Anti-money laundering company flags financial institution drafts in shady on line casino dealings

OTTAWA – Canada’s anti-money laundering company is warning casinos to fastidiously eye prospects who pay for his or her gaming with financial institution drafts — the newest methodology of alternative for criminals making an attempt to disguise soiled cash.


The federal Monetary Transactions and Reviews Evaluation Centre of Canada, often known as Fintrac, says in an operational alert issued at present that money is falling out of favour in illicit on line casino transactions attributable to intense media and authorities scrutiny.

As an alternative, criminals are choosing the liquidity and quasi-anonymity of financial institution drafts, Fintrac’s current evaluation of suspicious casino-related transactions reveals.

Skilled cash launderers are continuously adapting their strategies, Fintrac director Nada Semaan stated in an interview.


“They’ll at all times be other ways to do it, and our job is to be a step forward of them and determine that out,” she stated.

“We won’t cease all people, however we’re working extraordinarily laborious on this and we’re dedicated to doing extra.”

Fintrac tries to zero in on money linked to terrorism and cash laundering by sifting by tens of millions of items of data yearly from banks, insurance coverage firms, securities sellers, cash service companies, actual property brokers, casinos and others.


General, the centre disclosed 2,276 items of intelligence to police and safety businesses such because the RCMP and Canadian Safety Intelligence Service final yr.

Fintrac is publishing the newest alert as a part of Challenge Athena, an RCMP-led public-private partnership geared toward disrupting money-laundering exercise in British Columbia and throughout Canada. The hassle is modelled on earlier initiatives focusing on the fentanyl commerce, romance fraud and human trafficking.

Semaan plans to debate the alert Tuesday at a Fintrac discussion board in Ottawa meant to bolster co-operation towards cash laundering within the gaming sector.


The centre says it has made greater than 30 monetary intelligence disclosures up to now in relation to Challenge Athena.

The alert — and an inventory of indicators that soiled cash is being washed utilizing casinos — was developed by the evaluation of Fintrac’s monetary intelligence in collaboration with the Mixed Forces Particular Enforcement Unit in British Columbia.

B.C. launched a public inquiry into cash laundering in Might after a sequence of unbiased critiques revealed that billions of had been being laundered by the province’s casinos, actual property market and different sectors.


Primarily based on the reviews it has obtained, Fintrac suspects most of the folks concerned in suspicious casino-related transactions had been cash mules who moved crime proceeds, wittingly or unwittingly, on behalf of a cash launderer.

The primary kind generally reported their occupation as “pupil” or just “unemployed,” the alert says. “Their financial institution accounts demonstrated in-and-out exercise, with a excessive quantity of money deposits from varied unknown sources, which had been then used to buy financial institution drafts payable to 3rd events or casinos.”

The centre says the second kind of cash mule typically reported their occupation as “homemaker.” Their financial institution accounts usually had a number of money deposits from unknown sources, wire transfers from third events or buying and selling firms, the acquisition or redemption of assorted investments and casino-gaming exercise.


Fintrac is advising casinos to scrutinize patrons who:

— Deposit a excessive quantity of financial institution drafts to a gaming-fund account or who recurrently use financial institution drafts as a type of gaming buy-in;

— Are accompanied to a on line casino by somebody topic to a gaming ban;


— Dwell in a jurisdiction topic to currency-control restrictions or sanctions and don’t have any native ties to household or companies.

The centre has additionally compiled an inventory of attainable tell-tale indicators to assist banks and different monetary establishments detect unlawful casino-related dealings.

In a single situation, a shopper’s account is funded by varied means, akin to money deposits, on line casino cheques, wire transfers from buying and selling firms, or funding redemptions akin to Assured Funding Certificates. The funds are then largely depleted by credit-card funds, account transfers or transactions involving casinos.


In one other revealing sample, a shopper engages in round exercise by depositing on line casino cheques, then buying financial institution drafts which are finally used at a number of casinos. Quickly after, on line casino cheques — whose memo signifies that the funds usually are not the results of on line casino winnings — are deposited again into the checking account.

Some monetary establishments and casinos have already taken motion by including figuring out info on financial institution drafts and requiring on line casino patrons to supply a source-of-funds receipt for gaming buy-ins over $10,000, Fintrac notes.

This report by The Canadian Press was first revealed Dec. 10, 2019.