From luxury cars to casinos and inflated housing prices — money’s being laundered and it’s happening in B.C. But how did we get to this point?
Here’s a timeline of money-laundering in B.C. — beginning with an explosive Postmedia investigative feature in 2017 — and where it might go next.
October 2017
In the fall of 2017, reporter Sam Cooper wrote a series of revealing stories about concerns of money laundering at B.C. casinos. The investigation prompted government and law officials to examine more closely the problem here in B.C. and its tentacles into other industries.
December 2017
A preliminary report into money laundering at B.C. casinos recommended implementing stricter reporting of cash source for large deposits and increase presence and investigative staff at the province’s largest casinos.
The B.C. Lottery Corporation was directed to implement the two recommendations as soon as possible.
June 2018
Former RCMP officer Peter German released his report into money laundering at B.C. casinos , prompting Attorney General David Eby to promise sweeping reforms of the casino industry.
August 2018
Financial results released in August show that the Great Canadian Gaming Corporation saw a fall in B.C. revenues during the first six months of 2018 . The drop is primarily attributed to a new rule implemented in late 2017 that required casinos to complete disclosures on the source of cash deposits larger than $10,000.
September 2018
Attorney General David Eby authorized another independent report into possible money laundering , this time in the real estate, luxury cars and horse racing sectors. The report was headed up by former RCMP officer Peter German.
January 2019
Both the city of Vancouver and B.C’s largest public-sector union voiced support for a public inquiry in B.C.’s money-laundering problem.
Vancouver city council put forward a motion that instructed city staff to work with law enforcement and the province to find ways the city could support the fight against money laundering, while the B.C. Government and Service Employees Union called for a public inquiry.
February 2019
A Postmedia investigation found that while money laundering appears rampant in B.C., successful convictions are rare . Another story also detailed how Vancouver police found that a cosmetics company in southeast Vancouver was being used as a branch for an underground bank in Richmond . The bank was alleged to have washed hundreds of millions of drug money through wealthy gamblers.
March 2019
Prime Minister Justin Trudeau pledged nearly $70 million over five years to help fight money laundering, an issue of public concern in B.C. Trudeau has also promised to bring in criminal code changes that would lower the prosecution threshold to prove money laundering.
April 2, 2019
The province announced plans to create a government registry of beneficial property ownership , which would be the first of its kind in Canada. The registry is intended to increase transparency of who owns land in B.C., in an effort to combat tax fraud and money laundering.
April 9, 2019
The results of an audit at Richmond’s River Rock Casino by Ernst and Young LLP Canada found “no systemic pattern of money-laundering,” despite a narrative promoted by the provincial government.
The audit included a cheque-by-cheque analysis of three years of payouts over $10,000 and found only about 2.4 per cent of payouts slipped past money-laundering controls.
An interim report released the same week also showed that the B.C. RCMP lacked proper staffing to investigate large-scale money laundering, and that those who were assigned to the issue were funnelling cases to the province’s civil forfeiture office.
April 15, 2019
A real estate industry group shared their proposal on how to fight money laundering in their industry . The recommendations included getting rid of cashless transactions, mandatory education on how to report suspicious transactions and the improvement of information sharing between government groups and agencies to boost regulation.
April 30, 2019
A Postmedia investigation of court records and property documents found that some 20 Lower Mainland properties valued at more than $43 million were linked to targets named in money-laundering investigations . At the time of the investigation, it was unclear how much money had been laundered through the local real estate market.
Some of the targets named in documents were quick to protect their assets when they came to the attention of police, by adding the names of family members to property records. The move made those properties more difficult to seize.
May 9, 2019
Two reports exposing money laundering in B.C. were released. The first report was authored by a panel headed by former deputy attorney general Maureen Maloney. Maloney’s report estimated money laundering in B.C.’s real estate increased housing prices by about five per cent.
A second report, released by former RCMP investigator Peter German, found that the proceeds of crime, the desire to get money out of China and other countries and tax evaders were “three rivers of money” that flowed into Vancouver’s property market and consumer goods such as luxury cars.
May 15, 2019
B.C. Premier John Horgan announced a public inquiry into money laundering . B.C. Supreme Court Justice Austin Cullen will head the inquiry. He’s also been given the power to compel witnesses and order documents be disclosed.
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Copyright Postmedia Network Inc., 2019
