1 of 1 2 of 1

A former RCMP deputy commissioner has recommended the tracking of cash purchases of luxury cars in Metro Vancouver.

Peter German made the suggestion as part of his ongoing review of anti-money laundering policies and practices in B.C. casinos.

The monitoring of cash purchases of high-end vehicles requires federal government action.

“The criminal lifestyle is often attracted to expensive consumer goods, such as luxury cars, and due to their high value, these items can also be used to reintroduce illegal cash to the legitimate economy,” according to a B.C. government news release Monday (March 26).

The government does not track cash purchases for high-end cars.

“As Vancouver is Canada's luxury car capital, a geographic targeting order could require the submission of suspicious transaction reports and large cash transaction reports by motor-vehicle dealers in Greater Vancouver, but not in other parts of the country,” the news release stated. “However, to avoid displacing local buyers to other jurisdictions, another option may be to provide a reporting threshold higher than $10,000 for these industries.”

German also made two other recommendations for the federal government.

These measures are about information sharing between law enforcement authorities and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and the allocation of resources for police.

The recommendations will be presented by B.C. Attorney General David Eby before the finance committee of the House of Commons in Ottawa on Tuesday (March 27).

“We must all be better equipped to take action in the fight against criminal gangs profiting from crime,” Eby said in the news release.

In September 2017, Eby appointed German to review anti-money laundering programs in B.C. casinos, particularly in the Lower Mainland.

German is expected to submit a final report on March 31 this year.

Last December, German made two recommendations that were implemented by the province.

One requires casinos to make a declaration about the source of funds for cash deposits or bearer bonds of $10,000 or more.

The second requires the presence of government regulators in busy casinos in the Lower Mainland.

ICBC charges higher insurance premiums for luxury cars, which are vehicles worth over $150,000.

According to the previous provincial government, the market for high-end cars market is growing.

As of 2016, there were 3,000 luxury cars insured, a 30 percent increase compared to three years before that time.