Russians could be disguising cash to evade Canadian sanctions: agency

Canada’s financial intelligence agency is warning that Russians subject to economic sanctions due to Moscow’s attack on Ukraine could try to evade them using shell companies, cryptocurrency and real-estate transactions.

The Financial Transactions and Reports Analysis Centre says in a new special bulletin those seeking to launder the proceeds of crime and corruption might try to hide assets by transferring ownership to family members or close associates.

The federal centre, known as Fintrac, tries to detect money laundering by sifting through a stream of transaction data from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others. Fintrac then discloses intelligence to police and security partners for use in their investigations.

Canada has sanctioned hundreds of Russian individuals and organizations over Moscow’s 2022 invasion of Ukraine, prohibiting financial dealings linked to Canada.

Fintrac’s bulletin says Russian organizations and individuals looking to disguise ill-gotten money are known to use complex networks of corporate structures in various jurisdictions to mask involvement in the international financial system. “Such structures include shell and front companies designed to obscure ownership, sources of funds and the countries involved in the financial transactions.”

These shell companies, often registered to addresses in offshore financial centres or tax havens, might have minimal or no online presence, Fintrac says.

Canada has sanctioned hundreds of Russian individuals and organizations over Moscow’s 2022 invasion of Ukraine