Topic: Loophole in stopping Money Laundering through Wagering - page 6. (Read 1678 times)

There are methods to fight against money laundering and there are KYC, and AML rules on many gambling platforms for obvious reasons. If the gambler uses wagering methods to launder money, it is easily detectable by the system after withdrawing big amounts. So I doubt it is a good idea to use gambling sites for this purpose. There are other methods they use mostly NFT industry, AFAIK. Just my 2 cents.

Amidst all these technical things money laundering still continues through the gambling industry. There are gambling sites in which the insiders help with it for a big commission. This is very rare to find, apart from that we were able to see huge deposits that are converted to gambling chips and used. Later the same gets withdrawn, which is the common form practised all around. Whatever the restrictions, people continue to find loopholes and get into these kind of activities.

if the site is strict in complying with the regulations regarding AML+KYC, they can easily catch a gambler who is using the site for money laundering purposes. they can actually see the large deposits and the games history of the person and their withdrawal frequencies. that is, if the site cares for their compliance, but if not, people can easily get away with it.

Except it's a casino that does not have a wager requirement in place to go with kyc and any other type of necessarily verifications, then such casinos may likely be harboring launderias without even knowing.
I say this because, this days, kyc verification alone is no longer enough to be able to catch those using the casino as a means to launder money., many supposed gamblers today use fake ID for verification, some use id's belonging to other people they may or may not know. So one of the most effective way of discouraging launders or scaring them away from from your casino is through the wager requirement, even though this feature most times end up hurting innocent gamblers.

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Quote from: ethereumhunter on July 17, 2023, 12:40:57 AM

There are methods to fight against money laundering and there are KYC, and AML rules on many gambling platforms for obvious reasons. If the gambler uses wagering methods to launder money, it is easily detectable by the system after withdrawing big amounts. So I doubt it is a good idea to use gambling sites for this purpose. There are other methods they use mostly NFT industry, AFAIK. Just my 2 cents.

Amidst all these technical things money laundering still continues through the gambling industry. There are gambling sites in which the insiders help with it for a big commission. This is very rare to find, apart from that we were able to see huge deposits that are converted to gambling chips and used. Later the same gets withdrawn, which is the common form practised all around. Whatever the restrictions, people continue to find loopholes and get into these kind of activities.

I agree but apart from these it is very difficult to fight money laundering in online gambling. For this reason, many organizations have taken the initiative to amend the law to stop online gambling and consider gambling as a money laundering offense but it has not been possible. Many people hide their information in online gambling, so even if there are restrictions, it is not in reality. The main reason for entering into this kind of activity is that greed works in them they get more money for deposits and interest rates.

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With today's technological advances, money launderers or people committing other crimes can continue their business and maybe even get bigger. They can seek and get what they want, so it keeps them from getting into trouble unless they get caught by the government or regulators.

Precisely with the development of more advanced technology, the government or law enforcement can trace sources of funds and money laundering activities more quickly.
Nowadays there are not a few tools that are used to be able to hack all forms of money circulation activities and that is why many money laundering cases can be solved and the perpetrators arrested.
Even in my country there are several cases of corruption that use crypto as a place to destroy evidence and in the end the law enforcement authorities can track and find all assets resulting from corruption to be used as evidence of the crime.

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Quote from: klidex on July 16, 2023, 02:08:00 PM

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

This is interesting- so they can circumvent the requirement of wagering your whole balance before you can cash out/withdraw their funds in the gambling website? Hmm, maybe gambling websites and ushers can provide or at least monitor the amount of money being transferred from one account to another vs the amount they betted.

Though this may be the case, I do think that this is a grey area that needs to be discussed. Money laundering is something that has been consistently done and people are looking for alternatives and ways to circumvent the law and continue it.

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As discussed by some people who are here if money laundering will be smarter like when a casino asks for KYC they will use other people's data or buy other people's data to do KYC and when buying KYC they will not buy carelessly of course money launderers know if depositing or withdrawing large amounts of money will later pass KYC level 3 or 4 so as to buy the data of people who can later pass KYC.
So there are many ways they can do it because money launderers have a lot of money they can do anything including cheating the casino with fake data.

Money launderers or people who want to do something with the money they get from the proceeds of their crime can solve the KYC problem, which is the obligation of a member on gambling sites or on exchange sites, or other sites. They are very familiar with KYC and also have sources that can provide valid data for KYC. This case reminds me of credit card crimes many years ago where a hacker who has valid credit card data will sell to people who need it and it is they who use their credit card to buy the things they want.

With today's technological advances, money launderers or people committing other crimes can continue their business and maybe even get bigger. They can seek and get what they want, so it keeps them from getting into trouble unless they get caught by the government or regulators.

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Quote from: khaled0111 on July 16, 2023, 06:24:09 PM

Quote from: piebeyb on July 16, 2023, 12:57:11 AM

But most users are not very honest so that the casino freezes more users' money trying to launder money through the casino, many cases that I often encounter on this forum also the casino will ask for an explanation of where the funds are used also ask the user to verify to validate that the user clean.

I always wonder, if the casino really cares about AML policies and want to comply with regulations and if they really want to prevent illigal activities such as money laundry then why they don't enforce kyc on registration before making any deposit. By doing this, no user will complain about being cheated.
The wagering requirement is a totally different matter. It's main purpose is to make the customer lose as much as possible and there is nothing wrong about that, BTW. Just my opinion.

That is the lapses of the implementation since they could really do that so the users could be aware and no complain will happen in long run. But maybe they are afraid that users will go away because they don't like this implementation but rather go with this requirements since the user will don't have a choice but to comply so thag they can withdraw their funds or continue to play on their casino.

Wager requirements is I think not enough since scammers could just meet the wager requirement and withdraw the funds they had stolen to the user so its best to have Kyc and wager required to drive away those money laundering on casinos.

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Quote from: piebeyb on July 16, 2023, 12:57:11 AM

But most users are not very honest so that the casino freezes more users' money trying to launder money through the casino, many cases that I often encounter on this forum also the casino will ask for an explanation of where the funds are used also ask the user to verify to validate that the user clean.

I always wonder, if the casino really cares about AML policies and want to comply with regulations and if they really want to prevent illigal activities such as money laundry then why they don't enforce kyc on registration before making any deposit. By doing this, no user will complain about being cheated.
The wagering requirement is a totally different matter. It's main purpose is to make the customer lose as much as possible and there is nothing wrong about that, BTW. Just my opinion.

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Quote from: GxSTxV on July 16, 2023, 05:55:59 PM

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

If it's a loophole, then all people must have thought about it besides the casino team itself. therefor they surely won't allow anyone to use this method to escape and trick the requirements and prevent money laundering systems. Wagering requirements are usually imposed only on large funds and deposits (legit casinos at least) not small amounts. And Logically nobody would attempt to launder a sum as low as $100 or $200 in a casino.
beside that risking more than $1000 in a casino and regardless of the winning percentage (as long as it's not 100%), should be enough to avoid money laundering especially for large sums of money. But nowadays there are other loopholes available to evade these rules and law enforcement which only few people knows them.

People had been using casinos to wash the history of their money whether they intend to launder money or not. The casino had made aware of these actions and intentions reason why they setup the initial steps in combating this money laundering by requiring players to wager at least 1x (this differs in every casino). the casino also implements a list of things that will trigger the security for money laundering.

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Quote from: AmoreJaz on July 16, 2023, 05:42:51 PM

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

If it's a loophole, then all people must have thought about it besides the casino team itself. therefor they surely won't allow anyone to use this method to escape and trick the requirements and prevent money laundering systems. Wagering requirements are usually imposed only on large funds and deposits (legit casinos at least) not small amounts. And Logically nobody would attempt to launder a sum as low as $100 or $200 in a casino.
beside that risking more than $1000 in a casino and regardless of the winning percentage (as long as it's not 100%), should be enough to avoid money laundering especially for large sums of money. But nowadays there are other loopholes available to evade these rules and law enforcement which only few people knows them.

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There are methods to fight against money laundering and there are KYC, and AML rules on many gambling platforms for obvious reasons. If the gambler uses wagering methods to launder money, it is easily detectable by the system after withdrawing big amounts. So I doubt it is a good idea to use gambling sites for this purpose. There are other methods they use mostly NFT industry, AFAIK. Just my 2 cents.

Amidst all these technical things money laundering still continues through the gambling industry. There are gambling sites in which the insiders help with it for a big commission. This is very rare to find, apart from that we were able to see huge deposits that are converted to gambling chips and used. Later the same gets withdrawn, which is the common form practised all around. Whatever the restrictions, people continue to find loopholes and get into these kind of activities.

if the site is strict in complying with the regulations regarding AML+KYC, they can easily catch a gambler who is using the site for money laundering purposes. they can actually see the large deposits and the games history of the person and their withdrawal frequencies. that is, if the site cares for their compliance, but if not, people can easily get away with it.

Gambling platforms can't easily make a statement on a person for money laundering. The deposit and withdrawal frequencies can be considered as a reason, but the same can be requested for clarification as Whale gamblers usually deposit and withdraw huge funds. Making a tag of money laundering on those gamblers will surely create some negative impression over the platform from the Whale players. This could affect the business, so platforms handle it in a much smoother way.

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There are methods to fight against money laundering and there are KYC, and AML rules on many gambling platforms for obvious reasons. If the gambler uses wagering methods to launder money, it is easily detectable by the system after withdrawing big amounts. So I doubt it is a good idea to use gambling sites for this purpose. There are other methods they use mostly NFT industry, AFAIK. Just my 2 cents.

Amidst all these technical things money laundering still continues through the gambling industry. There are gambling sites in which the insiders help with it for a big commission. This is very rare to find, apart from that we were able to see huge deposits that are converted to gambling chips and used. Later the same gets withdrawn, which is the common form practised all around. Whatever the restrictions, people continue to find loopholes and get into these kind of activities.

if the site is strict in complying with the regulations regarding AML+KYC, they can easily catch a gambler who is using the site for money laundering purposes. they can actually see the large deposits and the games history of the person and their withdrawal frequencies. that is, if the site cares for their compliance, but if not, people can easily get away with it.

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There are methods to fight against money laundering and there are KYC, and AML rules on many gambling platforms for obvious reasons. If the gambler uses wagering methods to launder money, it is easily detectable by the system after withdrawing big amounts. So I doubt it is a good idea to use gambling sites for this purpose. There are other methods they use mostly NFT industry, AFAIK. Just my 2 cents.

Amidst all these technical things money laundering still continues through the gambling industry. There are gambling sites in which the insiders help with it for a big commission. This is very rare to find, apart from that we were able to see huge deposits that are converted to gambling chips and used. Later the same gets withdrawn, which is the common form practised all around. Whatever the restrictions, people continue to find loopholes and get into these kind of activities.

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As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Correction, it doesn't need to wager the whole balance. Just a percentage of it e.g 20% of the deposit amount or in most cases, ranging from 1x to 2x turnover, etc. But honestly, just come to think of it, why users will just deposit an amount on that gambling site and then later on, will withdraw it without even playing? It's already alarming and will really lead to suspicious activity.

Aside from that, anything about AML policy is one of the requirements that a centralized gambling site should comply with. No choice but to follow.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

It's a wrong mindset to think that odds like 1.01x is a sure win. If it does, you should have already seen that as an effective strategy on most sports bettors. Specifically referring to saving the ass on the purpose of doing money laundering, kind of risky for me to just bet on that kind of odds to make the plan succesful.

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As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

This kind of requirement by those gambling sites as measure to tackle money laundering also puts innocent and clean money owners using such gambling sites in a disadvantageous position. This creates a wide window of opportunity for the gambling site to gain much as chances are that large numbers of losses is highly possible, a ratio of 70:30. And this includes both normal gamblers monies and those of launderers.

Quote

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

Those small odds doesn't guarantee you will win your bet as there are no easier or cheap odds in gambling, you just need to be lucky enough to pick the right odds with the right prediction else you would consistently be losing every wager you place. We just got to avoid gambling sites that requires us to make wagering of total amounts in our account before we can make withdrawal, IMO, such requirement is far worse than that of kyc.

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