2/ Smurfing is a technique pioneered by drug dealers, where large payments are broken into payments small enough to not trigger a warning.
For example, since anything above $10,000 is flagged in the US, drug dealers will get several people to make payments $9,999 or less.
For example, since anything above $10,000 is flagged in the US, drug dealers will get several people to make payments $9,999 or less.
3/ Now a few people caught this on my weekend laundering thread - if capital controls are US$50k/year, how do you make a $700k down payment on a $2 million home?
You smurf it! Get some friends (or hire people 😉) to send your money to several accounts in 🇨🇦, in different names.
You smurf it! Get some friends (or hire people 😉) to send your money to several accounts in 🇨🇦, in different names.
4/ the best part? 🇨🇦 banks will help. Until recently, it was kind of just something you had to know. If you told a Canadian, they would probably say you were lying.
Fortunately, a wrongful dismissal case against a big Canadian bank documented it in BC court records.
Fortunately, a wrongful dismissal case against a big Canadian bank documented it in BC court records.
5/ Now, the vast majority of the money transferred this way is likely from legitimately earned sources. Banks think of it as doing a favor.
However, since they turn a blind eye and facilitate transfers from strangers, criminals use the same systems. Why the f*ck wouldn’t you?
However, since they turn a blind eye and facilitate transfers from strangers, criminals use the same systems. Why the f*ck wouldn’t you?
6/ Canadian banks provide this service as long as they had incentive, aka you take out a mortgage.
Now, remember - when you’re money laundering, you don’t want the house. You want to move the most amount of money, and sell the house later.
Who cares how much it cost?
Now, remember - when you’re money laundering, you don’t want the house. You want to move the most amount of money, and sell the house later.
Who cares how much it cost?
7/ So why did money laundering slow down in 2017? Sure as f*ck not because Canada cracked down on it.
China cracked down on capital control circumvention.
Vancouver real estate prices peaked one year later, and people are still trying to figure out the “right” price.
China cracked down on capital control circumvention.
Vancouver real estate prices peaked one year later, and people are still trying to figure out the “right” price.
