Canada is increasingly being seen as a money laundering haven: anti-money laundering expert

Oil price HAVE ANOTHER LOOK AT THE OIL PRICE BECAUSE WE HAVE SEEN SIGNS LATELY OF SHRINKING U.S. STOCKPILES. SO THERE IS OIL ACTUALLY MOVING UP ABOUT ONE PERCENT ON THE DAY, BUT IT'S BEEN A PRETTY TIGHT RANGES LATELY. SO WE'RE ABOVE $79 GENERALLY, THE PRICES FLOATED BETWEEN 77 BUCKS AND $82 US FOR WTI THIS MONTH. THE WAS A DROP IN U.S. STOCKPILES OF ABOUT 2.5 MILLION BARRELS LAST WEEK. ACCORDING TO BLOOMBERG, THAT WAS THE FIRST BACK-TO-BACK DECLINED SINCE MARCH. AND THAT BROUGHT NATIONWIDE US STORAGE A PETROLEUM TO THE LOWEST AT NEARLY MONTHS. BUT OF COURSE, OIL HAS COME DOWN FROM THE HIGHS. GOT AFTER THE. AFTER TD Bank HAMAS ATTACKED ISRAEL AND OCTOBER. TD SAYS IT HOPES TO CONSUME WORKOUT OR AS A LAY, A RESOLUTION TO THIS SERIES OF REGULATORY AND LAW ENFORCEMENT PROBES. IT FACES IN THE U.S. OVER ALLEGATIONS THAT THE LENDER WAS USED TO LAUNDER MONEY. AND WE'VE SEEN REPORTS THAT CLAIMS ARE LINKED TO A MASSIVE DRUG SMUGGLING OPERATION IN THE STATES. FENTANYL SAID TO BE INVOLVED TD BANK FACING PROBES BY 3 DIFFERENT REGULATORS AS WELL AS THE U.S. DEPARTMENT OF JUSTICE AND THE THAT TD ITSELF HAS ADMITTED THAT ITS MONEY LAUNDERING CONTROLS WERE IN OUT OF QUESTION OUR GUESTS AS TD IS FACING A MASSIVE FINE ON TOP OF HUNDREDS OF MILLIONS OF DOLLARS LOST IN MARKET CAP, STOCK MARKET VALUE AS THESE ALLEGATIONS CAME OUT. BUT ARE WE LOOKING AT A BROADER CULTURE OF MONEY LAUNDERING IN Matt Maguire CANADA. WE'RE JOINED BY MATT MAGUIRE, PRINCIPLE AND PRACTICE LEADER AT THE AML THANKS FOR MUCH FOR JOINING US. MY TELL US, WHAT DO YOU DO AT THE AML SHOP? WHAT'S YOUR BUSINESS MODEL? >> THANKS, THANKS FOR HAVING FOCUS REALLY IS ON HELPING BUSINESSES FIGURING OUT WHAT Snow washing THEIR MONEY LAUNDERING RISKS ARE AND HOW TO PROTECT THEM FROM THEM. >> THE WE HAVE HEARD THIS FOR MANY YEARS. WE HAVE THIS EXPRESSION, SNOW WASHING CANADA IS SEEN AS A SOFT TOUCH WHEN IT COMES TO MONEY LAUNDERING COMPARED TO OTHER COUNTRIES. IS THIS COUNTRY QUITE BLACKS? >> HE IS ONE OF THE BEST PLACES IN THE WORLD TO LAUNDER MONEY WE HAVE AWFUL COMBINATION YOU KNOW, CORPORATIONS AND JUST HORRIBLE Anonymous corporations RECORD FOR CONVICTING AND FOR TAKING AWAY THE MONEY FROM CRIMINALS. >> AS FAR AS I KNOW FOR MANY YEARS, YOU COULD SET UP A NUMBERED COMPANY IN CANADA AND JUST ACTUALLY OWNED US IN CONTRAST TO MANY OTHER JURISDICTIONS. >> YES, STILL HUGE PROBLEM HERE. WE'RE TALKING ABOUT, YOU KNOW, THE OPEN CORPORATIONS AND MEDICINE, YOU KNOW, ABILITY TO BEHIND THOSE STRUCTURES BEHIND TRUSTS BEHIND A NOVA SCOTIA CORPORATIONS BEEN, WE WILL REALLY. WE'RE HAVING TO Corporation penalties IDENTIFY IMMEDIATELY IDENTIFY THE PEOPLE THAT ARE MAKING THE DECISIONS AND ARE BENEFITTING FROM THE CORPORATION. >> WHAT PENALTIES SEEM TO BE VERY LOW IN THIS COUNTRY. THAT SEEMS TO BE ONE OF THE PROBLEMS. THIS ONE OF THE BIGGEST PROBLEMS ENFORCEMENT AGAINST FINANCIAL INSTITUTIONS. YOU KNOW, WHEN IT COMES DOWN TO IT. >> THE TOOLS IN FINTRAC, OUR FINANCIAL INTELLIGENCE UNITS TOOL BOX TO BE ABLE TO ISSUE PENALTIS TO BANKS ARE JUST INSUFFICIENT. I MEAN, YOU KNOW, THE SAME PELLEY OF THE MAXIMUM PENALTY OF $500,000 CAN APPLY EQUALLY TO A SMALL JEWELRY THEM ALL AS IT CAN TO A BILLION DOLLARS FINANCIAL Maximum penalty INSTITUTION. AND SO THO THOSE TICKETS DON'T HAVE SWAY SOME EFFECT. >> THAT'S INTERESTING, SO HALF A MILLION DOLLARS IS THE MAXIMUM PENALTY. FINTRAC, WHICH IS THE SPECIFIC MONEY LAUNDERING AGENCY CAN BRING IN. >> THAT'S RIGHT OVER THE HALF A MILLION DOLLARS, THE MAXIMUM PENALTY FOR FOR JUST ABOUT EVERY FRACTION FROM, YOU KNOW, NOT UNDERSTANDING MONEY-LAUNDERING RISKS TO NOT HAVING A GOOD TRAINING PROGRAM. AND SO, YOU KNOW, YOU COUPLE THAT WITH THEIR APPROACH TO EXAMINATIONS OF BIG BANKS. AND SO IN THE CASE OF TEA, THEY LOOKED AT 178 ACCOUNTS OF THEIR 27 AND A HALF MILLION CLIENTS. AND SO SOME TINY PERCENTAGE, RIGHT. AND INTO THE MAXIMUM POSSIBLE PENALTY IS HOW MANY OF THOSE WERE BAD OF, YOU KNOW, 170 YOU KNOW, THAT NUMBER REMARKABLY WAS 10% OVER 10% OF THE CHERRY PICK FILES THAT DID SHOW THAT, Regulatory apathy YOU KNOW, THINGS WEREN'T REPORTED THAT THERE WERE THAT APPEARED IN THE MONEY LAUNDERING. >> SEEM TO KIND OF AN APATHY ON THE REGULATORY FRONT AIR. YOU SAY THE OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS IN SERIE HAS A GROUP DEDICATED TO TO OUR HAD A GROUP DEDICATED TO MONEY LAUNDERING. BUT THAT IS KIND OF PETERED OUT. NOW. >> THAT'S RIGHT, WE HAD A VERY SPECIALIZED GROUP THAT THAT WAS FOCUSED ON THIS. AND THE IMPORTANT DISTINCTION HERE IS BETWEEN CONTRACTS JUST REALLY LIKE READING, WRITING, SPEEDING TICKETS FOR, YOU KNOW, GOING TOO FAST, WHICH IS IS NOT A BIG DEAL. IF YOU COULD JUST KEEP PAYING, PAYING THE TICKETS AND IN KEEPING YOUR LICENSE. OSFI HAS THE POWER LIKE INSTITUTIONS IN THE U.S. HAVE THE POWER TO TO REALLY PUT YOU ON BANK PROBATION. THAT MEANS LIMITING ACTIVITIES YOU CAN NOT LETTING YOU ACQUIRE OTHER BANKS YOU KNOW, IN IN THE MEANTIME, I'M FOCUSING VERY HEAVILY WITH WITH SPECIALIZED RESOURCES, LOOKING THINGS LIKE ARTIFICIAL INTELLIGENCE IN THE BATTLE AGAINST MONEY LAUNDERING IN. SO IF WE HAVE THAT SPECIALIZE HERE LIKE THEY HAVE THEIR THIS, THIS MIGHT BE DISCOVERED Why is money laundering important ON OUR OWN SOIL AND NOT NOT ABROAD. >> PLAY IS THAT IN JUST A CANADIAN PUBLIC, DON'T CARE ABOUT I MEAN, IT'S NOT THAT HOT BUTTONISSUE ISN'T ABOUT IS A VERY IMPORTANT DOESN'T WAS UNABLE TO DICTATORS AROUND THE WORLD TO RIP OFF THEIR OWN FENTANYL SMUGGLERS, YOU NAME IT'S A, IT IS AN IMPORTANT THING. >> USUALLY IMPORTANT AND DUCKTALES WITH WITH SANCTIONS, RIGHT? IF WE IF WE CAN'T GET ANTI-MONEY LAUNDERING, RIGHT, IF WE DON'T KNOW WHOSE TRANSACTING IN WHOSE MONEY IS FLOWING THROUGH THE SYSTEM. SANCTIONS BECOME ENTIRELY INEFFECTIVE AGAINST AGAINST RUSSIA, YOU KNOW, IT ANY OTHER JURISDICTIONS WHERE WE HAVE POLICY IMPERATIVES. YOU KNOW, THE ONLY MESSAGE THAT SEEMED TO REALLY RESOUND A FEW YEARS BACK WAS THAT, YOU KNOW, WITH MONEY LAUNDERING INCREASES HOUSE PRICES SOMEWHERE BETWEEN 5 AND 7% OF THE VALUE HOUSING IS IS INFLATED BECAUSE OF Is it just a cultural thing ILLICIT FUNDS IN OUR ECONOMY. FUELLING THOSE PRICES. >> SO ISN'T JUST ABOUT A CULTURAL THING. CANADIANS JUST DON'T CARE ABOUT THIS. >> YEAH, I MEAN, LISTEN TO THE POINT IS WE EXPORT OUR VIOLENCE THROUGH THROUGH THIS HAPPENED IT COMES DOWN TO WE HAVE THE LOWEST VIOLENT CRIME RATE THAT WE'VE HAD IN OVER 25 YEARS. AND SO YOU KNOW, THAT TAKE THE MONEY IS BEING MADE IN THE ECONOMY IS BEING PROPPED UP BY MONEY LAUNDERING Could Canada lose out IN IT'S NOT POLITICALLY EXPEDIENT TO GO AFTER IT. >> THE AMERICANS HAVE HAD CANADA ON A LIST FOR BEING SLOPPY, A JURISDICTION OF PRIMARY MONEY LAUNDERING CONCERN FOR MANY YEARS. COULD CANADA ULTIMATELY LOSE OUT HERE IF WE GET LABELLED INTERNATIONALLY IS AS ABOUT ACTOR OR OF SLOPPY AND OUR CONTROLS. >> ABSOLUTELY, AND ANALYSTS THE CASE OF IN THE CASE OF TDR, PROBLEM HERE IS WELL BEYOND THE PENALTY. THE PENALTY MAY SEEM SIGNIFICANT. YOU KNOW, WE'RE TALKING ABOUT, YOU KNOW, NEARLY A BILLION DOLLARS AND PROBABLY MORE IN REMEDIAL COSTS. THE PROBLEM IS THAT EVERY IN THE WORLD HAS RULES ON THEIR OWN BANKS TO BE CAREFUL ABOUT BANKS THAT HAVE PENALTIES LIKE THIS. AND THEY'RE WORRIED ABOUT THEIR BANKS BEING TAINTED BY OURS. AND IT WILL IMPACT THE REPUTATION OF OUR FINANCIAL SECTOR. BANKS ARE GOING TO HAVE TO DO MORE WORK INTERNATIONALLY