A 30-year-old resident of Chilliwack was sentenced to a 12-month conditional sentence and ordered to forfeit more than $50,000 in proceeds of crime from illegal online cannabis sales as part of a complex crime ring.

The unnamed Chilliwack resident was sentenced on Sept. 24 as one of seven individuals charged in a $47 million interprovincial money-laundering scheme, uncovered by the federal financial crime team, according to a release Jan. 30.

Harry Seo, 30, of Burnaby, the only named individual in the release, was arrested for his part in allegedly laundering the proceeds of crime through a series of illegal online cannabis transactions in Alberta and B.C. between September 2018 and August 2020.

Seo has a court date in Vancouver on Jan. 31.

鈥淭his criminal organization operated throughout western Canada to collect, transfer and benefit from approximately $47 million in proceeds of crime," said RCMP Insp. John Lamming, officer in charge of Northwest Region Financial Integrity and Cybercrime in Edmonton.

 "By partnering with FINTRAC and the Canada Revenue Agency (CRA), we collected a significant amount of evidence to demonstrate how this group laundered significant proceeds of crime earned from the sale of illegal cannabis.

Lamming said this marks "a substantial win" in Canada鈥檚 fight against money laundering and criminal organizations "who seek to undermine the economic integrity of Canada鈥檚 financial institutions.鈥�

In terms of how the money was laundered, an extensive and complex investigation by the team uncovered the digital trail of the transactions. They found the network comprised Alberta and British Columbia numbered companies operating as unregistered money services businesses (uSMBs), the release said.

As a result of the investigation, five individuals including a Chilliwack resident were previously charged and convicted for failing to register a money service business:

    鈥� A 25-year-old resident of Edmonton was sentenced to a 12-month conditional sentence and ordered to forfeit more than $155,000 in proceeds of crime on June 26, 2024.

    鈥� A 30-year-old resident of Edmonton was sentenced to a 12-month conditional sentence and ordered to forfeit more than $105,000 in proceeds of crime on July 22, 2024;

    鈥� A 35-year-old resident of Edmonton was sentenced to a 9-month conditional sentence and ordered to forfeit more than $70,000 in proceeds of crime on July 18, 2024;

    鈥� A 30-year-old resident of Chilliwack, B.C., was sentenced to a 12-month conditional sentence and ordered to forfeit more than $50,000 in proceeds of crime on Sep. 11, 2024; and,

    鈥� A 26-year-old resident of Edmonton was sentenced to a 10-month conditional sentence and ordered to forfeit more than $85,000 in proceeds of crime on Sep. 25, 2024.

These companies are alleged to have "received, transferred or converted proceeds of crime" through illicit cannabis sales via a variety of online dispensaries.

The investigation also found that the uSMBs within the network received tens of millions in sales through online payments, the release said.

"Through email addresses linked to these e-Transfers, officers were able to identify eight individuals who received a a total of $47 million in proceeds of crime."

The accused, Seo, is also alleged to have been financially compensated by the criminal organization for laundering the proceeds of crime and for concealing its origins from law enforcement, regulatory authorities and financial institutions. The accused also operated two illicit cannabis-related business in the Edmonton and Burnaby areas. Seo is scheduled to appear at Vancouver Provincial Court on Jan. 31.

A sixth individual, a 33-year-old resident of Brampton, Ont., was also charged with one count of failing to register a money service business with FINTRAC contrary to section 74(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The accused is scheduled to stand trial at the Alberta Court of Justice in Edmonton on Nov. 3, 2025.