Industry Reports

British Columbia Liberal MP Once Again in the Money-Laundering Spotlight

British Columbia has been linked to money laundering activity, as its lax regulation has made this possible in the past. The Liberal MP Joe Peschisolido allegedly has a file opened by the Royal Canadian Mounted Police following previous allegations that he has enabled money laundering performed by Chinese high roller linked to criminal activities in Mainland China and a conditional sentence.

Canada has been monitored for its money laundering policy and the efforts it puts into battling the criminal activity throughout the years. It is no secret that the lack of efficient communication between the federal government and British Columbia officials has been linked to better conditions allowing the criminal activity to thrive. The U.S. Department of State issued its report ranking Canada among the most active international laundromats. It highlighted the housing market, as well as the gaming one in British Columbia.

B.C. Notorious for Lax Regulation

Now the RCMP has opened a file on the Liberal MP that has been linked to the alleged enabling of illegal cash transactions by a Chinese individual previously linked to the drug cartel Big Circle Boys. The law firm previously overseen by Mr. Peschisolido might have enabled the washing of a copious amount of dirty cash.

A condo development in Metro Vancouver was the supposed umbrella allowing this to happen, as it was revealed in a probe conducted by Global News. Back in 2011, the Richmond Liberal MP’s firm greenlighted a bare trust transaction.

It is considered being legal, but nevertheless, it has a harmful impact on the housing market of British Columbia. It gives anonymity a space to thrive in, which in turn makes laundering dirty cash much more convenient. However, Mr. Peschisolido made it clear that he does not know Kwok Chung Tam, the alleged drug cartel kingpin.

The name of the Mainland China resident has been previously linked to British Columbia’s casino field and associated with the common practice of loan sharking or guaranteeing a steady flow of CA$20 to Chinese high-rollers.

Money Laundering Triggers Public Inquiry

For the time being, the RCMP refuses to reveal more details about its file on the Richmond Liberal MP. However, individuals closely following the development of the E-Pirate probe alleged a possible connection between him and Chinese individuals linked to organized criminal groups and cartels in Mainland China. This information reached the RCMP at some point while the 2015 investigation was in progress.

It should be taken into account that the RCMP could have probes in progress for years and reveal something about them only in the case of criminal charges laying. For the time being, no such charges have been linked to the name of the Liberal MP. At the moment British Columbia is preparing for the public inquiry scheduled to take place in the fall.

Amid the turmoil, Vice-President of Corporate Compliance Robert Kroeker made his exit from the British Columbia Lottery Corporation. British Columbia’s Gaming Policy Enforcement Branch neither confirmed nor denied probing the subject and looking into it. His decisions rendered BCLC without a special force monitoring the field for money laundering practices. Between 2009 and 2016 such supervision was insufficient, resulting in an increase of Chinese high-rollers.