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.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Vancouver Giants to stream 2007 Memorial Cup championship game Saturday night

Giants versus Medicine Hat Tigers can be viewed on YouTube at 7 p.m.

Fraser Valley Regional Library branches offer curbside pick up

After two and a half months of being closed, people can once again check books out of the library

Nearly 6,200 Langley students set to return to school June 1

School district shared COVID-19 update during board meeting

Seniors homes send souper message to Langley Lodge

Two local seniors homes sent comfort food to show support for staff at the complex care home

Langley hospice hosts experts on planning for your future health care needs

The annual advance care planning workshops are an online format due to COVID-19

11 new COVID-19 cases in B.C. as top doc urges caution amid ‘encouraging’ low rates

Dr. Bonnie Henry also announced that two care home outbreaks would be declared over

Facing changes together: Your community, your journalists

Thanks for helping the Aldergrove Star to continue its mission to provide trusted local news

Surrey mayor’s party under fire for ‘sickening’ tweet accusing northern B.C. RCMP of murder

Mayor Doug McCallum says tweet, Facebook post ‘sent out by unauthorized person’

Father’s Day Walk Run for prostate cancer will be virtual event this year throughout B.C.

The annual fundraiser for Prostate Cancer Foundation BC has brought in $2.5 million since 1999

Dr. Bonnie Henry announces official ban on overnight kids’ camps this summer

New ban comes after talking with other provincial health officials across the country, Henry says

Senior man in hospital after unprovoked wolf attack near Prince Rupert

Conservation officers are on site looking for the wolf

VIDEO: NASA astronauts blast off into space on SpaceX rocket

Marks NASA’s first human spaceflight launched from U.S. soil in nearly a decade

‘I knew what he wanted’: Kootenay man spends hours in tree as black bear patrols below

Francis Levasseur is no stranger to the outdoors, but a recent run-in with a bear caused quite a scare

B.C.’s police watchdog probing death of Richmond man in alleged shoplifting incident

Independent Investigations Office of B.C. is asking any witnesses to come forward

Most Read