British Columbia initiates money laundering investigation

British Columbia has started probing money laundering in the Canadian province – the focus is on finding any links with the gambling industry.

As per media reports, an estimated CAD $5bn was laundered in the province just in 2018. Recent government reports pointed to gaming as of the industries that may be involved in money laundering, along with real estate and luxury car segments.

The government has launched the investigation to unearth more evidence and find ways of addressing the problem.

As per the reports, people were allowed to enter casinos with large amounts of cash without being questioned by staff on the source of the money – this raises concerns over money laundering, said the government.

Opening statements from the invited inquiry participants will be recorded this week, with the process to be resumed in May. The main hearings will be held between September and December.

BCLC (British Columbia Lottery Corporation), the provincial lottery operator, said it is eager to work with the authorities to tackle what it considers to be a complex issue, but laid out the benefits of legal gambling in the province. It noted that the betting market is a key source of tax revenue for the province, funding various social projects.

The BCLS outlines a few measures it has implemented to prevent money laundering, including KYC (know your customer) processes to examine gamers’ financial dealings, and to spot potential risks.

The BCLS pointedout that all its casino staff undergoes in-depth anti-money laundering training – the corporation also operates its own money-laundering unit.

“Accordingly, we respectfully urge the Commission to recognise and consider the important public benefits that flow from responsible gaming in this province as it addresses the issue of money laundering in the gaming industry,” the BCLC stated.

The statement added, “That said, BCLC’s focus on revenue growth has never been intended to be at the expense of sustainable gaming conducted in a socially responsible manner. BCLC takes seriously its responsibility to enhance the positive social benefits of gaming while minimising the potentially negative aspects or consequences.”

The BCLC made some general observations in its statement, saying that tackling money laundering is a complex issue, primarily because it is an international problem involving sophisticated organised crime.

The operator called for a “holistic, cross-sector, and cross-jurisdictional approach” stating that money laundering in British Columbia is not specific to gambling that can be solved only withindustry-specific solutions, but instead an issue that necessitates broader solutions.

Additionally, the BCLC said that a single entity could not be responsible for the prevention of money laundering – this instead needs a coordinated effort among all entities that play a role in monitoring, investigating, and acting against potential criminal activity.