The August DEA report, Money Laundering in Canada, says Canadian drug traffickers intent on using casinos to launder their proceeds begin by purchasing chips or opening an account at the gambling establishment. The trafficker gambles, but is careful to lose only a relatively small sum of money, the report notes. Money laundering and terrorist financing indicators—Casinos. This guidance on suspicious transactions is applicable to all casinos that are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and associated Regulations. It is recommended that this guidance be read in conjunction with other.

Money Laundering in Casinos Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC, has warned Canadian casinos that customers using bank drafts may be trying to launder money. Bank drafts provide liquidity and anonymity, while winnings from a casino are indistinguishable from clean money. Casinos in Canada Not all gaming establishments are subject to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in Canada – only those that fall within the definition of a “casino”.

As British Columbia (BC), more than a decade later, still tries to get to the bottom of a massive casino money-laundering saga, it seems that there are more questions than answers being raised. The government-led inquiry, dubbed the Cullen Commission, into how hundreds of millions of dollars could have been allegedly laundered right under regulators’ and casino executives’ noses without their knowledge has shed light on a series of failures in the industry. However, it isn’t any closer to wrapping up. It might not be for some time to come, as certain people involved at the highest levels allegedly have a difficult time providing accurate and consistent stories. One of these is Rich Coleman, a former BC gaming minister, who seems to have trouble sticking to his story.

Show Me the Money Trail

Coleman, who was once accused of helping criminal organizations launder money through casinos, was ordered to return to the spotlight of the Cullen Commission last week. The commission was concerned over “discrepancies” in testimony he gave when he was testifying last month that didn’t match comments he made in 2011. Coleman had been in charge of BC’s gaming industry sporadically from 2001 to 2013.

One of the discrepancies centered on an investigative piece conducted by CBC News in 2011 that included RCMP Inspector Barry Baxter. He indicated at the time that the law enforcement body had begun suspecting casinos as a funnel for cartel drug money, yet Coleman derided the official publicly shortly after, even indicating that Baxter’s own superiors thought he might be out of line. Last month, however, when Coleman was testifying before the Commission, he stated he never spoke with Baxter’s superiors.

This is where Coleman reportedly showed off his dancing skills. When he returned to testify last week, he tried to assert that he had misspoken and that it was his staff who had contacted Baxter’s superiors. He asserted, “Sometimes in a live radio interview, you tend use a word versus another when you’re trying to do it as a minister on behalf of your entire [staff] … I should’ve used ‘we’ and not ‘I.'” However, he then added something else that didn’t help him justify his statements. He said, “It was just my feeling that his superiors wouldn’t agree with what he said or how he said it.”

Coleman Still Facing Scrutiny

It’s likely Coleman will find himself in hot water now that the truth has surfaced. As part of the ongoing investigation into how certain casinos allowed duffel bags full of $20 bills to be laundered, documents have been uncovered that show that Baxter always had the full support of his superiors. This was pointed out during the Commission hearings and a lawyer for the Commission, Brock Martland, hinted at the possibility that Coleman had, perhaps, been attempting to discredit the RCMP inspector. Coleman never apologized, only stating that he had “probably [gone] a little too far” and that he was “a bit unfair” to the officer.

Coleman is probably also going to have to explain other comments he has made during the commission. He said that addressing money-laundering issues at casinos wasn’t easy because of “complex legal issues” related to being able to prove wrongdoing. However, no one will believe that there’s anything complex about tracing CAD$460,000 ($379,000) in $20 bills that is presented to a casino cashier’s cage in exchange for chips, only to have those chips cashed out moments later. Baxter, who spent 34 years with the RCMP before retiring in 2015, had pointed this out in trying to get an investigation started, but was blown off by gaming regulators.

Money Laundering Meaning

If you have ever watched the critically acclaimed Breaking Bad you will be aware of the importance of money laundering to criminals. In the TV show, Walter White is the chemistry teacher turned ‘Meth Cook’.

Putting aside the moral questions surrounding White’s new career, he is confronted with the problem of not raising suspicion through his newfound wealth. In order to legitimise his criminal profits, White enlists the help of his wife to help him launder his money.

This is done in the show by White purchasing a car wash and putting through a huge number of false transactions. With each false transaction he adds money from his meth producing business, thus making it appear clean and legitimate to any authorities taking an interest in him.

In real life this method is used by a host of criminal enterprises. As mentioned earlier in the 1950s organized crime gangs in America would purchase casinos in Las Vegas to do just this.

However, criminals have now moved onto online casinos and gambling sites to launder money. Illegally earned cash will be used to place sure-fire bets on gambling sites, enabling future illegal income to be disguised as gambling winnings.

Is This Really Happening In Canada?

Yes. In fact, earlier this year Canadian police arrested nine members of the Calabrian organised crime group ‘Ndrangheta. The suspects were accused of illegal gambling and money laundering in the Toronto area.

Through wiretapping, surveillance and internal leaks the Canadian authorities uncovered details of a money laundering scheme that cleaned almost $70 million of ill-gotten gains mostly through gambling – both online and offline.

Within a few days of uncovering the plot the authorities had seized $26.8 million in assets and arrested further suspects in connection with Italian police. It is believed that illegal money earned through mafia activity in Italy was even being sent to Canada to be cleaned.

Details of the bust on the ‘Ndrangheta family emerged five months ago

How Do They Get Away With It?

On the face of it you might think that it would be relatively easy to spot money laundering activity at an online casino. If the criminal is patient and diligent though it can be very easy to fly under the radar and avoid suspicion.

For example, a sum of $100,000 could be deposited into an online gambling account over the course of 12 months. On an almost daily basis the account holder would deposit small amounts and wager even smaller amounts on a host of games.

To the security personnel at an online casino this activity could be viewed as normal, without arousing too much suspicion. The money laundering only becomes apparent when the deposits reach a certain amount and the customer withdraws everything at once before shutting down their account.

Aliases and fake details will most likely have been used in setting up the account, making it nigh on impossible for the authorities to trace the money or the culprit once the account has been shut down.

How Is The Industry Combatting This?

Strict laws have been imposed and operators of a Canadian online casino must comply to standards which are akin to the laws used in Great Britain. The country’s gambling authority has produced guidelines for companies to ensure that they are doing everything possible to identify and report suspected money laundering.

This means offering the highest levels of training to staff to ensure that they are familiar with the techniques used by criminals. Money has also been invested into software that is specifically designed to spot the signs of money laundering.

Online casinos have obviously taken these steps to protect the integrity of their businesses, but they have also done so to av

Casino Money Laundering Canada