A new report says Canada has become a prime destination for money launderers.
The C.D. Howe Institute report estimates that between $5 billion and $100 billion in dirty money is being laundered yearly despite repeated government promises to tighten financial rules.
“Organized crime, tax evaders and money launderers don’t stand still,” writes Denis Meunier, the author of the report. “Their dirty money flows on a path of least resistance to the safest harbour.
“Canada is seen as a destination choice for funnelling the proceeds of crime.”
The report says money launderers take advantage of Canada’s patchwork of lax rules for registering corporations and trusts that make it difficult to identify who the owners are.
“With professional know-how, complex structures can be created in Canada, or offshore, that will slow down or stop any intrepid investigator trying to connect the dirty money to the beneficial owner,” writes Meurnier.
The report says oft-times it harder to obtain birth certificates and vehicle registrations than it is to register a corporation or trust.
Canada’s federal government says it has been working with the provinces and territories since last year to tighten disclosure rules and has promised to tighten rules around trusts by 2021.
With files from CBC.
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