Criminal Intelligence Service Canada (CISC) said in a 2021 report it's identified thousands of organized crime groups, many working in the real estate industry.CISC largely works behind the scenes in Canada and provides law enforcement intelligence based on the tracking of organized crime groups across the country. .The agency's 2021 report revealed criminal organizations have "infiltrated everything from real estate to government," reported Better Dwelling, a Vancouver-based housing and real estate news outlet. .According to the report, there are more than "2,600 organized crime groups (OCG)" contributing to the growing instances of firearms-related violence, drug-related violence and killings, cybercrime and money laundering. .Canadian real estate appears to be a haven for these OCGs with mortgage and real estate fraud being among the top three activities. Illicit drugs and crimes against persons round out the top three OCG activities. .Although CISC found 30% of OCGs assessed participate in money laundering, it suggested that number is likely much higher due to how hidden money laundering is. Real estate is said to be a top tool for this activity, along with the money service business and casinos. .CISC also uncovered that one in 10 OCGs infiltrated, or are in the process of infiltrating, the government. The agency said there is a "significant intelligence gap and the actual proportion is likely higher," and alleges six of the assessed OCGs have "significant" influence in the public sector. .The CISC cited what it called "common patterns among high-threat OCG networks" including:.using violence as an integral part of their strategyinfiltrating law enforcement, security, government agencies and the private sectorextensive criminal associations to other OCGshaving an interprovincial and international scope.The report says the use of social media to encourage violence is growing among street gangs. OCGs have also been involved in the rapid increase of the opioid crisis, cybercrimes and money laundering. .These high-threat groups are said to have infiltrated law enforcement, security, and governments, and are often run through multiple businesses. Of those 2,600+ OCGs operating in Canada, 45% are relatively new..CISC conducted threat assessments on a relatively small amount of those OGCs (469) and labelled 14 as "national high-level threats," which means their business is conducted across borders which presents a national security risk. Half the high-levels threats are run out of Ontario. .OCGs and their activities are costly to Canadians. .“Public sector infiltration increases costs of public goods and services, leads to misallocation of public resources, weakens policy making and implementation, and damages public confidence in the government and law enforcement,” said the agency that also indicated many OCGs flock to the transportation and construction industries. .“Corrupt activities in government processes can increase project costs by up to 50%." .The agency said money laundering within both the home building and real estate industries can impact home prices due to inflated building costs and marginal buying. .The US brought in the Racketeer Influenced and Corrupt Organizations Act (RICO) in the 70s that gave law enforcement the ability to hold anyone responsible who benefits, even indirectly, from organized crime activity. .Canada does not have similar laws, although law enforcement agencies have been asking for these kinds of tools for years. BC Attorney General David Eby has been pushing for the federal government to introduce laws to prosecute organized crime, according to a CTV article published last year. .Ontario Member of Parliament Adam Chambers has been working to build support for the issue and recently began probing for support for a federal inquiry into money laundering. The Simcoe North MP introduced a bill in June seeking harsher penalties be applied to citizens who hide assets.
Criminal Intelligence Service Canada (CISC) said in a 2021 report it's identified thousands of organized crime groups, many working in the real estate industry.CISC largely works behind the scenes in Canada and provides law enforcement intelligence based on the tracking of organized crime groups across the country. .The agency's 2021 report revealed criminal organizations have "infiltrated everything from real estate to government," reported Better Dwelling, a Vancouver-based housing and real estate news outlet. .According to the report, there are more than "2,600 organized crime groups (OCG)" contributing to the growing instances of firearms-related violence, drug-related violence and killings, cybercrime and money laundering. .Canadian real estate appears to be a haven for these OCGs with mortgage and real estate fraud being among the top three activities. Illicit drugs and crimes against persons round out the top three OCG activities. .Although CISC found 30% of OCGs assessed participate in money laundering, it suggested that number is likely much higher due to how hidden money laundering is. Real estate is said to be a top tool for this activity, along with the money service business and casinos. .CISC also uncovered that one in 10 OCGs infiltrated, or are in the process of infiltrating, the government. The agency said there is a "significant intelligence gap and the actual proportion is likely higher," and alleges six of the assessed OCGs have "significant" influence in the public sector. .The CISC cited what it called "common patterns among high-threat OCG networks" including:.using violence as an integral part of their strategyinfiltrating law enforcement, security, government agencies and the private sectorextensive criminal associations to other OCGshaving an interprovincial and international scope.The report says the use of social media to encourage violence is growing among street gangs. OCGs have also been involved in the rapid increase of the opioid crisis, cybercrimes and money laundering. .These high-threat groups are said to have infiltrated law enforcement, security, and governments, and are often run through multiple businesses. Of those 2,600+ OCGs operating in Canada, 45% are relatively new..CISC conducted threat assessments on a relatively small amount of those OGCs (469) and labelled 14 as "national high-level threats," which means their business is conducted across borders which presents a national security risk. Half the high-levels threats are run out of Ontario. .OCGs and their activities are costly to Canadians. .“Public sector infiltration increases costs of public goods and services, leads to misallocation of public resources, weakens policy making and implementation, and damages public confidence in the government and law enforcement,” said the agency that also indicated many OCGs flock to the transportation and construction industries. .“Corrupt activities in government processes can increase project costs by up to 50%." .The agency said money laundering within both the home building and real estate industries can impact home prices due to inflated building costs and marginal buying. .The US brought in the Racketeer Influenced and Corrupt Organizations Act (RICO) in the 70s that gave law enforcement the ability to hold anyone responsible who benefits, even indirectly, from organized crime activity. .Canada does not have similar laws, although law enforcement agencies have been asking for these kinds of tools for years. BC Attorney General David Eby has been pushing for the federal government to introduce laws to prosecute organized crime, according to a CTV article published last year. .Ontario Member of Parliament Adam Chambers has been working to build support for the issue and recently began probing for support for a federal inquiry into money laundering. The Simcoe North MP introduced a bill in June seeking harsher penalties be applied to citizens who hide assets.
