The Cullen Commission of Inquiry into Money Laundering in British Columbia released its final report. Although the report focuses on BC, money laundering is an international problem that affects those in all of Canada. The lengthy report will be of interest to those who deal with governance and financial management in the charity sector. It may signal a greater interest in cracking down on money laundering and unless charities are careful, they might get caught up in that enforcement.

Here is a small part of the Executive Summary:

Money laundering is a significant problem requiring strong and decisive action

Money laundering is a significant problem deserving of serious attention from government, law enforcement, and regulators. An enormous volume of illicit funds is laundered through the British Columbia economy every year, and that activity has a significant impact on the citizens of this province.

Money laundering has, as its origin, crime that destroys communities – such as drug trafficking, human trafficking, and fraud. These crimes victimize the most vulnerable members of society. Money laundering is also an affront to law-abiding citizens who earn their money honestly and pay their fair share of the costs of living in a community. There can be few things more destructive to a community’s sense of well-being than a governing regime that fails to resist those whose opportunities are unfairly gained at the expense of others.

While it is not possible to put a precise figure on the volume of illicit funds laundered through the BC economy each year, the available evidence shows that the figure is very large (with estimates in the billions of dollars per year in this province alone).

Sophisticated professional money launderers operating in British Columbia are laundering staggering amounts of illicit funds. Evidence uncovered by law enforcement indicates that a single money services business was involved in laundering upwards of $220 million per year through a sophisticated scheme that relied on underground banking infrastructure and that took advantage of a lax regulatory environment in the gaming sector.

It is essential that government, law enforcement, and regulators take strong and decisive action to respond to the problem.