RCMP Federal Policing Annual Report 2021

RCMP Federal Policing priorities: 2020 - 2023

Founded on intelligence

Federal Policing Operations must be supported and informed by intelligence to ensure operational decisions are based on the best information available.

Priority-focused

Within the scope of service, Federal Policing has three priority themes: National security, transnational and serious organized crime, and cybercrime. Within each theme, there are key activities to target.

1. National security

Criminal activities that threaten Canada's national security through terrorism, espionage, sabotage, or subversion.

Key target activities

Terrorism

Criminal activities by groups or individuals planning or undertaking terrorist attacks or other acts of violent extremism within Canada, or against Canadians, Canadian interests, or allies.

Foreign interference activities

Criminal activities including espionage, sabotage, and other forms of interference that threaten Canada's economic security, undermine the country's social cohesion, or threaten the integrity of Canada's critical infrastructure.

2. Transnational and serious organized crime

Criminal activities that cross international and/or provincial borders, carried out by organizations, networks, or entities that use Canada as a destination, transit point, or safe haven.

Key target activities

Organized crime

Major criminal operations, especially (but not limited to) those involved in trafficking drugs, humans, or weapons, or in the proceeds from these crimes.

Money laundering

Criminal activities by money controllers and their associates, and by the transnational networks that support them moving criminal proceeds to, from, or through Canada.

Border integrity

Serious criminal activity at seaports, airports, or between ports of entry.

3. Cybercrime

Cyber-enabled crimes by domestic or international cybercrime networks and actors targeting Canadians or Canada's critical infrastructure.

Key target activities

Transnational and serious organized crime cyber-enabled criminal activity

Cyber-enabled criminal activity directed by, or in support of, organized crime groups targeting Canadians or Canada's critical infrastructure, and which is beyond the scope and capability of jurisdictional police forces.

Foreign influenced cybercrime

Cyber-enabled criminal activity directed by, or in support of, a foreign state.

Program description

The first priority of the Government of Canada is to protect the safety and security of Canadians both at home and abroad. Under the Security Offences Act, the RCMP has the primary responsibility to perform peace officer duties in relation to criminal offences that constitute a threat to the security of Canada as defined in the Canadian Security Intelligence Service Act. These threats include: the threat/use of violence for a political, religious or ideological purpose; espionage or sabotage; foreign-influenced activities, and activities leading to the destruction or violent overthrow of the government. The RCMP is also the primary investigative agency for activity prejudicial to the safety interests of Canada (for example: unlawful communication of special operational information) and for incidents involving the security of an Internationally Protected Person. The RCMP works in collaboration with intelligence and law enforcement partners to fulfill these functions under its national security mandate.

National Security criminal investigations are often complex, multijurisdictional, and resource intensive. They can require high levels of cooperation amongst domestic and international law enforcement and security and intelligence partners. The inherent complexity of these types of investigations frequently entails bringing together dedicated teams of police officers, intelligence analysts, technical and case management specialists, prosecutors, and other subject matter experts.

Success stories

Terrorist listing regime: Throughout 2021, the RCMP became a leader, both domestically and with partners abroad, in identifying and disrupting Ideologically Motivated Violent Extremism entities through the use of the Criminal Code Terrorist Listings Regime. Adding new entities to the list demonstrates the RCMP's commitment to combating terrorism in all forms, while providing for meaningful disruption opportunities for law enforcement. Furthermore, entities that have been added to Canada's terrorism list are prevented from participating in Canada's financial system, which helps to eliminate possible avenues for profits and funding.

In 2021, the RCMP recommended the addition of five new entities to Canada's terrorist entity list, including three Ideologically Motivated Violent Extremism entities: Atomwaffen Division, Aryan Strikeforce, and James Mason. The vast majority of charges for terrorism offences in Canada have been linked to listed terrorist entities. James Mason alone has been connected to over thirty terrorist entities worldwide, through his literature which is believed to have inspired various Ideologically Motivated Violent Extremism threat actors. By adding him to Canada's terrorist entity list, the RCMP is afforded additional tools with which to detect and disrupt Ideologically Motivated Violent Extremism threats with a link to Mason.

Extra territorial investigations: In recent years, there has been an increase in the number of international criminal cases involving Canadian citizens. In response to this trend, Federal Policing has assembled a dedicated team of specialists trained in international investigations, analysis, and negotiations. This team specializes in investigating crimes committed outside of Canada, working collaboratively with Government of Canada partners and victims' families to facilitate the safe resolution of extra territorial cases – notably, extra territorial hostage takings. The team also supports the associated criminal investigations led by Federal Policing Integrated National Security Enforcement Teams (INSETs) across Canada.

Over the past two years, following the positive resolution of a highly demanding extra territorial hostage taking, Federal Policing resources have been directed toward building internal and external capacity in this sphere. This has improved information sharing practices, increased Federal Policing's capacity to inform and enable international partners to impact ongoing cases positively, and increased cooperation from key partners within the international community. Ultimately, it has improved Federal Policing's efficiency in responding to these unique cases.

Compliance with the Avoiding Complicity in Mistreatment by Foreign Entities Act in 2021

The 2021 RCMP annual public report on Avoiding Complicity in Mistreatment by Foreign Entities Act is available online and can be found on the RCMP's website.

National security-related public complaints in 2021

• 5 national security-related public complaints received against the RCMP in 2021
• 0 national security-related public complaints against the RCMP were closed in 2021
• currently, a total of 10 national security-related complaints are active – comprised of 3 from 2019, 5 from 2021, and 2 from 2021 that the RCMP is assisting another federal government department with

Program description

Serious and organized crime in Canada is a multi-faceted and borderless problem, impacting all Canadians directly or indirectly. The RCMP works in partnership with local and international law enforcement partners, government agencies, industry, and communities to disrupt and prevent the illicit traffic, diversion, and proliferation of strategic goods and technology.

Nationally, the RCMP Federal Policing Serious and Organized Crime program focuses on national coordination, intelligence gathering, and disruption of global criminal networks like traditional organized crime, cartels, outlaw motorcycle gangs, and international drug trafficking. Divisionally, Federal Serious and Organized Crime resources are embedded in every RCMP division to lead investigations and gather intelligence on the greatest serious and organized crime threats in the country.

Highlighted initiatives

Hardened secure communications: Keeping up with technological advances in the organized crime world is critical for effective law enforcement today. Hardened secure communications makes use of modified cellular devices and applications that enable users to communicate privately and anonymously via end-to-end encryption. As noted previously, this technology is used by organized crime groups as a means to circumvent law enforcement's ability to lawfully intercept communications, and has proved to be a significant facilitator of criminal activity, in Canada and around the world. In response, serious organized crime investigators have sought this year to better understand and collaborate in this important area. In 2021, Federal Policing established a hardened secure communications working group and hardened secure communications review team to develop and promote a nationally integrated approach to operations, intelligence sharing, target identification, and education. The team has already been able to make some key recommendations on how the RCMP and Canada can become leaders and strong partners in conducting investigations into hardened secure communications companies and their end users. To date, this collaborative approach has identified several providers, and has attained access to significant amounts of data for future investigations.

Enhancing relationships: Cooperating with law enforcement partners, at home and abroad, is vital to successful operations. In 2021, Federal Policing made significant efforts towards enhancing our relationship with the United States Drug Enforcement Administration, with whom we share important components of our mandate. Working level meetings were held to further the common goals of establishing clear processes for collaboration, intelligence sharing, and capacity building. In 2022, the RCMP will renew the United States Drug Enforcement Administration-RCMP Memorandum of Understanding, and establish an on-call schedule to ensure 24/7 availability to respond to urgent United States Drug Enforcement Administration requests. This will set the stage for expanded and effective inter-agency operations with this important partner.

Success stories

Joint force operations: Cooperating with law enforcement partners can be a highly effective way to achieve common operational objectives. In 2021, the case of Project OPTIMUS highlights the effectiveness of the Combined Forces Special Enforcement Unit multi-jurisdiction model. The investigation began under the Greater Toronto Area Combined Forces Special Enforcement Unit, in relation to criminal activity involving drug trafficking and firearm-related crime. Ultimately, seven individuals were charged with a total of fifty offences, and more than forty kilograms of suspected cocaine, 250 grams of suspected MDMA, $84,000 in cash, four illegal firearms, and additional offence related property were seized as a result of this investigation.

Human trafficking: Human trafficking is a global crime in which men, women, and children are recruited and transported for the purpose of sexual or labour exploitation. Individuals living in poverty are particularly vulnerable to human trafficking, as traffickers often target victims that can be tricked or lured by taking advantage of poverty in their country, or their hopes for a better future. In 2021, a joint investigation was undertaken by the Hamilton-Niagara Regional Detachment of the RCMP and the Canada Border Services Agency into human trafficking by a group of individuals who were believed to be facilitating the entry of foreign nationals from Mexico, in Ontario and Quebec. Searches revealed approximately eighty foreign nationals residing in sub-standard conditions. Six individuals were charged in connection with these foreign nationals. The successful outcome of this investigation highlights how effectively the RCMP is able to work with partner agencies to ensure the safety of all people in Canada.

Illegal firearms: As communities across the country have faced a steady increase in gun-related crime over the past several years, the Government of Canada has made strengthening Canada's gun laws a high priority. New regulations seek to prioritize public safety and effective police work, while respecting responsible firearms owners. As of May 1, 2020, the Government of Canada has prohibited over 1,500 models of assault-style firearms, and certain components of some of these newly prohibited firearms. Last year, Federal Policing conducted a successful investigation into the importation of a prohibited firearm device, after a package containing a firearm silencer was intercepted by the Canada Border Services Agency. A warrant was obtained to search a home just outside of Quebec City as a result of this intercept. Homemade bombs were found at the home, along with reactive substances and several chemicals including potassium nitrate. A Quebec man was charged with possession of prohibited devices without a license, and careless storage of a restricted weapon. Further charges have not been ruled out, as the investigation is ongoing.

International drug trafficking: Transnational organized crime is never stagnant; it is a constantly evolving industry that adapts to market trends and continually seeks to create new forms of lucrative crime. However, drug trafficking remains the most profitable form of business for criminals, with annual value in the hundreds of billions. In 2021, Manitoba RCMP conducted Project DRONE, an investigation into a major international drug trafficking network throughout that province and Ontario. An estimated 81 kilograms of cocaine was seized, with an estimated street value of $7.6 million. This seizure is thought to be the largest of its kind in Manitoba history. The group's successful disruption is a valuable step toward Federal Policing's ultimate priority: keeping Canadian communities safe.

Program description

The RCMP plays a pivotal part in investigating and disrupting cybercrime as part of our role in the broader government's cyber community, and works closely with its Government partners to foster a safe and secure cyber environment in Canada. The RCMP generally interprets cybercrime to be any crime where cyber – the Internet and information technologies, such as computers, tablets, personal digital assistants, or mobile devices – has a substantial role in the commission of a criminal offence. This can include technically advanced crimes that exploit vulnerabilities found in digital technologies, as well as more traditional crimes that take on new shapes in cyberspace.

Cybercrime can be divided into two categories:

1. Technology-as-target – criminal offences targeting computers and other information technologies, such as those involving the unauthorized use of computers or mischief in relation to data; and,
2. Technology-as-instrument – criminal offences where the Internet and information technologies are instrumental in the commission of a crime, such as those involving fraud, identity theft, intellectual property infringements, money laundering, drug trafficking, human trafficking, organized crime activities, child sexual exploitation or cyberbullying.

The RCMP's Federal Policing cybercrime investigative mandate focuses on "pure cybercrime," which represents the most significant threats to Canada's political, economic, social, and reputational integrity.

The Federal Policing cybercrime mandate focuses on criminal activity that targets the federal government, threatens Canadian critical infrastructure, threatens key business assets with high economic impact, or uses computer systems to attack or compromise Canadian institutions – particularly when done by groups or organizations acting on behalf of foreign states. The greatest impact under this mandate is realized by conducting investigations that identify and target:

• cybercrime-as-a-service
• criminal networks conducting illicit activity in the cyber realm
• hostile foreign actors (state and non-state)

Operational focus

In this context, Federal Policing investigations focus on the following cybercrime enablers:

• malware developers and distributors
• cybercrime infrastructure developers and operators that facilitate cybercrime (for example, botnets, forums, and marketplaces)
• disruption of advanced persistent threats
• financial network operators that facilitate laundering and monetization of proceeds from cybercrime

Success stories

Botnets: In 2021, the RCMP participated in Project CIPHER, an international cybercrime operation to neutralize Emotet botnet, a malicious software designed to exploit computer networks for money. First detected in 2014, Emotet was believed to be the starting point for some sixty percent of all cyber-attacks, including ransomware. Emotet botnet was considered to be one of the most widespread international criminal threats of the decade, eventually evolving into a primary door-opener for computer systems on a global scale.

The successful operation was a collaborative effort involving Canada, the Netherlands, Germany, the United States, the United Kingdom, France, Lithuania, and the Ukraine, and was coordinated by Europol and Eurojust. As a result of this joint operation, authorities teamed up to seize command-and-control systems and deploy a binary that neutralized the botnets, thereby taking down the criminal infrastructure and removing a critical threat to the online safety of Canadians and our allies around the world.

Disrupting cybercrime infrastructure: In the last year, the RCMP took part in Operation PalmBeach, an international effort to disrupt DoubleVPN, an online encrypted communications service specifically designed for, and used by cybercriminals. DoubleVPN had been heavily advertised on both Russian and English-speaking underground cybercrime forums as a way to hide the location and identities of ransomware operators and phishing fraudsters. The service was able to offer substantial anonymity to clients by providing multiple layers of VPN connections, and it was being deployed to compromise networks all over the world.

In this coordinated effort between Canada and international law enforcement partners, servers being used to host DoubleVPN were seized across the world. Dutch authorities covertly captured the login and IP information of users attempting to use DoubleVPN on the operation's "Day of Action". The success of this operation was a blow to perpetrators around the world who seek to remain anonymous while engaging in criminal activity.

Ransomware: Ransomware has been a growing threat to industries big and small, both public and private, with annual costs now estimated to be in the tens of billions. In another internationally collaborative effort, the RCMP took part in Project OLUNAR in 2021, an international effort to take down a Netwalker ransomware affiliate operating in Canada. Netwalker is a Windows-specific, ransomware-as-a-service crimeware product that encrypts and steals all of the data that it breaches. After a successful attack, victims are presented with a ransom note demanding bitcoin payment in exchange for a full decryption of the compromised data. On occasion, samples of the stolen data are leaked online, accompanied by threats to release the remaining data on the dark web.

The FBI and the RCMP conducted parallel investigations leading to the execution of search warrants in Canada and the seizure of 719 bitcoins worth an estimated value of $34 million at the time of seizure, and almost $700,000 in cash. One individual pleaded guilty to the Canadian charges, and was sentenced to seven years before being extradited to face the United States charges. He agreed to forfeit the seized assets, and $2.8 million was returned to Canadian victims via a restitution order.

Challenges

Federal Policing's cybercrime program faces several key challenges in advancing operations. First, in the area of cybercrime-as-a-service, is the availability of sophisticated and user-friendly software. These span botnets, distributed denial-of-service attacks, credit card fraud, malware, spam, and phishing attacks, all of which are sold directly through web sales and on the dark web using cryptocurrency.

Another challenge is the victim response, whether at the individual level or that of an organization or institution. Concerns over reputational damage, and a strong business drive to pay a ransom and "get back online", can lead to a reluctance to report to law enforcement. Without comprehensive, accurate, and timely reporting, it becomes very difficult to mount an effective law enforcement response to a cyber attack of any kind.

Additionally, private handling of cyber attacks through cyber insurers, the extensive use of non-disclosure agreements, law firms, and private cyber security companies are not conducive to fulsome cyber investigations. Collectively, these challenges can slow investigations and undermine effective law enforcement in the cyber realm. Federal Policing is hard at work in collaboration with domestic and international partners to expand our understanding of these threats, and to work together to address them.

Program description

The RCMP plays a critical part in maintaining Canada's safety by ensuring border security and law enforcement along the Canadian border in all domains: land, maritime, and air. The RCMP and the Canada Border Services Agency share the primary responsibility of securing Canada's border at and between the official ports of entry from inbound and outbound criminal threats. As the national police force, the RCMP is uniquely positioned to not only ensure border integrity between the ports of entry, but to also conduct investigations and divert resources to respond to significant border incidents. The Canadian border domain is multifaceted and is subject to increasingly sophisticated organized crime groups, as well as environmental and geographical challenges.

The RCMP's Federal Policing Border Integrity program works collaboratively with Canadian, American, and other foreign law enforcement partners and agencies on all aspects of operations related to Canadian border security. The overarching goal is to prevent, deter, and detect illegal activity that may pose a threat to the safety and security of Canada and Canadians, the United States, and the international community.

Highlighted initiatives

The north: The northern border is an area of growing interest to Federal Policing. The Arctic poses a range of important operational and intelligence challenges, necessitating close cooperation with domestic partners including the Canadian Armed Forces, and with international stakeholders from the Arctic states. In December 2021, Federal Policing founded and held an initial National Arctic Working Group meeting to enhance collaboration and determine the RCMP's posture in the Arctic. Participants included internal partners, other government departments, and Indigenous groups and leaders.

The south: Canada's southern border has also been a key locus of activity for the RCMP for many years, with a high need for collaboration and open communication with our American partners. To enhance these relationships, the Cross-Border Law Enforcement Liaison Group was restored in 2021. This group acts as a platform to provide executive level guidance to core agencies on cross-border law enforcement initiatives. The five core partners include the Canada Border Services Agency, the RCMP, the United States Border Patrol, the United States Coast Guard, and the United States Homeland Security Investigations . The Cross-Border Law Enforcement Liaison Group is set to advance several initiatives that will improve inter-agency information sharing, the identification of emerging trends for irregular migration, and the alignment of human smuggling investigations. The RCMP has assumed the role of chair of the group for the next two to three years.

Border surveillance: On the technological side, the Asylum Project involves installing cameras and sensors between regular ports of entry to monitor irregular migration over land border areas in British Columbia, Quebec, and Manitoba. The project is progressing well throughout those regions and is expected to significantly enhance the RCMP's border posture in between regular ports of entry. In June 2021, Federal Policing Border Integrity launched the "Be our Eyes and Ears" Campaign to raise awareness among Quebec residents, boaters, patrons and employees at ports, marinas, and airports, to be on the lookout for signs of suspicious activity that may be happening.

Success stories

Illegal firearms: Illegal firearms are currently a high priority for law enforcement and the Government of Canada, and in 2021, Federal Policing's Border Integrity program was responsible for two key operational successes in this realm. In March of 2021, RCMP officers arrested a 24-year old man and seized a cache of 249 prohibited handguns in Sherbrooke, a Quebec town near the United States border. The arrest was made following a border surveillance operation of a vehicle heading towards a rural road that crosses into the United States.

In November of 2021, members of the RCMP Cornwall Integrated Border Enforcement Team commenced a firearm smuggling investigation after a boat crossed the St. Lawrence River and made landfall near Cornwall, Ontario. Three large bags were unloaded from the boat into a vehicle which departed the area. Subsequently, the RCMP conducted a roadside stop of the vehicle and found 53 restricted and prohibited pistols, 6 prohibited rifles, and 110 high capacity magazines. This successful seizure demonstrates the effective partnership between various domestic agencies such as Ontario Provincial Police, the Akwesasne Mohawk Police Service, the Montreal Police, the Sûreté du Québec, the RCMP Valleyfield Detachment, and the National Weapons Enforcement Support Team. As in all other areas of Federal Policing operations, collaboration with internal and external partners is essential to effective border-related investigations, and to achieving our goal of keeping Canadians safe by diverting these weapons.

Illegal drugs and cash: In June 2021, an RCMP Integrated Border Enforcement Team in Quebec arrested two individuals and seized 351 pounds of cannabis and $91,020 cash in Mansonville, Quebec. Prior to their arrest, the two subjects were observed crossing the border illegally, and one vehicle was located by officers containing the illicit cannabis and cash. One subject pleaded guilty in May 2022, and is awaiting sentencing in Fall 2022. While there is often an overlap between the Border Integrity program and that of Federal Policing's Serious and Organized Crime branch, enforcement efforts focused on the particular environment of Canada's borders seek to ensure that such contraband is stopped before it threatens the safety of Canadians.

Challenges

The COVID-19 pandemic and associated border restrictions and closures put a significant pressure on RCMP border integrity resources across the country. At the onset of the pandemic, the area between the ports of entry at the Canada-United States border was identified as high risk, with a possible increase in exploitation by criminals resulting from the restrictions imposed on persons entering and leaving Canada via the ports of entry. This period of increased threat risk led to a change in posture and reallocation of RCMP resources to the Canada-United States border. Additionally, while irregular migration rates remained fairly low from March 2020 to October 2021 as a result of border closures, the lifting of border restrictions and the Quarantine Act in November 2021, as well as other geo-political factors, caused a significant increase in irregular migration crossings between the official ports of entry. Interceptions from November 2021 to December 2021 were 3,656 Canada-wide, in comparison to 590 interceptions Canada-wide between January and October 2021. Federal Policing's Border Integrity program under Federal Policing Criminal Operations continues to work with our Government of Canada partners and the United States government to seek mutually agreeable terms and solutions for managing the flow of irregular migration across our southern border, between the official ports of entry.

Program description

Economic and financial crimes threaten the security of Canadians and the Canadian economy. These crimes come in many variations, and are commonly committed by organized crime groups and independent actors. Federal Policing Criminal Operations Financial Crime is in charge of overseeing the operational response to the broad spectrum of crimes that threaten the economic security and financial integrity of the country. These crimes include money laundering, possession of proceeds of crime, corruption, fraud, and market manipulation.

Federal Policing Criminal Operations Financial Crime develops and coordinates financial crime training programs. It leads money laundering and integrated marketing enforcement team working groups, and represents the RCMP at the Five Eyes Law Enforcement Group and its sub-groups with respect to money laundering, as well as working closely with other government partners, stakeholders, and law enforcement agencies both nationally and internationally. To combat financial crime, the RCMP investigates reports of laundered money, seeks to identify and seize profits and assets acquired from illegal activities, records financial information about organized crime groups, and investigates reports of serious fraud and corruption.

Highlighted initiatives

Federal Policing followed a number of avenues to mitigate harm to Canada's financial integrity in 2021, including criminal enforcement of related laws, regulatory action, and legislative reform. Federal Policing also continued to develop new initiatives with key stakeholders to enhance efforts to lawfully share information, and undertook joint operations to address money laundering and proceeds of crime trends.

Stakeholder collaboration: The RCMP is closely and proactively engaged with many domestic and international partners in operational and strategic initiatives to address financial crime in its multiple forms. On the operational side, Federal Policing continued in 2021 to counter criminal misconduct in Canada's capital markets by enhancing partnerships with Canadian Securities Commissions to collaborate and develop strategies to protect investors from fraudulent practices.

Also, at this time, the Integrated Money Laundering Investigative Teams became fully staffed, with the RCMP complement located in Quebec, Ontario, Alberta, and British Columbia. These teams are working to develop partnerships with principal anti-money laundering regime partners, including the Canada Revenue Agency, Public Prosecution Service of Canada, Canada Border Services Agency, Financial Transactions and Reports Analysis Centre of Canada, and the Forensic Accounting Management Group. Together, these teams and partners will drive effective operational responses to the most serious money laundering threats in Canada.

At the strategic level, in July 2021, the Canadian Integrated Response to Organized Crime committee members endorsed the Canadian Integrated Response to Organized Crime money laundering strategy. Led by the RCMP, the Strategy will provide an operational central coordination mechanism across Canada to collectively address the highest money laundering threats by building and maintaining strong collaboration between anti-money laundering regime partners through three pillars: Intelligence, Investigations, and Engagement (including education and risk reduction).

In 2019, after the successful launch of British Columbia's Public-Private Financial Intelligence Sharing Partnership, named the Counter Illicit Finance Alliance – British Columbia, Federal Policing Criminal Operations Financial Crime started work on creating an integrative, comprehensive, and responsive coordination function at National Headquarters to facilitate information sharing with the provinces and Federal departments; provide high level stewardship of national public-private partnership issues; ensure oversight and effective governance; conduct analysis on cross-jurisdictional issues; and connect regional public-private issues to the Federal anti-money laundering regime to drive operational responses. Counter Illicit Finance National participated in the Public Private Collaboration Steering Committee and was a member of a money mules project which included major financial institutions. The project endorsed a public awareness campaign on money mules, aimed at combatting money laundering activity and victimization.

Providing expertise and support: Federal Policing also continues to provide expertise and support in key areas of financial crime. This includes the complex world of cryptocurrency and related fraud, a growing concern for law enforcement worldwide, as losses for victims of scams involving cryptocurrencies continue to increase globally. The apparent trend of criminals defrauding cryptocurrency users suggests that this realm offers significant potential for criminal opportunities. Federal Policing is currently expanding national capacity through in-field and course training, while assessing a centre of expertise to support national operations.

In 2021, the RCMP also supported the Cullen Commission Inquiry into Money Laundering in British Columbia by providing expert testimony, identifying emerging trends, and raising awareness on the exploitation of virtual assets. The final Cullen Commission Report was subsequently published in June of 2022, containing comprehensive coverage of a vast range of topics and recommendations related to money laundering and the regulatory and enforcement regime in Canada.

Finally, coordinated by Federal Policing, the RCMP Asset Recovery Interagency Network Program has increased awareness of international asset recovery in 2021, having conducted several national level presentations and strengthened its relationship with the Department of Justice International Assistance Group.

Success stories

Real estate investment fraud: Real estate investment scams lure victims with promises of making a lot of money, quickly and easily. In 2021, Federal Policing conducted Project ALCAZAR, a financial crime investigation pertaining to foreign real estate investment fraud. One of the two men accused in this case was a former Member of Parliament. The pair had borrowed upwards of $1.1 million fraudulently from personal contacts, under the guise of using the funds for investment properties in Pakistan. Two separate trials were held. One of the individuals charged was ultimately convicted on three counts of fraud over $5,000 and one count of knowingly using a forged document, and in October 2021, was sentenced to thirty months in prison.

Also, in 2021, Project KF-CLOSE yielded charges following a theft and fraud investigation against a real estate investment company. In this case, one individual pleaded guilty to a charge of theft over $5,000, and was sentenced to 2.5 years of federal jail time.

Investment fraud and ponzi schemes: Investment fraud can also take other forms, but always rests on persuading victims to make investment decisions based on fraudulent information. A scammer may try to sell them stocks or bonds, or convince a victim to invest directly in a business. Project KF-INSIDIOUS involved a complex investigation that resulted in Federal Policing obtaining Canada-wide warrants for a husband and wife who were believed to have operated a fraudulent investment company, identified as Family First Dynasty Inc. in Millarville, Alberta. The investigation uncovered a scheme that allegedly defrauded clients out of their finances, and resulted in over one million dollars lost by victims. The subjects of the investigation were eventually charged with theft over $5,000, fraud over $5,000, and laundering proceeds of crime.

Fraudsters may also use classic pyramid or Ponzi schemes to convince victims to give them funds. A Ponzi scheme is a fraudulent investment scheme in which the scammer pays returns to investors using capital extracted from new investors, instead of from legitimate investment profits. Ponzi scheme operators lure new investors with unusually high rates of return in the short term. The fraudster makes a profit from fees on the "investments" or by stealing the investors' funds. Project KF-CALL was an investigation in 2021 into a Ponzi scheme. Following a referral from the Alberta Securities Commission, Federal Policing investigated fraud allegations that resulted in the loss of millions of dollars for various investors between 2014 and 2016. Two individuals were charged with fraud over $5,000, theft over $5,000, and laundering the proceeds of crime.

Money laundering: Money laundering is a process by which the origins of illegally obtained money are concealed; that is, money obtained through criminal activity. Typically, this process involves transferring the money through legitimate business or foreign banks. In 2021, Federal Policing's Integrated Money Laundering Investigative Team in the Greater Toronto Area charged a subject of Markham, Ontario with four counts of knowingly providing false or misleading information, contrary to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. As part of an investigation, the RCMP received a disclosure from Financial Transactions and Reports Analysis Centre of Canada outlining non-compliance by a company. The company is registered with Financial Transactions and Reports Analysis Centre of Canada as a Money Services Business, and is alleged to have knowingly provided false or misleading information to Financial Transactions and Reports Analysis Centre of Canada contrary to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Covert operations

The RCMP's Undercover and Human Source Programs are managed by National Headquarters Covert Operations, in collaboration with divisional counterparts. These programs are considered to be among the highest risk areas for the RCMP. The Undercover program has built an international reputation as one of the best of its kind, and has been recognized internationally for leadership in safety standards. On the Human Source side, the Federal Policing program offers support in the management and handling of police informants, an activity that is vital to our ability to gather and monitor information on criminal organizations. Police informants and agents are crucial to the RCMP's ability to conduct effective organized crime and national security investigations.

In 2021, the teams completed 132 approval and extension requests relating to major undercover operations – almost double that of the previous year. The teams are also responsible for delivering covert training courses in support of operations, including:

• Specialized National Investigation Course: provides advanced human source training
• Online Undercover Training Course: trains undercover and cover officers
• Online Covert Employee Course: provides specific training relating to online undercover work

Over the past year, National Headquarters Covert Operations has increased its focus on employee well-being by dedicating resources to the implementation of a well-being strategy and through the creation of the first-ever Covert Operations Advisory Committee on equity, diversity, and inclusion.

Data operations tactical sciences

The introduction of cellular devices and encrypted communications into criminal activity over the past decade means that criminal investigations now almost routinely generate vast amounts of data that must be reviewed and analyzed. Images, recordings, spreadsheets, documents, PDF files, and more are downloaded in huge quantities from seized devices, and the volume of data now available to law enforcement far exceeds our ability to manage it manually. The Data Operations Tactical Sciences Unit is mandated to provide tailored data analytics and data science solutions to assist analysts and investigators with the review, analysis, interpretation, and visualization of their high-priority investigational data, collected under proper mandate and judicial authorization.

Data Operations Tactical Sciences activities fall into three categories:

• direct tactical operational support
• tradecraft development
• research and development

Examples of services include:

• algorithm development and process automation
• social media and communications analysis
• financial analysis
• geo-data analysis
• machine translation

In 2021, the Data Operations Tactical Sciences unit successfully contributed to a number of high-priority investigational files on financial crime, cybercrime, serious organized crime, and national security, across multiple divisions. Through services and custom-built data solutions, the Data Operations Tactical Sciences unit was able to provide investigators with investigational documents within weeks, as opposed to months or years, saving hundreds if not thousands of person-hours and dollars. The Data Operations Tactical Sciences unit also enabled investigative teams to discover new investigative avenues with regards to the collection and presentation of evidence. Custom-built investigational data visualization capability is now being used to assist many investigations relating to a myriad of crimes.

Some Data Operations Tactical Sciences highlights from this past year include:

• the processing and translating of more than 100,000 documents in multiple languages using St. ROCH software, which was accomplished in approximately 19 hours. The use of human translation services or relying on resources across the organization would have taken months of effort
• the use of the St. ROCH platform in support of an investigative file to process seized data resulted in processing time of approximately 100 minutes. Without the use of St. ROCH, this task would have required up to thirty employees working over a period of eight weeks