Despite the relative safety in transferring money online, there are still many pitfalls that can be exploited by fraudsters. One of those methods is money laundering. The concept is straightforward. Instead of reporting income, dirty money or assets are disguised as legitimate transactions. Usually, this is done through multiple layers to make it even harder to trace the origin of the funds. And while online casinos, including top no deposit bonus casino Canada, are usually less targeted than their brick-and-mortar counterparts, some still report money laundering cases. It is also not uncommon for operators to be involved in these endeavors.
What Is Money Laundering?
Betting, gambling, and money laundering are different things. So if you want to know at what platform you can bet on FC Inter Milan, this article is not for you.
Here, we will speak about money laundering and what it means. The term itself doesn’t require much explanation – it basically implies that dirty money is made clean or at least cleaner by passing it through legitimate financial transactions. That way, criminals find a way to store their illicitly gained assets without drawing too much attention from authorities. The purpose of this operation is to make sure that money can be used without problems. If law enforcement were to confiscate the illicit gains, only the dirty part would be left for the criminals, which is why they are often looking for ways to legitimize them through investments, loans, or online casino winnings.
Why Do Criminals Want to Launder Money?
As the saying goes, all that glitters is not gold. Criminals are mostly after one thing – money. And while laundering their illicitly obtained assets also makes them cleaner, it doesn’t make them any more legitimate or less suspicious. However, dirty laundering money through online casinos can give scammers another chance to enjoy their earnings without stressing about being caught by authorities. The reason criminals choose this route is simple – they have limited options of legitimately gained assets they could invest in without drawing too much attention or leaving any traces behind. That’s why many criminals prefer to gamble online with their dirty cash instead of investing in something else. There are many reasons why they do this, such as;
- To avoid taxes: Criminals never want to pay taxes, and therefore, they use this strategy in order for them not to be caught.
- To keep their profits secret: With the money laundering technique, they will not contact any form of trails that can be used to identify them. They use this technique to make sure that there are no paper trails in order for them not to break the law.
- For fear of being caught in a robbery or in a police case: Criminals do not want to be caught in any kind of case; this is why they will use this technique in order for them to stay anonymous.
- To avoid being blocked by banks or authorities when transferring money into their account: If the criminal uses a bank account that might have been used before for illegal activity, then it may be blocked by either the bank itself or authorities. In order for them to avoid this, they will use a separate account where nobody knows about the money being deposited into it.
- To conceal their transactions: Money laundering at online casinos is a way for criminals to conceal the huge profits they might have made through illegal activities like cyber crimes, frauds, etc.
Crypto Casino Money Laundering: How Does it Work?
Let’s not beat around the bush. There is a reason why casinos accepting cryptocurrencies are on the rise, and their number is ever increasing despite recent market corrections. This can be one of the reasons why Louisiana is preserving competition for casino services. The freedom, anonymity, and confidentiality provided by such platforms have attracted all kinds of players from different backgrounds and with different intentions. Some come here to relax and enjoy themselves after a long day at work or while traveling; others come for entertainment; some want to gamble away some extra money they received as a gift; others simply can’t resist temptation and give in to their addiction. This mixture of motives makes casino cryptocurrency extremely interesting for something else – money laundering.
The Rise of Crypto Laundering
Criminals want to launder money because it helps them stay anonymous, dodge taxes, avoid getting their cash blocked or seized by banks or authorities, and remain under the radar of law enforcement agencies. It is important to note that many types of criminals have various backgrounds and motives. Some do it for financial reasons, others – for ideological ones (e.g., financing terrorist activities). The methods used vary as well. That is exactly why criminals laundering their funds through crypto casinos choose digital currency over traditional banking systems at first glance:
- No KYC checks are required, which makes registering an account easily;
- Withdrawals are usually instant, providing players with almost immediate access to their funds;
- Transactions are anonymous and encrypted, providing them with the necessary cover they need;
- Transactions can be made from anywhere in the world, 24/7;
- Online casinos usually don’t charge transaction fees, helping criminals maximize their profits.
There is a wide range of players and all kinds of motives for laundering money through online casinos. Criminals might be individuals, criminal organizations, terrorist groups, drug cartels, corrupt corporations, etc.
How to Prevent Money Laundering at Online Casinos?
While online casino cryptocurrency is pretty attractive for criminals, their life might become even easier if there were no ways to prevent them from laundering money. Here are the main steps casinos should take to make sure that they stay on top of things:
- The casino should have the right software which can detect any abnormalities when money is being deposited or withdrawn from a player’s account. This way, they will be able to find out if the withdrawals and deposits are made under suspicious circumstances.
- Casinos have to have strict policies when it comes to transactions being made by players; this also includes making sure that all funds used in their accounts come from legal sources.
- Players’ identities should be checked thoroughly in order for them not to risk getting caught with large amounts of money in their accounts without coming up with an explanation as to where they got it from or what they use it for.
- If one is reported of money laundering at an online casino, the authorities will most likely investigate their account and determine if they are guilty or not.
In conclusion, money laundering at online casinos is one way that criminals prefer to transfer or deposit large amounts of money into their accounts without being noticed. They might be able to keep doing this successfully for some time, but they will get caught at some point. However, it has been seen that operators have done a pretty good job at preventing such activity from happening on their platforms, and many policies have been put in place so as to increase the level of security and prevent attacks on casino websites.
However, it is next to impossible to detect every single transaction being made by suspected
criminals, thus making the task quite challenging for operators – especially small businesses – who lack the necessary resources available in order to tackle this problem head-on.