Vancouver's real estate market will soon be the subject of a money laundering audit to be conducted by federal authorities.
The country's federal officials have increased their investigation of the Vancouver real estate industry for several months now, states The Province. According to documents obtained by the news site from Canada's financial intelligence unit, Fintrac, the fed's investigation suggest suspicious activity and transactions in Vancouver's real estate market. This suspicious transactions reportedly include the "dramatic under-reporting of large cash transactions." A Fintrac official said, "We have significantly increased our examinations in the Vancouver area. Our compliance people are not happy."
In the report, the Province cited that the Vancouver audit was launched after Fintrac documents stated that Canada's real estate industry is a "high risk" area for money laundering activities as compared to other sectors. As part of a compliance rule, businesses, individuals and professionals engaged in the real estate, bank, casino and money wiring services are required to report cash transactions over $10,000 to Fintrac. This rule was imposed to combat money laundering. However, reports from the Fintrac investigation reportedly indicated several money laundering risks in Canada's real estate market which included buyer concealment loopholes, "high number of cash transactions" and a lack of "quality or ethics infrastructure," and "disengagement" with compliance rules.
An earlier report from the National Post even stated that Vancouver has become a "critical money laundering hub" for international criminals, according to experts. Kim Marsh, a Vancouver-based financial crime specialist, told the publication in May how the issue has become a persistent problem wherein international criminals are "looking to wash ill gotten gains" in Vancouver.
Meanwhile, Christine Duhaime, a Vancouver lawyer and financial crime specialist, also told the publication that some of the "dirty money" in Vancouver comes from overseas, either from corrupt officials, weapons trafficking or from the illegal drug market.
Canada's Fintrac is still investigating the Vancouver real estate sector over the alleged suspicious activities.
