The PPSC prosecutes the possession of proceeds of crime, as well as the laundering of proceeds of crime, across Canada. These prosecutions are usually related to money and property derived from drug offences.
Offences of possession of property obtained by crime (possession) and laundering of proceeds of crime (laundering) can be found in the Criminal Code :
The PPSC has the authority to prosecute these offences where the underlying offence which resulted in proceeds of crime is wholly or partly an offence for which the Attorney General of Canada has the power to commence. This does not necessarily mean that there will always be charges for the underlying offence that accompanies the possession or laundering offence. This will depend on the facts of the case, the evidence, as well as public interest in adding charges for the offence underlying the possession or laundering offence.
Investigations into laundering offences are long and complex. Over the years, launderers have significantly refined their techniques in order to mask the source of funds originating from criminal activities, particularly by using new technologies and virtual currencies.
As an example, in R v Chun , $600,000 USD was seized at Dorval Airport in 2002, resulting in charges against the accused in 2004 for possession and laundering over $100M. In 2007, additional charges under the Income Tax Act were added. Following several proceedings and motions, the trial commenced in January 2010 and ended in September 2014 with a verdict of guilty on all charges. In November 2014, orders for forfeiture were issued, one of which related to the actions of a Cambodian bank. The accused’s appeal of their conviction was dismissed by the Québec Court of Appeal in March 2017. In January 2018, a warrant of committal was issued against the accused for failure to pay the required fine.
In September 2016 the Financial Action Task Force ( FATF ) released its evaluation of Canada’s anti-money laundering and anti-terrorist financing regime. FATF is an inter-governmental body established in 1986 by the Ministers of its Member jurisdictions, including Canada. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory, and operational measures for combatting money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
Overall, the report indicates that Canada has a strong framework to fight money laundering and terrorism financing and that its investigative agencies have adequate powers to undertake large and complex financial investigations. That being said, investigations seem to be focused on the predicate offences rather than the laundering offence. In addition, the report notes that there are few investigations or prosecutions and convictions related to money laundering.
In November 2018, following a statutory review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act , the House of Commons Standing Committee on Finance released its report titled "Confronting Money Laundering and Terrorist Financing: Moving Canada Forward". As one of the report’s 32 recommendations, the Committee recommends that "[…] necessary resources be made available [by the Government of Canada] to law enforcement and prosecutors to pursue money-laundering and terrorism financing activities" (ref. Recommendation 20).
In March 2018, Peter German released his report on the allegations of money laundering at "Lower Mainland" casinos. This report followed an audit that revealed approximately $13.5M in $20 bills had been accepted by the Great Canadian’s River Rock casino in July of 2015. Forty-eight recommendations can be found in the report, which target the problems discovered in a review of the policies and practices related to laundering in the gambling industry in British Columbia.
A working group chaired by the Department of Finance was set up to respond to various concerns and recommendations raised by both the FATF report and the Committee report. This working group ultimately reports to the Anti-Money Laundering and Anti-Terrorist Financing ( AML/ATF ) Deputy Ministers’ Committee.
Date modified: 2020-03-19