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

IN PHOTOS: The Rock Creek Fall Fair

Rides, races, music and bubbles – the Rock Creek Fall Fair had something for all attendees

Boundary businesses on wells face hefty upgrade costs

‘It’s easier to sell guns in Canada than it is to sell a hotdog’

Proposals due for youth-led Boundary projects

$15,000 available for youth-led community betterment projects in the Boundary

Latest round of Columbia River Treaty talks wrap up in Cranbrook

Federal, provincial, U.S. and Indigenous representatives recently met for eight round of discussions

Cannabis beverages to be bottled in Bridesville

Vancouver-based BevCanna also plans on growing cannabis nearby

VIDEO: Prosecutors to consider charges in human-caused 2017 B.C. wildfire

RCMP forwards results of its investigation into Elephant Hill fire to Crown counsel

Police investigate after intoxicated teens clash with security at B.C. fair

18-year-old woman arrested and RCMP looking at possible assault in Victoria-area fall fair incident

Boy overdosed on illicit anti-anxiety drug found on Kelowna classroom floor, RCMP say

Noah Mills, 8, ingested a pink powdery substance off his Kelowna classroom floor

BC SPCA investigating after three dogs found shot dead in Prince George ditch

The three adult dogs appeared to be well cared for before being found with gunshot wounds, BC SPCA says

Psychiatric assessment ordered for man accused in Salmon Arm church shooting

Lawyer tells court accused was diagnosed with psychosis hours after his arrest

Surrey mom allegedly paid $400,000 for son in U.S. college bribery scam

Xiaoning Sui, 48, was arrested in Spain on Monday night

Winnipeg student, killed in bus crash, remembered as passionate, kind

University of Victoria student Emma Machado, 18, was killed in the bus crash near Bamfield on Friday

B.C. offers early retirement, training fund for forest workers

Communities eligible for $100,000 for permanent closures

B.C. land needed for Trans Mountain pipeline owned by man who died in 1922

Trans Mountain is looking for heirs so it can gain access to 500 square feet of land

Most Read