Federal prosecutors let $1-billion a year Chinese money laundering ring slip through their fingers

 by Cosmin Dzsurdzsa

 January 9, 2019

in B.C. News, Canadian News

The RCMP botched a $1-billion a year money laundering investigation in Richmond, B.C., after prosecutors *accidentally revealed the identity of an informant.

The investigation was called “E-Pirate” and if successful, it would have been the largest money laundering bust in Canadian history.

The RCMP organized crime unit and China’s national police service collaborated on the investigation.

Operation E-Pirate stretched across several countries including Canada, China, Macau and Mexico.  

The business processed an astronomical $1.5 million in cash deposits daily. The money would eventually find its way into over 600 Chinese accounts.

At the center of the case was the Richmond business Silver International which acted as an illegal bank and money transfer system. In 2015, the police conducted several secret raids on 10 establishments implicated in the criminal money laundering operation.

The business processed an astronomical $1.5 million in cash deposits daily. The money would eventually find its way into over 600 Chinese accounts.

Police believe the funds involved in the high-stakes gambling were tied to drug money and enabled purchases of narcotics in Mexico.

In the laundering process, Silver International would convert illegal drug money into viable cash by funneling funds through B.C’s casinos.

During the raids police seized 132 electronics (30 terabytes of data), millions in cash and transaction information.  

The businesses acted as underground banking channels that aided wealthy Chinese nationals in transferring wealth and evading Chinese capital controls.

The case was supposed to go to trial in January 2019 but fell through when information about an inside informant was accidently leaked. [?] Sources believe that prosecutors missed sensitive information in the evidence provided to the defence that would lead to the identity of the informant being discovered.

The RCMP have not yet revealed the reason for the case’s failure.

Federal authorities called off the charges without any explanation.

“The sensitivities surrounding the stay of charges in this case preclude us from sharing or confirming any further details beyond what we are providing,” said the RCMP about the story.

The mistakes in evidence disclosure put the informant involved in the case at a high risk of death.

Reports cite a weakness in the Canadian legal system when it comes to pursuing money laundering cases.

“It is a disturbing signal that a prosecution of this magnitude collapses before going to trial,” said B.C. Attorney General David Eby.

For not, it looks like all of the individuals involved will be getting away with their crimes.