In its 2023–2024 Annual Report, FINTRAC, Canada’s financial intelligence agency, warns about the growing use of digital platforms, including gambling platforms, for laundering money derived from opioid trafficking, particularly fentanyl. The report includes striking figures that illustrate the impact of organized crime on the financial sector.
Key Figures from the 2023–2024 Report
- The global opioid trade, including fentanyl, is estimated to generate $42–50 billion USD annually, according to the United Nations Office on Drugs and Crime.
- In Canada, the gambling sector generated approximately $21 billion CAD in gross revenue during 2023, with an undetermined portion potentially linked to illicit activities, according to financial experts.
- FINTRAC received more than 7,500 suspicious transaction reports related to gambling and associated activities in 2023, marking a 15% increase from the previous year.
- Canada’s digital payment and online betting systems processed $14.3 billion CAD in transactions, making it one of the primary areas at risk for money laundering.
In December 2022, the Financial Action Task Force (FATF), co-led by Canada's Financial Crime Coordination Centre (FC3), released its first report on money laundering from synthetic opioids like illegal fentanyl. The report highlighted that organized crime groups employ methods such as bulk cash smuggling, trade-based money laundering, virtual assets, shell companies, and professional money launderers to launder proceeds from the illegal drug trade. However, this report did not specifically address the use of online gambling platforms in these activities.
Digital Platforms Under Scrutiny
FINTRAC highlights that online betting platforms and casinos are particularly vulnerable to money laundering due to their high liquidity and low barriers for user entry. Criminals often employ techniques such as depositing large sums, placing minimal bets, and withdrawing the remainder as “legitimate winnings.”
For more details, access the full FINTRAC report on its official website.
