The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) issued a new Operational Alert, Laundering the Proceeds of Illicit Synthetic Opioids, setting out money laundering indicators to help reporting entities identify and report transactions linked to the importation, production and distribution of fentanyl and other illegal synthetic opioids. The alert was developed through trilateral cooperation with the United States’ Financial Crimes Enforcement Network and Mexico’s Unidad de Inteligencia Financiera under the North American Drug Dialogue Illicit Financing Working Group. It highlights the role of organised crime groups, including the sourcing or diversion of precursor chemicals and lab equipment from China and other Asian countries, and the use of darknet marketplaces and virtual currencies alongside more traditional methods. FINTRAC also links the alert to Project Guardian, a public private partnership led by CIBC, and notes that the alert draws on analysis of 5,000 suspicious transaction reports from 2020 to 2023 and identifies typologies such as cash smurfing, trade based money laundering, flow through account activity, underground banking and the use of nominees to conceal beneficial ownership.
Financial Transactions and Reports Analysis Centre of Canada 2025-01-23
Financial Transactions and Reports Analysis Centre of Canada publishes operational alert with indicators for laundering proceeds from fentanyl and other synthetic opioids
FINTRAC issued an Operational Alert on laundering proceeds from illicit synthetic opioids, detailing money laundering indicators for fentanyl-related transactions. Developed with U.S. and Mexican counterparts, it highlights organized crime's role and methods, including precursor chemical sourcing from Asia and the use of darknet and virtual currencies. It references Project Guardian and analyzes 5,000 suspicious transaction reports, identifying typologies like cash smurfing and trade-based money laundering.