Skip to main content

Organized Crime Reduction Minister Bill Blair said money laundering is occurring across Canada and internationally, but the federal government has already started implementing measures to combat illegal money.

CHAD HIPOLITO/The Canadian Press

The federal minister in charge of Canada’s fight against money laundering supports British Columbia’s public inquiry into dirty money but says a national examination is not necessary.

Organized Crime Reduction Minister Bill Blair said Tuesday money laundering is occurring across Canada and internationally, but the federal government has already started implementing measures to combat illegal money.

“From my perspective, we’ve already identified some very significant things that need to be done,” he said. “It’s been ongoing work. These types of measures, I think, will send a very clear message that Canada is cracking down.”

Story continues below advertisement

Blair said the most recent federal budget included extra anti-money laundering spending for the RCMP, Canada’s financial intelligence unit, the Financial Transactions and Reports Analysis Centre of Canada, and the creation of a task force to identify threats and loopholes.

The Canada Revenue Agency received funding to create four new residential and commercial real estate teams to hunt for money laundering in the property sector, he said. The government is also amending current anti-money laundering laws to better track who owns property and monitor property sales.

“We need to have a better understanding of who owns which corporations and who has money in there,” said Blair. “If someone comes in with a hockey bag full of cash, you can’t just pretend you’re indifferent and don’t know its origins. You have a responsibility of due diligence. For those who are reckless, there could be criminal consequences.”

But the author of a recent C.D. Howe Institute report on money laundering says Canada is behind the times when it comes to fighting the crime.

Kevin Comeau’s report, “Why We Fail to Catch Money Launderers 99.9 per cent of the Time,” said Canada’s anti-money laundering policies are among the weakest of Western democracies and billions are laundered in Canada annually.

“It’s a 20th Century solution to a 21st Century problem,” said Comeau in a telephone interview from Oakville, Ont.

The retired corporate lawyer said the amended federal legislation to track property ownership to discourage money laundering in the real estate sector is too weak because the valuable information to deter the flow of dirty money is not widely enough available.

Story continues below advertisement

“The whole idea of anti-money laundering is to shine as much light on it as possible so you can have other people viewing saying, ‘Ah-ha, there’s the bad guy’,” said Comeau. “Anything less than a public registry is saying we don’t want to bring it up to best standards.”

British Columbia’s government introduced legislation last month aimed at preventing tax evasion and money laundering by looking to identify anonymous property owners through a registry that will be public in 2020.

An independent report commissioned by the B.C. government concluded $7.4-billion was laundered in B.C. last year out of an estimated total of $47-billion across Canada. The report by former B.C. deputy attorney general Maureen Maloney said money laundering contributed to a five per cent increase in real estate values in the Metro Vancouver area in 2018.

A second report by former RCMP deputy commissioner Peter German said money laundering led to a frenzy of buying real estate.

B.C. Premier John Horgan called a public inquiry days after the release of the German and Maloney reports.

“I have assured them they will have our full co-operation in the conduct of their inquiry,” said Blair. “This is not a victimless crime. This is a crime that affects all Canadians. It affects the quality of our lives. It’s had an impact in B.C., but we can see its potential impact in other jurisdictions in Canada as well.”

Related topics

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies