Good morning,
Wash, spin, dry: A government review in B.C. has laid out how criminals linked to the international drug trade have turned the province’s casinos into “laundromats” to clean their dirty money. The report paints a picture of a system in which “nobody said no,” even as gamblers showed up at casinos with bags full of hundreds of thousands of dollars – part of a complex web of drug traffickers and loan sharks that has helped fuel the opioid crisis while also reaching into the real estate market.
The report, authored by Peter German, a former deputy commissioner of both the RCMP and Correctional Service Canada , calls for sweeping changes to root out casino money laundering, including the creation of a dedicated police force and an overhaul of how gambling is regulated. It also warns that cracking down on casinos may simply drive such activity into other sectors of the economy.
To understand exactly how money travels from foreign banks and drug traffickers into B.C.’s casinos, read our explainer.
Mr. German’s report credits the work of journalists who uncovered the pervasiveness of money laundering, including Globe and Mail reporter Kathy Tomlinson‘s investigation into the link between real estate, money laundering and the fentanyl trade earlier this year.
This is the daily Politics Briefing newsletter, written by Chris Hannay in Ottawa and James Keller in Vancouver. If you’re reading this on the web or someone forwarded this email newsletter to you, you can sign up for Politics Briefing and all Globe newsletters here. Have any feedback? Let us know what you think.
TODAY’S HEADLINES
As the federal government prepares to legalize recreational marijuana, it wants to give the black market a chance to go legit. New regulations would allow people who worked in the illegal trade to obtain legal permits and give producers the right to grow marijuana from seeds that originated in the illicit market. Marijuana is set to be legal on Oct. 17.
The prospect of legal cannabis will complicate how employers handle the drug, especially workplaces that have previously relied on drug testing. It will also challenge governments and police forces, which are still looking for a reliable and accurate way to test for marijuana-impaired drivers.
As the Canada-U.S. trade war continues to heat up, supporters of President Donald Trump have seized on a fake chart that dramatically exaggerates existing Canadian tariffs on American goods. The misinformation comes as Mr. Trump ratchets up his trade attacks on Canada and demands changes to NAFTA.
Former prime minister Stephen Harper is planning to visit the White House for meetings next week, CTV reports, and did not give a head’s up to the current prime minister or to diplomats.
The federal government is asking provinces to help them make moving less painful for military families. The “ relentless upheaval of military life” – as one ombudsman recently called it – is traditionally one of the biggest strains on those who work for the Forces.
Vice-Admiral Mark Norman has formally been removed from his post as the military’s No. 2 soldier.
An Alberta judge has rejected an attempt to put the province’s gay-straight alliance legislation on hold. Church-based school groups are challenging provisions that prevent school boards from telling parents when a student joins such a club.
The Edmonton Police Commission is calling for a more diverse police force and changes to the way officers are trained to address concerns about the use of street checks in the city. The commission conducted a review following the release of data that showed people who were black or Indigenous were more likely to be stopped.
Environmentalists and Indigenous groups in the United States are pushing back against Enbridge’s Line 3 pipeline from Alberta through Minnesota.
Drug manufacturers made millions of dollars of payments to doctors and health organizations last year.
And a new report from the Canada Revenue Agency, set to come out later today, estimates that wealthy Canadians are using offshore bank accounts to evade about $3-billion in taxes a year.
Hugh Segal (The Globe and Mail) on the Senate: “The mix of appointments since the 2015 election, with prior vetting by a group of distinguished non-partisan Canadians, is a huge improvement over the lobby and party insider-fest from which previous prime ministers largely chose.”
Chantal Hébert (Toronto Star) on Trudeau senior and junior: “Pierre Trudeau’s Charter of Rights and Freedoms is part of the DNA of the federal Liberal party. But when it comes to his unequivocal defence of abortion rights, Justin Trudeau has not so much been upholding his father’s charter as using it in support of his own government’s decisively pro-choice stance.”
Elaine Craig (The Globe and Mail) on dignity for sexual-assault victims: “To preserve the transparency of the legal system, we only exclude the public from a criminal trial in exceptional circumstances. These were exceptional circumstances. This is likely not the first case in Canada in which a sexual assault complainant has had to watch and be questioned on a video of the alleged assault in court, but such cases are rare.”
Konrad Yakabuski (The Globe and Mail) on Spain’s new government: “In tone and deed, Mr. Sanchez’s new Socialist regime has emulated Canada’s Liberal government with a series of high-profile moves out of the gate aimed at cementing its progressive image and attracting glowing global reviews.”
Ken Frankel (The Globe and Mail) on tackling Mexican corruption: “Mexicans are turning to the candidate who has railed against political corruption and impunity for more than three decades.”
Lamia Naji (OpenCanada) on Canada’s foreign service: “ Ultimately, while Canada is small in numbers...it can nevertheless leave a profound footprint abroad. By better leveraging a diverse range of people and innovations unique to its makeup, Canada’s approach to international development can be strategically holistic.”
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Chris Hannay
James Keller