The Attorney General has released the Peter German report on anti-money laundering, and announced that the government has begun implementing the 48 recommendations in an effort to put an end to the flow of dirty money into British Columbia’s casinos.
“The German report paints a troubling picture of government that didn’t respond effectively to pervasive money laundering in B.C. casinos. German found they didn't effectively detect, prevent or prosecute it — they turned a blind eye to it,” said David Eby, Attorney General.
“The era of inaction and denial is over. We are moving immediately to get dirty money out of B.C. casinos.”
German found that large-scale, transnational money laundering has been occurring in B.C. casinos. He also highlighted how organized crime used the “Vancouver model” to take advantage of Lower Mainland casinos, as well as other sectors of the B.C. economy.
“The failure was not of one entity or person, but of the system. Fortunately, there are fixes which will prevent casinos from being used in the future as a tool for money laundering,” said German.
The report makes 48 recommendations, nine of which the government has implemented. The remainder of the recommendations are in the initial stages of implementation, or are being reviewed by government in preparation for further action.
“Money laundering isn’t a victimless crime. It’s linked to the opioid crisis, and deaths on our streets. It’s linked to skyrocketing housing costs that are pushing people out of our communities,” said Eby. “It will take time to undo the damage done to B.C.’s international reputation, but we aren’t waiting to get started.”
The German report was first received by government on March 31, 2018. It was reviewed for privacy concerns and accordingly, German sent government a revised version on June 19, 2018. As an independent reviewer, it was at all times within German’s absolute discretion as to the content of his report.
Read Peter German’s full report: https://news.gov.bc.ca/files/Gaming_Final_Report.pdf
A backgrounder follows.