Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) has issued a warning about the potential misuse of online gambling platforms to launder money generated from the production and distribution of fentanyl.  

In a recently released operational alert, FINTRAC detailed how online casinos and their associated payment processors, particularly those in Canada, Malta, and the UK, are being exploited by traffickers. The report said funds are deposited into gambling accounts and later withdrawn as purported winnings, masking their illicit origins. 

The alert highlights an instance where high-value email money transfers were sent from a payment processor tied to an online gambling site to individuals linked to fentanyl trafficking. Such transactions are disguised as legitimate e-transfers, obscuring their connection to online gambling platforms. According to FINTRAC, “These threat actors are also using darknet marketplaces and virtual currencies to distribute and facilitate payments for fentanyl and other illegal synthetic opioids on an international scale, among other traditional methods.” 

Organised crime’s role in fentanyl production 

Organised crime groups have increasingly driven the illegal production and distribution of fentanyl in North America. FINTRAC’s analysis revealed that these networks import precursor chemicals and lab equipment from regions such as China and India, funnelling them through intermediary jurisdictions like Singapore, South Korea, and Hong Kong to evade detection. This shift has positioned North America not just as a consumer but also as a producer and distributor of synthetic opioids. 

Large cities such as Vancouver and Toronto have become hubs for fentanyl production and distribution. From these centres, the drug is transported inland to areas like Calgary, Edmonton, and Thunder Bay, often using freight-forwarding and logistics companies that operate heavily in cash transactions. 

Project Guardian: A collaborative effort 

FINTRAC’s operational alert is part of the broader Project Guardian, a partnership involving financial intelligence units, law enforcement agencies, and private sector organisations such as CIBC. Since its inception in 2018, Project Guardian has enabled the generation of nearly 1,000 financial intelligence disclosures, supporting over 50 law enforcement investigations. 

“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 is being fuelled by transnational organised crime,” Sarah Paquet, Director and CEO of FINTRAC, said. “We have shown with Project Guardian that, by following the money and leveraging the power of financial intelligence, we can effectively target, disrupt and dismantle the organised criminal networks that profit from this insidious illicit activity and threaten the safety and security of Canadians and North Americans.” 

Michael Donovan, Senior Vice-President and Chief Anti-Money Laundering Officer at CIBC, added, “We are proud to have supported FINTRAC on the development of this important and timely Operational Alert aimed at stemming the flow of illicit synthetic opioids and remain committed to helping mobilise efforts to combat this complex public health crisis through Project Guardian. Only by working together can we ensure we safeguard our communities from the harmful effects of fentanyl and other illicit synthetic opioids.” 

Cross-border collaboration to tackle illicit finances 

The operational alert stems from a trilateral effort involving FINTRAC, the US Financial Crimes Enforcement Network (FinCEN), and Mexico’s Unidad de Inteligencia Financiera. These agencies are sharing best practices, money laundering trends, and financial intelligence to combat synthetic opioid trafficking. 

The alert also points to the international scope of fentanyl-related transactions involving payments to high-risk jurisdictions like China’s Hebei and Hubei provinces and other regions in Eastern Europe and India. These transfers are often routed through multiple countries to obscure their trail further. 

A global threat with local impacts 

The illegal supply of fentanyl continues to exacerbate Canada’s opioid overdose crisis, with widespread societal and economic consequences. FINTRAC’s disclosure that North America has transitioned from being a consumer to a producer of synthetic opioids signals an urgent need for international cooperation. 

As organised crime groups adapt to leverage digital platforms, including online gambling and virtual currencies, efforts to disrupt their operations require enhanced financial intelligence and collaborative action. This alert reinforces the critical role of financial institutions and private-sector partnerships in addressing these challenges. 

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