Organized Crime and Money Laundering in British ColumbiaInspector Mike Ryan Organized crime and money laundering are problems that affect all Canadians. Money laundering is a serious criminal offence entailing the illegal movement of funds, estimated to be between five and seventeen billion dollars, in and through Canada each year. The impact of organized crime and money laundering goes beyond easily recognized consequences such as violence and economic losses to include less visible social costs. In recent years the federal government has taken a number of steps, in partnership with the provinces, territories, and the police, against organized crime, including initiatives to fight cross-border smuggling and seize the proceeds of crime. Money laundering is the process by which "dirty money" generated by criminal activities is converted into assets that cannot be easily traced back to their illegal origins. A significant proportion is linked to profits from the illicit drug trade but proceeds from other crimes, including illegal gambling, prostitution, stock market manipulation, cigarette smuggling, and all forms of frauds and thefts, are also involved. Money laundering activities are carried out through financial institutions, and can adversely affect corporate reputations and public confidence in these industries. Generally, in Canada most organized crime groups tend to operate in small cells, with a small number of clients, insulating themselves from direct contact with their illegal activities as independent entrepreneurs, and collecting tremendous profits. This differs significantly from other geographical territories where the entire control of importation, manufacture, and distribution of criminal goods and services are centralized, often under corrupt systems of public officers and law enforcement. In Canada there is often open competition between a large number of small criminal networks which very in size, race and ethnicity, criminal background, and the type of criminal product provided. |