Canada’s financial institutions could face criminal liability for facilitating transactions tied to cartel-linked drug sales, according to a new report by journalist David Clement.
Clement argues Canada’s recent designation of seven transnational criminal organizations as terrorist entities may implicate banks, credit card companies and Interac under the Criminal Code, due to their role in processing payments for illegal drug sales.
“In Canada, collaborating with a listed terrorist organization is a serious offence under the Criminal Code,” writes Clement in the report.
“It should cause them — the banks and Interac — to take action,” Clement told Canadian Affairs in an interview.
Legal experts say the Criminal Code permits the prosecution of institutions that facilitate terrorism. But the burden of proof is high and the likelihood of charges being laid is low.
“Theoretically, there’s no impediment to [prosecuting financial institutions],” said Anil Kapoor, a criminal and national security lawyer.
“The real question is how you acquire the evidence, and … does the evidence add up to knowingly [facilitating illegal transactions]?”
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