Mugglehead report
The Royal Canadian Mountain Police are charging a 30-year-old BC resident for his role in a multi-million-dollar money laundering scheme involving illegal online cannabis sales.
In a press release Thursday, the police revealed that they had arrested Harry Seo of Burnaby on Dec. 30. He was supposed to appear in court on Friday in Vancouver, but his legal representation delayed the proceedings until the end of February.
His apprehension followed a lengthy and “complex” investigation into the criminal activity in British Columbia and Alberta. He is one of seven involved in the operation. The rest received conditional sentences ranging from 9-12 months last year and major fines up to C$155,000.
“By partnering with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the CRA, we collected a significant amount of evidence to demonstrate how this group laundered significant proceeds of crime earned from the sale of illegal cannabis,” the RCMP stated.
The individuals involved handled a total of C$47 million before their criminal activity was put to an end by authorities. The vast majority of this sum came in the form of e-transfers.
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BC man charged for role in C$47M illicit cannabis money laundering scheme
News release
Federal Financial Crime Team charges B.C. resident in connection to $47 million interprovincial money laundering scheme
January 30, 2025 – Edmonton, Alberta
From: Federal Policing Northwest Region
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The RCMP Federal Policing Northwest Region’s Federal Financial Crime Team (FFCT) in Edmonton arrested a B.C. resident for organized crime and money laundering offences.
Between September 2018 and August 2020, 30-year-old Harry Seo of Burnaby, B.C., is alleged to have laundered proceeds of crime via online transactions of illicit cannabis in Alberta and British Columbia. He is one of a total of seven individuals who have been charged after allegedly laundering approximately $47 million as part of a criminal organization.
How the money was laundered
Following an extensive and complex investigation by the FFCT, the accused’s money laundering operation was uncovered.
Officers were able to determine that the money laundering network was comprised of various Alberta and British Columbia numbered companies operating as unregistered money services businesses (uSMBs).
These companies are alleged to have received, transferred or converted proceeds of crime through illicit cannabis sales via a variety of online dispensaries.
The investigation also found that the uSMBs within the money laundering network received tens of millions in sales through e-Transfer payments. Through email addresses linked to these e-Transfer payments, officers were able to identify eight individuals who received a a total of $47 million in proceeds of crime.
The accused is also alleged to have been financially compensated by the criminal organization for laundering the proceeds of crime and for concealing its origins from law enforcement, regulatory authorities and financial institutions. Additionally, the accused also operated two illicit cannabis-related business in the Edmonton and Burnaby areas.
On Dec. 30, 2024, 30-year-old Harry Seo of Burnaby, B.C., was arrested by the Vancouver Police Department and charged with:
- Laundering proceeds of crime contrary to section 462.31 of the Criminal Code;
- Failure to register a money service business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) contrary to section 74(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;
- Commission of offence for criminal organization contrary to section 467.12 of the Criminal Code (x2);
- Unauthorized possession of cannabis for the purpose of selling contrary to section 10(2) of the Cannabis Act.
Seo is scheduled to appear at Vancouver Provincial Court on Jan. 31, 2025.
As a result of the investigation, five individuals were previously charged and convicted for failing to register a money service business with FINTRAC contrary to section 74(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act:
- A 25-year-old resident of Edmonton was sentenced to a 12-month conditional sentence and ordered to forfeit more than $155,000 in proceeds of crime on June 26, 2024.
- A 30-year-old resident of Edmonton was sentenced to a 12-month conditional sentence and ordered to forfeit more than $105,000 in proceeds of crime on July 22, 2024;
- A 35-year-old resident of Edmonton was sentenced to a 9-month conditional sentence and ordered to forfeit more than $70,000 in proceeds of crime on July 18, 2024;
- A 30-year-old resident of Chilliwack, B.C., was sentenced to a 12-month conditional sentence and ordered to forfeit more than $50,000 in proceeds of crime on Sep. 11, 2024; and,
- A 26-year-old resident of Edmonton was sentenced to a 10-month conditional sentence and ordered to forfeit more than $85,000 in proceeds of crime on Sep. 25, 2024.
A sixth individual, a 33-year-old resident of Brampton, Ont., was also charged with one count of failing to register a money service business with FINTRAC contrary to section 74(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The accused is scheduled to stand trial at the Alberta Court of Justice in Edmonton on Nov. 3, 2025.
“This criminal organization operated throughout western Canada to collect, transfer and benefit from approximately $47 million in proceeds of crime. By partnering with FINTRAC and the Canada Revenue Agency (CRA), we collected a significant amount of evidence to demonstrate how this group laundered significant proceeds of crime earned from the sale of illegal cannabis. This was a substantial win in Canada’s fight against money laundering and criminal organizations who seek to undermine the economic integrity of Canada’s financial institutions.”
- Insp. John Lamming, Officer in Charge of Northwest Region Financial Integrity and Cybercrime – Edmonton
FFCT would like to acknowledge FINTRAC, the CRA, the Vancouver Police Department and the RCMP Federal Policing Pacific Region for their support in this investigation.
The Federal Financial Crime Team is a specialized unit that conducts investigations relating to financially motivated organized crime with a focus on anti-money laundering.
