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Money laundering in B.C. estimated at $1B a year — but reports were not shared with province, AG says

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Documents that say money laundering in British Columbia now reaches into the billions of dollars are startling to the province’s attorney general, who says the figures have finally drawn the attention of the federal government.

David Eby said he’s shocked and frustrated because the higher estimates appear to have been known by the federal government and the RCMP, but weren’t provided to the B.C. government.

He said he recently spoke to Public Safety Minister Ralph Goodale about information gaps concerning cash being laundered in B.C. and he’ll be meeting next week with Minister of Organized Crime Reduction Bill Blair.

« I’ve been startled initially by the lack of response nationally to what appeared to me to be a very profound issue in B.C. that was of national concern, » said Eby.

Surveillance video shows bundles of $20 bills dumped at a B.C. casino in an example of apparent money laundering. (B.C. Ministry of Attorney General)

Last June, former Mountie Peter German estimated money laundering in B.C. amounted to more than $100 million in his government-commissioned Dirty Money report into activities at provincial casinos.

Eby said that number now appears low, especially after the release of an international report that pegs money laundering in B.C. at more than $1 billion annually, although a time period wasn’t mentioned in the report.

A second report by the RCMP estimates $1 billion worth of property transactions in Vancouver were tied to the proceeds of crime, the attorney general said.

The government had estimated that it was a $200 million-a-year operation, but the federal Ministry of Finance has provided estimates that pegs the problem at $1 billion annually, Eby said.

The provincial government only learned about the reports through media leaks or their public release and it wasn’t consulted about the reports, Eby said.

« The question I ask myself is, « Why am I reading about this in an international report instead of receiving the information government to government? »’ he said. « It’s those information gaps that organized crime thrives in and we need to do a better job between our governments. »

G7 report highlights billion-dollar problem

A report issued last July by the Paris-based Financial Action Task Force, a body of G7 member countries fighting money laundering, terrorist financing and threats to the international financial system, highlighted B.C. money laundering activities.

Eby said the report includes details about a clandestine banking operation laundering money in B.C. that was not fully known by the provincial government.

Surveillance footage of alleged money laundering. (Supplied)

« It is estimated that they laundered more than $1 billion (Canadian) per year through an underground banking network, involving legal and illegal casinos, money value transfer services and asset procurement, » stated the report.

« One portion of the money laundering network’s illegal activities was the use of drug money, illegal gambling money and money derived from extortion to supply cash to Chinese gamblers in Canada. »

The report stated the gamblers would call contacts who would make cash deliveries in casino parking lots and use the money to buy casino chips, cash them in and deposit the proceeds into a Canadian bank.

« Some of these funds were used for real estate purchases, » the report stated. « Surveillance identified links to 40 different organizations, including organized groups in Asia that dealt with cocaine, heroin and methamphetamine. »

B.C. ‘still’ hasn’t seen report: Eby

Eby said the G7 task force report included information about money laundering in B.C. from the federal government, via the RCMP, that the province didn’t have.

He said the B.C. government also confirmed the RCMP compiled an intelligence report about proceeds of crime connections to luxury real estate property sales in Vancouver, but his ministry doesn’t have the report.

« We still don’t have a copy of it, » Eby said.

Blair could not be reached for comment but, in a statement, said the federal government takes the threat posed by money laundering and organized crime seriously and is collaborating with the B.C. government and German.

Minister of Border Security and Organized Crime Reduction Bill Blair. (Adrian Wyld/The Canadian Press)

« We are taking action to combat this by enhancing the RCMP’s investigative and intelligence capabilities both in Canada and abroad, and our Financial Intelligence Unit further helps protect Canadians and our financial system, » said the statement.

German’s report to the provincial government last June concluded B.C.’s gaming industry was not prepared for the onslaught of illegal cash at the casinos and estimated more than $100 million was funnelled through the casinos.

He was appointed last fall to conduct a second review identifying the scale and scope of illegal activity in the real estate market and whether money laundering is linked to horse racing and the sale of luxury vehicles.

« We’re having some difficulty getting the information we need for Dr. German to make a true assessment of the extent of the problem facing B.C., » said Eby.

Peter German (left) a former deputy commissioner of the RCMP at the launch of his Dirty Money report in June 2018. (Darryl Dyck/Canadian Press)

‘A lot of anecdotal evidence’

Maureen Maloney, a former B.C. deputy attorney general, was also appointed last fall to lead an expert panel on money laundering in real estate and report to the government in March.

« We do realize there is a lot of anecdotal evidence on the extent of money laundering in real estate, but we really don’t have a good handle on that, » said Maloney. « We’re looking at whether or not we can produce some good evidence of that. We’re looking at, do we have that data available in B.C., or indeed Canada. »

Confidential provincial government documents dated April 2017 and released through Freedom of Information requests show the government was tracking suspicious currency transactions at B.C. casinos, especially in $20 bills, for years. The high-point of these transactions was more than $176 million in 2014-2015.

In 2008, CBC journalists took $24,000 in cash to B.C. casinos to see just how easy money laundering would be. Turns out it wasn’t hard at all:

Investigation lauded in last week’s Peter German report on B.C. casinos 4:55

Documents dated August 2016 show the government’s Gaming Policy Enforcement Branch observed so-called « high roller » patrons at a Metro Vancouver casino for a year starting in January 2015 and concluded people connected to real estate were the top buy-in gamblers at $53.1 million.

A spokesman for B.C.’s gaming industry said reports from the gaming operators about cash transactions flagged concerns of money laundering.

Peter Goudron, B.C. Gaming Industry Association executive director, said casinos implemented measures to combat potential money laundering, including placing cash restrictions on players in 2015.

« This had the effect of reducing the value of suspicious transactions by more than 60 per cent over the next two years, » he said. « More recently, operators implemented Dr. Peter German’s interim recommendation requiring additional scrutiny of large cash buy-ins in January 2018 and this has further driven down the number of suspicious transactions. »

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Anglais

Nostalgia and much more with Starburst XXXtreme

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Get a taste of adventure with Starburst XXXtreme based on the legendary NetEnt Game. The nostalgic themes are sure to capture fans of the classic version as they get treated to higher intensity, better visuals, and features. The most significant element of the game is its volatility. Patience will not be an essential virtue considering the insane gameplay, and there is a lot of win potential involved. It retains the original makeup of the previous game while adding a healthy dose of adrenaline. 

Starburst Visuals and Symbols

The game is definitely more conspicuous than before. The setting happens over a 5-reel, 3-row game grid with nine fixed win lines, which function if a succession from the left to the right reel is present. Only those players that that attain the highest win per bet line are paid. From a visual standpoint, the Starburst XXXtreme slots illustrates lightning effects behind the reels, which is not surprising as it is inherited from the original version. Available themes include Classic, Jewels, and Space. The game is also available in both desktop and mobile versions, which is advantageous for players considering the global pandemic. According to Techguide, American gamers are increasingly having more engaging gaming experiences to socialize to fill the gap of in-person interaction. Starburst XXXtreme allows them to fill the social void at a time when there is so much time to be had indoors. 

Starburst XXXTreme Features

Players get to alternate on three features which are Starburst Wilds, XXXtreme Spins, and Random Wilds. The first appears on reels 2,3, or 4. When these land, they expand to cover all positions while also calculating the wins. They are also locked for a respin. If a new one hits, it also becomes locked while awarding another respin. Starburst XXXtreme offers a choice between two scenarios for a higher stake. In one scenario with a ten times stake, the Starburst Wild is set on random on reels 2,3, or 4, and a multiplier starts the respin. The second scenario, which has a 95 times stake, starts with two guaranteed starburst wilds on reels 2,3, or 4. it also plays out using respin game sequence and features. The game also increases the potential with the Random Wilds feature to add Starburst Wilds to a vacant reel at the end of a spin. Every Starburst Wild gives a random multiplier with potential wins of x2, x3, x5, x10, x25, x50, x100, or even x150.

The new feature is sure to be a big hit with the gaming market as online gambling has shown significant growth during the lockdown. AdAge indicates the current casino customer base is an estimated one in five Americans, so Starburst XXXtreme’s additional features will achieve considerable popularity. 

What We Think About The Game

The gambling market has continued to diversify post-pandemic, so it is one of the most opportune times to release an online casino-based game. Thankfully Starburst XXXtreme features eye-catching visuals, including the jewels and space themes. These attract audience participation and make the gameplay inviting. The game also has a nostalgic edge. The previous NetEnt iteration featured similar visuals and gameplay, so the audience has some familiarity with it. The producers have revamped this version by tweaking the features to improve the volatility and engagement. 

That is characterized by the potential win cap of 200,000 times the bet. Starburst XXXtreme does not just give betting alternatives for players that want to go big. The increase of multipliers also provides a great experience. If the respins in the previous version were great, knowing that multipliers can go hundreds of times overtakes the game to a new level. 

Players should get excited about this offering. All of the features can be triggered within a single spin. Whether one plays the standard game or takes the XXXtreme spin route, it is possible to activate all of the features. Of course, the potential 200,000 times potential is a huge carrot. However, the bet size is probably going to be restricted and vary depending on the casino. It is also worth pointing out that a malfunction during the gameplay will void all of the payouts and progress. Overall, the game itself has been designed to provide a capped win of 200,000 times the original bet. 

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Anglais

‘We’re back’: Montreal festival promoters happy to return but looking to next year

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In downtown Montreal, it’s festival season.

In the city’s entertainment district, a musical act was conducting a sound check on stage Friday evening — the second day of the French-language version of the renowned Just For Laughs comedy festival. Tickets for many of the festival’s free outdoor shows — limited by COVID-19 regulations — were sold out.

Two blocks away, more than 100 people were watching an acoustic performance by the Isaac Neto Trio — part of the last weekend of the Festival International Nuits d’Afrique, a celebration of music from the African continent and the African diaspora.

With COVID-19 restrictions continuing to limit capacity, festival organizers say they’re glad to be back but looking forward to next year when they hope border restrictions and capacity limits won’t affect their plans.

Charles Décarie, Just For Laughs’ CEO and president, said this is a “transition year.”

“Even though we have major constraints from the public health group in Montreal, we’ve managed to design a festival that can navigate through those constraints,” Décarie said.

The French-language Juste pour rire festival began on July 15 and is followed by the English-language festival until July 31.

When planning began in February and March, Décarie said, organizers came up with a variety of scenarios for different crowd sizes, ranging from no spectators to 50 per cent of usual capacity.

“You’ve got to build scenarios,” he said. “You do have to plan a little bit more than usual because you have to have alternatives.”

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Anglais

MELS new major movie studio to be built in Montreal

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MONTREAL — MELS Studios will build a new film studio in Montreal, filling some of the gap in supply to meet the demand of Hollywood productions.

MELS president Martin Carrier said on Friday that MELS 4 studio construction will begin « as soon as possible », either in the fall or winter of next year. The studio could host productions as early as spring 2023.

The total investment for the project is $76 million, with the Quebec government contributing a $25 million loan. The project will create 110 jobs, according to the company.

The TVA Group subsidiary’s project will enable it to stand out « even more » internationally, according to Quebecor president and CEO Pierre Karl Péladeau. In the past, MELS Studios has hosted several major productions, including chapters of the X-Men franchise. The next Transformers movie is shooting this summer in Montreal.

Péladeau insisted that local cultural productions would also benefit from the new facility, adding that the studio ensures foreign revenues and to showcase talent and maintain an industry of Quebec producers.

STUDIO SHORTAGE

The film industry is cramped in Montreal.

According to a report published last May by the Bureau du cinéma et de la télévision du Québec (BCTQ), there is a shortage of nearly 400,000 square feet of studio space.

With the addition of MELS 4, which will be 160,000 square feet, the company is filling part of the gap.

Carrier admitted that he has had to turn down contracts because of the lack of space, representing missed opportunities of « tens of millions of dollars, not only for MELS, but also for the Quebec economy. »

« Montreal’s expertise is in high demand, » said Montreal Mayor Valérie Plante, who was present at the announcement.

She said she received great testimonials from « Netflix, Disney, HBO and company » during an economic mission to Los Angeles in 2019.

« What stands out is that they love Montreal because of its expertise, knowledge and beauty. We need more space, like MELS 4, » she said.

There is still not enough capacity in Quebec, acknowledged Minister of Finance, the Economy and Innovation Eric Girard.

« It is certain that the government is concerned about fairness and balance, so if other requests come in, we will study them with the same seriousness as we have studied this one, » he said.

Grandé Studios is the second-largest player in the industry. Last May, the company said it had expansion plans that should begin in 2022. Investissement Québec and Bell are minority shareholders in the company.

For its part, MELS will have 400,000 square feet of production space once MELS 4 is completed. The company employs 450 people in Quebec and offers a range of services including studio and equipment rentals, image and sound postproduction, visual effects and a virtual production platform.

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