The Toronto-Dominion Bank tower in Vancouver, B.C. on March 17. There is no explanation in the records of why Han Dong and his wife's account was debanked.Isabella Falsetti/The Globe and Mail
Toronto-Dominion Bank closed down the accounts of a pro-Beijing organization on suspicion of money laundering in the spring of 2023, and shuttered the joint account of then-sitting MP Han Dong without explanation, according to confidential documents.
Records show TD Bank had concerns about suspicious activities of the Confederation of Toronto Chinese Canadian Organizations and the information was passed on to Ottawa’s financial watchdog. The CTCCO has ties to the Chinese consulate and Beijing’s United Front Work Department, which is responsible for overseas propaganda, disinformation and foreign-interference operations.
TD examined CTCCO’s transactions and identified possible money laundering. The “transactions involve individuals or entity (ies) identified by media, law enforcement and/or intelligence agencies as being linked to criminal activities,” according to the documents seen by The Globe and Mail.
TD also suspected the CTCCO accounts were used for “pass through activities.” This is a term used when money is quickly transferred in and out of accounts, often without the account holder having a direct connection to the ultimate beneficiary.
The TD information on CTCCO was sent to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which investigates money laundering and terrorist financing.
The records reviewed by The Globe include banking information on Mr. Dong and his wife, Sophia Qiao. Ms. Qiao had received a $200,000 cheque in 2019 from Cheng Yi Wei, permanent honorary chair and executive director of CTCCO. Ms. Qiao repaid the money in 2022. There is no explanation in the records of why the couple’s account was closed.
The process of cutting off a customer’s access to a bank account is known in the industry as debanking, or derisking. In some cases, the institution will call in the client for a conversation and an opportunity to explain the financial activity. Often, though, it will simply shut down the account without saying why. The bank is not required to provide an explanation and, in some cases, it is prohibited from doing so.
Mr. Wei, a wealthy Toronto grocery store merchant, has for years held a leadership role at CTCCO, which is known for echoing the views of Beijing. He has close ties to the Chinese consulate and attended sessions of the Chinese People’s Congress and Chinese People’s Consultative Conference, a top advisory body to President Xi Jinping.
TD spokesperson Elizabeth Goldenshtein said the bank could not talk about the issue for privacy reasons.
“I can’t comment on specific client accounts. Any decision to close an account is not taken lightly. We have a thorough process and comply with Canadian regulations and laws,” Ms. Goldenshtein said in a statement.
Attempts to reach Mr. Wei by phone and e-mail were not successful. The Globe e-mailed and phoned five people at CTCCO but did not get a response. The Globe reached CTCCO executive director Zhou Jie, who said he did not know if the group was debanked as he wasn’t responsible for its finances.
Mr. Dong, who was elected in 2019 as a Liberal MP and re-elected in 2021, did not respond to detailed questions from The Globe.
Mr. Dong’s joint account was debanked after he left the Liberal caucus on March 22, 2023, to sit as an Independent after Global News reported he had privately advised the Chinese consul-general in Toronto to hold off on freeing Michael Kovrig and Michael Spavor. The two Canadians at the time were being held in Chinese prisons in retaliation for Canada’s detention of a senior Huawei executive at the request of the United States.
Mr. Dong denied the allegations against him and filed a lawsuit against Global. The public inquiry into foreign interference said in January that the Global story, based on national-security sources, was false and that the inquiry “corroborates Mr. Dong’s denial.“
Nonetheless, the Liberals did not allow Mr. Dong back into the caucus and he decided not to run in the April 28 election. The public inquiry heard testimony about how Chinese students voted in the 2019 nomination meeting that Mr. Dong won. He denied knowledge of their participation.
Mr. Wei is a major figure in the Chinese Canadian community in the Greater Toronto Area, where he regularly attends events with politicians from the Liberal and Conservative parties. He is also on the board of directors of the Canada-China Business Council.
He is an associate of Ontario Liberal powerbroker Michael Chan, now deputy mayor of Markham. The Globe has reported that Mr. Chan has been a target of the Canadian Security Intelligence Service since 2010. Mr. Chan has said in statements to the media that he is a loyal Canadian, and he has accused CSIS of leaking misleading information about him to the media.
In March, 2023, in response to a Global News story alleging Mr. Wei’s involvement in money transfers to advance Beijing’s interest in the 2019 election, he called it “nonsense and hogwash.” As Chinese-born Canadian, he said, “I take it for granted that I’m close to the Chinese Consulate.” His trips to China’s rubber-stamp legislature and People’s Political Consultative Conference were to study ”different parliamentary systems,” he said.
CSIS has said China’s foreign-interference operations in Canada are “primarily motivated by a desire to cultivate relationships with or support political candidates and incumbents who seem receptive or actively promote PRC viewpoints.” The public inquiry into foreign interference said in its final report that Beijing tries to ”control and influence Chinese diaspora communities, shape international opinions and influence politicians to support PRC policies.”
In September, 2015, Mr. Wei was part of a group of about 70 Chinese Canadians who were invited by China to celebrate the 70th anniversary of the victory over Japan in the Second World War.
The Liberal candidate for the riding of Markham-Unionville, Peter Yuen, took part in the celebration as a superintendent with the Toronto Police Service. The year before the trip to Beijing, China’s consulate in Toronto held an event to mark Mr. Yuen’s promotion to superintendent. He later rose to deputy chief.
The centrepiece of the 2015 event was a military parade featuring People’s Liberation Army soldiers and 27 columns of weaponry and equipment, from tanks to missile launchers. The PLA celebrations, attended by Mr. Xi, took place in Tiananmen Square.
A source, who was also invited to the 2015 event, said the Chinese consulate in Toronto picked who would be invited and its government paid for their Beijing accommodation but not their flights. The Globe is not identifying the source, who fears repercussions for speaking out.
Mr. Yuen was parachuted into the riding in early April after Liberal MP Paul Chiang dropped out when it was revealed he had suggested a Conservative rival and human-rights activist could be turned over to the Chinese consulate for a bounty. Mr. Chiang served with the York Regional Police before his election to the House of Commons in 2021.
Liberal Leader Mark Carney denounced Mr. Chiang’s comments but stood by the candidate before Mr. Chiang ultimately bowed out earlier this month. Mr. Carney also backed Mr. Yuen’s candidacy despite revelations in The Globe about his connections to Beijing-friendly groups.
As The Globe reported last week, Mr. Yuen has also spoken at and attended events of the Toronto branch of Chinese Freemasons, which has advocated for what it calls the “peaceful reunification of China and Taiwan.”
As recently as April 10, Mr. Yuen was listed as honorary director on the website of the Jiangsu Commerce Council of Canada, a Toronto-headquartered organization founded in 2002 with ties to China’s United Front Work Department.
Although listed as honorary director, Mr. Yuen said in a statement last week that his role with JCCC ended a decade ago. He declined to answer e-mailed questions from The Globe and Mail on whether he supports Taiwan’s self-determination, condemns China’s crimes against its Uyghur minority or disapproves of UFWD activities.