British Columbia announces inquiry following trade-based financial crime revelations

British Columbia is to hold a public inquiry into money laundering following revelations in a recent report that trade-based financial crime is rife in the Canadian province.

A recent probe by independent investigator Peter German into illicit fund flows commissioned by British Columbia has revealed widespread trade-based money laundering (TBML) through the export to buyers in China of luxury cars purchased from motor dealers in the province (Trade-based Financial Crime, 24 May 2019).

Widespread TBML

British Columbia’s Premier John Horgan announced the inquiry, which will be headed by the province’s supreme court justice, Austin Cullen, who has two years to deliver a final report.

The report by German says so called grey market vehicle exports are a well known and effective TBML strategy, but the scale of luxury car laundering operations unearthed in the province are surprising.

Federal cooperation

Canada’s federal government will “fully” participate and co-operate with a British Columbia money laundering public inquiry, says federal minister responsible for organised crime reduction, Bill Blair.

Asked if federal officials will testify at the public inquiry if requested to do so, Blair said: “Yes, of course.”

That includes officials with Canada’s financial intelligence agency, Financial Transactions and Reports Analysis Centre (Fintrac), as well as the Royal Canadian Mounted Police, Blair confirmed.



Categories: Trade Based Financial crimes News