Justice Austin Cullen, commissioner for the independent Commission of Inquiry into Money Laundering in British Columbia, hinted Monday that his team will specifically address trade-based money laundering, the ability to act on evidence of wrongdoing and the impact of criminal proceeds on the B.C. real estate market.
The commission heard opening statements from lawyers for the provincial and federal governments on the first of three hearing days this week. This week is the first of several weeklong hearing intervals to the end of the year.
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If the first day is any indication, the inquiry will be a slow grind through complex matters related to government legislation, regulatory oversight and enforcement efforts.
“I think we’ll be hearing evidence that it’s a pretty elusive issue and one that’s difficult to bring down to the ground,” said Cullen.
Both senior governments largely outlined their existing efforts to address money laundering.
B.C. government lawyer Jacqueline Hughes opened by noting that “the Lower Mainland has earned an international reputation for money laundering,” and asked, “Was there wilful blindness to what’s going on?”
She said the government hopes the commission can address that question and many others over the course of the year.
Hughes’ statement focused on two key areas: government-regulated gambling and the real estate industry.
Judith Hoffman, general counsel for the federal government, began by saying the inquiry is a provincial one but money laundering “obviously has many federal dimensions.” Ottawa is assisting the inquiry to understand the scope of the problem in B.C. and the effectiveness of federal enforcement, she said.
Hoffman said new federal regulations are coming for foreign virtual currencies that have yet to face the kind of regulations that govern credit cards or bank accounts. Likewise, cryptocurrencies present similar oversight issues.
Cullen interjected at one point to note that the commission may want to specifically look at trade-based money laundering and may seek federal help in better understanding current efforts to address it.
Hoffman addressed a maze of federal agencies whose work falls under the umbrella of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
The Financial Transactions and Reports Analysis Centre (FINTRAC) “has an enormous mandate,” with upwards of 25 million reports annually, Cullen said.
“I am interested in perhaps turning Canada’s attention to that,” he told Hoffman.
Hoffman noted the interconnected roles of FINTRAC, RCMP, the Canada Revenue Agency, the Canadian Security Intelligence Service and the Office of the Superintendent of Financial Institutions, which regulates banks and money service businesses. The Canada Mortgage Housing Corp. also plays a role as the federal regulator of housing policies.
Using money service businesses as an example, Hoffman explained how the RCMP’s Combined Forces Special Enforcement Unit is working with the B.C. Attorney General and City of Richmond on a provincial licensing program.
Both senior governments are looking at new regulations for greater transparency in business ownership.
Hughes spoke about B.C.’s ongoing public consultation process to create a provincial public registry of corporate beneficial ownership, as it has done for property ownership – key recommendations of the Expert Panel on Money Laundering in Real Estate, commissioned by the province in 2019.
That panel provided a broad picture of money laundering in B.C., estimating that between $800 million and $5.3 billion was cleaned through B.C. real estate in one year.
The Cullen inquiry has been spurred largely by the perceived impact of dirty money on the real estate industry and its impact on B.C.’s middle class. Furthermore, as noted by Hughes, criminal proceeds from the opioid crisis are flowing through casinos and ending up in real estate.
The BC NDP government has created a new Crown agency to regulate the real estate and finance sectors in the province – the B.C. Financial Services Authority, which now controls the formerly independent role of the superintendent of real estate.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
VANCOUVER – Voters along the south coast of British Columbia who have not cast their ballots yet will have to contend with heavy rain and high winds from an incoming atmospheric river weather system on election day.
Environment Canada says the weather system will bring prolonged heavy rain to Metro Vancouver, the Sunshine Coast, Fraser Valley, Howe Sound, Whistler and Vancouver Island starting Friday.
The agency says strong winds with gusts up to 80 kilometres an hour will also develop on Saturday — the day thousands are expected to go to the polls across B.C. — in parts of Vancouver Island and Metro Vancouver.
Wednesday was the last day for advance voting, which started on Oct. 10.
More than 180,000 voters cast their votes Wednesday — the most ever on an advance voting day in B.C., beating the record set just days earlier on Oct. 10 of more than 170,000 votes.
Environment Canada says voters in the area of the atmospheric river can expect around 70 millimetres of precipitation generally and up to 100 millimetres along the coastal mountains, while parts of Vancouver Island could see as much as 200 millimetres of rainfall for the weekend.
An atmospheric river system in November 2021 created severe flooding and landslides that at one point severed most rail links between Vancouver’s port and the rest of Canada while inundating communities in the Fraser Valley and B.C. Interior.
This report by The Canadian Press was first published Oct. 17, 2024.
