Money laundering through casinos is an increasingly common practice, but how can casinos prevent it? According to a Treasury report, a typical Nevada casino reports receiving an average of $40 thousand in counterfeit currency each week. Casino cashiers and other staff can offer players tips to avoid the risk. They can also help protect customers from the negative reputation of their local casinos. Below are a few steps to protect yourself and your money from potential scams.
One of the key concerns about money laundering through casinos is that many institutions are not doing enough to monitor the activities of casino operators. There have been recent investigations into online gambling companies that accepted payments from customers from foreign countries, but did not deliver the items they sold. In order to disguise the true nature of the payments, some e-commerce sites disguised them as online casino deposits. Payment processing companies use specific codes to identify various purchases, and they can block deposits from casinos based in prohibited jurisdictions. Money laundering through casinos also involves the use of “dummy shops,” where the true nature of the payments is concealed and presented as trivial items. Ultimately, this practice is a violation of anti-money laundering laws.
In the Vancouver case, former Mountie Peter German characterized a casino as “a laundromat for proceeds of organized crime.” Despite the fact that the casinos are located in Canada, the practice of money laundering through casinos is widespread, involving hundreds of millions of dollars in the 2010s. It has also been found that casinos have facilitated money laundering through other forms of gambling. These casinos are also a popular choice for the wealthy.
As a high-risk industry for money laundering, casinos should have robust due diligence and risk management systems. The latest crackdown in the United States has led to unprecedented scrutiny and collaboration between casino operators and banks. As a result, many banks have implemented databases that allow them to spot risky transactions. Ultimately, the goal is to ensure that Australian casinos do not become a target for money laundering. So what can casinos do?
Smurfs – low-level members of criminal organizations – deposit small amounts at various institutions to hide the source of their money. Money laundering through casinos can be accomplished through layering the money through several transactions, obscuring its trail, and integration into legitimate society. Often, these proceeds are used to purchase consumer goods, real estate, and provide a person with personal security. So, what can casino employees do to prevent this from happening?
The American Gaming Association (AGA) is working to draft a list of best practices. The organization is also encouraging casinos to engage in increased due diligence. Regulations are also encouraging these meetings. While there are already laws that protect consumers, gambling providers need to follow them to avoid money laundering through casinos. These changes must be accompanied by a greater level of activity and investment in these businesses. However, the AGA’s recommendations for AML compliance aren’t comprehensive enough.