On May 9, CAN BC FIC issued report on real-estate laundering.
- Expert panel on money laundering in real estate, reported that the over C$7bn
in dirty money laundered in BC in 2018 had increased cost of a home about 5%.
Expert Reports
- Report released with remainder of Peter German review on money laundered in
real estate, luxury car, horse racing, and $7.4bn laundered in 2018, see #55812. - Expert panel estimated that $5bn was laundered through the real-estate market.
- Said billions in property linked to high-risk money-laundering and/or tax evasion.
- German believed no agency, police force had enough oversight, resources to act.
Corrective Action
- Recording beneficial owners in land registry, to combat laundering in real-estate.
- Creation of online register for pre-sale condominium sales, to track assignments.
- New property-transfer tax-return shows beneficial owners for corporates, trusts.
- Legislation allows information sharing of homeowner grant by federal tax official.
- Strengthening property transfer tax auditor ability to take action on tax evasion.
- Implemented the speculation and vacancy tax, which targets foreign owners and
satellite families who own real estate in the province but pay little or no tax in BC. - Established a federal-provincial working group on tax fraud and money laundering.
