Canada still a money laundering concern says 2011 International Narcotics Control Strategy Report

By Christine Duhaime | March 14th, 2011

The 2011 U.S. Department of State International Narcotics Control Strategy Report released on March 1, has once again determined that Canada is a major money laundering country, and in addition, has determined that Canada is a major precursor chemical source country. According to the Report, money laundering in Canada generally occurs though the following methods:

  • Smuggling,
  • Money services businesses,
  • Casinos,
  • Real estate sales,
  • Wire transfers,
  • Establishment by Canadians of offshore trusts and corporations,
  • Credit cards, and
  • Stored value cards, also known as prepaid access.

The Report notes several areas of concern for Canada, including:

  • Lack of enhanced due diligence in AML legislation for domestic politically exposed persons,
  • Exemption of lawyers from AML legislation,
  • Lack of financial resources for law enforcement to pursue money launderers, and
  • Continued concern with casino AML procedures.

In his Presidential Determination No. 2010-16, President Obama noted that organized crime in Canada continues to produce large quantities of MDMA (ecstasy) and high-potency marijuana that is trafficked to the U.S. and that about 50% of the MDMA seized in the U.S. originated from Canada.

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