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Originally Posted by Migrant_Coconut
Then can we agree that PRC money laundering is a problem? They make the news twice as often.
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I know this is hotly debated but the amount of our real estate price increases caused by money laundering is small, and likely much of it did not come from China. Money laundering didn't suddenly start here in the past 3 years, its been happening for centuries. Money laundering happens across North America and is not exclusive to BC. The reply from the RCMP below to Eby's sensationalized reports/statements is interesting.
https://www.straight.com/news/1225336/rc...tatement-response-peter-germans-comments
Although a little out of date this Canadian report helps to discuss the issue too, note that it points out that money laundering in Canada has been stable from 2006-2009. So far I haven't seen evidence that money laundering, specifically in BC, has increased per a person in the past decade:
https://www150.statcan.gc.ca/n1/pub/85-005-x/2011001/article/11454-eng.htm
Logically I think no one is stupid enough to think that money laundering suddenly started occurring in the past 5 years in just Vancouver or suddenly rose sharply in just Vancouver. And much of the money thats been laundered over the years is local or from cartels/gangs/terrorists, not the Chinese:
https://www.cbc.ca/news/canada/montreal/rcmp-money-laundering-1.5015602
https://globalnews.ca/news/5084587/hezbollahs-canadian-money-laundering-ops/
Btw notice how the last article tries to trick stupid readers by constantly mentioning "Vancouver" to create this perception that it only happens there to support the GN spiel that its responsible for home prices when in reality it was many Canadian cities:
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According to a former senior U.S. official with knowledge of the meeting, the DEA had “dirty calls” — meaning calls providing criminal evidence of cocaine shipments and cash movements in Canada — from narco-kingpins in Colombia to a network of operatives in Halifax, Vancouver, Calgary, and London, Ont.
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This whole money laundering only happens in Vancouver and is responsible for our home prices is just something that Global News made up to get stupid readers creating conclusions from little evidence, don't buy into it please.
Yes money laundering occurs, and yes some real estate is purchased, but this happens everywhere so why is it only us that has problems? We're not special to criminals, stop thinking that we are. Read the below.
https://www.mansionglobal.com/articles/g...g-money-laundering-in-real-estate-121904
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The U.S. has long been a target for real estate money laundering. To curb this growing phenomenon, FinCEN, the U.S. Treasury Department’s investigative arm, reissued an expanded directive in November which lowered the financial amount required by title companies to identify all the people at shell companies making purchases in cash above $300,000 or in cryptocurrency. In previous orders, title companies had to report different amounts according to city and the orders didn’t include cryptocurrency. This order evenly applies to all title companies in Boston, Chicago, Dallas-Fort Worth, Honolulu, Las Vegas, Los Angeles, Miami, New York City, San Antonio, San Diego, San Francisco and Seattle—directly affecting buyers of luxury real estate.
From Penta: Future Returns: Why Active Management Makes Sense
This FinCEN directive won’t discourage criminals coming to the U.S., said Washington, D.C.-based attorney Ross Delston, an anti-money laundering expert who has advised governments around the world. They instead will just have to buy real estate outside of the target area, take out a small loan or not use a title insurance company, he explained.
In an email response FinCEN’s spokesperson said they have nothing to add beyond the publicly available information on the order, but he did send along research saying that after their program requiring LLC owners purchasing luxury real estate to identify themselves was started in Jan. 2016, all cash purchases dropped by 70%.
Around the world, governments have tried a variety of policies to stem the purchase of luxury properties by criminal enterprises. Many of the countries profiled have seen a massive rise in money being laundered in real estate and have taken action. Here’s a snapshot of money laundering rules governments use to manage real estate purchases around the world.
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