B.C. Attorney General David Eby and former RCMP officer Peter German release German’s first report on money laundering, June 2018. (B.C. government)

Trudeau says B.C. money laundering report is ‘extremely alarming’

B.C. ranks fourth for money laundering among a division of six regions in Canada

Prime Minister Justin Trudeau says a report out of British Columbia on the extent that criminals are laundering their dirty money in Canada is alarming and shows that everyday Canadians are being hurt in the process.

The report, done by a panel commissioned by the B.C. government, estimates $5 billion was laundered through the province’s real-estate market last year out of $47 billion in Canada as a whole. It estimates that illegal cash increased the cost of buying a home in B.C. by five per cent.

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

“The report that came out of B.C. is extremely alarming, absolutely unacceptable,” Trudeau said Friday in Edmonton.

He said the report shows money laundering is hurting everyday people by disrupting the housing market.

“This is a real and pressing problem for Canadians and it’s a problem around the world that Canada is going to continue to lead in the fight against.”

Trudeau said the federal government has strengthened audits on real-estate transactions, and federal Organized Crime Reduction Minister Bill Blair is working with provinces to do more.

“Strengthening the audit process around real estate will be a significant measure that will counter that, but there’s obviously lots more to do,” Trudeau said.

“Minister Blair is working in partnership with B.C. and other provinces to make sure we are moving forward in real tangible ways.”

The report was one of two released Thursday in B.C.

It says B.C. ranks fourth for money laundering among a division of six regions in Canada, behind Alberta, Ontario and the Prairies — collectively Saskatchewan and Manitoba.

The report says the higher estimates of money laundering in the Prairies may be “surprising,” but crime rates are rising in those provinces and illegal cash finds homes in jurisdictions where real estate is more affordable than B.C.

B.C. Attorney General David Eby called it a national crisis to which the federal government had not been paying proper attention.

The report makes 29 recommendations, including calling for B.C. to launch a financial investigations unit.

READ MORE: Hot cars hide dirty money from organized crime

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

Several regulatory and professional agencies anticipated the findings of the reports and put anti-money-laundering policies in place last month.

The B.C. Real Estate Council said it would be partnering with the federal Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, to identify and deter money laundering and terrorist financing in the industry.

The B.C. Real Estate Association, the body that serves 23,000 realtors in B.C., said in April that it would join with four other agencies to keep proceeds of crime out of real estate.

Other participating organizations include the Appraisal Institute of Canada, BC Notaries Association, Canada Mortgage Brokers Association and the Real Estate Board of Greater Vancouver.

Each organization has committed to sharing information and accepting only verified funds. They also recommended making anti-money laundering education mandatory for all real estate professionals.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Kelowna firefighters douse blaze in hedges

The cause of the fire on Renfrew Road is under investigation.

Kayaker still missing as COSAR continues aerial searches

71-year-old Zygmunt Janiewicz was reported missing Friday

Kelowna Springtime Regatta draws more than 50 sailboats

Sailors treated to windy, excellent long weekend conditions on Okanagan Lake

Crews responding to car crash in West Kelowna

A collision has been reported at the intersection of Carrington Road and Butt Road.

Get those flowers competition ready

Gardeners will come together June 29, for the 22nd Juried Flower Show

Weather holds up for Rutland May Days

60th annual May Day midway, market and entertainment saw hundreds of attendees

Update: Plan to see more smoke from South Okanagan wildfire

Richter Creek wildfire, 12 kilometres west of Osoyoos, is an estimated 400 hectares

‘Teams that win are tight’: B.C. Lions search for chemistry at training camp

The Lions added more than 50 new faces over the off-season, from coaching staff to key players

B.C. VIEWS: Reality of our plastic recycling routine exposed

Turns out dear old China wasn’t doing such a great job

Okanagan tattoo fundraiser draws tons of support

Lineup around the block in Vernon for start of Five Fathoms Tattoo event for Children’s Hospital

Carbon dioxide at highest levels for over 2.5 million years, expert warns of 100 years of disruption

CO2 levels rising rapidly, now higher than at any point in humanity’s history

Fundraising campaign for church shooting victim exceeds goal

A seperate campaign for the man killed in the April 14 shooting is nearing $25,000 raised.

Court decision prompts regional district to throw flood mitigation back at province

Public safety minister maintains Newsome Creek concerns in hands of local government

Woodworth purchased Summerland rink, created butcher operation

Giant’s Head Rink had been one of three facilities in Summerland

Most Read