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By LegalMatters Staff • Any technique that disguises the source of money or assets earned through illegal activity can be considered money laundering.
Businesses commonly associated with this crime include banks, law firms, money service businesses/currency exchanges, real estate agencies, car dealerships and jewellers.
“Section 462.31 (1) of the Criminal Code makes it a crime to use, transfer, send or deliver any property or any proceeds of any property with the intention of concealing their origins,” says Ottawa criminal lawyer Céline Dostaler. “Anyone found guilty of an indictable offence for money laundering faces a maximum prison sentence of 10 years, with lesser sentences if the change is treated as a summary conviction.”
She says one form of the crime is referred to as “smurfing,” as it involves breaking up large transactions into smaller ones to avoid detection.
“The name comes from the way Smurf cartoon characters divide up tasks,” says Dostaler. “Since financial institutions are required to report large deposits that exceed $10,000, money launderers stay under the radar through smurfing and make it look like the money they deposit is legitimately sourced.”
Casinos can be exploited to hide an influx of cash, she says.
“Someone could purchase $50,000 worth of casino chips using illicit cash. After they spend $10,000, they cash out the remaining $40,000 in chips,” says Dostaler. “When the casino issues a cheque or makes a bank transfer for that amount, the illicit funds are effectively entered into the financial system.”
