Financial Crime World

Money Laundering and Fraud Threats: A Growing Concern in Canada

Amidst rising concerns over financial crimes, the Canadian public is being warned about the escalating threats of money laundering and fraud. In a recently released report, Criminal Intelligence Service Canada (CISC) revealed that Canadians are losing millions of dollars annually due to these illicit activities.

Title: Money Laundering and Fraud - A Growing Concern in Canada

Money Laundering: The Unseen Menace in Canada

  • According to CISC, an estimated 176 organized crime groups in 2019 were involved in money laundering activities in Canada. (Source: CISC)
  • Money laundering often plays a vital role in other criminal enterprises.
  • Approximately 50% of the 176 Canadian groups involved in money laundering have international connections.
  • Money laundering is facilitating the spread of illegal substances, like cocaine.
  • Cryptocurrencies, a digital form of currency, have become an increasingly popular tool for money launderers due to their anonymous nature.

Combating Money Laundering: Recent Government Initiatives

In response to these threats, the federal government and some provincial counterparts have implemented legislative changes in the past two years to strengthen anti-money laundering regimes:

  1. Bill C-22, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act
  2. British Columbia’s Money Services Businesses Act
  3. Québec’s Bill 112

Fraud: The Hidden Costs

Fraud presents another significant but often unacknowledged facet of financial crime:

  • Fraudulent schemes cause both emotional and financial distress to their victims.
  • These crimes result in substantial losses in tax revenue and place additional strain on government social services.
  • Some types of fraud, such as government services schemes, identity theft, and romance scams, collect sensitive personal information in addition to financial gains.

The Victims and Perpetrators of Fraud: A Complex Web

  • Victims of fraud often feel too embarrassed to report their ordeals.
  • White-collar crime, popularly referred to as ‘financial crime,’ is often committed by highly capable individuals and interconnected organized crime groups.
  • Canadian organized crime groups are found to be directly involved in running boiler rooms – telemarketing centers used in fraud.
  • Perpetrators of fraud collect a portion of the ill-gotten profits and use them to finance other criminal activities.