FINTRAC Publishes Money Laundering Indicators Aimed at Combatting Fentanyl and Other Illegal Synthetic Opioids — FINTRAC — CA

News release

January 23, 2025 — Ottawa —
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)

FINTRAC published today a new Operational Alert, Laundering the Proceeds of Illicit Synthetic Opioids, as part of the Government of Canada’s efforts to combat the threat posed by deadly illegal drugs, protect vulnerable communities and save lives. This new Operational Alert will assist businesses in identifying and reporting financial transactions related to the laundering of proceeds from the importation, production and distribution of fentanyl and other illegal synthetic opioids. Reporting from businesses will, in turn, facilitate the production of actionable financial intelligence in support of law enforcement investigations and prosecutions of these appalling crimes.

This Operational Alert is the result of the trilateral cooperation between FINTRAC, the Financial Crimes Enforcement Network (FinCEN) in the United States and the Unidad de Inteligencia Financiera in Mexico. These Financial Intelligence Units have come together to form the North American Drug Dialogue Illicit Financing Working Group to develop money laundering indicators related to the importation, production and distribution of illegal synthetic opioids; share money laundering trends, typologies and best practices; and instigate and support law enforcement investigations.

The Operational Alert highlights that the illegal supply of fentanyl and other synthetic opioids in North America has been facilitated by the growing involvement of organized crime groups. These groups are importing or diverting essential precursor chemicals and lab equipment from China and other Asian countries for the production of illegal synthetic opioids. These threat actors are also using darknet marketplaces and virtual currencies to distribute and facilitate payments for fentanyl and other illegal synthetic opioids on an international scale, among other traditional methods.

This Operational Alert supports Project Guardian, a broader public-private partnership established to target money laundering activities linked to the importation, production and distribution of illegal synthetic opioids. Project Guardian is led by CIBC and includes financial intelligence units, law enforcement agencies and private sector partners. Since the launch of Project Guardian in 2018, FINTRAC has generated nearly 1,000 financial intelligence disclosures in relation to illicit synthetic opioid trafficking.

Quotes

“We are committed to working with our domestic partners and North American allies to protect our communities and our citizens from the scourge of fentanyl and other illegal synthetic opioids that is being fuelled by transnational organized crime. We have shown with Project Guardian that, by following the money and leveraging the power of financial intelligence, we can effectively target, disrupt and dismantle the organized criminal networks that profit from this insidious illicit activity and threaten the safety and security of Canadians and North Americans.”

“CIBC remains focused on tackling illicit activities by purposefully collaborating across sectors. We are proud to have supported FINTRAC on the development of this important and timely Operational Alert aimed at stemming the flow of illicit synthetic opioids, and remain committed to helping mobilize efforts to combat this complex public health crisis through Project Guardian. Only by working together can we ensure we safeguard our communities from the harmful effects of fentanyl and other illicit synthetic opioids.”

Quick facts

The illegal production and distribution of synthetic opioids, particularly fentanyl, poses a serious security and public health threat by exacerbating the opioid overdose crisis.

FINTRAC’s Operational Alert, Laundering the Proceeds from Illicit Synthetic Opioids, was developed following an analysis of 5,000 suspicious transaction reports received between 2020 and 2023, data from other financial intelligence units, assessments from domestic and foreign government and non-government organizations, and open source information to enhance and corroborate suspicious trends, patterns, and indicators.

Criminals are laundering their illicit funds from opioid trafficking though cash smurfing, trade-based money laundering, flow-through account activity and the use of underground banking. Traffickers also use nominees to launder their illegal funds and to conceal the beneficial ownership.

In 2023–24, FINTRAC provided 93 disclosures of actionable financial intelligence to its law enforcement partners in support of Project Guardian. These disclosures contained information on 354 different subjects and supported over 50 law enforcement investigations.

In August 2023, the Alberta Law Enforcement Response Teams (ALERT) acknowledged FINTRAC’s contribution to Project Carlos, which led to the arrest of seven individuals for their role in a multi-million-dollar drug trafficking operation. A total of 33 charges were laid with offences ranging from drug trafficking to money laundering, to criminal conspiracy and organized crime-related offences. Project Carlos resulted in the seizure of more than $4.5 million worth of drugs, including fentanyl, and nearly $1 million in cash.

FINTRAC produced more than 4,600 financial intelligence disclosure packages last year in support of investigations of money laundering, terrorist financing and threats to the security of Canada. The Centre’s financial intelligence was critical to the success of increasingly large, sophisticated and cross-jurisdictional law enforcement investigations over the past year.

Throughout 2023–24, the Centre's financial intelligence contributed to 266 major, resource intensive investigations as well as many hundreds of other individual investigations at the municipal, provincial and federal levels across the country, as well as internationally.

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