Black market cannabis dealers are doing well, despite the Canadian government legalizing the drug to regulate it, according to Blacklock’s Reporter. .“Despite the introduction of the Cannabis Act, unlicensed activity related to cannabis continues,” said the Financial Transactions and Reports Analysis Centre (FINTRAC) in a report. .FINTRAC estimated 37% of cannabis users buy on the black market. .“There still exists a flourishing and illegal cannabis market in Canada,” said FINTRAC. .“Such illegal markets contribute to increased risk of harm to Canada’s financial system and its citizens through significant loss of tax revenue and increased funding of criminal activity by organized crime groups.”.Health Canada marked the fourth anniversary of Canada legalizing cannabis on Monday. It made no mention of ongoing black market sales..FINTRAC said cannabis dealers were using electronic bank transfers and cash deposits to move funds derived from illicit cannabis activities through front companies..It advised banks to be on the lookout for small businesses with suspiciously high volumes of electronic transfers from unrelated parties, depositors’ opening and closing multiple accounts in a short time period, and high purchases of shipping materials..A wide range of businesses were used as front companies to launder proceeds of illegal cannabis operations. The most frequent types of businesses used as front companies were beauty and wellness e-commerce companies, food and beverage wholesalers, automotive-related businesses, electronic repair stores, and marketing, advertising, consulting, and construction companies. .“Often there were little to no business-related transactions in the accounts held by these front companies which were owned by suspected distributors and producers of illicit cannabis,” said FINTRAC. .This report comes after Surrey RCMP busted an illegal cannabis operation related to a commercial property in Langley, BC, in 2021. .READ MORE: Surrey RCMP bust illicit cannabis operation that was funding organized crime.Officers stopped a vehicle associated with the property and arrested the driver. .Further investigation led to one kilogram of dried cannabis and $35,000 in cash being seized.
Black market cannabis dealers are doing well, despite the Canadian government legalizing the drug to regulate it, according to Blacklock’s Reporter. .“Despite the introduction of the Cannabis Act, unlicensed activity related to cannabis continues,” said the Financial Transactions and Reports Analysis Centre (FINTRAC) in a report. .FINTRAC estimated 37% of cannabis users buy on the black market. .“There still exists a flourishing and illegal cannabis market in Canada,” said FINTRAC. .“Such illegal markets contribute to increased risk of harm to Canada’s financial system and its citizens through significant loss of tax revenue and increased funding of criminal activity by organized crime groups.”.Health Canada marked the fourth anniversary of Canada legalizing cannabis on Monday. It made no mention of ongoing black market sales..FINTRAC said cannabis dealers were using electronic bank transfers and cash deposits to move funds derived from illicit cannabis activities through front companies..It advised banks to be on the lookout for small businesses with suspiciously high volumes of electronic transfers from unrelated parties, depositors’ opening and closing multiple accounts in a short time period, and high purchases of shipping materials..A wide range of businesses were used as front companies to launder proceeds of illegal cannabis operations. The most frequent types of businesses used as front companies were beauty and wellness e-commerce companies, food and beverage wholesalers, automotive-related businesses, electronic repair stores, and marketing, advertising, consulting, and construction companies. .“Often there were little to no business-related transactions in the accounts held by these front companies which were owned by suspected distributors and producers of illicit cannabis,” said FINTRAC. .This report comes after Surrey RCMP busted an illegal cannabis operation related to a commercial property in Langley, BC, in 2021. .READ MORE: Surrey RCMP bust illicit cannabis operation that was funding organized crime.Officers stopped a vehicle associated with the property and arrested the driver. .Further investigation led to one kilogram of dried cannabis and $35,000 in cash being seized.
