Law professor Maureen Maloney chaired an expert panel on money laundering in B.C. real estate. (Tom Fletcher/Black Press)

B.C. estimates $7 billion laundered in 2018, $5 billion in real estate

Foreign, underground cash may have pushed up average home price 5%

B.C.’s money laundering investigators have estimated $5 billion in money laundering in B.C. in 2018, added to the purchase and resale of luxury cars and other goods for a total of more than $7 billion in dirty money in a single year.

Reports on real estate and financial transactions released Thursday show a similar pattern with luxury cars, bought with cash or untracked foreign transfers, and then resold to cover the source of money. Investigators found luxury goods went beyond sports cars and condos to high-end pianos and other items that can be bought and resold.

B.C.’s activity was part of $47 billion in money laundering across Canada, according to computer models estimating the activity developed for former RCMP investigator Peter German and former deputy finance minister Maureen Maloney.

Maloney’s report notes that with the volume of untraced money, Canada and B.C. in particular are favoured locations for criminals to operate in. That increases the rate of drug trafficking that has fuelled the opioid overdose crisis, as well as pushing up the price of housing by an estimate five per cent in B.C.

READ MORE: Hot cars hide dirty money from organized crime

READ MORE: RCMP has ‘no’ dedicated investigators in B.C.

Attorney General David Eby vowed to close loopholes and improve enforcement as a result of the findings.

“Wealthy criminals and those attempting to evade taxes have had the run of our province for too long, to the point that they are now distorting our economy,” Eby said.

Other things used to conceal the source of cash or convert it to legitimate funds were buying and selling boats, purchases at auction houses, paying fees at colleges, as well as cryptocurrency and foreign credit cards that Canadian law enforcement has no way to check for the source of funds.

“In the past few years, Greater Vancouver has been at the confluence of proceeds of criminal activity, large amounts of capital fleeing China and other countries, and a robust underground economy seeking to evade taxes,” German’s final report says. “These three rivers of money coalesce in Vancouver’s property market and in consumer goods.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Port Hardy RCMP cleared in arrest that left man with broken ribs, punctured lung: watchdog

The IIO noted the matter will not be referred to crown counsel for consideration of charges.

Bradshaw’s Photo Highlight: Devil’s Bath is the largest cenote in Canada

“This trail is rough and should be executed with caution”

OPINION: MP Rachel Blaney takes aim at coastal fisheries restrictions

“We all share in the responsibility of taking care of our salmon habitats and populations”

Northern Vancouver Island regional science fair winners – 2019

Daniel Kornylo won one of the 12 provincial science fair awards.

North Island Eagles select head coaches for upcoming season

“We appreciate the commitment each of you make to the club and to your teams”

Fashion Fridays: 5 casual summer dress styles

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Injured fawn at B.C. vet will be euthanized Friday night unless claimed by sanctuary

Gilbert the deer is currently being treated at West Kelowna’s Rose Valley Veterinary Hospital

BC Wildfire Service warns wet weather no reason to be complacent

Fire risk currently low for much of B.C. compared to same time over last two years.

Bank of Canada lowers qualifying rate used in mortgage stress tests

Home sales softened last year after the federal government introduced new stress test rules for uninsured mortgages

Couple found dead along northern B.C. highway in double homicide

Woman from the U.S. and man from Australia found dead near Liard Hot Springs

B.C. man pleads guilty in snake venom death of toddler

Plea comes more than five years after the incident in North Vancouver

Trudeau says Ottawa open to proposals for B.C. refinery as gas prices soar

Prime minister says he knows B.C. residents are struggling and the federal government is open to ideas

LETTER: The constant growth of the Harvest thrift store and food bank

“we now serve the complete Northern end of Vancouver Island – everyone North of Woss!”

Clock’s ticking to share how you feel about Daylight Saving Time in B.C.

Provincial public survey ends at 4 p.m. on Friday

Most Read