CAN BC FIC Money Laundering

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.