Casinos — Criminal networks launder an estimated $1 trillion a year, and the casino industry is a growing target. The rise of legalized gambling and the high cash volume associated with gaming have increased the casino industry's vulnerability to this type of criminal activity.
'Anti-Money Laundering'/Ernst & Young/ www.ey.com/global/content.nsf/US/AABS

Posted on: July 17, 2021, 10:33h. Last updated on: July 17, 2021, 10:33h. Steve Bittenbender Read More As the majority of Ontario’s casinos reopened on Friday as Canada’s most populous province took another step toward fully reopening from the COVID-19 pandemic, gaming officials there launched a new initiative to combat money laundering schemes. The Fallsview.
As thousands of workers return to their jobs, gaming officials are launching a new initiative to stave off money laundering schemes. The Alcohol and Gaming Commission of Ontario (AGCO) have set up a special task force to monitor cash transactions in the casinos as they have been a hotbed for money laundering over the years. In some cases, money passed through casinos in Ontario has been.
Ontario's Auditor General, Bonnie Lysyk, had released her annual report. Metrolinx delays, possible money laundering at province casinos, and issues around condo property buyers were highlighted.
An RCMP probe into a southern Ontario drug trafficking ring has exposed a loophole in the province's casino system that police fear criminals are exploiting in a bid to launder the proceeds of crime.

Money Laundering in Casinos. While suspicious transactions reported in Ontario casinos are increasing, enforce-ment by the OPP officers working for the AGCO has been limited. From 2017 to 2019, casinos submitted over 9,700 suspi-cious transaction reports in total, involv-ing almost 4,800 individuals.

Money laundering is inextricably linked to the illicit U.S. drug trade. The Office of National Drug Control Policy projects the street value of illicit drugs sold in the United States during 2000 to exceed $62 billion.27 Controlled by violent drug traffickers, these revenues--greater than the gross national product of 150 nations--pose a serious threat to the economic integrity and security of the United States. Drug traffickers launder illicit profits and ultimately integrate the funds into the legitimate economy. Laundered drug proceeds are used to finance drug operations and other crimes, fund insurgency and terrorist organizations, and promote corruption. Consequently, U.S. anti-money laundering efforts are critical to destabilizing drug trafficking organizations and limiting their power. The New York/New Jersey HIDTA estimates that drug traffickers launder between $4 billion and $8 billion annually in the New York/Northern New Jersey metropolitan area. Gaming Industry. The gaming industry in the United States remains vulnerable to drug money laundering. One technique used to launder drug proceeds through casinos involves structuring cash purchases of casino chips or tokens to avoid reporting requirements and subsequently redeeming the chips for checks drawn on, or wire transfers from, casino bank accounts. Corrupt casino employees have also facilitated drug money laundering activities.
'Money Laundering'/National Drug Intelligence Center/October 2000/ www.usdoj.gov/ndic/pubs/647/money.htm
WASHINGTON (AP) - The Bush administration's efforts to crack down on money-laundering by terrorists may require Nevada casinos to be more vigilant of suspicious financial activity, government officials say.
'Money-laundering rules let Nevada clubs report to state'/Las Vegas Sun/9.28.01

Anti-Money Laundering Proposal for Casinos to be discussed at Regional Meetings: The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) will hold four regional meetings this summer to provide an opportunity for casino industry representatives and other members of the public to comment on a proposed rule announced in May which would require casinos and card clubs to report suspicious activity. The proposal was issued under the authority of the Bank Secrecy Act (BSA) -- Treasury’s key tool in the fight against money laundering, financial fraud and tax evasion.
FOR IMMEDIATE RELEASE/ June 26, 1998 / US government/Treasury

There is little concern that a money laundering bill passed by the House will hurt casinos, gaming industry officials say. The House version of the anti-terrorism bill stiffens the reporting requirements financial institutions must adhere to in dealing with overseas accounts and transactions. It also makes it a crime to attempt to smuggle $10,000 or more in currency across U.S. borders.
'Gaming industry is unconcerned about terrorism bill'/LAS VEGAS SUN/10.22.01

Issued in partnership with the Combined Forces Special Enforcement Unit (CFSEU) – British Columbia (BC)

December 2019

This operational alert provides money laundering indicators that were observed in FINTRAC disclosures sent to law enforcement in relation to the initial focus of Project ATHENA: suspicious casino-related transactions, particularly those involving bank drafts, that are suspected to have roots in underground banking.

Underground banking refers to banking activities that take place outside of the formal financial system. Typically, underground banking activity runs parallel to and operates independently of the formal banking system. Beyond that, it is difficult to arrive at a standard definition of underground banking because it is complex and open to interpretation depending on the jurisdiction. For the purposes of this operational alert, underground banking will refer to the criminal abuse of Informal Value Transfer Systems (IVTS).

IVTS involves dealers who facilitate the transfer of value to a third party in another jurisdiction without having to physically move it. Settlement between brokers occurs through cash, trade, or other means. For many communities and diasporas, IVTS is the cheapest and most effective way to send or receive remittances. Well-known forms of IVTS include hawala, hundi, and fei ch'ien. In fact, many cultures embrace it and depend on it to send funds to loved ones in countries that lack a formal banking system. Because they are engaged in money services business (MSB) activity, IVTS are regulated under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and are required to register as an MSB with FINTRAC. However, IVTSs are often exploited in an effort to evade sanctions, state currency control restrictions, and to facilitate criminal activities such as money laundering. In such cases, IVTSs morph into underground banking, becoming non-compliant with the law and void of any regulatory scrutiny. For example, professional money launderers–individuals who specialize in laundering the proceeds of crime on behalf of criminals and organized crime groups–regularly use underground banking schemes to rid their hands of substantial amounts of illicit proceeds of crime.

Project ATHENA:
a public-private partnership to combat money laundering activity in Canada through the lawful sharing of information. The objectives of the project are to improve the collective understanding of the money laundering threat, inform and strengthen financial systems and controls, and to disrupt money laundering activity.

Underground banking and the formal banking system inevitably intersect when certain transactions demand the use of the formal banking system, such as the purchase of financial instruments. It is at this juncture where financial activity that is rooted in underground banking can be partially observed by regulated financial institutions and become subject to FINTRAC reporting.

Project ATHENA, a public-private partnership focused on combatting money laundering in Canada, initially began as a CFSEU – British Columbia probe into the use of bank drafts at casinos in Lower Mainland, British Columbia. Due to the Project's early findings which uncovered money laundering occurring beyond the casino sector and a strong desire to combat money laundering in other sectors, Project ATHENA expanded to a national focus and increased its scope to include real estate, luxury vehicles and high-value goods.

At the heart of Project ATHENA is the lawful sharing of

Ontario Casinos Money Laundering