Pubdate: Wed, 20 Dec 2000 Source: Ottawa Citizen (CN ON) Copyright: 2000 The Ottawa Citizen Contact: 1101 Baxter Rd.,Ottawa, Ontario, K2C 3M4 Fax: 613-596-8522 Website: http://www.ottawacitizen.com/ Author: Jim Bronskill CRIMINALS 'USING CANADA AS A BASE' White House Report Claims Country Haven For Chinese Triads Canada has become a gateway for Chinese criminal schemes directed at the United States, says a new White House report on illicit activity around the world. The bluntly worded assessment, drafted by key American security agencies, singles out Canada as a key venue for triads engaged in credit card fraud, heroin trafficking, illegal migration and software piracy. "The United States faces a growing threat from Chinese organized crime groups that are using Canada as a base from which to conduct criminal activities that impact our country." The International Crime Threat Assessment was prepared by a U.S. working group that included representatives of the Central Intelligence Agency, Federal Bureau of Investigation, Secret Service, Customs Service, National Security Council, Financial Crimes Enforcement Network, National Drug Intelligence Center and several other bodies. It concludes the rapid spread of international crime since the end of the Cold War is unprecedented in scale, spurred by globalization and technological advances. The report says crime poses a significant threat to democratic governments and free-market economies. The report reiterates many of the points made by recent Canadian intelligence assessments but reveals some additional details and does not shy away from pointing a finger at Canada's allegedly lax rules for newcomers, particularly a plan aimed at attracting foreign investors. "Members of ethnic Chinese criminal groups from China, Hong Kong, Taiwan and Macau have exploited Ottawa's immigration policies and entrepreneur program to enter the country and become Canadian residents, which makes it easier for them to cross into the United States." It describes the triads, which collectively have an estimated global membership exceeding 100,000, as fluid associations of ethnic Chinese criminals and quasi-legitimate businessmen involved in an array of criminal enterprises. The two largest Hong Kong triads, 14K and Sun Yee On, made substantial property investments in Canada during the 1990s, says the report. The 14K, which maintains a base in Toronto, is reportedly the fastest growing triad in Canada and has been linked to Asian criminal activities in New York and other U.S. cities. "Sun Yee On members are involved in trafficking heroin and methamphetamine, as well as alien smuggling, to the United States, where the triad has ties to New York's Tung On Gang." Prominent 14K members from Hong Kong and Macau have emigrated to Canada, and Sun Yee On members have settled in Toronto, Edmonton and Vancouver. The report confirms Canadian assessments that indicate the Big Circle Boys are the most active Asian criminals in Canada, responsible for smuggling southeast Asian heroin to the U.S. and the source of many of the counterfeit credit cards in North America. In Vancouver last month, police arrested Lai Changxing, the alleged point man in a vast Asian smuggling enterprise. The move followed a criminal probe that turned up possible links to triads. The U.S. report also points to Canada as a source of illicit marijuana, a centre of activity for Italian crime groups and a possible target for Japanese organized crime groups, which reportedly have invested heavily in Canadian real estate, from golf courses to hotels. - --- MAP posted-by: Richard Lake