Anti-money laundering watchdog gives failing grades to banks, real estate companies
An internal report from Canada’s financial crimes watchdog found that most banking and real estate companies it audited last year are not following the country’s anti-money laundering laws, sparking calls for greater oversight and higher fines.
The 2022/2023 report, prepared by the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC), found that only 106 out of 237 financial institutions complied with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.
Global News obtained the report under the Access to Information Act. It audited financial services and real-estate companies among other sectors but did not name any individuals or companies.
FinTRAC, which reports to the federal Finance Minister, works to identify and prevent dirty money from entering Canada by analyzing millions of documents submitted by reporting entities like banks, real estate businesses, casinos, and others.
More than 24,000 businesses currently fall under Canada’s anti-money laundering act, according to the agency.
Financial crime and terrorist financing experts warn that the high failure rates across the finance and real estate sectors have profound consequences: Money laundering can lead to corruption or help criminals use illicit cash to fuel other enterprises, such as fraud or firearms trafficking.
“If crime remains profitable, there will be more crime,” said Matt McGuire, a forensic accountant, noting anywhere from $40 and $130 billion a year is laundered through the Canadian economy.
“In the end, our communities are less safe.”
Here are some of the report’s highlights:
The findings show an urgent need for more examinations across all sectors and a significant increase in fines for businesses that aren’t
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