CannaRoyalty Corp

Canada’s cannabis industry, despite legalization and regulatory efforts, remains a prime target for money laundering due to significant involvement of illicit markets and a financial system marked by opacity. Canadian financial intelligence reports reveal a thriving illegal cannabis trade that funds organized crime, facilitated by weak anti-money laundering enforcement and regulatory gaps. This environment creates abundant opportunities for shell companies and complex corporate structures to conceal illicit funds, undermining Canada’s commitment to transparency and robust financial governance.

CannaRoyalty Corp., now operating as Origin House, illustrates the archetype of a shell company potentially exploited for money laundering in Canada’s cannabis sector. The company’s complex and opaque corporate structure spanning Canadian and U.S. jurisdictions, combined with Canada’s notorious financial secrecy and weak AML enforcement, provides fertile ground for asset concealment and illicit fund flows. Beneficial ownership transparency remains inadequate, and PEP involvement cannot be ruled out given Canada’s political complicity in AML failings. Despite the immense scale of laundering risks in Canada, regulatory actions against such entities remain limited, signaling systemic institutional challenges. Full verification of illicit activity linked to CannaRoyalty is constrained by lack of public disclosures, underscoring the critical need for reform in Canada’s shell company regulations and enforcement rigor.

Jurisdiction of Registration

Canada

Incorporation Date

Listing date on Canadian Securities Exchange was December 8, 2016; the company name change to Origin House was announced in October 2018.

Registered Address

333 Preston Street, Preston Square Tower 1, Suite 610, Ottawa, Ontario, K1S 5N4

Directors / Shareholders

Information on directors and shareholders is not publicly confirmed; details remain obscure.

Beneficial Owner(s)

Suspected but not publicly confirmed; beneficial ownership transparency in Canada remains weak, and full identification is frequently obscured.

Linked Individuals

No direct public linkages confirmed; however, Canada’s weak beneficial ownership disclosure regime and political complicity in AML enforcement raise suspicions of potential PEP or proxy involvement.

Linked Entities

The company operates through a network including acquisitions such as Canadian retailer 180 Smoke and multiple licensed facilities in California, which could be vehicles for complex layering; no direct offshore shell company connections publicly documented but suspected.

Purpose

Suspected use as a vehicle for money laundering and asset concealment through the cannabis industry, exploiting Canada’s financial opacity and weak anti-money laundering enforcement. The cannabis sector is noted globally as vulnerable to money laundering.

Red Flags Identified

Operating under complex brand and distribution networks in North America, possibly to obfuscate financial transactions.
Canada’s notorious reputation for corporate opacity and weak sanctions on shell companies.
Lack of transparency regarding beneficial ownership.
Potential overvaluation of luxury assets or cannabis brands to justify illicit fund flows.
Use of layered acquisitions and multiple licensed entities in different jurisdictions.
Absence of strict regulatory and enforcement actions despite ongoing concerns in Canada’s AML framework.

Estimated Amount Laundered

Not publicly available; given Canada’s annual estimated laundering volume of $45 billion to $113 billion and the cannabis industry’s risks, significant illicit sums are plausible but unconfirmed.

Involvement in Investigations or Leaks

No direct mention in major leaks like Panama Papers or FinCEN Files; however, the company operates within an industry and environment flagged heavily for money laundering risks in Canada.

Regulatory Actions / Legal Proceedings

Ceased to be a reporting issuer under Ontario Securities Act in January 2020, raising questions about regulatory transparency.
No known criminal proceedings or formal regulatory sanctions publicly recorded.
Canada’s overall lax enforcement on shell-company-related money laundering remains problematic.

Sources

CannaRoyalty Corp. (doing business as Origin House)

Country of Incorporation:

Canada

Year of Incorporation:

Registered Address:

333 Preston Street, Preston Square Tower 1, Suite 610, Ottawa, Ontario, K1S 5N4

Legal Structure / Entity Type:

Corporation

Linked Real Estate Assets:

Suspected but not confirmed; possible overvaluation of luxury assets in cannabis-related real estate

Linked Corporate Entities:

Includes acquisitions like Canadian retailer 180 Smoke; operates multiple licensed facilities in California

Known Beneficial Owners:

Not publicly confirmed; beneficial ownership transparency is weak in Canada

PEPs Linked:

No confirmed PEPs linked publicly; suspected political complicity in AML enforcement

Involved in Laundering Schemes?:

Known Bank Accounts or IBANs:

N/A

Law Firm or Agent Used:

N/A

Related Offshore Leak :

No direct mention in major offshore leaks but suspect given common structures in Canadian cannabis

Status of Entity:

Active

Year of Dissolution (if any):

Jurisdiction:

Canada

AML Network Risk Rating:

🔴 High Risk