Industry Reports

Canada Fortifies Anti-Money Laundering Regulation ahead of B.C. Public Inquiry

Money laundering is a concerning practice associated with the washing of copious amounts of dirty cash. Canada is willing to work on fortifying anti-money laundering efforts and this could happen with the recent Criminal Code amendments.

As of this month, it is considered illegal for an individual to perform money exchange on behalf of another person or organization while being aware that it could be money laundering.

Just like many things in life, rarely a situation could be viewed from one point of view solely. Things are multifaceted and there are many factors that influence decision-making.

Money laundering is a practice that needed some special attention in relation to the Criminal Code of Canada and the way the practice has been criminalized. As of recently, a milestone was reached, with the introduction of a special amendment that criminalized recklessness when it is an intentional action.

Anti-Money Laundering Recommendations Implemented

For quite a while, the act of criminalizing money transfers with the understanding that this might be part of a money-laundering scheme has been considered a way in which Canada could see more criminals take responsibility for their actions.

The federal Finance Department made it clear that from here on out, recklessness would be considered a crime, and this is considered a milestone for the country.

Canada would now become equal to other leading countries such as the UK and Australia and have more precise resources for battling the illegal practice. This is especially important in the current gaming climate of Canada, as British Columbia is also working towards improving its money laundering regulations that have been previously referred to as leaving something to be desired.

Some of the recommendations already implemented is the introduction of gambling regulation officers to every hotspot casino venue in Lower Mainland. They are going to perform the mandatory supervision for loan sharks and the implementation of one of the familiar money laundering models. It could be recalled that River Rock Casino in Richmond has allegedly been a preferred location for Chinese high-rollers and loan sharks guaranteeing a steady flow of CA$20 bills.

Recklessness Is Now a Crime

Even though all officials are willing to see a positive change as soon as possible, the implementation of all recommendations battling money laundering is a time-consuming process. With the current pace of work, it could take until 2022, gradually improving the monitoring over the provinces and the scope of action across the provinces.

Over the past couple of months, British Columbia officials have been looking through the second money laundering report on which former RCMP deputy commissioner, Peter German, worked. Once the mandatory review period is over, all details around it would be publicly issued. The province is also on the verge of a public inquiry that would seek more answers to burning questions.

It is going to happen this fall and it was prompted by the second batch of money laundering intelligence. In the context of this, Vice-President of Corporate Compliance Robert Kroeker recently made his exit from British Columbia Lottery Corporation. His decisions back in 2009 rendered the lottery corporation overseeing the field without a special force monitoring for money laundering.