Money Laundering Through Online Casinos

  

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Like the physical casinos, the process of money laundering in the online casino happens during the transactions—money transfer, credit card transaction, or wire transfers. Sometimes, money laundering can also happen when the payments for the chips is made through digital currencies.

There has been a lot of talk lately about money laundering through casinos. It can be very difficult to prove, but when the authorities do find proof, it always shows that money laundering is done through land-based casinos.

Money laundering through online casinos is much more difficult. While there is anonymity in online gaming, there are also a lot of obstacles for that type of crime.

Those who oppose online gaming often say that money laundering is one of the biggest fears. However, if they look at the actual evidence, money laundering is far more likely to happen in live casinos.

Casino Money Laundering Schemes

There are several reasons for this.

  1. Customer ID checks

Online casinos open to Australian players take appropriate steps to verify their customers.

For example, Pokie Pop! requires the following documents to verify a player’s identity:

  • Government-issued identification, i.e. passport, driver license, ID card
  • Proof of address, i.e. utility bill no older than three months
  • Copy of registered credit cards, if conducting credit card transactions

The process of verifying the documents is typically done within an hour or so, though weekends may take longer. Even so, it is a requirement of maintaining an online casino license and important to prevent things like money laundering.

  1. Steps for Depositing and Withdrawing

Once a player is set up in the system, deposits are typically very quick. Most Aussie sites promise instant deposits with money available immediately for online casino play.

The verification process is greatest, though, when it comes to withdrawing funds. This is when the customer verification happens in great detail.

Players using a credit card – for deposits or withdrawals – must complete a credit card authorization form, which is another level of security, as it also requires a copy of the credit card being used.

Money Laundering Through Online Casinos No Deposit

Many people have started using bitcoin to deposit and withdraw for online casinos, which is offered by a site like Fair Go Casino for Aussies. Even those withdrawals can take up to 2-3 business days. And while bitcoin is mostly anonymous and not tied to any traditional bank, it would be difficult to launder money through bitcoin because of the value swings.

  1. Few High Limit Games

Most online poker rooms cater to casual Australian players, those who deposit occasionally and play for recreation. There are occasional players who deposit large sums of cash to play the highest stakes online slot games and table games, though they are rare.

These high-limit players lean toward sites like Joka Room, which offers a substantial VIP program with rewards for high-stakes play.

But when players try to withdraw large sums, they must go through a rigorous identification process.

If players would be withdrawing large sums of money regularly from an online casino, the licensing agent – whether in Malta or Gibraltar – would be sending audit requests and asking questions. The casino would have to provide customer verification documents to be audited.

When an online casino’s entire operation is on the line, they will not take unnecessary risks. Players who want to try to launder money through online casino games will find quite a few obstacles due to strict verification proceses.

  1. Licensing Requirements

Online casinos like Play Amo operate around the world. This means the operator needs to have good standing with its regulator at all times.

Play Amo is registered under the laws of Curacao. Its parent company, Direx, is registered in Cyprus. The site even provides the registration number and address. This is a part of the company’s transparency policy to build trust with customers.

The laws regulating a Curacao online gaming license, for example, require reporting to that government in order to keep that license current. Curacao verifies the financials and customer information from the sites, and anything that looks out of order will trigger an immediate audit.

When our site ranks an online casino and recommends it to players, it is because the site is in good standing with its regulator and has complied with all licensing requirements.

And these licensing requirements are in place to prevent such crimes as money laundering.

  1. Activity Monitors

Laundering

Online gaming sites provide data. Everything is done electronically, and all of that data put together can be reviewed and analyzed.

Money Laundering Through Gambling

This allows casino operators to look for irregular patterns, high-stakes deposits and withdrawals, and any number of other indicators that may point to suspicious behavior. They are able to request more information from a customer or even shut down an account that is deemed to be operating for criminal purposes, such as money laundering.

Live casinos cannot typically monitor every person that comes in and out of its doors. And if they don’t use rewards cards and perform all transactions in cash, there are few ways to track them.

Types Of Money Laundering

Online casino play is different in that there is always a data trail. This makes online casinos safer and less amenable to money-related crimes.