Canada once again ranks as one of the world’s least corrupt countries according to Transparency International’s 2017 Corruption Perceptions Index. But, the CPI tells only part of the story. The golden halo should not blind you from the dirty sheets being aired.
According to the latest CPI ranking, Canada is the 8th least corrupt country out of 180 with a score of 82 out of 100. New Zealand and Denmark rank highest with scores of 89 and 88 respectively. Syria, South Sudan and Somalia rank lowest with scores of 14, 12 and 9 respectively.
“As Canadians, we should be proud that Canada continues to be ranked as one of the least corrupt countries in the world. We live in a country where the rule of law is a fundamental principle of democracy, where citizens are engaged and empowered to hold government to account, and where the media can conduct corruption investigations without fear of reprisals. But, we have to be vigilant. Canada cannot be a country where proceeds of corruption find refuge. We cannot be a safe haven for money launderers. Our homes cannot be used to clean dirty money. We have to continue to fight against corruption even if we are top ranked on the Corruption Perceptions Index,” said Alesia Nahirny, Executive Director of Transparency International Canada.
If the term ‘snow washing’ is not yet known to all Canadians, many have been feeling the effects. Last year investigative journalists at the Toronto Star and CBC found the term buried in the Panama Papers. Snow washing happens when intermediaries tell their clients to hide dirty money from tax evasion, kleptocracy, sanctions busting, and the proceeds of crime in Canada. Their message is simple, hide your dirty money in the backyard of Canada, an upstanding global citizen, and it will be cleaned like the pure white snow.
The flow of such illicit funds into Canada can be prevented and should be stopped. Current Canadian laws allow companies, trusts, and property titles to hide their true beneficial owners. The burden for following the paper trail, which can quickly be altered, is left to our financial institutions, government and overstretched law enforcement.
This money comes from within Canada and abroad, often intermingling. Quebec is still reeling from the effects of criminally aligned construction companies setting up fake establishments to create fraudulent billing schemes that ripped off Canadian tax payers.
Now British Columbia is feel the boiling point effects of beneficial ownership opaqueness. BC Attorney General, David Eby, has said that the money laundering situation is so bad in his province that international intelligence circles specifically refer to the ‘Vancouver Model’.
“As new allegations emerge of the intersection between gambling, real estate, and the fentanyl trade that’s taking lives, BC residents are demanding action against snow washing,” said James Cohen, Director, Policy and Programmes at Transparency International Canada.
In December 2017, the federal, provincial, and territorial finance ministers came together to take steps toward addressing snow washing. The proposal is that companies keep beneficial ownership information on hand. This is not enough. The announcement came a week after the European Union adopted measures ensuring all its members establish public registries of beneficial ownership. A registry is already in place and operating in the UK.
Canada is lagging way behind.
“While we should celebrate yet another high CPI ranking, Canada must continue to fight for the rule of law which cannot prevail in the absence of beneficial ownership transparency,” said Alesia Nahirny.
For media inquiries please contact Alesia Nahirny at:
416-488-3939