Pakistan, Oct. 15 -- On October 13, Canadian Prime Minister Mark Carney and his Indian counterpart Narendra Modi agreed to accelerate negotiations on a trade agreement, with Modi expected to visit Canada in December. Relations between Ottawa and New Delhi appear to be on the mend. Yet behind the diplomatic courtesies lurks an uncomfortable question: how does a country aspiring to global leadership explain the operations of international criminal syndicates allegedly directed from its own prisons?

The question acquired particular urgency on July 7, when the US Department of Justice announced Operation Hard Ball. Twenty-four people were arrested across the United States, Canada and Europe, while 37 defendants were charged in three indictme...