Language selection

Search

FINTRAC publishes indicators on the laundering of proceeds from illicit cannabis in support of Project Legion

News Release

September 28, 2022, Ottawa Ontario

FINTRAC published today its latest Operational Alert, Laundering of Proceeds from Illicit Cannabis, in support of Project Legion. This Operational Alert is meant to assist businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in better identifying and reporting to FINTRAC financial transactions related to the laundering of proceeds from illicit cannabis activities.

Although the Cannabis Act, which provides the legal framework controlling the production, distribution, sale and possession of cannabis across Canada, came into force in 2018, 37% of respondents to the Canadian Cannabis Survey 2021 disclosed that they obtained some or all of their cannabis from illegal/unlicensed sources, including unregulated/unauthorized retailers and storefronts.

This illegal cannabis market harms Canadians and Canada's financial system through the significant loss of tax revenue. The profits generated by the sale of illicit cannabis are also used by organized crime groups to fund other illegal and harmful activities in communities across the country.

FINTRAC's Operational Alert, Laundering of Proceeds from Illicit Cannabis, was developed in collaboration with law enforcement and Canada's largest banks to advance and facilitate Project Legion, Canada's most recent public-private partnership. Led by TD and supported by law enforcement agencies and FINTRAC, Project Legion is focused on enhancing awareness of the harm associated with illicit cannabis activities and strengthening the detection of the laundering of proceeds from this crime.

With the reports received from businesses subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, FINTRAC is able to generate and disclose actionable financial intelligence to Canada's law enforcement agencies in support of their money laundering investigations.

Quotes

"We are committed to working with our partners and Canadian businesses to protect Canada's financial system and help deprive organized crime groups of the funding they need to pursue their criminal activities that are so harmful to our communities and our most vulnerable citizens. Through the dedicated efforts of Canada's largest banks, in particular, and the financial transactions they report, FINTRAC is able to harness the power of financial intelligence to help identify and target the criminals and organized crime groups engaged in illicit cannabis activities and other financial crimes."

Sarah Paquet, Director and Chief Executive Officer, FINTRAC

"At TD, we are committed to playing a leading role in advancing financial crime risk mitigation. We welcome this opportunity to collaborate with FINTRAC with the goal of detecting and deterring laundering of proceeds from illicit cannabis activities. This coordinated effort will help protect the integrity of our financial systems and contribute to the safety of communities across Canada."

Mike Bowman, Chief Anti-Money Laundering Officer, TD Bank Group.

Quick Facts

Related Product

Associated Links

– 30 –

Contacts

Media Relations
Financial Transactions and Reports Analysis Centre of Canada
613-947-6875
media.medias@fintrac-canafe.gc.ca

Follow us on
Twitter: @FINTRAC_Canada
LinkedIn: FINTRAC Canada|CANAFE Canada
YouTube: FINTRAC Canada

Date Modified: