performed ‘A Mid Summer Day’s Dream’ for family, friends on July 4 and 5

UPDATE: Masset anti-racism rally postponed

The Yahk’ii event, which means ‘truth’ in Haida, will be rescheduled at a later date

Haida matriarchs occupy ancient villages as fishing lodges reopen to visitors

‘Daughters of the rivers’ say occupation follows two fishing lodges reopening without Haida consent

Registration open for first-annual ‘NextIslandpreneur’ student business competition

Competition offers mentors, iPads, seed money, cash prizes to young entrepreneurs on Haida Gwaii

Haida Nation reminds ‘select few’ fishing lodges that Haida Gwaii is closed to non-essential travel

‘Upholding Haida law amid COVID-19’ release comes one day before Queen Charlotte Lodge plans to reopen

B.C. sees 25 new COVID-19 cases, community exposure tracked

One death, outbreaks remain in two long-term care facilities

BREAKING: Amber Alert for two Quebec girls cancelled after bodies found

Romy Carpentier, 6, Norah Carpentier, 11, and their father, Martin Carpentier, missing since Wednesday

Bringing support to Indigenous students and communities, while fulfilling a dream

Mitacs is a nonprofit organization that operates research and training programs

B.C. man prepares to be first to receive double-hand transplant in Canada

After the surgery, transplant patients face a long recovery

Grocers appear before MPs to explain decision to cut pandemic pay

Executives from three of Canada’s largest grocery chains have defended their decision to end temporary wage increases

Northern B.C. First Nations call for reversal of grizzly bear hunting ban

Growing grizzly populations have led to fewer ungulates and increased fear of attacks says Chad Day

RCMP ‘disappointed’ by talk that race a factor in quiet Rideau Hall arrest

Corey Hurren, who is from Manitoba, is facing 22 charges

NHL’s Canadian hubs offer little economic benefit, but morale boost is valuable: experts

Games are slated to start Aug. 1 with six Canadian teams qualifying for the 24-team resumption of play

‘Made in the Cowichan Valley’ coming to a wine bottle near you

Cowichan Valley has the honour of being the first sub-GI outside of the Okanagan

Most Read