Canadian real estate in government, organized crime has infiltrated everything: intelligence

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Some countries lack corruption and some lack investigations that reveal corruption. Canada feels like the latter after data shared by the Criminal Intelligence Service Canada (CISC). The SCRC may not mean anything to you, as it largely operates behind the scenes. They provide law enforcement with intelligence on organized crime groups and monitor their activities.

The agency’s 2021 Organized Crime Report reveals that they have identified thousands of organized crime groups. The report also reveals that these organizations have infiltrated everything from real estate to government. Let’s quickly review some of the data points that are quietly eroding your quality of life.

Canada is a cesspool filled with organized crime

The report focuses on organized crime groups (OCCs) that pose “next level” threats. Higher level threats use methodical violence, infiltrate law enforcement, security or government. They also use multiple companies, cooperate with other OCGs, and are often international. They are not street thugs, but highly methodical and hierarchical organizations. Think of criminal enterprises, with high-level management.

It sounds complex and there can’t be that many, right? Maybe 5 or 6 is what you’re probably thinking. Try over 2,600 operating in Canada they have identified. The CICA says 45% are also relatively new entities. Freelance work in Canada is plummeting, but at least we welcome more world-class criminals.

But for real, let’s put that number in context. Let’s say there are 3 people in a group, the legal definition. Not exactly organized unless one person tells two people to do things, but we’re down here. This equates to 1 in 4,000 Canadian adults who are members of a BCG. There are more organized criminals in Canada than high school teachers in Toronto. Just those identified.

CISC conducted threat assessments out of 469, a relatively small share. Even with this small number, it reveals very big problems for Canada. They called 14 of them high-level “domestic” threats. This means they pose a national security risk and do business across borders. It includes “mafia” groups, the agency explained. Half of the high level threats are in Ontario.

Organized Crime Loves Canadian Real Estate

Organized crime groups in Canada must have been really drawn to HGTV growing up, real estate being a major interest. Financial crimes such as mortgage and real estate fraud are among the top 3 activities. The other two that round out the top are illicit drugs and crimes against people, such as extortion. Not very Canadian of them. This doesn’t even include the actual trading of real estate for laundering.

Real estate is a top tool for money launderers

Money laundering is popular, as you can guess with all the illicit money. It’s pretty obvious. What is not obvious is the amount laundered. It rivals the size of entire financial systems in small countries. The CICA found that 30% of organizations assessed engage in money laundering professionally. Maybe there’s some sort of anti-money laundering olympiad we can organize?

They warn that the number is actually much higher, but due to the fact that the whitening is hidden, it is hard to find.

There are 22 groups and 9 individuals who “score high” for money laundering. The term makes it sound like they’re not safe, but that’s not what it means. A high score means they use sophisticated methods and often launder as a service. Money service businesses, the private sector, informal transfers, casinos and real estate are popular tools.

Among professional money launderers (PMLs), the highest threats launder hundreds of millions of dollars per year. “A high-level PML network is part of international networks serving transnational criminal organizations (e.g., drug cartels) and using Canada as a transit point to launder foreign proceeds of crime,” wrote the agency.

1 in 10 organized crime groups are involved in government

When discussing such large numbers, it is hard not to believe that willful blindness is at play. There is a reason why – 1 in 10 (11%) of BCGs have infiltrated, or are in the process of to infiltrate, the government. The CICA warns of a “significant information gap and the true proportion is likely higher, as the ownership of nearly two-thirds of BCGs assessed in this sector is unknown”.

In other words, there are more criminals than you think.

They add: “…some have ties to municipalities through associates or personal connections in major Canadian cities. And people say their local government is not accessible. Obviously they are, you’re just not a big enough criminal to get into them.

It doesn’t end there, but we’ll leave you with this last point about government. The CICA claimed that 6 of the assessed groups have a “significant” influence on the public sector. This includes 4 domestic threats, again indicating that they likely have infiltrated the government, as defined by the agency.

Corruption drives up the cost of everything from real estate to taxes

Canada is a very expensive place and part of that is due to the scale of crime, according to CISC. “The infiltration of the public sector increases the costs of public goods and services, leads to the misallocation of public resources, weakens policy-making and implementation, and undermines public trust in government and government forces. of order”, warns the agency.

They even imagine how much it cost the taxpayers. “Corrupt activities in government processes can increase project costs by up to 50%,” CISC estimates.

Not hard to see with the CICA suggesting BCGs are flocking to transportation and construction. They estimate that 71 OCGs work in the construction sector alone. We have already discussed the impact of money laundering on house prices via marginal buying. Now, more attention should be paid to how construction costs inflate prices, apparently.

Why aren’t the police doing anything?

In short, they can’t. To understand why, think back to how often you’ve heard of a known criminal in Canada. Maybe they were the head of a crime family and were murdered in their homes or shot in public. Think how weird that is for a second – we know they’re a criminal boss. They were just out doing stuff? We knew they were running a criminal enterprise, but they just went out to dinner, jogging, and shit?

Guessing a few examples came up.

Now try to think of an example in the United States. It’s not impossible, but it’s relatively rare. The reason dates back to the 1970s and the Racketeer Influenced and Corrupt Organizations Act (RICO). The law opens the door to anyone who benefits, even indirectly, from the activities of organized crime. Any leader of a group who demonstrates a pattern of activity can be held accountable. Even if the leader is not caught giving the orders, he can be prosecuted.

It’s not that politicians don’t understand the need for RICO-style laws in Canada. Attorney General of British Columbia, David Eby called on the federal government to rewrite the criminal code to prosecute organized crime. “I have made numerous proposals to the federal government, including US-style RICO-style laws, unexplained wealth orders, increased and dedicated police departments to combat money laundering in the province,” he told CTV News last year.

Obviously, these requests did not go very far.

Federal support has been lighter, but the MP (MP) Adam Chambers try to get support for the problem. He is calling for a federal investigation into money laundering, after asking a number of questions about failures identified by the BC investigation.

“We need to look at all the tools available to combat money laundering activity. A national survey will give us some ideas and if any of them are a RICO style act then they should be considered,” said MP Chambers explained via email.

Despite growing support and a public demanding answers regarding the many failures, Canada has oddly opposed RICO-like laws. It is not exactly a question of time or of particular government, since there has been no action for 50 years. Law enforcement is asking for tools like this, but the requests are being ignored by all parties. The country just doesn’t want to prosecute him, and it’s unclear why. Wait… how many organized crime groups did you say have infiltrated the government, yet?

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