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The final report from British Columbia’s public inquiry into money laundering has been submitted to the provincial government, with officials reviewing the Cullen Commission’s report before its released to the public, a spokesman confirmed on Friday (June 3).
“(The) government will carefully review the report to ensure it meets the criteria set out in the Cullen Commission's terms of reference and complete the necessary steps require under the Public Inquiry Act to release the final report,” said Preet Grewal, a spokeswoman for attorney general David Eby.
B.C. Supreme Court Justice Austin Cullen was appointed by the government in May 2019 to oversee the investigation into money laundering activities within the gaming industry of the province.
The commission heard testimony from around 200 witnesses during 133 hearings, including Eby, former B.C. premier Christy Clark, several former and current cabinet ministers, police officers, gaming officials and financial crime experts and academics.
Cullen also received dozens of submissions as part of his investigation into the flow of millions of dollars in dirty money by organized crime and the drug trade through the province’s gaming, luxury vehicle and real estate industries.
The inquiry also investigated whether the acts or omissions of regulatory agencies and individuals “contributed to money laundering in the province or amount to corruption,” according to the commission’s website.
“My final report is the culmination of three years of dedication and commitment to this important task by the commission team,” Cullen said in a statement released Friday.
“It is a substantial report and puts forward findings of facts and recommendations that are focused on making positive changes in many areas, addressing serious issues that the people of British Columbia care about.”
Cullen added that the participation of individuals and organizations in the inquiry “contributed to the value of the report.”
Eby testified in April 2021 that he appointed an independent review of money laundering at Vancouver-area casinos after watching videos of gamblers picking up large bags, packed with $20 bills, outside casinos and bringing them inside the venues.
He appointed Peter German, a former lawyer and Royal Canadian Mounted Police deputy commissioner, to run an independent review in 2017 on the extent of money-laundering through casinos and its links to organized crime.
German published the “Dirty Money” report in 2018.
The review described a history of money laundering and criminal activity in lower British Columbia casinos, claiming the facilities managed by British Columbia Lottery Corporation (BCLC) and contracted private operators “unwittingly served as laundromats for the proceeds of organized crime.”
The report for the B.C. attorney general’s office found that more than $100m had been laundered through British Columbia casinos for well over a decade and that existing legislation and policies were not able to keep pace with organized crime.
German also detailed gaps in regulatory oversight created by dysfunction between the BCLC, which conducts and manages casinos on behalf of the province, and the Gaming Policy Enforcement Branch, which regulates gaming.
Bill Smart, a lawyer for BCLC, testified in October that knowledge about money laundering and strategies to detect illegal activities have evolved over the years.
“Money laundering is complex and has become increasingly sophisticated and international in scope over the last 15 years,” Smart said.
He said prior to 2015, it was common for gamblers to arrive at Vancouver-area casinos with bags filled with cash, and that they would return the next day with even more cash.
“The cash may have been suspicious, but the patrons and their wealth generally were not,” Smart said. “Viewed from the lens of what we now know, everyone should have responded more quickly to those large transactions.”
Along with Eby, Finance Minister Selina Robinson and Solicitor General Mike Farnworth received a copy of Cullen’s report. Grewal did not provide a date for the 1,804-page report’s release.
“Public and media interest in the Cullen Commission is high and the province will be publicly releasing the final report and its recommendations as quickly as possible,” the attorney general’s office said Friday.
