It’s no secret that this country, and British Columbia in particular, has a problem with fraud, money laundering, and financial crime.
Whether it’s drug proceeds passing through casinos and real estate transactions, or pump-and-dump stock schemes, we’ve seen more than our share of some obvious and blatant criminal activities in the last decade.
What we haven’t seen is a lot of high-profile prosecutions.
This month, there’s some jockeying in court over the very first unexplained wealth order filed by the provincial government, over a $1 million home on Salt Spring Island.
It’s an open question whether unexplained wealth orders are even constitutional – the target of the first such order, Skye Lee, is arguing that they violate his rights.
But even if they succeed, they illustrate the gaping hole in British Columbia’s defence against major financial crime.
B.C. has had some success going after the assets of crooks via civil forfeiture laws, which allow the government to seize money, vehicles, even land that was used in a crime, or bought with the proceeds of crime.
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And the BC Securities Commission (BCSC) has launched some major actions against stock fraud artists, including taking on some multi-million dollar schemes.
But police and Crown prosecutors are not touting their successes, which are fewer and much farther between.
We do not have enough skilled investigators who can untangle complex frauds in this province. When Peter German wrote his comprehensive report on money laundering in B.C., one problem he highlighted was that the former Commercial Crime section of B.C.’s RCMP E Division had seen its mandate diluted after it had been folded into a broader major crimes unit, which had responsibilities for everything from terrorism to international drug running.
Using civil procedures like civil forfeiture and unexplained wealth orders is confining B.C. to a narrow path when it comes to fighting scams, money laundering, and major frauds.
We need a multi-pronged approach, one that involves police, Canada Revenue, BCSC, and civil penalties. We need a full tool kit, or at least a Swiss Army knife.
Right now, all we’ve got is a spoon.
– M.C.