Vancouver Port Infiltration by Transnational Crime Linked to Billions in Laundering and Global Fentanyl Trade
Vancouver, Canada – A recent intelligence report, titled "秘密深透： 跨国犯罪和中国政府如何渗透温哥华港口并侵蚀加拿大主权" (Deep Secret: How Transnational Crime and the Chinese Government Infiltrate Vancouver Port and Undermine Canadian Sovereignty) in its original Chinese, highlights the systematic infiltration of Vancouver Port by transnational criminal organizations, including Chinese Triads, Iranian intelligence agents, and Mexican drug cartels, since the 1980s. This alleged deep penetration has transformed the port into a critical node within a vast global network for drug trafficking, particularly fentanyl, and extensive money laundering operations. The report asserts that these activities are eroding Canadian sovereignty through various sectors, including ports, casinos, real estate, and telecommunications systems.
Intelligence indicates a long-standing pattern of infiltration, with criminal groups like the Big Circle Boys reportedly cooperating with Chinese Communist Party (CCP)-affiliated individuals. This collaboration has leveraged Vancouver Port for the production and distribution of illicit drugs, especially fentanyl. Canadian law enforcement agencies reportedly identified this infiltration by Triads and Chinese military-linked entities as early as the 1990s, but political corruption, legal loopholes, and insufficient enforcement hindered effective countermeasures.
The intelligence report suggests these illicit financial flows involve billions, and potentially trillions, in money laundering activities annually, fueled by drug proceeds. The Cullen Commission of Inquiry into Money Laundering in British Columbia, for instance, found that billions of dollars were laundered through the province each year. The primary source of precursor chemicals for fentanyl production in Canada is China, as confirmed by Canadian law enforcement, with over 350 organized crime groups reportedly involved in the domestic fentanyl market. While Canada is a net exporter of fentanyl, the majority of fentanyl entering the United States originates from Mexico, with Canadian-produced fentanyl primarily serving the domestic market due to higher production costs.
A key mechanism for these financial operations is the "Vancouver Model" of money laundering, which leverages casinos and real estate. This model facilitates the movement of illicit funds, often linked to capital flight from China and drug sales, through seemingly legitimate channels. The problem was further exacerbated in the 2000s with the rise of encrypted communication companies like Phantom Secure, which provided secure services to drug cartels. This technological assistance, combined with identified systemic vulnerabilities in Canadian oversight, allowed criminal networks to operate with increased impunity.
The report suggests these activities constitute "non-traditional warfare," implying a strategic dimension to the infiltration. Connections between criminal networks and CCP-affiliated individuals, as well as the involvement of Chinese state-owned enterprises, raise concerns about foreign influence and national security. David M. Luna, a former U.S. diplomat, noted that Hezbollah has utilized such networks in Canada for terror financing through drug proceeds.
Recent controversies, such as the BC Ferries contract awarded to a Chinese state-owned shipyard, have intensified concerns regarding China's civil-military fusion strategy and its potential threat to Canadian security. Photos and reports linking political figures with individuals involved in these criminal networks underscore deep-seated corruption within political and business elites. Vancouver's role as a strategic hub for global drug and terror financing remains a significant and complex challenge for Canadian authorities.