Transparency International Canada’s Executive Director, James Cohen, was invited to attend a press conference for the introduction of legislation to increase Ontario real estate. The Anti-Money Laundering in Housing Act, proposed by Ontario NDP Housing critic Jessica Bell (University-Rosedale), and MPP Bhutila Karpoche (Parkdale-High Park) would require corporations, trusts, and partnerships that own real estate to disclose individual owners, with failure to comply resulting in fines of up to $100,000.
The ‘End Snow Washing’ Coalition of Transparency International Canada, Publish What You Pay Canada, and Canadians For Tax Fairness released a joint study in 2019 titled OPACITY: Why Criminals Love Canadian Real Estate (and what to do about it). The report found multiple risk indicators in Greater Toronto Area land titles between 2008 and 2018. These risks include
At least $35 billion in residential mortgages were provided by unregulated lenders with no statutory AML reporting obligations.
Corporate entities have acquired $28.4 billion in GTA housing that decade. The vast majority of those companies are privately owned, with no information on their beneficial owners.
$9.8 billion in GTA housing was acquired by companies through cash, or non-financed purchases during that period, much of it bypassing statutory AML checks on source of funds and beneficial owners.
“Housing prices are skyrocketing out of reach for many Ontarians, and the problem is in part caused by crooks, kleptocrats, and tax dodgers taking up residential spaces as safety deposit boxes for their dirty money” said Cohen at the press conference.
The proposed bill would build on beneficial ownership transparency developments brought forward by the Ontario government in Bill 43 that proposed amendments to the Business Corporations Act as part of the Fall Economic update.
Transparency International Canada encourages all parties in the Ontario Legislature to work together on passing the Anti-Money Laundering in Housing Act.
More Information:
Read James Cohen’s full press conference statements here.
Read MPPs Jessica Bell and Bhutila Karpoche’s press release here.
Watch the full press conference here.
Read the OPACITY report here.
Read the proposals to amend the Ontario Business Corporations Act here.
Learn more about the End Snow Washing campaign here.
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For media inquiries please contact:
James Cohen
Executive Director, Transparency International Canada
E-mail: ti-can@transparencycanada.ca
Phone: 416-488-3939