A new report from the Canadian Finance & Leasing Association (CFLA) says organized crime is using Canada’s vehicle financing and export systems to move fraudulently obtained vehicles overseas. The report, Fraudulent Financing and Illegal Vehicle Exports, says these vehicles are being shipped out of major ports such as Montreal and Halifax.
According to the report, fraudulently financed vehicles being directed toward export rose 72 per cent year over year. The CFLA says criminals are taking advantage of a blind spot in Canada’s export process, where vehicles can leave the country before anyone realizes they were obtained through fraud.
“Organized crime has adapted, and Canada’s enforcement systems need to adapt with it,” said Michael Rothe, president and CEO of the CFLA. “We have strengthened our law enforcement’s ability to address conventionally stolen vehicles, but criminals are exploiting a blind spot in the system, with fraudulently financed vehicles being able to leave Canada before anyone knows the crime has occurred.”
The report found the issue is not a lack of legal authority. The Canada Border Services Agency already has the power to examine, detain and seize vehicles under the Customs Act. According to the CFLA, the problem is that border officers do not have access to lien and financing information needed to flag suspicious vehicles before export.
“This isn’t just a problem for automotive dealers and finance companies,” said Huw Williams, national spokesperson for the Canadian Automobile Dealers Association. “If this trend continues, it risks making financing more expensive and less accessible for Canadians looking to purchase a vehicle.”
The CFLA and CADA are asking the federal government to work with provinces, police, border officials and industry to close the information gap and stop fraud‑based exports.
“The government needs to step in to ensure that Canadians across the country are protected from organized crime,” Rothe said. “The CFLA and CADA stand ready to work with federal and provincial partners to stop this worsening problem facing our country.”
