Reported by JILL MAHONEY

(Excerpt shared below. To read full report, go to: https://www.theglobeandmail.com/canada/article-anti-money-laundering-public-beneficial-land-ownership-registry/)

Anti-money-laundering experts are calling on the Ontario government to create a land ownership transparency registry to crack down on criminals who hide illicit funds in real estate. 

Such public registries force the disclosure of the ultimate, or beneficial, owners of properties, including those held by corporations, partners and trustees. Advocates say the registries disrupt the flow of dirty money while also helping to stem rising housing costs. 

“Ontario really needs to do this,” said Sasha Caldera, campaign director for the End Snow-Washing Coalition, which advocates for beneficial ownership registries. “The canary’s already in the coal mine for Ontario and it’s been chirping louder and louder.” 

Land transparency registries are an important tool for fighting organized crime, experts say, noting that U.S. President Donald Trump demanded Canada do more to tackle drug trafficking when he imposed tariffs earlier this year. Such registries thwart criminals’ ability to use secret entities to launder billions of dollars in dirty money by revealing property owners’ true identities, allowing investigators to trace illegal cross-border activity. 

British Columbia is the only province with a land ownership transparency registry. Its registry came into effect in 2020. 

The Ontario Real Estate Association has been urging the country’s most populous province for years to create a public beneficial ownership registry using the land title system. 

Ontario finance ministry spokesperson Scott Blodgett did not respond to a question about why the government has not committed to a land transparency registry. 

Instead, Mr. Blodgett pointed to the province’s announcement in November that it would create a different kind of registry – one for privately held business corporations – by 2027, saying it “will serve as an important tool to strengthen Ontario’s ability to combat money laundering and associated criminal activities.”

Corporate beneficial ownership registries provide transparency on the individuals who control privately held companies. Private corporate entities, such as shell companies, can be exploited by criminals to launder illicit profits because they can be used to access the banking system while concealing their true owners. 

In announcing a corporate beneficial ownership registry, Ontario is following the lead of Quebec and B.C., which have made similar commitments to fight money laundering through anonymous corporate entities. Ottawa also has a beneficial ownership registry for federally registered companies.