Backup: money Laundering 💰 In Canada 🇨🇦 has taken Notice by the Legacy Media

Canada Would Be In A Recession Without Money Laundering
A lot of gems in last week’s BC money laundering report, but the biggest one wasn’t about the province. The report’s numbers suggest one of Canada’s fastest growing industries is washing money. In an advanced economy with low but stable gross domestic product (GDP) growth, this is a big issue. The numbers show laundering cash is now the difference between growth and recession in Canada.

The Amount Of Money Laundered Is An Underestimate
The amount of money laundered in the report underestimates the total. The gravity model used is only as accurate at fund sources, which are hard to measure. Obvious understatements would be included in corruption, bribery, and tax avoidance. Further, funds washed and entering Canada for layering or integration wouldn’t be counted. When the report mentions the number is most likely an understatement, it most likely is.

Over $200 Billion Money Laundered Across Canada Over 5 Years
The amount of cash laundered over a five year period tops a couple hundred billion. In 2015, the model estimates over $41.2 billion cash was laundered, up 9% from 5 years ago. This represents 2.13% of GDP, a fairly consistent number seen over the five year period. From 2011 to 2015, the total estimated amount of money laundered is $200.5 billion. This excludes reinvestment, typical in the layering and integration process of money laundering.

The most interesting bit in this report is money laundering is growing faster than GDP. The paper estimates $46.7 billion in laundered cash for 2018, which represents around 2.1% of GDP. GDP only grew 1.57% over that same period, just under 75% of the size of cash laundered. Excluding additional spin-off activity from laundering activities (such a great GDP booster, right?), if ¾ of it disappears – we have negative growth. Once again, this is just the obvious and easiest to measure laundering.

More Laundering In Alberta Than BC?
Another takeaway that was glossed over by media is BC is the third largest province by dollar volume. Alberta is the winner, with an estimate of $10.2 billion in 2015 – 3.03% of the province’s GDP that year. Ontario follows with $8.2 billion, the size of 1.13% of the province’s GDP that year. British Columbia is in a distant third with $6.3 billion, 2.63% of the province’s GDP in 2015.

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