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0 Newly released documents show Canadian involvement in an international investigation of an alleged money laundering ring in the Greater Toronto Area that authorities believe is linked to a man accused of laundering money for terrorists.
Altaf Khanani, a Pakistani national, has been on the radar of international law enforcement since at least 2008, when he was arrested in his home country for allegedly transferring money illegally.
The U.S. State Department accused Khanani, once described in a media report as “one of the world’s most wanted fraudsters,” of laundering billions of dollars for organized crime and terrorist outfits, including al-Qaeda and the Taliban.
Documents made public in the trial of Cameron Ortis, a former RCMP intelligence director facing four charges of violating the Security of Information Act, reveal the extent to which Canada was involved in the coordinated effort to investigate Khanani — and show that Canadian intelligence believed he was a central figure in an alleged money laundering ring in the GTA.
According to documents released during the trial, representatives of the Five Eyes — an intelligence alliance among Australia, Canada, New Zealand, the United Kingdom and the United States — met in September 2014 and agreed to share intelligence and information on Khanani’s activities.
“Altaf Khanani, based in the UAE, is believed to head up the multi-billion dollar international money laundering syndicate,” said an RCMP report written in September 2014.
The RCMP report identified a business linked to Khanani “as a priority threat … due to its use by organized crime and/or terrorist groups to launder the proceeds of a crime.”
A separate RCMP investigation report, also included in the trial documents, said that in Canada, “intelligence has identified a number of agents that work for Khanani.”
“Project Oryx” is the RCMP’s code name for its investigation into the alleged GTA-based money laundering scheme. The investigation identified suspects.
One of the RCMP reports presented in court said FINTRAC, Canada’s financial transactions intelligence agency, flagged more than $3.5 billion in financial transactions from one company to the RCMP.
A report from the RCMP’s National Intelligence Coordination Centre, included in the court documents, recommended investigating two Ontario-based businessmen to probe their possible connections to Khanani. It also identified five Ontario businesses as potentially tied to Khanani’s business, either directly or indirectly.
Ortis allegedly tried to correspond with Khanani
Ortis, 51, worked as an intelligence director with the RCMP and is accused of trying to sell top-secret information.
He faces six charges, including three counts of sharing special operational information “intentionally and without authority” and one count of attempting to share special operational information.
Ortis’s trial began on Tuesday and is expected to last eight weeks. Ortis has pleaded not guilty to all the charges against him.
Emails found on a USB key taken from Ortis’s home have been entered into evidence and suggest Ortis was trying to contact Khanani and share secret information with him.
Ortis’s lawyers have not presented their case but have signaled they will argue he acted with authorization.
After a massive, multi-year investigation involving five countries, Khanani was arrested in Panama and indicted in Florida on 14 counts related to money laundering.
The arrest was celebrated by top law enforcement officials as a product of international coordination.
“That arrest stemmed from an unprecedented level of sharing and operation cooperation among the Five Eyes partners, and the lessons learned from that case are already being applied to subsequent investigations into complex criminal networks,” said FBI spokesperson Randall Coleman in 2016.
American court records show Khanani accepted a plea deal and pleaded guilty to a single count of conspiracy to commit laundering. He was sentenced to more than five years in Miami prison and fined $250,000 US.
