Money Laundering: "The Vancouver Model"

[SpongeG]

B.C. casinos claim revenue down because of new anti-money laundering rules

Casino owners cite new anti-money laundering rules in decrease in gaming revenues at River Rock in Richmond and Parq in Vancouver

GORDON HOEKSTRA Updated: August 30, 2018

B.C.’s new anti-money laundering rules have negatively affected revenues at the River Rock and Parq casinos.

According to financial results released in August, Great Canadian Gaming Corporation saw a fall in B.C. revenues in the first six months of 2018 due in part to declines in money earned at gaming tables at the River Rock Casino in Richmond. The company said that was primarily attributable to a new requirement requiring casinos to complete disclosures on the source of cash deposits or bearer bonds of more than $10,000.

The Parq casino in Vancouver, through its major shareholder Toronto-based Dundee Corp., also cited the new anti-money laundering rules in saying they resulted in regulatory costs and business “impacts” that affected their bottom line in the first six months of 2018.

The rules were implemented in late December 2017 in response to interim recommendations from an independent review by Peter German, a former RCMP deputy commissioner.

The B.C. government launched the review over concerns about Chinese high-roller VIPs purchasing gambling chips with massive wads of cash that could be “proceeds of crime.”

Those concerns were outlined in a confidential report commissioned by the B.C. Lotteries Corp. from auditor MNP LLP that found $13.5 million in $20 bills had being accepted in the River Rock Casino in July 2015.

In releasing his final report at the end of June, German concluded that for many years certain Lower Mainland casinos unwittingly served as “laundromats” for the proceeds of organized crime and that laundered money was linked to drug trafficking and real estate transactions in the Lower Mainland’s heated housing market.

...

https://vancouversun.com/news/local-...undering-rules

[whatnext]

Originally Posted by SpongeG

B.C. casinos claim revenue down because of new anti-money laundering rules

Casino owners cite new anti-money laundering rules in decrease in gaming revenues at River Rock in Richmond and Parq in Vancouver

GORDON HOEKSTRA Updated: August 30, 2018

B.C.’s new anti-money laundering rules have negatively affected revenues at the River Rock and Parq casinos.

According to financial results released in August, Great Canadian Gaming Corporation saw a fall in B.C. revenues in the first six months of 2018 due in part to declines in money earned at gaming tables at the River Rock Casino in Richmond. The company said that was primarily attributable to a new requirement requiring casinos to complete disclosures on the source of cash deposits or bearer bonds of more than $10,000.

The Parq casino in Vancouver, through its major shareholder Toronto-based Dundee Corp., also cited the new anti-money laundering rules in saying they resulted in regulatory costs and business “impacts” that affected their bottom line in the first six months of 2018.

The rules were implemented in late December 2017 in response to interim recommendations from an independent review by Peter German, a former RCMP deputy commissioner.

The B.C. government launched the review over concerns about Chinese high-roller VIPs purchasing gambling chips with massive wads of cash that could be “proceeds of crime.”

Those concerns were outlined in a confidential report commissioned by the B.C. Lotteries Corp. from auditor MNP LLP that found $13.5 million in $20 bills had being accepted in the River Rock Casino in July 2015.

In releasing his final report at the end of June, German concluded that for many years certain Lower Mainland casinos unwittingly served as “laundromats” for the proceeds of organized crime and that laundered money was linked to drug trafficking and real estate transactions in the Lower Mainland’s heated housing market.

...

https://vancouversun.com/news/local-...undering-rules

The sound of the world's smallest violin playing for their woes....

[rofina]

Originally Posted by whatnext

The sound of the world's smallest violin playing for their woes....

Yah, no kidding.

Base a business model on laundering illicit international funds that fuel a real estate and fentanyl crisis - expect sympathy when its shut down????

[whatnext]

Bravo to the BC NDP for pursuing a civil forfeiture case against the accused money launderers the Feds (RCMP & Federal Prosecutors) botched the case against:

The B.C. government has filed a civil forfeiture claim in a bid to seize millions of dollars in cash, property and other assets linked to a massive money laundering case.

In the claim filed this week in B.C. Supreme Court, the B.C. Civil Forfeiture Office seeks more than $2 million in cash, $17,800 in casino chips and nearly $10,000 in Visa, MasterCard, and Vanilla gift cards, as well as property on Burquitlam Drive.

The claim names the owners of the property, Caiman Qin and Jian Jun Zhu, as well as Silver Investment Ltd. and The Style Travel Inc.

In October 2017, Qin, Zhu, and Silver International were charged with laundering proceeds of a crime, possession of property obtained by crime, and failing to ascertain the identity of a client.

The charges have since been stayed.

B.C. Attorney General David Eby has expressed concern about the stay and has said he will ask for more information from the RCMP and the federal Crown...

https://vancouversun.com/news/local-...aundering-case

[jlousa]

I agree good on them trying. Not confident they will get it to stick but you need to try. We really need to see the laws changed. If the police blotch something in an investigation that shouldn't see criminals walk. The charges should still stick, and if need be charge the officer that screwed up too that will correct the issue. If the police do an unlawful search and find stuff you go to jail, and then the cop gets charged, simple.

[misher]

Originally Posted by jlousa

I agree good on them trying. Not confident they will get it to stick but you need to try. We really need to see the laws changed. If the police blotch something in an investigation that shouldn't see criminals walk. The charges should still stick, and if need be charge the officer that screwed up too that will correct the issue. If the police do an unlawful search and find stuff you go to jail, and then the cop gets charged, simple.

Agreed.

But in the last money laundering case it was because informants names were revealed. I definitely believe in protecting informants, should be our #1.

[scryer]

Originally Posted by misher

But in the last money laundering case it was because informants names were revealed. I definitely believe in protecting informants, should be our #1.

Yes. Protected whistle-blowers means that more people can find the courage to do their own whistle-blowing.

[fredinno]

Note that as Chinese RE prices are flaming hot and far above income levels. They depend on the RE prices for much of their savings, and GDP growth, esp. after the 2015 Chinese Stock Market Crash).

This atitude of buying housing spreads to everywhere they go, because housing has surged to insane levels in China (with a few breaks) since 2005, why wouldn't it everywhere else? Hence, cheaper RE prices outside become prime for inexperienced Chinese locals wanting to make money. Heck, the fever pitch had spread to a lot of Canadians as well.

https://www.bloomberg.com/opinion/ar...housing-bubble

Also, having a house is often a prerequisite for marriage in China.

Despite reforms in recent years, there's little question that Chinese real estate is in bubble territory. From June 2015 through the end of last year, the 100 City Price Index, published by SouFun Holdings Ltd., rose 31 percent to nearly $202 per square foot. That's 38 percent higher than the median price per square foot in the U.S., where per-capita income is more than 700 percent higher than in China. Not surprisingly, this has put homeownership out of reach for most Chinese.

Add this to the low (less than 3%) interest rates, and that's a recipe for a housing affordability nightmare.

Everyone focusing on foreign investors and laundering is focusing on only one small part of the big picture. Prices would not have gone so high in the general (non-luxury) RE market if it was just the ultra-rich buying ultra-expensive homes to launder illegal cash.

[whatnext]

Originally Posted by jlousa

I agree good on them trying. Not confident they will get it to stick but you need to try. We really need to see the laws changed. If the police blotch something in an investigation that shouldn't see criminals walk. The charges should still stick, and if need be charge the officer that screwed up too that will correct the issue. If the police do an unlawful search and find stuff you go to jail, and then the cop gets charged, simple.

When you think about it, it is appalling that taxpayers don't know why an investigation led by federal government employees fell apart. They didn't even tell the BC government what happened. Who are they accountable to?

[whatnext]

Some details appearing of the case thanks to the BC government pursuing a civil forfeiture case after the Feds botched their investigation:

B.C. operation laundered massive amounts of cash, court documents say

The B.C. couple that recently had their high-profile money-laundering case dropped by the Crown was allegedly washing $220-million a year for criminals, including an international cocaine trafficker associated with a transnational gang, according to new court documents.

The documents were filed this week in B.C. Supreme Court as part of a continuing civil-forfeiture case aimed at permanently confiscating more than $4-million of their cash and property. The couple had the money and personal items seized when they were charged, but when the case collapsed, they applied unsuccessfully to have them returned immediately. Instead, the provincial civil-forfeiture agency, which does not need a criminal conviction or even charges to pursue a file, has stepped in.

According to the documents, Caixuan Qin and Jian Ju Zhu allegedly laundered more than $80-million through their Richmond, B.C., business Silver International over the span of 4½ months in 2015. Based on ledgers seized by the RCMP in raids of the alleged money-laundering business, B.C.'s Office of Civil Forfeiture alleges that the pair was able to launder close to $220-million a year.

To better understand the scope of Silver International’s business, Mounties selected one day of records (Sept. 30, 2015) and found that on that day, nearly $2.7-million was brought into the nondescript office while $1.65-million was taken away, the civil-forteiture agency said in its filing.

These records also identified one of the company’s customers as Nelson Wong, whom, the claim states, is an alias of Maxim Poon Wong. Mr. Wong, according to the filing from the civil-forfeiture agency, is known to police as an associate of the Triads and the Yellow Triangle Boys gang and also a business partner of Michael Whieldon, a high-level importer of cocaine from Mexico to Metro Vancouver.

Mr. Wong was arrested by Vancouver police in 2015 while carrying a box of bundled $20 and $50 bills worth $225,000 as well as the recipes and equipment needed to make methamphetamine, according to the court document...

https://www.theglobeandmail.com/cana...documents-say/

[Dengler Avenue]

More on the news: https://globalnews.ca/news/4816822/e...ndering-probe/

[rofina]

I hate to be a conspiracy theorist - but it seems mighty convenient the largest money laundering investigation in Canadian history is botched and abandoned in this manner.

Too convenient.

It seems to me like this would drag too many high level people through the dirt. There is no way this much money was moving without someone getting greased somewhere.

[whatnext]

Originally Posted by rofina

I hate to be a conspiracy theorist - but it seems mighty convenient the largest money laundering investigation in Canadian history is botched and abandoned in this manner.

Too convenient.

It seems to me like this would drag too many high level people through the dirt. There is no way this much money was moving without someone getting greased somewhere.

The Prime Minister does like his cheques from rich Chinese donors, but then, so does the Leader of the Opposition.

[Dengler Avenue]

Perhaps this is a bit of a jump, but Canada tries to step on both boats? Then it richly deserves to be screwed over by both China and the states.

[whatnext]

A new report from the CD Howe institute:

Canada has become a “pawn” for international money launderers who exploit the country’s weak laws that allow hidden ownership of real estate and other assets, a new report says.

In the report from the C.D. Howe Institute, author Denis Meunier — a former deputy director with Canada’s anti-money laundering agency — writes that official estimates of the amount of money laundered in Canada each year range from $5 billion to $100 billion.

Criminals involved in drug trafficking, smuggling, tax evasion and corruption have parked their dirty money in Canadian real estate and businesses, the report says, because they do not have to be identified as owners of shell companies and legal trusts.

Meunier says that while European countries have moved to establish public registries that would identify true owners of assets, over the past 15 years Canada has lagged behind in ownership transparency laws.

Current loopholes are so glaring, Meunier says, that more identification is required to obtain a library card in Canada than to register a corporation.

The average Canadian “must provide a government approved photo identification to obtain a bank account, library card or official documents such as a passport and driver’s licence,” the report says. “No such scrutiny is placed on the beneficial owners of corporations or parties to a trust.”...(bold mine)

https://globalnews.ca/news/4430806/c...d-howe-report/

[giallo]

Originally Posted by rofina

I hate to be a conspiracy theorist - but it seems mighty convenient the largest money laundering investigation in Canadian history is botched and abandoned in this manner.

Too convenient.

It seems to me like this would drag too many high level people through the dirt. There is no way this much money was moving without someone getting greased somewhere.

Whatever it is, it's pathetic, and heads need to roll. The RCMP needs to get its act together.

[Conrad Yablonski]

Originally Posted by giallo

Whatever it is, it's pathetic, and heads need to roll. The RCMP needs to get its act together.

You think they aren't on the take too?

[Dengler Avenue]

https://globalnews.ca/news/4853051/o..._campaign=2015

So Ontario was called in.

[retro_orange]

Originally Posted by Dengler Avenue

https://globalnews.ca/news/4853051/o..._campaign=2015

So Ontario was called in.

I don't understand why we can't shut down all legalized gambling over a certain small amount ($1000 per day per person is reasonable) for a period while we try to get a hold of the huge money laundering issue. As soon as we find what other industry mysterious money is pouring in to after the casinos are stymied we can start identifying the people moving money. It feels like we are hardly trying sometimes...

[misher]

Originally Posted by retro_orange

I don't understand why we can't shut down all legalized gambling over a certain small amount ($1000 per day per person is reasonable) for a period while we try to get a hold of the huge money laundering issue. As soon as we find what other industry mysterious money is pouring in to after the casinos are stymied we can start identifying the people moving money. It feels like we are hardly trying sometimes...

Casinos would go bankrupt it’s the high rollers that pay the bills and rent the rooms.

Also money laundering is called laundering because it used to be done through laundromats. Laundering is not exclusive to casinos and blocking one method just leaves open 100 others. Not to mention all the casinos a province away.