Thank you very much, Mr. Chair.
I beg to differ with you on just one matter: this is actually the first testimony we've heard on the implementation act and the Panama trade treaty itself. We did have a couple of years ago some hearings on the principle of having an agreement with Panama, but this is indeed the very start of the witnesses, and we're glad to have them here today talking about this particular agreement and what is in it. So we're starting and we'll certainly be submitting witnesses, because I know there'll be lots of people who want to speak to this.
I think the primary concern, as both Ms. Hall Findlay and Mr. Laforest have raised, is the issue of money laundering, particularly from the drug trade. There's an excellent book, which I'm sure you've read, that came out from Cornell University just a few months ago. It mentions that about 75% of all sophisticated drug trafficking operations use offshore secrecy havens, and states that it is evident to all who have studied the offshore banking business that its growth has been fueled by the phenomenal increase in cash from the U.S. drug trade. Moreover, it says that of the criminal cases cited by IRS investigations, 29% have involved the Cayman Islands and 28% Panama. So they are the two worst countries in the world as far as laundering of dirty drug trafficking money is concerned. And one of the authors states that organized crime tends to use techniques of concealment in tax havens and that their professional services are used by individuals and corporations there. So it's not a minor issue.
What I'd like to find out from you is what parts of this bill actually deal with money laundering and the use of drug money. If you could lead us through that, I think it would be helpful.
Secondly, what consultations were held with the RCMP and CSIS about drug money laundering and the use of Panama tax havens for this?
So could you lead us through the consultations that were held and the opinions that came back from the RCMP and CSIS, and tell us whether there were consultations abroad with the Drug Enforcement Administration in the United States?