Topic: Money laundering in crypto casino - page 11. (Read 1893 times)

The AML act is not a child's play, it's either a company/business obeys it or faces the full wrath of the law. For clarity, let me establish a point that businesses vary, and so do their exposure, operations/services, they are not just the same thing. This includes their presence/visibility and accessibility/anonymity. This is why you can't compare m!xers with casinos, their business models are not just the same thing.

M!xers' owners are often unknown, they can do and undo and get to go away with it. This is why the government can't make them accountable for their misdeed, but always shut down their means of propagating their service, which is their website and other links they know. This same thing can happen to any casinos that are not registered as well, or the owners can't be traced to face the consequences of their crimes. But if they can be located, what happened to Binance is what will happen to them as the business will continue to run but a fine and jail term could be pronounced against them.

Of course, it's subject to the gravity of their offence.

I seriously doubt casinos will get excluded, to be honest.
Their services are completely different from those offered by mixers, you know. Casinos are in for profits and to keep their volume of betting and gambling, and I am sure they are very willing to comply with KYC and AML policy, in order to continue to operate. Mixers cannot do that, obviously, hence why they are mainly targeted by authorities worldwide.
They are not illegal Services, by the way, they are in a grey zone, but the use of their services by criminals cannot be ignored.

If some casino found some gambler or patron suspected of money laundering, they would turn that persons data to the authorities, and move on continuing doing business as usual. Mixers cannot do that, since they do not ask for personal data to begin with.

I get what you're saying but the problem is that this anonymity or pseudonymity that crypto offers is being utilized by criminals to funnel dirty money to their operations or to clean the dirty money that they've got, it's a dilemma because as much as we don't want crypto to compromise or give in to the authorities when it comes to giving up the identities of the people that are in the crypto space. Also, crypto casinos aren't financial revolutionaries, it's such a low standard if they're called that just because they accept crypto in their business, I'm sure that a traditional casino can do just that. Also, you posted double might want to check it out and delete it.

Isn't it already possible, though? Some casinos don't even ask for verified KYC and ask for basic information like your name and surname in case of a withdrawal, and sometimes they don't even verify their validity. Thus, it may be possible with relatively smaller amounts, which weren't too much of a concern to begin with, but you do run the risk of withholding your funds in case they suspect malicious usage; a large withdrawal, for instance, would trigger their security system and block you and your access to your funds. Perhaps it can be done every now and then, but is it ultimately worth the risk?

Also, to add in @Solosanz reply, because I agree with what he mentioned, I had an account in a Lithuanian bank that was often used for money laundering, something that I did not know at the time, not going to name which, because it's unnecessary, but the bank faced some serious allegations and had to stop operations. If I'm not mistaken, they've relaunched and gone through a stricter KYC.

Then how you will answer about these cases? https://sanctionscanner.com/blog/the-five-biggest-money-laundering-scandals-317

Centralized banks are regulated, backed by government and other organizations, everyone know their existence, they pay tax accordingly, releasing financial reports, very strict KYC, adopting AML etc etc, which is stricter than centralized casino that only using shitty Curacao license?

How can someone know the casino owner face? he can use other person identity.

The government may tighten its regulations on crypto casinos and monitor them more closely so they can see if crypto casinos are involved or not involved in money laundering cases. Maybethis may trigger crypto casinos to tighten their regulations on their users, and we should be prepared if that happens. Crypto casinos may immediately implement KYC procedures at the start of registration due to new regulations imposed by the government on crypto casinos. But that's just speculation and estimation and we should wait for further information from the casino. This will also prevent scam casinos from developing because they cannot comply with government regulations. But we'll see how things develop in the near future.

The only question is, since when fully regulated and licensed casino has mixer function?  I never ever hear that in mylife. majority of casino were also implementing KYC to comply with the AML regulations by the regulators.
The casino owner shall also regularly reporting the condition of their casino too. Since when licensed casino owner needs mixing features? You can find their face easily on the internet. 

It's beyond my imagination. The owner is always paying the tax regularly. It will be stupid enough if the owner will be risking themselves through running the illegal ways.

The casino needs to be audited to get a licensed to operate from the regulators. I think that you are saying that something never happen.

No criminals will use casinos to launder their money, the risk is just too high you will be asked for a KYC if you have a huge withdrawal and part of that KYC is asking where the fund comes from, the casino will even ask for screenshots of your exchange dashboard, that's too much hassle and issue for someone who will use the casino to launder money.

I don't think they will and they can, it's a very challenging task for money launderers to use casinos, the casino will confiscate the funds and the information you provided will be given to the prosecutors, launderers are not that idiot to use casinos to wash their funds, they will eventually lose the money.

Easy, that casino will be banned too.


The question is, how can someone know if the casino has a mixer feature if no one mention it? if the mixing feature is only limited for the owner, it need government intervention to seized them first, then the forum will follow it.

Currently casino regardless it's Web 3.0 or centralized one, is still safe.

I don`t sure that there is any real opportunity to stay private in our world. We think that cryptocurrencies help us to stay private but regularly see news how some cryptocurrency owner was caught. Mixers or casino can help, but they don`t give you guarantee of the privacy.
So mixers and casinos will work as usual, we`ll just become see less advertising on the board.

Imagine banks and crypto casinos as two sides of the same coin with different masks. Banks, with their jackets and ties, are money management veterans. Layers of checks and balances make money launderers' access difficult. Like royal palace elderly guards, they've seen every trick. Experience and technology help them catch smurfs hiding filthy money. Banks lead this elegant dance. Crypto casinos are financial revolutionaries. Their aggressive no-KYC approach attracts anonymous gamers. Like a masquerade ball, everyone wears masks. It's fun until someone breaks the rules. These casinos play high-stakes games, not simply blackjack. They may be the new trendsetters, but when you dance above the law, you'll pay the price. Banks may be stuffy, but they've been around long enough to know how to play

If a casino is regulated, they would not be seize by the government as long as they comply with the regulations.

It's easy to determine when the funds are coming since everyone is required to comply with the KYC. Money laundering involve huge funds coming in/out in a certain gambling site and we know that a gambling site requires KYC on bettors that risk a lot of money. This is something we don't have to worry though, what would possibly happen instead is that the government will impose a stricter regulation among casinos to ensure that this platform won't be use for illegal activities.

No, that is not possible, I think a crypto casino would be safe from the government and most of the gambling site has the license to operate so pretty much they are still safe. and like most other people some of the gambling sites implement anti-money laundy and know your customer. so they are safe.

Some illegal gambling sites might be banned by some countries. beside that two different sites meaning two different businesses. So they serve different purposes. Mixing service is to enhance the privacy but gambling is a game for fun that involves money. and I dont think people gonna launder his money through casino

Problem is that there are some crypto casinos that are still doing no KYC policy so as to promote their casino as a hub for anonymous gambling and there's nothing that we can do about them, they are operating on a thin ice given that I'm sure that AML policies include having a KYC in your casino so as to prevent those stuff or at the least discourage people that are planning to launder their money in a crypto casino. I don't know about banks though, they have a pretty good measure against money laundering attempts to deposit money into their banks like for example, the money laundering syndicates use of smurfs to deposit a small but consistent amount of money to their bank account and then doing a wire transfer to the accounts of the syndicate and banks are able to know if someone is a smurf by checking your banking activity and once they've proven that you're a smurf for a money laundering operation, they will immediately freeze the accounts that you were associated in your activity so there's really not a lot of dirty money in banks although some get in, they can easily identify if someone's been putting in dirty money, as much as we want to make fun of banks and make them look like they're not any better than those KYC non-compliant crypto casinos, they're veteran at anti-money laundering operations.

All the casinos that have a license and follow the law to the letter have nothing to worry about, as even if a criminal tried to use their services eventually casinos will ask those clients to identify themselves, and if they refuse then those criminals will lose that money, and if they comply then that information can later be used by law enforcing agencies to try to arrest them.

And while I can understand the panic some members may be going through due to the recent decision the administrator of the forum took, I do not think casinos are at any risk of suffering the same fate.

It's very risky for money launderers to use the service of a casino to launder, their money will be confiscated and their information will be handed to the authorities, I would not even think of using a casino with a foolproof system to trace money laundering activities if I'm a money launderer the risk is just too high. Money launderers will always use the service of mixers because that's the kind of service where they are free to make their money anonymously.

I don't think they will look for other options other than mixers to anonymize their funds.
If there is a way to launder money in casinos, the money launderers have used that method already and they do not need the service of mixers, the casino operators know that bad actors will try so they have a system in place to fight these money launderers.

 

Money launderers have a step by step way of cleaning their money. And following through similar methods as every other gambler won't help or doesn't seem secure to them. Sometimes, they'll prefer working with the owner of the online casino directly. Where their account can be funded by the casino, then they'll usher in big funds to the casino. A kind of peer to peer transaction agreements. More like in cases of CEX being accused of being used by money launderers, despite having all the sophisticated anti money laundering policy. They'll book an appointment with the CEO of the online platform to help them launder the money. But, since the loophole now depends on the third party CEO who can lead FBI straight to the money launderers. Mixers does the work right on their end. Any other online platform with KYC is a no, for such criminals. As one caught victim is enough, to trace almost everyone involved in the money laundering scheme.

No, I don't think so because there's another rule that hinders that. The "wagering" goal. We cannot just get in and out of gambling sites now because they are making us play first from our deposits before we can withdraw again.
So, money laundering won't be an issue with most gambling sites today because of that.
Then, most reputable gambling sites do have a KYC included in their clause especially if it will be big amounts that will be withdrawn or deposited. No stupid money launderer would go to untrusted gambling sites just to waste their money and risk it being stolen by that gambling site, so they will still try to take the less risky path but they will have a hard time getting out too because of all this rules.

I don't think it would be meaningful to try and "mix" coins through a crypto casino. First of all, many casinos these days require KYC, and even those that don't might require it seeing a large withdrawal.
Unlike dedicated mixing services, casinos do actually make efforts to answer to some state authorities, albeit not all of them I guess.

And on the other hand, casinos will usually require a deposited balance to be wagered before deposit. So really it doesn't make much sense. Risking to lose all your balance over some mixing?
There will be better ways to do this and even in a decentralized manner.

Already this whole discussion of money laundering through centralized platforms will be entirely irrelevant due to better technologies existing, but states will still find a way to impose sanctions on them just because. Let's not do them the favor of accepting their approach to things. In any case, most of the world's money laundering happens through banks anyway.

Casinos have been used to launder money for the last 100 years at least, crypto casinos are nothing special in that regard and are just an extension of the digitalization of the economy. AML policies are a decent way to limit the money laundering in smaller situations, but for the bigger organisations it won’t have a big impact. Criminals can switch around different casinos and use the loosest regulations for their advantages. I remember reading about a big bank heist in the Bangladesh central bank, where several millions were stolen over a weekend and transferred to the Philippines. The hackers had a group of more than 100 gamblers ready to spend the whole weekend in physical casinos and launder the money. These individuals came from various different countries only to spend 60 hours gambling and fly home again. It’s hard for casinos to do anything against such people who have no criminal history and are visiting the casino for the first time. The same thing can happen with online casinos as well and the government won’t be able to stop it completely. I don't think the government is going to start seizing casino to avoid money laundering completely, because they would have to do the same to physical casinos as well. Regulation might become stronger in the future, but banning and seizing casinos doesn't seem realistic at the moment.