Track cars Purchased for cash, money laundering investigator says

Money purchases of luxury automobiles and other expensive things must be subject to “geographic targeting,” the money laundering specialist hired by the B.C. authorities recommends.

“The criminal lifestyle can be attracted to expensive consumer goods, such as luxury automobiles, and because of their high price, these items can also be utilized to reintroduce illegal cash to the legitimate economy,” states one of the latest recommendations from Peter German, a former deputy commissioner of the RCMP. “Currently, there’s absolutely no monitoring by authorities of cash purchases for luxury things.”

German predicts Vancouver “Canada’s luxury car funding,” advocating that Metro Vancouver dealers should report purchases. A reporting threshold greater than $10,000 may be necessary to protect against the shift of local buyers into other areas, ” he states.

B.C. Attorney General David Eby released a brand new set of interim recommendations from German Monday as he attempts to show up before the federal finance committee in Ottawa this week.

German also calls for improved resourcing of police, after the RCMP removed its federal commercial crime and proceeds of crime departments in 2012.

“Although the RCMP is rebuilding its fiscal crime experience, the gap from federal policing in this region between 2012 and 2017 changed responsibility for white-collar offense to national and municipal police forces, which generally do not have the funds or experience to take on those intricate files,” German said.

The federal government is considering changes to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. German urges information sharing between police services and the federal government’s Financial Transactions and Reports Analysis Centre (FINTRAC), that requires reporting of large cash transactions at casinos.

B.C. has already implemented two of German’s recommendations for casinos. One needs casinos to complete a form identifying the customer and the source of funds for any cash or bearer bond deposit of $10,000 or more.

The other is to hire government labs to be “seen on site at large, high-volume facilities” 24 hours each day.