As per United Nations Office on Drugs and Crime, the estimated annual amount of money laundered globally in one year is 2-5% of global GDP or $800 billion to $2 trillion annually. According to the Regulatory bodies across the globe have been clamping down on casinos as a result. With casinos now having to declare 30% more suspicious activity from their gaming floors over the last two years. The casino money will often be cash via individuals who have a criminal background in various financial frauds. This is called money laundering. Although casinos have a lot of regulations and rules regarding money laundering.
Some low-level criminals still try to make the transaction of hidden money look like it’s a legal one or part of lawful gambling activity. A few indicators that this might be one small part of a more extensive web of money laundering at a casino are significant cash transactions. This article covers the 5 basic signs and also provides you with the steps a casino can take to avoid being a target for money launderers.
Unusual Transaction Patterns
Casinos have to be on the lookout for strange transactions, which could be an indication of laundering money. For example, individuals looking to launder illicit proceeds may split up significant cash transactions into smaller amounts. In just one year, casinos reported a 20% increase in structured transactions as suspicious by the Financial Crimes Enforcement Network.
Casinos are expected to keep a close eye on gaming activity and watch for anything unusual as part of an effective AML in casino (anti-money laundering) program. If someone is covering up for illegal money by using the casino. Then immediately asking for a lot of small exchanges while doing so very quickly could mean winning too much at the slots. By monitoring things like transaction patterns, Casinos can detect potential money laundering.
Repeated Activity Across Multiple Accounts
Casino money laundering involves opening multiple accounts. It is possible to divide dirty money between accounts for illegal activity. It then coordinated by the same individuals to use the various identities to bet, win, and withdraw in a pre-determined way.
This would ensure that certain thresholds for financial reviews were not met by coordinating activity between accounts. This is strengthened by recent reports showing a 15% increase in coordinated account activity among online casinos. Matching transactions between accounts should be considered a relevant part of a strong casino AML program.
Consistent Use of Anonymity Features
Most casinos provide some degree of anonymity at the point of joining rewards programs. Criminals involved in casino money laundering, however, might use anonymity features too frequently in a way that gives the appearance of hiding one’s identity as opposed to merely rewarding membership.
As part of casino AML compliance, casinos should regard with suspicion customers who consistently avoid ID verification when higher-risk activity is also involved. Schemes intended to launder money could use anonymous casino activity as a means of masking the origin of those illicit funds.
Frequent Large Transactions from High-Risk Jurisdictions
Any significant cash transactions from customers with ties to high-risk countries known for drug trafficking or laundering money should be looked at with extra care. Every financial activity, no matter how small or large. That comes from a casino that AML thinks is a higher risk should carefully look.
For example, FATF found in 2023 that about 40% of casino deals coming from high-risk countries were different from what they seemed to be. Too many big buy-ins, for example, from high-risk areas, could be a sign that thieves are using casino activity as a smokescreen to send illegal money.
Employee Collusion
In extreme instances, employees can actually be in league with criminal organizations to facilitate money laundering through a casino game. As part of good casino AML programs and, in general, casino compliance. Casinos need to be mindful of this risk and look out for any telling signs among employees.
For example, the same staff members always doing transactions for big-spending clients. That show red flags may be a sign of insider assistance. Actual rigorous employee background checks, KYE procedures. Training of all employees to spot casino money laundering schemes can prevent bad practices.
Preventive Measures
A casino should implement protective measures within the anti-money laundering programs. To prevent employee collaboration with money launderers, amongst which strict guidelines. Information about matched oddities in employee and client activities similar to detective controls may indicate complicit relationships. Ever since the implementation of these steps, cases of internal collusion have broadly decreased by 30% in the industry.
A casino with preventive, solid measures can essentially shut down all avenues for exploiting its AML compliance. And business integrity because of internal threats. Adhering to suggested best practices for an effective AML program. Casinos will be guarding their business against money launderers as much as they are preventing illegal funds flows. Also read:
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