British Columbia may be closer to public inquiry on money laundering
VICTORIA — Money laundering in British Columbia has become a top issue for the federal and provincial governments with federal Finance Minister Bill Morneau vowing a crackdown, while the province considers a public inquiry.
“The importance of dealing with money laundering concerns is something that is clearly on our agenda,” said Morneau at a news conference Friday. “We need to be very clear, we crack down on any issues around money laundering.”
Last year, an international anti-money laundering organization said in a report that up to $1 billion annually was being filtered through some B.C. casinos by organized crime groups.
The B.C. government also cited an RCMP intelligence report that estimated up to $1 billion from the proceeds of crime was used to purchase expensive Metro Vancouver homes. An RCMP official said Friday the Mounties are searching their data bases to find the report the government cited.
Former RCMP deputy commissioner Peter German’s review last year of money laundering at some B.C. gaming outlets found casinos served as laundromats that siphoned the money to organized crime groups.
B.C. Attorney General David Eby said Morneau’s comments add support to recent commitments by the federal government to fight money laundering.
Eby and Minister of Organized Crime Reduction Bill Blair met last month to share information to combat money laundering.
“I’ve seen a real shift in the interest from the federal government on this issue,” Eby said.
Two B.C. government money laundering reviews are underway and are due in March. One probe will look to identify and close regulatory gaps that could be used by money launderers in the real estate and financial services sectors. The second review will focus on identifying the scale and scope of illicit activity in the real estate market and whether laundering is linked to horse racing and luxury vehicle sales.
Eby said the findings of those reviews, collaborations with the federal government on legal issues and public concern will help the government decide if a public inquiry is warranted.