Financial Crime World

Canada Loses Millions to Money Laundering and Fraud Every Year, Report Reveals

Alarming Extent of Financial Crimes in Canada

A recent report released by the Royal Canadian Mounted Police (RCMP) highlights the staggering extent of money laundering and fraud in Canada. The report aims to raise awareness about the nature and scope of these threats, which have devastating financial consequences for individuals, communities, and the government.

Money Laundering: A Lucrative Business for Organized Crime Groups

According to the report, a significant majority of organized crime groups and criminals use money laundering activities to disguise their illegal proceeds. In 2019, police reported that 176 Canadian organized crime groups were involved in money laundering, although experts believe the actual number could be much higher.

The report reveals that nearly half of these groups have international links, with many being involved in the cocaine trade. Additionally, cryptocurrencies are increasingly being used by criminals to pay for mass-marketing fraud and dark web marketplace purchases, as well as to launder illicit funds.

Efforts to Combat Financial Crime: A Work in Progress

Despite efforts from the federal government and several provinces to strengthen anti-money laundering regimes over the past two years, the problem persists. The report highlights the devastating financial consequences of fraud, which can result in individuals losing their life savings, lost tax revenue for the government, and additional strain on social services.

Common Types of Fraudulent Activities

Fraudulent schemes often target vulnerable individuals, collecting sensitive personal information that can be used to commit further crimes such as identity theft. Some common examples of fraudulent activities include:

  • Government services scams
  • Identity theft and phishing
  • Romance scams
  • Ransomware schemes
  • Elder-targeted scams
  • Securities fraud
  • Payment card fraud
  • Real estate fraud

Victims’ Reluctance to Report Crimes

Notably, many victims are reluctant to report the crime due to feelings of embarrassment. The report emphasizes that financial crimes, often viewed as “white collar” crimes, are committed by sophisticated criminals and interconnected organized crime groups operating both domestically and internationally.

Conclusion: Continued Vigilance Needed

Some Canadian organized crime groups have been found to be directly involved in running boiler rooms, while others collect a portion of profits generated from these illegal activities. The report serves as a stark reminder of the need for continued vigilance and cooperation between law enforcement agencies to combat financial crime.