The Financial Transactions and Reports Analysis Centre, also known as Fintrac, has released a warning that individuals and organizations subject to economic sanctions due to Moscow’s attack on Ukraine may try to evade them using shell companies, cryptocurrency and real estate transactions. The agency also pointed out that those seeking to launder the proceeds of crime and corruption might try to hide assets by transferring ownership to family members or close associates. Fintrac sifts through transaction data from various sources to detect money laundering, then shares intelligence with police and security partners. Canada has sanctioned hundreds of Russian individuals and organizations over Moscow’s 2022 invasion of Ukraine, prohibiting financial dealings linked to Canada. Fintrac’s bulletin warns that Russian organizations and individuals looking to disguise ill-gotten gains often use complex networks of corporate structures to mask their involvement in the international financial system. Suspicious transactions could involve legal firms, Canadian financial institutions used as a transit point, Russian payment systems, or real estate transactions in certain jurisdictions. Russia-linked virtual currency transactions could be initiated from or sent to Internet Protocol addresses in Russia, Belarus or neighbouring jurisdictions with weak anti-money laundering systems. As per open source analysis of cryptocurrency transactions, Russian entities and individuals represent a disproportionate share of cryptocurrency-enabled crime, including online fraud and ransomware.
Federal agency warns Russians may mask cash to evade Canada sanctions.
