Australia expands money laundering probe into casinos


Money laundering is a process used by criminals and money launderers to carry out their illicit activities. The procedure involves hiding the origin of the money laundering proceeds. Money launderers can successfully carry out their activities through a series of transactions and the usually conducted via foreign portfolios and banks. Casinos like Zamsino have taken into consideration measures that ensure no money laundering tales place on their premises.

Money laundering in Australian casinos

The Australian Securities and Investment Commission has launched an investigation into the country’s biggest gambling operators.

The anti-money laundering regulator is investigating Crown’s various gaming businesses. It is also looking into the company’s Perth and Melbourne casinos.

The company was forced to shut down its plans to build a massive Sydney casino after an inquiry found it unfit to hold a gaming license.

An inquiry conducted by the Australian Competition and Consumer Commission has revealed that Crown had been facilitating money laundering and dealing with criminals connected to gambling groups.

The commissioner of an inquiry into the management of the country’s largest oil company has recommended an overhaul of its governance.

For years, Crown has been accused of tolerating illegal activities at its casinos.

Star Entertainment Group, which operates Sydney’s Star City, investigates alleged breaches of due diligence laws.

It could also jeopardize a bid to acquire Crown Resorts, which has been caught up in the money-laundering investigations.

The Australian Competition and Consumer Commission is investigating the management of high-risk customers at SkyCity’s Adelaide operation.

The National Australia Bank said its investigation was focused on weak customer ID procedures and background checks for banks.

The UK’s gambling watchdog has warned that the industry is at risk of money laundering.

Australia has seen record fines in recent years due to money laundering breaches.

In 2018, Australia’s biggest bank was fined $1.3 billion for failing to prevent money laundering. Another record-breaking fine followed it in 2019.

Illegal and legal casinos

Legal gambling is very prevalent in many countries around the world. Its existence is because it provides governments and community groups with a significant income. The fact that gambling provides governments and community groups with significant income is why more people are gambling.

The benefits of legal gaming offset the social costs of gambling. Studies reveal that most of the time, the people who play at the casinos are criminals and fraud artists to get their fix.

An Illegal casino is a gambling establishment that accepts play from gamblers without a license or registration. Illegal gambling activities can also cause financial loss to individuals and organizations.

A close look at casino crimes

There are also various types of gambling crimes that are committed. One of these is cheating at gaming tables, and one of the most common crimes in the gaming industry is replacing chips with skins or loading.

Aside from gaming, casinos also offer various financial services such as insurance, banking, and fund transfer. Money launderers can easily convert large amounts of cash into real money by transferring it to various bank accounts without generating reports.

Preventing money laundering in casinos

To combat terrorism financing and money laundering, financial institutions and casinos should implement effective regulations and procedures.

They should also maintain adequate controls in place to prevent money laundering and terrorist financing. The penalties imposed by the market are designed to punish businesses that fail to implement necessary controls and regulations.

The regulations are part of the Protect and Combat Money Laundering Act (POCA) that all casinos must follow. And the failure to follow the decisions there are criminals offenses attracted. There are money laundering activities that casinos should watch out for, like;

  • Regularly inspecting and controlling through the development of the appropriate systems.
  • Adopting an efficient risk-based approach against any future crime
  • Continually performing the customer due diligence through the identification of clients’ relations with money laundering activities
  • Having risk assessment protocols in place

The sanction scanner AML compliance for in casinos

Due to the rise of gambling industries, anti-money laundering and counter-terrorist financing regulations have been introduced. And failure to comply with the regulations, some penalties are subjected to the casino.

Being compliant with anti-money laundering regulations simplifies processing transactions and keeping track of CDD and KYC processes. Our comprehensive sanctions and PEP scanning service can help you monitor and manage your customer loyalty programs.

Money laundering process

Money laundering is a complex process that involves gathering enough information to trace the money moving across various countries. It is very challenging for law enforcement agencies to identify the sources of money laundering.

The main issue with money laundering is that it can sponsor anti-social activities and terrorist acts. Aside from money laundering, it is also be used to support illegal activities such as the production and sale of drugs.

Money laundering and casinos

Money launderers can easily convert their money into legitimate currency by using various platforms. Due to the low scrutiny that casinos provide, many criminals choose to launder their money instead of other places.

Money laundering can also happen in terms of the transactions made in casinos.

Money laundering is a process that occurs when funds are transferred from various financial institutions and agencies. It can also serve as a signal to the casino’s management that something is not right with its business processes.

The typical methodology adopted by money launders

Sometimes, agents will try to hide their true identity by creating multiple accounts and routing the money through different accounts. Another way to identify the bogus motives behind gambling is by detecting inconsistent and staggering playing patterns.

Money laundering in online casinos happens during transactions. Money laundering can happen when the chips are processed through digital currencies. In most cases, they are not caught.

If money launderers use cryptocurrencies for their transactions, then the entire process would remain anonymous and out of most investigators’ reach. Extra precautions should be taken to ensure that the money used in the game is sourced from legitimate sources.

In conclusion, the casinos should be on the lookout for suspicious transactions. If they come across such cases, then they should report them to the authorities.

There must be no hesitation on the part of the owners of casinos as their proactive stance can help address this serious crime of laundering.

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