WHAT YOU NEED TO KNOW ABOUT MONEY LAUNDERING

Did you know that money laundering accounts for between two and five
per cent of the planet's annual gross domestic product?

The prevalence of money laundering is highest in Asia and Africa, but
it is an emerging issue in Latin America - home of six of the top 10
countries with money laundering through their bank channels. Money
that can, and does, come into Canada.

"The program is in response to what the RCMP perceive as a lack of
understanding in small business to what money laundering is," said
RCMP spokesman Josh Bezanson. "We want to educate people with the
information that is available. We use case studies and examples from
across Alberta."

If you were curious about the effect that money laundering has, the
hows, whys and who's of the highly illegal trade, come to the Dr.
George Kemp House on Thursday, Aug 10 at 7 p.m. The two-hour
presentation is free of charge and is hosted by the Innisfail Chamber
of Commerce and 'K' Division of the RCMP.

"We look at it as a service to the community," said Innisfail Chamber
of Commerce manager Tracey Walker. "The RCMP put the program on to
teach businesses what to look out for. But it's more than just money
laundering. They also go into other types of financial crime."

According to the RCMP, the primary reason for laundering money is
"concealing origin of money through business dealings - operating at
lower profit margins (that can) negatively impacting legitimate
competitors".

Basically, it means taking money raised through crime and investing it
in legitimate business; thereby making that money appear 'clean' in
the eyes of the community.

It is a risk to financial integrity, causing banking failures and
financial crises that result from unexpected movement of large sums of
money. It tarnishes the reputation of associated banks, professionals,
industries and economies. There are considerable losses in tax revenue
as transactions take place in an underground economy and facilitate
criminal activity - potentially leading to higher levels of corruption
inside private and public organizations and higher costs to law
enforcement.

"Eighty five per cent of laundered money in the province is from
drugs," said Bezanson. "High level organized crime needs laundered
money. You take that away, the criminal enterprise follows."

Laundering enables criminal groups to self-fund, and engage in
research and development to help underwrite new and more sophisticated
types of criminal activity. The world-wide "take" from money
laundering is estimated to be about $1 trillion, or about the GDP of
Spain. In Canada it is estimated at $18-$20 billion yearly.