According to a recent survey, illicit drug trafficking in Canada accounts for 87 percent of the cash flow generated from organized crime. Money derived from such operations is first moved out of Canada to jurisdictions that have secret-banking laws that place funds beyond the reach of tax collectors and make tracing transactions very difficult. While businesses, financial institutions, brokerage houses, and travel agencies all are involved in moving such funds, the most popular method is simply to engage a courier to transport the money in a suitcase, briefcase, or money belt. Most banks in tax havens also provide secret numbered fiduciary accounts where the names of the depositors are held separately from the accounts and allow for the incorporation of holding entities and businesses. The next stage of the laundering cycle is to return the funds to Canada so it appears they were legitimately acquired by the criminal. This can be accomplished by a loan-back, direct investment, or property purchases. Identifying these sophisticated laundering systems is a major step in curbing the illicit drug trade. Canada's law which facilitates the tracing process, combined with the laws of conspiracy, gives law enforcement authorities significant powers to search for and seize evidence relating to the possession of any asset which was obtained either directly or indirectly from a serious crime. However, these laws have serious limitations regarding seizure and forfeiture of certain types of proceeds. Canada is currently examining ways to resolve these problems and recover evidence of complex multijurisdictional laundering schemes. The paper includes five references.