Dirty Money: Canada’s Hidden Financial Crime Epidemic
This article provides an insight into the financial crime epidemic in Canada, as detailed in the new book “Dirty Money: Financial Crime in Canada” by Jamie Ferrill and Christian Leuprecht.
Canada’s Shadowy Financial Underworld
The authors argue that a clandestine network of financial criminals is wreaking havoc in the shadows of Canada’s thriving economy. These criminals often commit fraud and other financial crimes with near-impunity, harming local communities and undermining democratic institutions and Canada’s prosperity.
Enablers in High Places
Elected leaders in Canada are called out for enabling and emboldening financial criminals. The book offers an unprecedented insight into the depth and breadth of financial crime in Canada.
A Haven for Money Laundering
According to Ferrill and Leuprecht, weak legislation, limited resources, and lenient sanctions make Canada an ideal destination for laundering ill-gotten gains. The chances of getting caught are almost non-existent, which stifles economic growth and forces Canadians to bear the costs.
Consequences of Financial Crime
The book explores several aspects of financial crime, including:
- Money laundering
- Underground banking
- Organized crime groups
- Anti-money laundering efforts
Financial fraud can deprive seniors of their retirement savings, contribute to Canada’s housing crisis, fuel gang violence, and aids nuclear weapons proliferation, among other consequences.
Fighting Financial Crime: The Role of FINTRAC
One chapter delves into the role of Canada’s Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in fighting financial crime. FINTRAC issues hundreds of intelligence disclosures per year to law enforcement agencies, but many of them remain unused due to investigators’ overburdened caseloads. However, FINTRAC defended its record, stating that 96% of feedback from law enforcement agencies indicated that the financial intelligence was valuable and actionable.
Criminal Activities in Government-run Casinos and Real Estate
The book explores how criminal organizations exploit government-run casinos and real estate transactions to support their illegal activities and launder money into the legitimate economy.
The Challenge of Trade-based Money Laundering
The authors also discuss the issue of trade-based money laundering, where criminal groups use legitimate businesses to hide the laundering of illicit proceeds.
The Cost of Financial Crime
Estimates suggest that the proceeds of crime circulating in Canada amount to between CA$46.7 and CA$54 billion per year. With thousands of organized crime groups operating in the country, it’s a significant challenge that demands immediate attention and action from lawmakers and law enforcement agencies to ensure a safe and prosperous future for all Canadians.