I'll focus on the recommendations themselves.
For reference when you receive the official document, I'll start at paragraph 14, under the heading, “The Legal Profession”:
Without question, the absence of reporting by lawyers is a significant gap in Canada and is a significant impediment to police investigations involving the movement of money through real estate and other financial sectors. Canada is an outlier here as well. Other common law jurisdictions, including the United Kingdom, have robust provisions in place which require financial reporting by lawyers. Quite frankly, consultation has occurred for years. There is a real need for legislation which can withstand a Charter challenge and requires the reporting of monies held in lawyer trust accounts.
The irony is that in British Columbia, most personal real estate transactions are handled by notaries, who do report to FINTRAC. It is hard to rationalize why their handling of money should be treated differently than that of lawyers.
Under the heading, “High Risk Sectors”:
The consultation paper lists several businesses and persons to which legislation could be extended, through amendments to the POCMLTFA. It is something akin to 'whack a mole' as FinTRAC attempts to close gaps with vulnerable sectors that do not currently report. Of interest are the following:
Under the heading, “Par-mutuel or horse racing sector”:
GPEB
—that's the gaming policy enforcement branch in British Columbia—
currently regulates this industry. I am not aware that B.C. has ever examined the prevalence of money laundering in the horse racing sector. Reporting requirements would certainly shed light on what is occurring.
Under the heading, “Auto dealers”:
It is well documented that the criminal lifestyle is often attracted to expensive consumer goods; such as luxury cars and pleasure craft. Due to their high value, these items are also excellent places in which illegal cash can be reintroduced to the legitimate economy during the integration phase of the laundering process.
Luxury items are of interest because there is no tracking by government of cash purchases. They are not reportable transactions to FinTRAC.
Vancouver has been described as the number one super car city in North America. Also, auto dealers in Greater Vancouver are among the highest new and used luxury car dealers in Canada, by sales volume.
In essence, an individual can walk into a luxury auto dealership and purchase a high-end vehicle with $400,000 cash. The only obstacle will be dealership policies.
An incredibly large number of 'curbers', unregulated intermediaries, are believed to be operating in B.C. and a vigorous awareness campaign is underway to alert British Columbians of the dangers inherent in dealing with curbers. The fact that these are all cash-based activities makes them extremely vulnerable to the introduction of dirty money.
Under the heading, “Company Service Providers”:
This high-risk sector is relevant to the issue of beneficial ownership.
Pardon me, Mr. Chair, but it's difficult to pull out the recommendations, because clearly they are part of a larger integrated document. Maybe I'll start a little earlier because I might be able to get through the two pages that would give some context.