Crown Casino has provided a masterclass in money laundering for all who were willing to take note.Some would have paid attention to prevent a repeat of such events, others would have been watching for much more nefarious reasons.

Using Casinos To Launder Money
How Does Money Laundering Through Casinos Work
How Is Drug Money Laundered
Play Money
How Does Casino Money Laundering Working

Within tightly regulated industries such as Europe and North America casino money laundering is a very low threat to operations. The regulators in these territories are very diligent, using a mixture of law enforcement integrations, technology, and correct procedures to mitigate the problems.

The Bergin Report

Chapter 3: Description of Possible Money Laundering Schemes A.1) Methods of Money Laundering through the Use of Casino Value Instruments 6. Casinos utilize various value carriers or instruments to facilitate the gambling process, and the type and use of these instruments differ depending on both local. Money laundering in casinos can happen in many forms. In some cases dirty money is converted into chips, played with for a short while, then cashed out in the form of a check. Former Mountie Peter German described Vancouver-region casinos as “laundromats for the proceeds of organized crime,” in an explosive report to the B.C. It has meant dirty money obtained through illegal enterprises is being washed throu.

When James Packer obtained the licence for a casino in Sydney, he advised the NSW government that this was to be a casino for Asian high-rollers, principally Chinese, and that it would generate hundreds of millions in tax revenue for the State. This was an offer so attractive to the then Premier that no tender was called and almost no due diligence conducted on the business model Mr Packer was proposing.

There are lessons in the findings of the Independent Liquor and Gaming Authority report, handed down by Patricia Bergin on the 9^th of February.

The key takeaway is: if you want to get away with industrial-scale money laundering in Australia, do it behind a corporate veil and share the blame around.

It goes without saying, casinos make profits off the back of player losses, and, even the most superficial digging by the NSW government would have revealed an ugly problem – those Chinese ‘high-rollers’ that Mr Packer was talking about, would only legally be able to bring with them $50,000 per year. High-rollers, as everyone knew by then were more likely to be gambling millions, if not tens of millions – so Mr Packer was clearly thinking that China’s exchange controls were going to be circumvented. And, there was one other issue – the enforcement of gambling debts is illegal in China and this is where junkets, and those that enforce the payments of debts in mainland China, the Triads, come in.

If Crown was going to make such large profits they certainly weren’t going to be doing it without breaking a few laws. But precisely the fact that Crown has been able to operate this business model for so long, and with so many allegations around their methods, provides salutary lessons for law enforcement and, unfortunately, those who wish to emulate Crown’s methods.

Patricia Bergin’s report noted that hundreds of millions of dollars were channelled into Crown Casinos’ accounts through bank accounts – one of them held by a shell company directed by Crown Chief Executive Ken Barton. Ms Bergin found that these accounts were infiltrated and exploited by criminal elements, probably including international criminal organisations, and had been since at least 2014, and that Crown enabled or facilitated money laundering.

This begs the question: how can a major corporation, and its executives, enable and facilitate money laundering for so long, amidst so many allegations, without getting prosecuted?

Home » Blog » 3 Money Laundering Examples That Criminals Still Use And That You Should Be Aware Of

https://financialcrimeacademy.org/wp-content/uploads/2021/06/b833c443-a5fd-4690-aa95-1e77d74fe0d1.mp3

There are several common money laundering examples that criminals still use in 2021, including cash business schemes, casino schemes, and smurfing schemes.

Table of Content:

Money Laundering Examples

A complete money laundering operation will often involve several money laundering examples or schemes, as the money is moved around to avoid detection. In one money laundering example, criminal proceeds from cash businesses can be gambled, just as the “success” of a cash business that has been infused with placed cash can be used to justify investments or loans that, in fact, come from cash placed offshore.

Each of the money laundering examples that we will look at includes how the money behaves during the placement, layering and integration stage.

Let’s start by looking at the Cash Business Scheme as the first of the money laundering examples. The cash business scheme is one of the most classic schemes for laundering large amounts of physical cash. Even today, there are many businesses who handle most of their transactions in cash. Illicit cash can be inserted into these transactions at a fast or slow pace.

Laundering money through cash-intensive businesses was the preferred method of the famous gangster Al Capone. He evaded investigators for years by funnelling the money his crimes generated through his small empire of laundromats. The term “money laundering” was coined by the agents investigating him.

Placement for a cash-intensive business scheme involves direct cash payments to the owner or manager of the establishment. The money to be laundered for the day is brought to the premises of the business. It stays in a safe location until it can be added to profits for the day through one of several methods.

When the money is laundered through cash businesses, such as car washes and strip clubs, the layering stage takes place when dozens of fake transactions are slipped into the books throughout the day. These transactions may take the form of fake customers, or through extra services tacked onto legitimate transactions, with the difference added from the placed money.

Cash-intensive business schemes often extract the money through daily profits. This scheme requires the money to be laundered somewhat slowly, but some amount is ready every day, making it more liquid for the launderer. Taxes are paid on the reported profits, and the money can now be used to any purpose.

Secondly, let’s look at the casino scheme as the second of the money laundering examples. The casino scheme works by funnelling the money through gaming. The money is converted to casino chips, which are then briefly played and then transferred back into cash. The chips may be converted by the launderer or by a proxy.
In many cases, the casino where the money is being laundered is in a different nation than the launderer’s nation of origin. This makes it difficult for law enforcement in either country to gather evidence that might reveal proof of money laundering.

The placement stage occurs when the money is delivered to the proxy who will take payment in cash and then exchange it into chips. In some countries, travel agencies provide casino chips as part of their packages. Paying for these packages in cash can be an effective way to place the cash without electronic records.

When the money is laundered through gambling, the layering stage takes place when the cash (or chips purchased through an intermediary) is carried into the casino and used for gambling. In most cases, very few of the chips are used for gambling because of the risk of loss. Instead, the chips are lightly used for several hours and then converted back into cash.

The receipts from the cashout are used as evidence of the cash’s legitimacy. There is no record of how many chips were carried into the casino, so the launderer can plausibly claim that small amounts were carried in and the larger sum comes from winnings.

Money laundered through casinos is relatively easy to integrate. Once the winnings have been reported and any taxes have been paid, the money can be used for any other purposes.

Last but not least, let’s look at the Smurfing Scheme as the last of the money laundering examples. Smurfing refers to the practice of distributing small amounts of a large

How Does Casino Money Laundering Work