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Old Posted Feb 9, 2019, 5:38 PM
whatnext whatnext is offline
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The High Cost of Money Laundering in Canada

It's not just a BC problem. Given how intertwined money laundering has become with real estate, you have to wonder how many projects across the country are tainted with dirty money? From today's Globe & Mail:


Canada-China political relations continue their downward spiral following the arrest of Huawei executive Meng Wanzhou in Vancouver, with ongoing retaliatory actions and threats by the Chinese government. As a result, Canadians are increasingly asking themselves what sort of government they are dealing with.

A glimpse into Chinese money laundering helps us understand the struggles within an authoritarian state awash with cash, and how it dumps some of its problems on countries like Canada.

International money laundering, which is a criminal offence in Canada and China, occurs when individuals “clean up” or launder proceeds from crime by investing in foreign assets so that the dirty monies enter the conventional financial system. More broadly, international money laundering also takes place when a person transfers legally earned money across a border without disclosure to their home government...

...First, this money laundering occurs on a massive scale. According to The New York Times, US$1 trillion recently left China in an 18-month time period around 2015-16. Most of this money comes from wealthy Chinese individuals who secretly store away their legally earned money overseas. What began as a trickle 20 years ago has now become a tidal wave of capital outflows with stories of middle-class Chinese now opening bank accounts in Canada and the United States. In part, the amount of money moving offshore can be tied to the incredible economic growth that has raised Chinese household incomes for thirty years...

...Many of the individuals identified within this leak were family members of the rulers of the CCP, including the tiny group of seven men within the Politburo Standing Committee who run China. For instance, the data leaks showed that Chinese President Xi Jinping’s son-in-law Deng Jiagui maintained companies based in secretive tax havens (although the usage of such companies may have been legal).

Finally, Chinese money laundering is tied to Canada’s number one public health crisis, namely the nearly 4,000 fentanyl overdose deaths per year. According to Canadian law enforcement, most of this fentanyl – including the deadly tainted version of the drug – is manufactured by and shipped from China-based factories through online sales to Canadian drug users and traffickers.....

...To launder these illegal sales within British Columbia, organized crime linked to China cleaned up $1-billion in 2016 alone; they did so by buying Vancouver real estate. An additional $1.7-billion was laundered between 2013 and 2017 by pumping money into casino earnings. These Vancouver mobsters make and move so much dirty money they make Tony Soprano look like a two-bit crook.

Senator Vernon White, a former police officer, has called for punitive trade sanctions against China until their government acts to stem the production and sale of fentanyl from state-regulated factories...


https://www.theglobeandmail.com/opin...ing-in-canada/
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  #2  
Old Posted Feb 9, 2019, 6:26 PM
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WhipperSnapper WhipperSnapper is offline
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Real estate is hot and it almost gets too much attention in this regards. Money is being hidden or laundered in everything. Any Canadian company that deals in CAD owned by Chinese is an ideal laundering vehicle. It's only going to get worse until financial institutions face serious repercussions from laundering money from one country to another. Revoking their banking charters is one way.
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Old Posted Feb 9, 2019, 6:28 PM
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Dengler Avenue Dengler Avenue is offline
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Quote:
Originally Posted by WhipperSnapper View Post
Real estate is hot and it almost gets too much attention in this regards. Money is being hidden or laundered in everything. Any Canadian company that deals in CAD owned by Chinese is an ideal laundering vehicle. It's only going to get worse until financial institutions face serious repercussions from laundering money from one country to another. Revoking their banking charters is one way.
In that case, U.S. is so gonna do something about it.
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Old Posted Feb 9, 2019, 8:35 PM
ssiguy ssiguy is offline
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Harper and Trudeau both turned a blind eye to the obvious money laundering because it is outside money being brought into the country and hence helping to prop up the economy especially in real estate which has become obscenely too important to our economic growth and dangerously so in BC. I am also sure that Campbell/Clark in BC applied a lot of pressure on Ottawa to not investigate, tighten the rules, or even discuss the matter or it could devastate the real estate dependent BC economy which has been the darling of Canada's economy since the financial crisis. Christy Clark actually shut down a money launderinbg investigation to keep the dirty money flowing BC & Ottawa wanted those low unemployment numbers for both political gain and the tax revenue if provided thru housing construction/flipping.
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Old Posted Feb 9, 2019, 8:39 PM
llamaorama llamaorama is offline
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The stuff about fentanyl and condos makes Vancouver kind of sound like a alternate universe version of 1980s Miami. Instead of tropical beaches its snowy mountain peaks, instead of coke its meth, but otherwise its the same.
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Old Posted Feb 11, 2019, 6:03 AM
ssiguy ssiguy is offline
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Did anyone see the latest W5 program on Saturday? It was all about the obscene level of money laundering going on in BC Casinos, real estate, expensive cars, {Vancouver is the super luxury car capitol of NA states Van Sun/Huff Post} and how it is based on drug money. Even for me it was unbelievable and the Christy government knew all about it as did the BCLC. $1.2 billion............... a year and that's all we know about as no doubt there is more. Now you know why BC's economy and treasury are doing so well.

Throughout the world BC is known as a major international money laundering centre and it was so easy that it even has it's own name by criminal organizations......'The Vancouver Model.' The whistleblower in the whole thing was actually fired from his job as head of the anti-money laundering section of BCLC because he was asking to many questions and demanding too many answers as to why suitcases of money were brought in the River Rock Casino {in Richmond of course} by the Chinese {yes he blamed it almost all on the Chinese criminal activity} with sometimes hundred of thousands of dollars in $20 bills as he was informed quite clearly that he was never to ask them where they got the money from even if they were doing it several times a week. There is actual Chinese Bank set up in Richmond exclusively for laundering money from China.

The name of the W5 episode is quite fitting...................."The Laundromat".

Last edited by ssiguy; Feb 11, 2019 at 6:22 AM.
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Old Posted Yesterday, 3:08 AM
whatnext whatnext is offline
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Interesting that we haven't seen this in Canada....yet.

China has recruited the services of former police detectives in Australia and other Western countries to help it recover millions of dollars in alleged "hot money" taken out of the country.

Four Corners has spoken to several former law enforcement operatives who have been engaged through a third-party company in Hong Kong as part of an operation code-named "Project Dragon".

Their mission is to recover proceeds of crime from China that have been transferred out of the country, or legitimate funds that have allegedly been illegally siphoned out to places such as Canada, the United States and Australia.

Four Corners has also seen correspondence showing that under the arrangements, any illicit funds or assets recovered overseas are to be returned to China and the foreign investigators or operatives paid a commission....

...Former undercover Royal Canadian Mounted Police officer Bill Majcher is also involved in Project Dragon.

A specialist in financial crime, Mr Majcher is the president of the Hong Kong-based asset recovery firm EMIDR.

"As long as the claim is valid and as long as we're doing everything lawfully and properly, I'm a hired gun to help either large corporates or governments to get back what is rightfully theirs," he said.

...But Mr Majcher is cautious when describing his role in helping China's Ministry of Public Security.

"I have a commercial relationship with entities that are in themselves associated in some form or another with policing authorities in China. And a big part of their mandate is focused on economic crime, financial crime, money laundering," he said.

"We know how to operate more clearly I think than a country like China or personnel from China in our own jurisdictions. We have a familiarity."

The use of private operatives comes on top of China's official efforts to recover billions in alleged hot money. In 2015, China launched Operation Sky Net, a global mission tasked with recovering funds and arresting international fugitives, including corrupt officials...


https://www.abc.net.au/news/2019-02-...28?pfmredir=sm
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