Commissioner Austin Cullen listens to introductions before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver, on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

Commissioner Austin Cullen listens to introductions before opening statements at the Cullen Commission of Inquiry into Money Laundering in British Columbia, in Vancouver, on February 24, 2020. THE CANADIAN PRESS/Darryl Dyck

B.C. money laundering inquiry hears of $800,000 and more in bags, luggage, backpacks

The lottery corporation has said it consistently reported suspicious transactions to Fintrac

Vast amounts of cash started flowing into British Columbia’s largest casino in 2010 and transactions of $800,000 or more became common as players hauled in bags, suitcases and backpacks full of cash, an inquiry heard Monday.

Steven Beeksma, who worked as a surveillance manager at the River Rock Casino in Richmond, recalled one case in 2014 of a player bringing in $200,000. The player then lost $6,000 and cashed out with $194,000 in $100 bills, which would receive less scrutiny when deposited in a bank, he said.

“This would be a case of refining, where the player was using the casino to exchange his $20 bills for $100 bills either for his own purpose or acting on behalf or a third party,” Beeksma added.

“We would have no way of knowing, but that behaviour would be suspicious to us.”

It’s unlikely banks would dispense so much money in $20 bills, said Beeksma, who was employed by the Great Canadian Casino Corp. for 12 years before working at River Rock as an investigator for the B.C. Lottery Corp. starting in 2010.

Beeksma, who works as an anti-money laundering specialist with the lottery corporation, said he did not intervene in the suspicious transactions at the direction of managers who ran the casino.

“We had concerns about the cash’s origins for sure,” he said ”The concern would be proceeds of crime but with limited information available to us it was more of an assumption at that time.”

The B.C. government launched the inquiry after reports outlined how illegal cash was helping to fuel the real estate, luxury car and gambling sectors in the province. The province also commissioned three reports that said those businesses were hotbeds for dirty money.

Beeksma said banned players were seen on surveillance video dropping off bags of cash to patrons in a parking lot.

In one case in February 2012, a person who’d been banned for loan sharking provided a patron with $50,000 in cash in a washroom, according to Beeksma.

The woman then left and was later seen on surveillance video being dropped off at the back of the casino by the general manager of the Great Canadian Gaming Corp. at the time, said Beeksma, who did not name the general manager.

An investigation determined the patron had been out for a meal with him and was given gifts including chocolates and roses, the inquiry heard.

The same woman was again handed $50,000 cash in $20 bills as part of a cash drop-off and the money was accepted as a buy-in by the casino, Beeksma said.

“There was no direction that buy-ins of this nature should not be accepted, is that fair?” inquiry lawyer Patrick McGowan asked.

“That’s fair, yes,” Beeksma said, adding it wasn’t uncommon for valuable players to be wined and dined by the general manager.

“He likely had no idea what was about to happen but he put himself in a precarious situation,” Beeksma said.

In 2015, new regulations brought in by the B.C. Lottery Corp. included players being interviewed in an effort to determine the source of their money.

The lottery corporation has said it consistently reported suspicious transactions to Fintrac, Canada’s financial transactions reporting centre, and pointed out unusual conduct to the gaming policy enforcement branch.

The corporation has also brought in measures to control or prevent the flow of dirty money since 2012, including creating an anti-money laundering unit made up of certified investigators and intelligence analysts.

The Great Canadian Gaming Corp., which owns several B.C. gambling sites, has defended the company’s efforts to limit money laundering, telling the inquiry that criticism of the industry is unfounded.

ALSO READ: Civil forfeiture office alleges $2M Surrey home was used to launder cannabis money

Camille Bains, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

money laundering

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The Penticton Vees Junior ‘A’ Hockey Club has been hit with financial hardships due to lost ticket revenue amid the pandemic. (Phil McLachlan - Western News)
Penticton Vees receive anonymous $3,000 donation

Lost ticket revenue has forced Vees staff to get creative for funding this year

The Wrong Turn Tavern in Keremeos is trying to lighten the mood during this pandemic. (Facebook photo)
Keremeos Tavern has fun with some not-so-fun restrictions

Sign posted at the Tavern warns if you don’t wear a mask you must strip naked

grapes.
Morning Start: Grapes light on fire in the microwave

Your morning start for Tuesday, Dec. 1, 2020

Christmas Lights
This nativity scene at the home of Paul Biro, organizer of the Summerland Drive-By Light Up, was just one of many parts of his elaborate display. (John Arendt - Summerland Review)
VIDEO: Summerland holiday lights on display

Drive-by light-up on Nov. 27 showed some of the many festive season decorations

Santa will meet kids on Zoom this year. (OSNS photo)
Visits with Santa go virtual this year in Penticton

Cherry Lane mall has partnered with OSNS to bring Old St. Nick into your living room via Zoom

A B.C. Ambulance Service paramedic wearing a face mask to curb the spread of COVID-19 moves a stretcher outside an ambulance at Royal Columbia Hospital, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest weekend of COVID-19 pandemic with 46 deaths; more than 2,300 cases

Provincial health officer Dr. Bonnie Henry provides COVID-19 update

RCMP are offering some helpful ways to send the Grinch home empty handed this holiday season. (Vernon-North Okanagan RCMP)
‘Tis the season to protect your packages: North Okanagan RCMP

Send the Grinch home empty handed this Christmas season

THE CANADIAN PRESS/Nathan Denette
B.C. researchers launch study to test kids, young adults for COVID-19 antibodies

Kids and youth can often be asymptomatic carriers of the novel coronavirus

Paramedics register patients at a drive through, pop-up COVID-19 test centre outside the Canadian Tire Centre, home of the NHL’s Ottawa Senators, in Ottawa, Sunday, Sept. 20, 2020. A new poll suggests most Canadians aren’t currently worried that people in other countries might get a COVID-19 vaccine first. THE CANADIAN PRESS/Justin Tang
Canadians not worried other countries will get COVID-19 vaccine first: poll

Forty-one per cent of respondents say they want the vaccine to be mandatory for all Canadians

Fossil finds at Mt. Stephen. (Photo: Sarah Fuller/Parks Canada)
Extreme hiking, time travel and science converge in the Burgess Shale

Climb high in the alpine and trace your family tree back millions of years – to our ocean ancestors

Join Rob Dinwoodie and bandmates for a Cowboy Christmas, Dec. 11 and 12 at Vernon and District Performing Arts Center. Seating is cabaret style on the stage for an intimate concert. (Contributed)
North Okanagan cowboys go virtual for Christmas

Cowboy Christmas streamed Dec. 11-25

Vernon is getting in the Christmas spirit with many homes decorating with lights and extras. (Caitlin Clow - Morning Star)
Christmas lights tour mapped out by Vernon Realtor

More than 20 of the community’s best-lit houses make up annual tradition

Kettle bells sit aligned in an indoor fitness studio. (PIxabay.com)
1 COVID-19 case at a B.C. fitness studio leads to 104 more infections, 6 school exposures

According to case data released by Fraser Health, one case of the novel coronavirus carries a big impact

Vehicles drive past a display thanking essential workers in Burnaby, B.C. on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Marissa Tiel
B.C. changing COVID-19 case reporting as virus spread continues

Manual counting takes more time, leads to errors

Most Read