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Email this10:15 am
February 14, 2023
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https://www.bnnbloomberg.ca/canada-orders-wealth-one-bank-shareholders-to-divest-1.1966690
(Bloomberg) -- Canada’s Finance Minister Chrystia Freeland instructed three of the founding investors of Wealth One Bank of Canada to divest their stakes in the lender, Globe & Mail reported Saturday, citing documents obtained through an access to information request.
Toronto insurance executive Shenglin Xian, Vancouver property developer Morris Chen and Toronto grocery tycoon Yuansheng Ou Yang, were told in April to sell their shares in the bank, Globe reported, citing documents obtained from the Office of the Superintendent of Financial Institutions, Canada’s financial industry regulator. The investors face scrutiny from Canadian national security authorities about alleged links to the Chinese government, the newspaper said.
The finance minister ordered Wealth One to cut all ties with the three investors, and to put in place security measures to guard against money laundering and unauthorized sharing of information, according to Globe.
Globe said it couldn’t reach Ou Yang and Chen for comment. Glen Jennings, a lawyer at Gowling WLG, which is representing Xian, told Globe in a statement that his client is in regular communication with the authorities and expects a “good outcome for all stakeholders that will benefit all Canadians.” He added that matters relating to the bank are regulated and under rules of confidentiality and Xian has no comment to make at this time.
As finance minister, Freeland is empowered to act to address risks to any bank in Canada, Jessica Eritou, her senior communications adviser, told Globe. She declined to discuss the Finance Minister’s actions against Wealth One and its founders, the newspaper said.
Eritou reiterated the comments when contacted by Bloomberg. Wealth One Bank, Xian, Chen and Ou Yuang couldn’t be reached for comment outside regular business hours.
Among measures imposed on Wealth One: The lender needs to get national security vetting of all the bank’s employees, relocate its Toronto headquarters to new secure premises and sweep its corporate property for surveillance devices, the newspaper said. The institution is also prohibited from using the Chinese social-media messaging app WeChat for banking business, Globe said.
Additionally, the lender has to appoint an independent third-party monitor and hire two compliance officers: one for security compliance, with a valid national-security clearance, and one for anti-money-laundering and anti-terrorist compliance, Globe reported.
©2023 Bloomberg L.P.
10:36 am
January 12, 2019
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.
More 'Shyt' hitting the fan at W1BoC ❗
Once again ... this reeks of Communist China, for sure.
For those few here with $$$ still in there ... you were warned months ago.
Good Luck
- Dean
" Live Long, Healthy ... And Prosper! "
1:17 am
November 18, 2017
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CDIC still applies, up to the posted limits.
RetirEd
7:09 am
March 15, 2019
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I see a merger in the future.
Maybe HSBC. Oh wait, they are already in a merger. Maybe RBC.
7:38 am
October 27, 2013
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RetirEd said
CDIC still applies, up to the posted limits.
While that may be the case, for me, it would be a matter of personal integrity and conscience, why not to do business with them. Some would call it doing business with the devil.
9:11 am
January 12, 2019
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AltaRed said
While that may be the case, for me, it would be a matter of personal integrity and conscience, why not to do business with them. Some would call it doing business with the devil.
- This ⬆ ❗
In my mind, the W1BoC should be Completely Dismantled, and it's sanitized bits and pieces auctioned off to other FIs.
- Dean
" Live Long, Healthy ... And Prosper! "
12:37 pm
September 7, 2018
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It does make me wonder what the true story is if Chrystia Freeland had to take such drastic action. For sure, there is much more to this story but we will likely never know the details. In the meantime, CDIC is around "to have the backs" of Canadians who choose to deposit with this FI.
If the inquiry into Foreign Interference ever happens, maybe more info will come out or perhaps not.
2:00 pm
September 11, 2013
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Maybe there was no need for action, might be just that right now it's politically popular to look like you're serious about Chinese interests here. And as long as they're allowed to keep their charter, to operate here, I assume they are meeting legal requirements and are ok with the government of the day, which is all I care about. So I intend to keep the money we have there there for now, keeping in mind CDIC limits, naturally.
3:50 pm
October 27, 2013
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That is for one's own conscience, or not, whether to do business with this outfit. Many things are legal in our society but not necessarily things I would do due to matters of conscience and integrity.
FWIW, I think the bank has seriously broken a number of rules and the reason to have it secured in a particular location and firewalled, and the public warned. The moves are, as I understand it, unprecedented, so something seems definitely amiss. Is it really time to be an ostrich with one's head in the sand? Decide for yourself.
3:57 pm
September 11, 2013
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Agreed, I don't think I have a conscience, integrity, etc when it comes to arm's length financial transactions, just go by what's legal.
6:41 pm
November 3, 2022
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I read recently that the Canada Pension Plan has 9.8% of its portfolio invested in China. That's a good chunk of change!
Perhaps W1BoC offers a bit of insurance on not seeing those investments suddenly disappear in the event of a geopolitical crisis?
7:45 pm
October 27, 2013
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I doubt it as Wealth One assets are a pittance compared to pension fund assets in China. See https://www.thestar.com/business/canadian-pension-fund-giants-grilled-by-federal-lawmakers-over-china-investments/article_0bdcbe75-075e-5af7-9bb9-0ed88a9a3769.html for more on this file. China is not about to confiscate/nationalize Canadian interests without causing a wholesale hemorrhage of other foreign investment in their country. The Wealth One problem is likely more related to money laundering type activities which China itself does not like to see (capital flight) either.
3:39 am
March 30, 2017
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yeah China confiscate Canadian asset will be like Russian confiscating US assets ! I cant see that happening unless we have a WW3 and its China against US and allies !!!
8:20 am
January 12, 2019
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AltaRed said
That is for one's own conscience, or not, whether to do business with this outfit. Many things are legal in our society but not necessarily things I would do due to matters of conscience and integrity.
FWIW, I think the bank has seriously broken a number of rules and the reason to have it secured in a particular location and firewalled, and the public warned. The moves are, as I understand it, unprecedented, so something seems definitely amiss. Is it really time to be an ostrich with one's head in the sand? Decide for yourself.
Like my Daddy used to say . . .
- "When it come to doing business ... some people got Scruples,
and some don't."
Dean
" Live Long, Healthy ... And Prosper! "
6:41 pm
October 21, 2013
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I find it refreshing that anyone is factoring in conscience on this forum.
1:26 pm
September 19, 2018
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Loonie said
I find it refreshing that anyone is factoring in conscience on this forum.
Conscience may be overridden by money making. Wealth One is now the highest payer at 5.98 per cent on a 1 year GIC. They also have the same rate for an 18 month one.
6:43 pm
October 27, 2013
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Many of us have a price we can be bought at. Others not so much.
8:31 pm
April 27, 2017
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savemoresaveoften said
yeah China confiscate Canadian asset will be like Russian confiscating US assets ! I cant see that happening unless we have a WW3 and its China against US and allies !!!
1. Russia did confiscate assets owned by US companies.
2. Its not quite the same because the US might not be all that bothered/have other priorities than worrying about Canada’s assets, prefer to issue a strongly worded statement rather than start WW3.
Personally, I can’t imagine knowingly dealing with a bank on the brink of bankruptcy for a few extra dollars. Makes no financial sense, CDIC or not.
7:21 am
March 15, 2019
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mordko said
1. Russia did confiscate assets owned by US companies.
Russia also defaulted on their bonds circa 1917.
9:56 am
November 19, 2022
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mordko said
Personally, I can’t imagine knowingly dealing with a bank on the brink of bankruptcy for a few extra dollars. Makes no financial sense, CDIC or not.
I see no harm if you keep under 100k
Please write your comments in the forum.