Ten people suspected of acting as “money mules” on behalf of criminals in B.C. have received formal warnings from the RCMP and B.C. Securities Commission.
Money mules are people who wittingly or unwittingly transfer funds on behalf of criminals, helping them hide their identities, launder the cash and conceal its origin and destination.
On Monday, the two agencies said they’d identified the suspects after learning they had sent or received money or cryptocurrency from investment fraud victims.
Investigators said people who are acting as money mules may not know they’re working on behalf of criminals and may in fact be victims of fraud themselves.
“We have to distinguish between the people who know exactly what they are doing or who are wilfully blind to what they are doing,” said Supt. Adam Mackintosh, officer in charge of the RCMP’s Pacific Region Federal Policing Financial Integrity Program.
“What we are trying to do is deal with the individuals in an initial effort to disrupt those who would be more likely unwittingly (money mules), and through that, we are going to identify individuals who are clearly showing the intent and knowledge as it relates to their activity.”
Moving dirty money can land someone in serious legal trouble, including criminal charges for possession or laundering of proceeds of crime, as well as regulatory sanctions under the Securities Act if the cash came from an investment fraud scheme.
Criminals use a variety of techniques to recruit mules, including starting fake online friendships or romances, using fake identities and signing people up for fake jobs, investigators warned.
“Do not transfer money or crypto assets for someone, especially for someone you met online,” said Sammy Wu, B.C. Securities Commission (BCSC) investigations manager.
“And if you have already received crypto or cash or money from someone who asked you to transfer it to somebody else who you have questions about, that you don’t know what the destination is, what it is for, please either contact the BCSC or the RCMP.”
The RCMP’s Integrated Market Enforcement Team and the BSCC distributed the warnings on May 29. Investigators said people who continue to move money on behalf of criminals after being warned could face charges.
Investigators are also warning the public that they may be the target of a money mule recruiter if they’re asked to transfer money online on behalf of someone they don’t know.
They are urging the public not to move money for anyone they’ve never met in person.
The public is also being warned to ignore unsolicited email, social media or text messages promising quick cash for little or no work, and to be skeptical of any employer that asks them to receive money in their personal bank account and then process or transfer it.
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