Financial Transactions and Reports Analysis Centre of Canada(FINTRAC) gave a new Operational Alert on 23rd January 2025. In the alert, Laundering of Illicit Synthetic Opioid and the use of cryptocurrency for buying and selling were mentioned.
The Government of Canada put efforts to combat the threat posed by deadly illegal drugs. This alert will protect vulnerable communities and save lives entrapped in a trap. This new Operational Alert will help in identifying and reporting financial transactions related to the laundering, production and distribution of fentanyl and other illegal synthetic opioids. In return, citizens should facilitate the production of actionable financial intelligence supporting law enforcement investigations and prosecutions of these appalling crimes.
The Canadian government has pointed out concerns about the increasing high use of crypto assets in illegal opioid trading. They use cryptocurrency, particularly in trafficking and also in the production of fentanyl and other synthetic drugs.
In a recent operational alert, the Financial Transactions and Reports Analysis Centre of Canada highlights that virtual currencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC), are being misused. These stablecoins are used to facilitate international drug trade. This system bypasses traditional financial services, saving the traders from tax.
FINTRAC’s findings highlight that there is a role of darknet marketplaces in connecting fentanyl suppliers and buyers. Ceo of FINTRAC said that ,
“We are committed to working with our domestic partners and North American allies to protect our communities and our citizens from the scourge of fentanyl and other illegal synthetic opioids that are being fuelled by transnational organised crime.”
This online marketplace allows crypto coins as payment methods and uses escrow services to complete transactions like P2p. Once funds are released, they can be transferred to private wallets, laundered through mixing services. They can also be converted to fiat currencies via exchanges.
This Operational Alert results from the trilateral cooperation between
- FINTRAC
- Financial Crimes Enforcement Network (FinCEN) in the United States and
- The Unidad de Inteligencia Financiera in Mexico
The above Financial Intelligence Units have come together to form the North American Drug Dialogue Illicit Financing Working Group to develop money laundering indicators related to the importation, production and distribution of illegal synthetic opioids
The Operational Alert highlights that the growing involvement of organised crime groups has facilitated the illegal supply of fentanyl and other synthetic opioids in North America and also in other areas of the continent
This Operational Alert initiate Project Guardian. It is a broader public-private partnership that targets money laundering activities, including the importation, production and distribution of illegal synthetic opioids
