BORDERS HAMPER CRIME FIGHTERS

Elite Unit Review

OTTAWA - International and provincial borders posed jurisdictional
headaches that frustrated elite federal units set up to tackle organized
crime, says a secret annual evaluation of the program.

The review of the Integrated Proceeds of Crime initiative for 1998-99
chronicles the difficulties faced by Canadian authorities in a world where
illicit activities straddle global boundaries.

Under the IPOC program, administered largely by the RCMP, specialized units
in 13 Canadian cities zero in on the illegal proceeds of drug crimes,
smuggling, fraud and gambling. The units include police, Crown counsel,
customs officers, forensic accountants and tax investigators.

The report, which looked at the third year of the $180-million, five-year
initiative, indicates the value of the program in dollars-and-cents terms
had yet to be proven.

"IPOC investigations continue to be very costly and complex," says the
evaluation. "While the benefits of integrated investigations were evident
early in the initiative, the monetary effectiveness of the program remains
unclear, particularly for the smaller units."

A declassified version of the report, prepared last March by the
Solicitor-General's department, was obtained by Southam News under the
Access to Information Act.

It reveals investigators were hampered by the absence of legislation that
would provide for enforcement of a foreign forfeiture order in Canada.

The problem meant that an order originating abroad could not be enforced
unless Canadian authorities undertook a second complete proceeds of crime
investigation, says the report. "The lengthy processes are costly and
usually considered redundant and inefficient."

The evaluators note legislative work was underway to provide for easier
enforcement.

However, another aggravation stemmed from the fact that, within Canada,
fines or forfeitures that result from certain Criminal Code charges go to
the province of jurisdiction and therefore cannot be shared with partners
that assist with the probe.

For instance, a Montreal IPOC case involving money laundering and drug
trafficking led to several arrests in Canada, Holland, Belgium, Switzerland
and Costa Rica. The investigation was "one of the most arduous and complex"
undertaken by the RCMP, costing $7.5-million and involving extensive
physical and electronic surveillance.

Nine people pleaded guilty to possessing proceeds of crime and were fined
about $3.6-million.

However, money recouped by authorities in Canada was slated solely for
Quebec, since the province's laws specifically forbid asset-sharing with
other jurisdictions, says the report. "Unfortunately, asset sharing in
Canada is not reciprocal, and is undertaken only by the federal government.
While there have been some discussions regarding reciprocal arrangements,
no province has expressed an interest in doing so."

The report notes the IPOC initiative is primarily a drug-related one, with
90% of revenues and 80% of seizures related to drug investigations in
1998-99. However, drug probes generated only 93 cents in revenue for each
dollar spent during the time-frame, compared with $1.39 for each dollar in
1997-98.

"This would indicate that such investigations are becoming significantly
more expensive to conduct," says the report.

The evaluators stress that because investigations and prosecutions
routinely take several years to complete, final tallies will not be
apparent for some time.

Overall, the IPOC model has increased co-operation between law-enforcement
agencies and has improved their capacity to target high levels of organized
crime, notes the report.