Money Laundering and Internet Gaming
Online Gambling
Mar 24, 2000, 08:54
By Players Edge http://www.playersedge.com
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Offshore internet casinos are proving an easy bet for organized groups to launder money, according to British officials. They warn escalating numbers of online casinos, particularly weakly regulated ones in the Caribbean, means dirty money can flood through sites and out again without even nearing a poker game. A British government official commented "This is a relatively new area and one which causes us great concern...We are looking into it in a number of jurisdictions."
Laundering is made easy for criminals due to immense numbers of offshore casinos which fail to comply with international regulations. The idea is simple, an account is set up with a gaming site and the ante is stumped from whatever source. The 'gambler' just decides when they want to stop gambling (regardless of whether they have or have not placed a wager) and according to a British source close to the fight against money laundering, the casino will then "send out a check or bankers draft made payable to whoever you want."
Weak regulation in Antigua is presently an area of concern. A British task force visited the island in October and warned "the offshore gaming industry in Antigua [is] still perceived to pose a high risk to the integrity of the global financial system." Concern stems from casinos such as the Kings Casino which declares it possible on its website to open an account via cash sent through registered mail. This is an even easier option for criminals. Although some attempt has been made to modify procedures, there is still some way to go before anti-money laundering deficiencies are ironed out.
Antigua is not the only country to fall prey to laundering, it's suspected Costa Rica also has the same predicament, whilst several other Caribbean islands remain on a list of countries deemed "non-cooperative" by an international group fighting money-laundering, the Financial Action Task Force. It's estimated that between $600 billion and $1.5 trillion is laundered worldwide annually.
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