A report in the Globe and Mail over the weekend claims that the real estate industry is being used for money laundering by those connected with drug-related crime in British Columbia.
The report claims that money from drug dealing and other crimes is being used by certain unlicensed private lenders who issue mortgages and short-term loans in cash.
The province’s attorney-general David Eby has reacted to the report and other recent media coverage, calling them “very serious and deeply troubling.”
“The nature of these allegations, that this money-laundering activity is actively influencing our real estate market and is connected to the sale of life-destroying fentanyl, underlines the critical importance of addressing money laundering urgently and not ignoring it. This story confirms our government’s commitment to taking action to crack down on money laundering and criminal activity in B.C.,” he said.
He added that he has extended the scope of the review being carried out by Peter German, who was hired to look into money-laundering rules for the casino industry; to assess any connection between money-laundering and other parts of the province’s economy, including real estate.
“Our government will work to determine the scope of this issue, and what must be done to appropriately address it. We will ensure our investigation into money laundering in B.C. casinos is informed by these disturbing revelations,” concluded Mr Eby.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate