Regulators push banks to rid casinos of money laundering

Regulators push banks to rid casinos of money laundering

US regulators are putting more pressure on large international banks to crack down on money laundering at casinos as the government encourages the sector to monitor both its own and clients’ activities.

According to bankers, casino executives, and consultants, the US crackdown has led to an unprecedented level of scrutiny and cooperation between the two sectors. Banks are now verifying that casinos do not accept anonymous wire transfers, checking the anti-money laundering systems of their customers, and indibet apk providing databases and other information to assist the gaming industry in identifying potentially risky transactions.

Although the concept of money laundering through casinos is not new and has been the subject of storylines in Hollywood productions such as Casino, banks have not traditionally been expected to assist regulators and prosecutors in their pursuit of these offenders.

Certain bank executives express dissatisfaction with the volume of work they must currently perform for law enforcement organizations and the consequences of not succeeding. On August 6, Standard Chartered Plc announced that a computer glitch in its anti-money-laundering surveillance system might result in fines to the financial regulator of New York State ranging from $100 million to $340 million, according to a source. Jaspal Bindra, the chief executive of Standard Chartered for Asia, stated in a Reuters interview on August 7 that the fines are unjust.

“We are expected to ensure that our clients and counterparties are not involved in money laundering,” stated Bindra. “If we make a mistake while policing, we are not treated like a cop who made a mistake; rather, we are treated like a criminal.”

Due to the ease with which large-scale transactions might be made through casino accounts and the ability to convert illegal proceeds into chips and then back into clean currency, casinos have long been a favorite spot for criminals to launder money. As a result, regulators mandated for a number of years that casinos disclose transactions that seemed suspicious or unusually large. Anti-money-laundering consultants claim that this hasn’t stemmed the flow of illicit payments because criminals have become more adept at circumventing the law and because casinos haven’t always complied with it to the fullest extent possible.

Regulators have also stepped up their enforcement of the law in recent years, targeting banks and casinos alike. The Association of Certified Anti-Money Laundering Specialists states that financial institutions agreed to pay $3.5 billion in 2012 for anti-money laundering breaches, an increase from $26.6 million in 2011.

Banks have started taking additional measures to guarantee the legitimacy of the accounts of their casino patrons in light of the enforcement actions and forceful public declarations made by federal authorities. Rather than just Winbuzz login inquiring about anti-money laundering programs at casinos, banks are increasingly evaluating them and carrying out on-site work to verify their effectiveness, according to Adam Shapiro, a director at Promontory Financial Group who specializes in money laundering prevention.

According to Shapiro, “what we’re seeing is some catch-up in oversight of other institutions involved in money transfer,” such casinos.

In an effort to implement the legislation, law enforcement agencies have begun to focus on a number of industries, including casinos.

The Department of Justice has subpoenaed 50 banks that handle transactions for businesses such as payday lenders as part of its “Operation Choke Point” initiative, which attempts to protect consumers from online crooks.

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