From: Rick Barnum, Executive Director, National Coalition Against Contraband Tobacco

Illegal tobacco is about more than just untaxed cigarettes — it’s about funding organized crime. Every carton of contraband cigarettes sold in Canada helps put money directly into the pockets of gangs involved in guns, drugs, and human trafficking. More than 150 organized crime groups are now tied to this trade nationwide.

The recent Lloydminster RCMP seizure of 8.8 million illegal cigarettes, delivering a $7.65 million hit to the illegal tobacco market, is a stark reminder of just how profitable this trade has become — and it’s Albertans who are paying the price. According to an October 2024 EY study, in 2023 alone, provincial tobacco tax losses in Alberta exceeded $102 million. Between 2021 and 2023, sellers of illegal cigarettes across Canada likely pocketed more than $1.3 billion in gross revenue.

These aren’t isolated numbers — they’re part of a much larger, deeply rooted criminal economy. This is evident in Alberta, where contraband tobacco seizures have reached record highs, with more than $12 million in illegal products seized in June 2025 alone, along with dozens of additional seizures reported by police since then.

Below is a snapshot of what police have uncovered in seizures over the past three months:

Edmonton (March 6): Illegal cigarettes and $53,000 in cash (believed to be proceeds of crime), representing more than $100,000 in avoided taxes.
Edmonton (February 23): Synthetic cannabis, psilocybin edibles, contraband tobacco and cigars, contraband chewing tobacco, and $109,400 worth of weapons, including brass knuckles.
Edmonton (January 25): Cocaine, phenacetin, contraband cigarettes, and over $126,000 in cash.

Illegal cigarettes are consistently found alongside guns, hard drugs, stolen goods, and dangerous weapons. That’s because contraband tobacco is one of the easiest, most lucrative, and lowest-risk revenue streams available to organized crime. It helps fuel everything else they do.

Right now, Québec has the toughest enforcement regime in Canada. Police have the ability to act because they can inspect businesses, seize illegal products, and issue penalties immediately — all within a system where taxation and enforcement are tightly coordinated.

Police in Alberta have some of these tools, but not nearly enough. Like Québec, a seized vehicle used to transport illegal tobacco should only be returned to its owner upon payment of a fine covering the vehicle’s value and the costs of the seizure. For example, if someone is caught trafficking contraband tobacco in a car worth $10,000, the fine should reflect the vehicle’s value plus the taxed value of the cigarettes. The province should also automatically suspend the driver’s licence of anyone caught with more than five cartons in their vehicle.

These tough-on-crime measures, already successfully implemented in Québec, would make it easier for police to do their job and ensure that those who break the law face real consequences.

As someone who spent decades fighting organized crime — including serving as Deputy Commissioner of Investigations and Organized Crime for the Ontario Provincial Police — I’ve seen exactly how these networks operate. Today, as Executive Director of the National Coalition Against Contraband Tobacco, I can say without a doubt that Alberta, and Canada as a whole, is facing an escalating problem. These seizures are only the tip of the iceberg.

Illegal tobacco is not a small or victimless issue. It is a significant threat to public safety, taxpayers, and the integrity of Canada’s legal businesses.

Rick Barnum

Executive Director, National Coalition Against Contraband Tobacco

Former Deputy Commissioner, O.P.P. Investigations & Organized Crime Command

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