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:
- Money services businesses,
- 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.