The blunt truth: organized crime taking root in the cannabis market
On this page
- How organized crime groups exploit the cannabis market and why it matters
- Need to know
- The impact of organized crime groups involvement in illegal/legal cannabis sales
- Intercept: recent domestic cannabis seizures
- Why choose legal cannabis?
- How to protect yourself as a consumer
- Reporting
- References
Despite the legalization of cannabis in 2018, organized crime groups within Canada continue to engage in the production, sale and exportation of legal and illegal cannabis, providing them with a continued revenue stream.
It is important to be vigilant when purchasing cannabis as you may be unknowingly buying cannabis from unlicensed storefronts and retailers, including online and on social media platforms operated by organized crime groups.
When purchasing and consuming illegal cannabis, you are contributing to the organized crime cycle. The profits from selling illegal cannabis are often used by organized crime groups to support and fund other illegal and harmful activities within Canada.
How organized crime groups exploit the cannabis market and why it matters
Production
- organized crime groups production methods include:
- illegal grow operations (commonly known as grow ops)
- misuse and exploitation of legal production methods and licensing
Sale and distribution
- organized crime groups are selling and distributing cannabis through various means:
- black market (for example: illegal markets): goods and services sold can be illegal or legal but transacted to avoid taxes
- unlicensed online and in-person store fronts
Smuggling
- legally and illegally produced cannabis is being smuggled across borders. Some methods include:
- mail and parcel shipments
- concealment in vehicles and other large containers
- use of drug mules: individuals used as couriers who are paid, coerced, or tricked into transporting drugs across international borders
To produce cannabis in Canada, you must obtain a license from Health Canada. See here for the Cannabis licensing application.
Need to know
It is a serious criminal offence to take cannabis across the Canadian border, whether you are entering or leaving the country, even to countries where cannabis is legal or decriminalized.
Transporting any form of cannabis (for example: edibles, extracts, topicals, all products containing cannabidiol (CBD)) – to another country remains a serious criminal offence if you do not have a legal permit or exemption by Health Canada. If illegal substances are found, you will be held responsible and may be subject to arrest and prosecution.
Note
Canada Border Services Agency (CBSA) is the responsible authority at all land, border and seaports of entry.
In certain circumstances Health Canada can authorize a permit or grant exemptions to import or export cannabis. For more information contact: cannabis-exemption@hc-sc.gc.ca
The impact of organized crime groups involvement in illegal/legal cannabis sales
- Funding criminal enterprises
- Exploitation and human trafficking
- Undermining legal risk to public safety markets, competitive pricing, and social impacts
- Risk to public safety
Intercept: recent domestic cannabis seizures
New Brunswick illegal cannabis seizure: one of the largest ever in Atlantic Canada
In 2024, a joint operation between the New Brunswick Department of Justice and Public Safety resulted in the seizure of 432 kg of dried cannabis heading for more than 30 unlicensed dispensaries. The seizure also included 8,000 pre-rolled cannabis joints, 1,600 edible products, 925 electronic vape products, 540 grams of hashish and $143,000 in cash. This is believed to be one of the largest seizures in Atlantic Canada.
Why choose legal cannabis?
Legal cannabis products must comply with the Cannabis Act and its regulations, which establish standards of quality, marketing, packaging, and labeling. To minimize risks, choose legal cannabis products. Legal cannabis products are quality controlled and tested for harmful contaminants. Get more information on Cannabis and your health.
How to protect yourself as a consumer
It is important to be vigilant and aware of where you are purchasing your cannabis. Purchasing from an illegal distributor can pose health risks, negatively impact legitimate businesses, and may support organized crime. Find more information on authorized cannabis retailers in the provinces and territories.
Reporting
Canadian law enforcement organizations are responsible for the disruption and enforcement of illegal activities related to cannabis.
If you suspect that someone may be growing or selling cannabis illegally, or engaging in any other illegal activity with cannabis, report any incident to your local police.
Reporting to your local police helps local, provincial and federal law enforcement:
- enforce mandated jurisdictional legislation (municipal, provincial and federal codes)
- better understand the scope of organized crime's involvement in the cannabis market
- inform for disruption, deterrence and public protection efforts
For concerns and complaints that might represent a possible violation of the federal cannabis laws or regulations, individuals may contact Health Canada through the Cannabis Reporting Form.
References
- Not all Crime is Organized – Classifying the Illicit Cannabis Market - Association of Certified Commercial Cannabis Expert (ACCE) (2020)
- CBSA officers uncover over 96 kg of opium in shipping containers in Halifax, Nova Scotia - Canada Border Services Agency (2022)
- CBSA intercepts 577 kg of cannabis at the Montreal Marine and Rail Service - Canada Border Services Agency (2025)
- CBSA officers make a major cannabis seizure at the Montreal Marine and Rail Service - Canada Border Services Agency (2025)
- Cannabis at the Border - Canada Border Services Agency
- Licensed Cannabis Store Vs Illegal Cannabis Store - Canadabuds (2025)
- 1610 kg of cannabis intercepted by CBSA officers in Halifax - Canada Border Services Agency (2025)
- Toward a Regulatory Framework for the Legalization of Cannabis - Canadian Public Policy (2018)
- Canada: 5 Years After Legalization, The Illegal Cannabis Market Continues to Thrive. C3 Calls on the Government to Make Changes - Canna Reporter (2023)
- Clearing the Smoke: Insights into Canada's Illicit Cannabis Market - Deloitte (2024)
- Opinion: Government Overkill is Why Illegal Cannabis Still Accounts for 30% of the Market - Financial Post (2024)
- Operational Alert: Laundering of Proceeds from Illicit Cannabis - FINTRAC (2022)
- New Brunswick illegal cannabis seizure 'largest' ever in Atlantic Canada - Global News (2024)
- Cannabis and the Border - Health Canada (2020)
- Reduce Your Risk: Choose Legal Cannabis - Health Canada (2023)
- Legislative Review of the Cannabis Act - Health Canada (2024)
- What Is the Black Market? Examples of Products and Services - Investopedia (2025)
- CAN: Study Compares Contaminants in Legal Vs Illicit Cannabis - MMJ Daily (2025)
- 'Dangerous' Amounts of Mold, Lead, E.coli, and Salmonella Found in Street Marijuana - New York Post (2024)
- Cannabis and Fentanyl: Facts and Unknowns (PDF 70.6 kb) - Office of Cannabis Management (2023)
- Gangsters, Money and Murder: How Chinese Organized Crime Is Dominating America's Illegal Marijuana Market - Propublica (2034)
- Cannabis Black Market - Public Safety Canada (2020)
- Illicit Cannabis Grow Operations - Royal Canadian Mounted Police (2023) -
- Organized Crime and Illegal Cannabis - Royal Canadian Mounted Police (2023) -
- Cannabis Legalization and its Effects on Organized Crime: Lessons and Research Recommendations from Canada - Sociological Inquiry (2024)
- Police Follow Their Noses to Drug Bust During Vehicle Spot Check - Sudbury.COM (2024)
- New Brunswick illegal cannabis seizure 'largest' ever in Atlantic Canada - St. Albert Gazette (2024)
- Definition of "Drug Mules" for Use in a European Context - U.S. Department of Justice (2012)
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