Front companies being used to launder illicit cannabis cash: intelligence agency

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Canada’s financial intelligence agency says a wide range of businesses — from food wholesalers to electronics repair services — are being used to disguise the proceeds of illicit cannabis operations.

In a new operational alert, the Financial Transactions and Reports Analysis Centre of Canada, known as Fintrac, warns banks and others that handle cash to be on the lookout for various clues that dealings are linked to the black-market pot trade.

Fintrac says the illicit cannabis market denies public coffers significant tax revenue, while profits in the tens of millions of dollars are used by organized crime groups to finance other illegal and harmful activities. As a result, whether Canadians know it or not, they’re helping finance other criminal activity in their communities, “which is making themselves and their neighbours unsafe, in terms of where they want to live and how they want to live,” MacKillop said.

Front companies used most frequently to launder proceeds included e-commerce businesses in the beauty and wellness industry, food and beverage wholesalers, automotive-related businesses, electronics repair services, construction-related firms, and those in marketing, advertising and consulting.

 

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What a shock

The problem is with the taxation and regulation level of the government. Legal cannabis cost twice as much as illegal due to mostly red tape. The only benefit of buying legal is you know it's been grown properly. A good supplier knows his customers depend on quality.

They won't go after you if you call it Ukraine Strain

LoL what about foreign Chinese laundered money buying up real estate?

It’s only pseudo-legal: the regulations that require hundreds of thousands of dollars to license up and the lack of leniency wrt outdated cannabis charges are preventing people from going above board, killing the legal industry. Over-regulation 101.

Laundering money is only legal for politicians who are washing it through aid to Ukraine.

If you grow your 4 plant allowance properly, one needs to be a huge chronic to get through that volume of weed every 150 days.

And Canna Prohibition V2 continues

TDotGinger Well just follow the smell

It’s been like that since the beginning of time

Taxing a plant 44% is a bad business model for the government and anyone who thought they could start a business with a legitimate store front. They skipped the slow play they had with 100 years of selling alcohol, and jumped to far into taxation off the start.

Fintrac can bugger off & cannot be trusted with CDN accounts. If weed was truly legal, there would be no such thing as illicit cannabis. But the government wants a big cut of that pie You can find higher quality, higher THC% & much lower costs with the online black market ✌

God that weed looks horrendous

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