BNN Ca reports that there are some banks in Canada that allow affluent Asian Investors "to skirt Chinese law by helping them bring in large amounts of money" which are largely used to acquire property in Vancouver.
It has been reported that there are already banking companies that have marked over 8,200 suspicious transactions since Jan. 2012. It was during this year that China has been "cracking down on citizens they suspect of corruption."
It is also noted that banks have assisted 96% of those type of transaction. FinTRAC (Financial Transactions and Reports Analysis Centre), the federal agency responsible for tracking money laundering, says that most of those transaction are suspected with money laundering. "These findings, obtained by The Globe and Mail through an Access To Information Request, come as a debate rages over the source of foreign investment and Vancouver's soaring luxury housing markets. A recent study by Macdonald Realty said 70 per cent of clients who paid more than $3-million for Vancouver houses last year were from China."
Based on Chinese Law, it is illegal for its citizen to withdraw over $50,000 (U.S.) a year from China without the permission from its government. The main reason for this is to prevent corrupt millionaires from running away with their money. However, "a review of B.C. court cases by The Globe found they have worked around this restriction by sending millions of dollars into Vancouver-area banks through multiple wire transactions of smaller amounts by family and friends."
As far as the Law of Canada is concerned, banks are compelled to report transactions that are viewed as suspicious to FinTRAC. Nonetheless, they are not obligated to stop the people from doing this business transaction or shut down their accounts. This is in accordance with the mandate of the agency, which is "to gather and analyze those reports. It will not say what percentage involve this type of foreign investment, but said almost none that do are passed on to police."
There are legal experts who are raising serious questions in relation to the effectuality of the federal laws that are intended to restrict money laundering including the transnational crime. The said law is also expected to "shines a light on a system that is time-consuming and expensive for taxpayers."
While news about this kind of transaction, there are still some banks that are bending the rules in terms huge amount or series of money bank transfer from Chinese investors into real estate investment in Vancouver.
