Commissioner Austin Cullen looks at documents before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

Commissioner Austin Cullen looks at documents before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

RCMP lacked dedicated team to investigate illegal activities at casino, inquiry hears

Hearings for the inquiry are set to continue into next week and the inquiry is expected to wrap up next year

The inquiry into money laundering in B.C. has heard the RCMP didn’t have the resources to investigate illegal activities at the province’s largest casino, while the B.C. Lottery Corp. didn’t have the authority to crack down on suspicious transactions.

Ward Clapham, the former officer-in-charge of the Richmond RCMP detachment, said he tried twice to establish a new unit linked to the River Rock Casino but his requests were denied by the city.

He told the inquiry on Wednesdayhe needed the city’s approval to create the “casino crime team,” but general duty front-line officers were a higher priority for Richmond than gaming.

He said he pushed for a specialized team until he left the RCMP in 2008, but the support never materialized despite the expansion of illegal gaming activities in B.C. throughout the early 2000s.

Clapham’s request for funding to support such a team “caused significant friction,” he added.

He said no other RCMP detachment was facing the kind of challenges they were facing with gaming activities and day-to-day policing in Richmond, which does not have its own municipal force.

Clapham also agreed that the increase in gaming brought “social costs,” including serious crimes in the city.

“That whole panacea of crime includes front-line policing responsibilities like, you know, missing people, potential homicides (and) kidnappings that can be directly or indirectly related to gaming issues, to actual illegal gaming activities or crimes like money laundering” or loan sharking, he said.

The provincial government launched the inquiry after commissioning reports that outlined how money laundering was affecting real estate and housing affordability, luxury car sales and gambling in B.C.

Clapham said he hoped that some revenue from gaming would be allocated to the proposed specialized unit, but he wasn’t able to convince Richmond’s leaders that that was the way to go.

The inquiry also heard an integrated illegal gaming enforcement team was established in 2003, including Mounties and B.C.’s gaming policy and enforcement branch, but it was disbanded in 2009.

Gord Friesen, a former Mountie and former manager of investigations for the B.C. Lottery Corp., said he didn’t have the authority to stop a transaction without proof the money was the proceeds of crime.

“If $200,000 in $20 bills wrapped in elastic bands was dropped off to somebody in a parking lot outside the casino and tendered at the cash cage, would that be a sufficiently suspicious transaction to warrant intervention?” asked Patrick McGowan, senior counsel for the inquiry commission.

It would be suspicious and reportable, replied Friesen, but such a transaction would not have been stopped without evidence that a crime was being committed.

Friesen estimated that when he first started at the River Rock, investigators with the lottery corporation made around five to 10 reports of such suspicious transactions each week.

He said the reports were made to Fintrac, Canada’s financial transactions reporting centre, as well as B.C.’s gaming policy and enforcement branch and various departments within the RCMP.

Suspicious transactions increased over time, said Friesen, and the reports grew to around 25 a week.

Asked how many times someone was arrested for money laundering or loan sharking in the casino, he said, “it wasn’t a lot.”

The B.C. Lottery Corp. did not have the authority to dictate how much or in what form casinos could accept money as buy-ins for gaming, Friesen added.

He said the corporation was in “constant negotiations” with the gaming policy and enforcement branch to find alternatives to cash transactions.

Friesen said there was room for improvement in the lottery corporation’s anti-money laundering efforts, but “as part of the tools that we had to deter this type of thing, I think we did a very good job.”

Confronted with the fact that large, suspicious transactions were increasing significantly year over year, Friesen said, “we needed assistance and we weren’t getting assistance.”

The inquiry heard earlier this week that transactions involving as much as $800,000 were common at River Rock starting around 2010 as players hauled in bags and suitcases full of cash, often in $20 bills.

Hearings for the inquiry are set to continue into next week and the inquiry is expected to wrap up next year.

Brenna Owen, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

money laundering

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
104 new COVID-19 cases in Interior Health

IH is reporting the new numbers since Friday, Nov. 20

The City of Cranbrook is gearing up winter plowing operations. Townsman file photo.
City gearing up winter snow plow operations

Winter has arrived in Cranbrook. Following recent snowfalls in the region, the… Continue reading

Pictured is the Cranbrook gravel pit, located between two graveyards near the public works yard. This is where two lost kids were located by a Salvador Ready Mix driver on Thursday, November 19, 2020. (Corey Bullock/Cranbrook Townsman file)
Two lost kids find their way home thanks to Salvador Ready Mix driver

The driver found the children wandering near the gravel pits in Cranbrook

Interior Health is reporting a potential COVID-19 exposure at St. Mary’s Catholic Independent School last week from Nov. 17-19.
Potential COVID-19 exposure reported at St. Mary’s Catholic Independent School

Interior Health is reporting potential COVID-19 exposures at St. Mary’s Catholic Independent… Continue reading

Planting whitebark pine seedlings. Photo courtesy of Randy Moody.
Kimberley’s Randy Moody on the challenges and triumphs of the endangered whitebark pine

Randy Moody, president of the Whitebark Pine Ecosystem Foundation of Canada (WPEFC)… Continue reading

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers at the project site in Kitimat. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
Forty-one positive COVID-19 cases associated with the LNG Canada site outbreak in Kitimat

Thirty-four of the 41 cases remain active, according to Northern Health

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

A woman being arrested at a Kelowna Value Village after refusing to wear a mask on Nov. 22.(@Jules50278750/Twitter)
VIDEO: Woman arrested for refusing to wear mask at Kelowna Value Village

RCMP claims the woman was uncooperative with officers, striking them a number of times and screaming

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

Most Read