Financial Crime Definition in Canada Exposed: “Dirty Money” Book Reveals Widespread Corruption and Inaction

A new book, “Dirty Money: Financial Crime in Canada,” has shed light on a vast financial underworld operating in Canada, where fraudsters and other financial criminals commit crimes with impunity. The authors of the book claim that elected leaders at all levels are enabling and emboldening these criminals by failing to fight them or even try to hinder their illegal activities.

Weak Legislation and Under-Resourced Enforcement Regime

According to Jamie Ferrill and Christian Leuprecht, co-editors of the book, Canada has become a preferred destination for laundering ill-gotten gains without consequences. The authors argue that numerous investigations have revealed weak legislation, an under-resourced enforcement regime, and negligible penalties, making it almost impossible to get caught.

The Book’s Findings

• Canada has become a preferred destination for laundering ill-gotten gains.
• Weak legislation, under-resourced enforcement regime, and negligible penalties make it difficult to catch financial criminals.
• Globalization has accelerated financial crime in Canada, with authorities struggling to combat it.
• Financial fraud, money laundering, and organized crime are just some of the issues addressed in the book.

The Impact

• The authors estimate that between $46.7 billion and $54 billion is generated by criminal activities each year.
• Over 2,000 organized crime groups are involved.
• This amount is equivalent to the size of Nova Scotia’s GDP in 2018.

Critique of Canada’s Anti-Money Laundering Efforts

Sanaa Ahmed, a University of Calgary assistant law professor, contributed a chapter to the book, criticizing Canada’s anti-money laundering efforts and arguing that the country lacks a clear national commitment to combating money laundering. Ahmed suggests that money laundering has emerged as an industry within the broader Canadian political economy, with governments repeatedly failing to deliver on their promises.

Insidious Nature of Financial Crime

The authors also explore the insidious nature of trade-based money laundering, cryptocurrency laundering, and the state of money laundering regulation and enforcement in Canada.

Revelations Come at a Time of Growing Cybercrime Concerns

The book’s revelations come at a time when cybercrime is on the rise in Canada, with the RCMP reporting that at least $530 million was lost to cybercrime in 2022. The authors argue that the lack of action from authorities has created an environment where financial crime can thrive.

Conclusion

“Dirty Money: Financial Crime in Canada” is a timely and critical examination of the state of financial crime in Canada, highlighting the need for urgent action to combat this widespread problem.