The B.C. government is moving to shut down money laundering in real estate and other sectors with a newly announced two-pronged review.
The first component, led by the Ministry of Finance, will identify systemic risks that leave real estate and financial service sectors open to money laundering.
The other, led by the Attorney General, will investigate specific case examples of problematic activity in real estate and other vulnerable sectors to uncover the ways money launderers have operated in B.C.
Finance Minister Carole James blames the former Liberal government for allowing the real estate market to turn into what she calls the "Wild West," and helping create an overheated housing market that can attract criminals and those wanting to exploit loopholes that drive up housing prices and support organized crime and drug dealers.
Attorney General David Eby says there is troubling evidence suggesting strongly that dirty money is circulating in other places in our communities.
The probe responds to concerns raised in previous reviews conducted for the Ministry of Finance and the Attorney General's office.
Independent consultant Dan Perrin found the real estate regulatory structure put in place in 2016 is dysfunctional, inefficient and vulnerable to market manipulation and abuse.
Peter German's report into money laundering in Lower Mainland casinos also raised concerns that dirty money was infiltrating the real estate sector.
The Ministry of Finance has appointed Maureen Maloney to chair the Expert Panel on Money Laundering in Real Estate, with a final report due in March next year.
Meanwhile, Doctor German will conduct another review to follow up on his initial findings, that the real estate market is vulnerable to organized crime.