Victoria, BC — April 27, 2018 — Just a few months after clearing the automotive aftermarket of playing a role in the financial crisis at the Insurance Company of British Columbia, the BC AIA has, yet again, had to come out swinging about baseless claims made against the local automotive industry.
At the beginning of April, a provincial government report on possible methods for laundering money in B.C. was released, raising concerns among members of the automotive industry. The luxury car market was singled out as a sector vulnerable to exploitation.
Why? Because luxury vehicle sales are not legally required to be sent to Financial Transactions and Reports Analysis Centre (FinTRAC) which makes information on most transactions of over $10,000 available to RCMP.
But, as Ken McCormack, who represents both dealers and repairers in his role as the president of the BC ARA, points out, despite being legally allowed to avoid sending this information, it is almost unimaginable that a dealer would pass on the information.
“I don’t know of any dealer who doesn’t keep up with FinTRAC on every sale. Luxury car dealers all rely on lines-of-credit, and even if they didn’t want to, their banks would make them,” he said in an interview with CRM.
It was a position McCormack made clear when he released a press statement. In the piece, he made it clear that the BC ARA was in favour of mandating FinTRACK data on any purchase worth more than $10,000—not just vehicles. “There are a lot of places where money can be laundered. Casinos and real estate have been singled out, and now luxury cars. But we would support reasonable legislation that requires car dealers to report cash transactions that align with FinTRAC rules. Most dealers already do this,” McCormack’s statement read.
The statement went on to outline his organizations concerns regarding the reports decision to specifically link car dealerships with financial crimes.
“The automotive industry seems to be the government’s and others favourite whipping post these past months – first by suggesting collision shops are overcharging which was proven not to be the case, and now suggesting that car dealers are involved in laundering illicit cash through transactions for luxury cars. Reputable car dealers do not do these things.”
