1/6/2023 0 Comments Canna connectionIn their latest report published in April 2019, CISC reported that of the assessed OCGs involved in the black market of cannabis, almost all of these groups were also involved in at least one other illicit drug market and were unlikely to be disrupted by legalization, given their alternate streams of revenue. The Criminal Intelligence Service of Canada (CISC) monitors the involvement of organized crime in the Canadian criminal marketplace. The Cannabis Council represents 35 federally licensed cultivators which accounts for about 90% of the production of Canada’s legal cannabis industry. On October 28, 2019, the Cannabis Council penned a letter to Ontario’s Premier, the Honourable Doug Ford, confirming that there is ample supply of cannabis for the adult recreational market and no longer a shortage. This was in part due to the slow roll-out in opening retail stores, especially in Ontario. In the early months following legalization, there were concerns about shortages of legal cannabis across Canada, making room for the black market. According to Statistics Canada a gram of legal cannabis costs 55 per cent more than illicit cannabis ($10.30/gram vs. Consumers are turning to the black market for a variety of reasons, including but not limited to: higher prices, limited selection, and a scarcity of licensed stores in their area. For example, in British Columbia, less than 40% of cannabis users report obtaining cannabis from the legal market. Some provinces are experiencing more challenges displacing illegal sales. In the third quarter of 2019, results from the National Cannabis Survey show that 42% of Canadians had purchased cannabis from an illegal source. However, it seems that Canadians are still obtaining their cannabis from the black market. One year after legalization, 52% of Canadians obtain (at least some of) their cannabis from a legal source (compared to 22% prior to legalization). Of this amount, the Government has committed up to $113.5 million in federal funding, over five years, to Public Safety Canada, the Royal Canadian Mounted Police (RCMP), and the Canada Border Services Agency (CBSA) to develop policy, ensure organized crime does not infiltrate the legalized system, and keep cannabis from crossing our borders. In an effort to curb the cannabis black market, in September 2017, the government announced up to $274 million to support law enforcement and border efforts to detect and deter drug-impaired driving and enforce the proposed cannabis legalization and regulation. According to Statistics Canada data, in the first three quarters of 2018 (prior to legalization), the cannabis black market in Canada accounted for approximately $3.8B in retail sales. Leading up to the implementation of the Cannabis Act, approximately 44% of assessed Organized Crime Groups (OCGs) were involved in the cannabis market. The illicit drug trade provides organized crime with one of its most financially lucrative criminal markets. One of the main goals of the legalization of cannabis was to reduce criminal activity by keeping profits out of the pockets of criminals. Most recently, the Government has been working in partnership with key stakeholders to disrupt illicit online sales of cannabis, close down illegal stores, intercept illicit packages through the mail system, and increase public education awareness.The Government is also taking steps to disrupt the cannabis black market and ensure that organized crime doesn’t infiltrate the legal framework by working in partnership with other federal departments, provinces, territories, as well as law enforcement.This legislation is designed to keep cannabis out of the hands of youth and profits out of the pockets of organized crime by fostering a robust legal and regulated industry.Since its coming into force on October 17, 2018, the Cannabis Act creates a strict legal framework for controlling the production, distribution, sale and possession of cannabis across Canada.The government is committed to maintaining the integrity of the legal cannabis market by displacing the black market. Special Committee on the COVID-19 Pandemic - Hot Issues Notes – June 2020.Service Standards for Transfer Payment Programs.Memorial Grant Program for First Responders.Child Sexual Exploitation on the Internet.Preclearance in Canada and the United States.
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