Snow washing
Snow washing refers to hiding illegitimate financial transactions often for purposes of
shell companies to "make suspect transactions seem legitimate" under the cover of Canada's reputation for fiscal integrity.[1]
The registration systems for Canadian companies, at both the federal level and the provincial level, are shrouded in secrecy, which means that the real owner of a company or a trust can hire a person as a stand-in substitute to conduct all financial filings and submissions.
References
- ^ a b c d e f Cribb, Robert; Oved, Marco Chown (January 25, 2017). "SNOW WASHING: Canada is the world's newest tax haven". Toronto Star. Retrieved February 14, 2018.
...And the Canadian government has made it easier than ever for criminals and tax cheats to move money in and out by signing tax agreements with 115 countries — the greatest number in the world....
- ^ a b c Kassam, Ashifa (February 14, 2018). "How Canada became an offshore destination for 'snow washing': The country's opaque jurisdictions allow owners of private companies to remain anonymous and the firms to remain in the shadows". The Guardian. Retrieved February 14, 2018.
...While publicly traded firms in Canada are required to disclose major shareholders, private companies need only note their directors, allowing those who own, control or benefit from the firm to remain in the shadows....
- ^ a b "Snow washing: Canada frets about anonymously owned firms -- Identity checks to obtain a library card are more onerous than those to form a private firm". The Economist. January 4, 2018. Retrieved February 14, 2018.
... 2009 the national police force estimated that up to C$15bn ($12bn) was being laundered in the country each year (an estimated annual $2trn is laundered globally). ...