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

Patrons exercise at Re4rm Fitness prior to last week’s new, provincial COVID-19 regulations. (Photo submitted)
Williams Lake fitness centres adapt amid new COVID-19 regulations

Gymnastics, dance studios, martial arts, yoga, pilates, strength and conditioning impacted

Patrons enjoy some skiing and the views at the top of the chairlift at Mt. Timothy Recreation Resort. (Angie Mindus photo - Williams Lake Tribune)
Mt. Timothy nearing opening date; owners excited for upcoming season

Once open, hours will be Thursday through Sunday from 9 a.m. to 3:30 p.m.

School District 27 announced the first confirmed case of COVID-19 this week at Lake City Secondary School Williams Lake campus. (Angie Mindus photo - Williams Lake Tribune)
‘It was just a matter of time’: SD27 superintendent confirms two COVID-19 cases at LCSS

An entire PE class is self-isolating as Interior Health engages in contact tracing

A volunteer with the Williams Lake Minor Hockey Association for the past 12 years and its current president, Mike Rispin moved to the lakecity in 1991. (Greg Sabatino photo - Williams Lake Tribune)
OUR HOMETOWN: Rispin skates through pandemic at helm of minor hockey

“I never did plan on staying here, but I liked the outdoor activities,” Rispin said.

COVID-19. (Image courtesy CDC)
Interior Health reports 65 new cases of COVID-19

Province-wide, there are 887 new cases of the virus

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. sets another COVID-19 record with 887 new cases

Another 13 deaths, ties the highest three days ago

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Langley School District's board office. (Langley Advance Times files)
‘Sick Out’ aims to pressure B.C. schools over masks, class sizes

Parents from Langley and Surrey are worried about COVID safety in classrooms

The baby boy born to Gillian and Dave McIntosh of Abbotsford was released from hospital on Wednesday (Nov. 25) while Gillian continues to fight for her life after being diagnosed with COVID-19.
B.C. mom with COVID-19 still fighting for life while newborn baby now at home

Son was delivered Nov. 10 while Gillian McIntosh was in an induced coma

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

B.C. Premier John Horgan, a Star Trek fan, can’t resist a Vulcan salute as he takes the oath of office for a second term in Victoria, Nov. 26, 2020. (B.C. government)
Horgan names 20-member cabinet with same pandemic team

New faces in education, finance, economic recovery

The corporate headquarters of Pfizer Canada are seen in Montreal, Monday, Nov. 9, 2020. The chief medical adviser at Health Canada says Pfizer’s COVID-19 vaccine could be approved in Canada next month. THE CANADIAN PRESS/Ryan Remiorz
Health Canada expects first COVID-19 vaccine to be approved next month

Canada has a purchase deal to buy at least 20 million doses of Pfizer’s vaccine,

FILE – A paramedic holds a test tube containing a blood sample during an antibody testing program at the Hollymore Ambulance Hub, in Birmingham, England, on Friday, June 5, 2020. (Simon Dawson/Pool via AP)
Want to know if you’ve had COVID-19? LifeLabs is offering an antibody test

Test costs $75 and is available in B.C. and Ontario

The grey region of this chart shows the growth of untraced infection, due to lack of information on potential sources. With added staff and reorganization, the gap is stabilized, Dr. Bonnie Henry says. (B.C. Centre for Disease Control)
B.C. adjusts COVID-19 tracing to keep up with surging cases

People now notified of test results by text message

Most Read