How Canada became an offshore destination for 'snow washing'

Canada is one the world’s most opaque jurisdictions when it comes to identifying the owners of private companies and trusts, according to anti-corruption campaigners who say that more rigorous checks are required to obtain a library card than to set up a company in the country.

“Anyone can start a company in Canada. It costs about C$200 and the owner of the company can remain completely anonymous,” said lawyer Mora Johnson, who recently authored a report detailing the country’s lax rules around corporate registration.

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.

Most provinces allow nominee directors and shareholders and do not require them to disclose that they are acting on behalf of another person. “Privately held companies can easily be abused for tax evasion, for money laundering purposes and to stash the proceeds of crime,” said Johnson.  (more...)

How Canada became an offshore destination for 'snow washing'

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Snow washing, forgery and corruption — a look back at fraud in Canada in 2017

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