Types of Financial Crimes Rampant in Canada, Says New Book
A vast “financial underworld” operates in Canada, perpetuating fraud and other financial crimes without punishment, corroding communities and undermining democratic institutions. This is according to a new book, “Dirty Money: Financial Crime in Canada”, written by Jamie Ferrill and Christian Leuprecht.
The Problem with Financial Crime in Canada
Canada has become a preferred destination for laundering ill-gotten gains with impunity, says the book. The authors argue that elected leaders at all levels are enabling and emboldening financial criminals by failing to fight them or even attempt to hinder their lawbreaking efforts.
- Weak legislation
- Under-resourced enforcement regime
Types of Financial Crimes
The book highlights various types of financial crimes plaguing Canada, including:
Money Laundering
Canada has become a hub for money laundering, with criminal organizations using government-run casinos and real estate transactions to support their illegal activities.
Underground Banking
Criminal organizations use legitimate businesses to hide the laundering of money from their crimes.
Organized Crime Groups
Over 2,000 organized crime groups are involved in generating between $46.7 and $54 billion per year in criminal activity.
FINTRAC: A Major Player
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) produces and delivers proactive disclosures about potential major financial crimes to police agencies. However, intelligence disclosures often sit unused or acted upon inside police services due to investigators being overwhelmed with their own mountain of cases.
- 2,085 financial intelligence disclosures made last year
- Contributed to 292 major investigations and “many hundreds” of individual investigations across the country
Cryptocurrency Laundering
The book also explores how criminal organizations use cryptocurrency laundering to hide the laundering of money from their crimes.
Money Laundering Regulation and Enforcement
University of Calgary assistant law professor Sanaa Ahmed argues that Canada lacks a clear national commitment to counter money laundering, leading to dismal results due to missteps, shifting priorities, and resource shortfalls.
- Money laundering has emerged as an industry within the broader Canadian political economy
- Federal and provincial governments’ commitments and pronouncements against money laundering being of questionable worth
A Call to Action
The book concludes by asking a critical question: “How reasonable is the presumption that the Canadian state wants to prevent or even contain laundering?” It highlights the need for a more comprehensive approach to addressing financial crime in Canada.
Overall, “Dirty Money” provides a stark reminder of the scale and complexity of financial crime in Canada, and the need for greater action to address this issue.