Canada’s main money laundering watchdog suspects online betting platforms and cryptocurrencies are being used to launder money generated by fentanyl production and distribution.
The Jan. 25 report titled “Operation Alert,” published by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), reveals how criminal organizations exploit the financial system to move proceeds from the deadly opioid trade, using online gaming apps and cryptocurrency transactions, as well as more traditional methods such as shell companies and international wire transfers.
With fentanyl-related overdoses continuing to rise, FINTRAC’s findings underscore the urgent need for collaboration between financial institutions, law enforcement, and policymakers to combat the growing threat of illicit drug financing.
According to the Financial Action Task Force (FATF), an independent inter-governmental body that promotes policies to protect the global financial system against money laundering: “the trafficking of fentanyl is fuelling an overdose epidemic and claiming around 80,000 lives a year.”
FINTRAC analyzed a sample of approximately 5,000 “suspicious transaction reports related to fentanyl and synthetic opioids that were filed between 2020 and 2023” as part of its reporting.
The timing of the report, released on January 25, is notable, coming mere days after the inauguration of President Donald Trump and his stern warning to Canada and Mexico to curb the cross-border flow of fentanyl and illegal immigrants into the United States. The warning came with the threat of 25-per-cent tariffs on Canada’s exports.
Canada has long faced criticism, both domestically and internationally, for its perceived leniency on issues such as money laundering in real estate and its failure to adequately enforce existing financial regulations.
