Topic: Where Will It Go If The Money Comes From Illegal Source - page 3. (Read 640 times)

We as gamblers must comply with all the terms and conditions imposed by the casinos we visit. Because if we violate the terms and conditions that have been regulated, there will be consequences or sanctions that we have to accept, including freezing our account or having the amount of money we previously won in gambling withheld. Therefore, it is very important to understand the provisions and comply with all the terms and conditions that have been imposed by the casino, because no matter how this is done, it is only for our own good, for the sake of safety when gambling or carrying out a transaction.

However, there are some cases where a person may feel like betting anonymously. and this can be risky and illegal depending on the jurisdiction you live in, or the gambling site you visit. Betting anonymously or undercover may violate the law and have potentially serious legal consequences.

 
In this situation, the top priority is to always follow the law and avoid any unlawful practices. Even though KYC verification might prove troublesome to a few, it stands as a crucial measure in upholding the honesty and security of online gaming forums, shielding players from the snares of money laundering malpractices and other illicit activities. This is an issue on which online gamblers are commonly split into two opposing camps.

The decision of whether the casino is legally allowed to withhold money from you is based on the laws and regulations of their jurisdiction, as many casinos are obligated to report suspicious activities to the authorities. In some situations, they should also transfer money received illegally, so the casino can have a right not only to withhold but also to confiscate your funds. If any serious violation of rules or conditions is found (such as use of sources which are prohibited by law), then they may retain some or all money belonging to you.

Yet it must be borne in mind that every case depends on its own individual facts and circumstances, and the laws governing this aspect might differ from one jurisdiction to another. When faced with a scenario where your account is frozen by the casino holding your funds, seek proper legal advice from a competent attorney best suited for your case.

In the law, these are 2 related cases but cannot be made into 1 case.
If someone (lets call him Bob) receives or buys illegal crypto without realizing it, then Bob uses it to deposit into a casino and the casino confiscates the coin for AML reasons.
The casino will never return the coin and they are legally entitled to do so. They will only report about the money to the authority and thats it.

What Bob can do is to report and sue the person who gave/sold the coin, the casino cannot report this to the authority because the victim had to make the report himself.

You are right, I actually thought the same as well. Casinos cannot just wake up one morning and lock up the accounts of their customers; before that happens, there must have been a suspicion somewhere (there's a quote that says, there is no fire without smoke), which can only let them place restrictions on the customers  accounts.That is the reason why, sometimes before a casino can even restrict an account because of a money laundering case, the customer might have already laundered a lot of money through that account on frequent occasions, and lastly, when they get caught, they mayjust abandon the account, and after the casino gives a period of time, waiting for the customer's response and they are getting no response, the money goes to the authority. 

For regions where casinos are been regulated by the government or there are regulatory bodies in charge that takes care of such, when a casino gets to discover such I think they in the ideal situation they Hans it over to the government because if the regulatory body get to know by investigation then it will be a problem to the casinos too so they probably hand it over to the authorities so as to make sure they are able to maintain credibility but then in cases or places where there are no regulations I don't have a good idea how it's handled but then most likely the casino gets to keep the funds.

Since the launder cannot report to any other person they may aswell have to Forfeit the money to the casino but then I have not really got to know how it's handled in regions without stringent measures of regulation.

The way I see it, the casino needs hard proof that the money is from an illegal source and in such case they have the right to hold it and contact the police, but...

In case of cryptocurrencies it's not that clear. How can you know if the money is clean or not. Let's say you buy bitcoin from someone, or someone pays you for a job. He got that money from an illegal source, like a ponzi scheme or theft, but you cannot check it. You bought it and tried to gamble with it and it got confiscated - why? The ethical way to approach this would be for the police to contact you asking where you got the money from and then going after the guy who sold it to you and taking his money (the money you paid him for cryptocurrency) as a compensation to the victims. They shouldn't take what you legally bought from him because you are also a victim.

Based on my understanding as long as you still not able to comply the required KYC. then your money will be kept onhold until you will successfully submitted all the necessary documents. But this thing, I never experienced something like this scenario before but we all know that the platform is responsible for any actions in accordance on it's TOS.

Isn't it the authority that initiates or makes the call for a suspected account to be investigated for illegality or money laundry?

If it's the authority then it's unarguably that the money during and after investigation will be in the custody of the authority which will now take ownership at the end if investigation shows it's a launderers' account. In as much as the law is concerned in all societies any property gotten through criminal means automatically becomes a property of the state when the offender is found guilty after investigations. So in this case it is going to be so with casinos, the money goes to the authority not the casino, except maybe, there's a certain per cent given out to the casino from the total money based  on MOU between the authority and casino.

If they have proven that your funds come from illegal sources and you are using their platform to launder them, then based on their terms and compliance, the funds will be confiscated. If you have submitted your sensitive information, they will report you to your government for possible prosecution.

Casinos have their way off the track if the fund comes from illegal sources and your action constitutes money laundering, so if your account is clean, you can defend the source of funds by submitting your source of income. Your profession should be equal to the money you use to gamble.

Casinos don't really care where your funds come from as long as you lost it in their platform. They don't actively check for your funds' sources unless they are tipped by the authorities and are 'asked' to take a look at your history, KYC details, and other information that are available to them. After they have 'confirmed' with the authorities that your funds came from questionable (or in this case, illegal) source, they will then freeze your funds and send it to the authorities, after which we won't know what will happen to the money.

Usually, after seized the money, they will just keep it and it is considered a part of the government's fund. Casinos don't have the right to keep it at all - they are just used as an instrument to help the law enforcement track and freeze it while it's within their platform. The best thing they can get from that is a pat on the back from the government.

I don't think they have a reason to research on a users source of funding. If they are to do that then it would be a tiresome process for everyone while completing the kyc process. If this happens, then most Gamblers will just stick to local gambling and it will reduce the rate of online casino gambling. What I think is that after or before the kyc, they ask for ids and so on. This way, when authorities contacts their management and report an illicit activity on a users account they will hand over the users data to the authorities then lock the account. The money remains with them till it's confirmed that the user is involved in illicit activities.

As many have already said, the most logical thing to happen with the money is having it frozen in the account and seized by the casino while authorities validate one is actually using money which comes from illegal activities, though, I must say I have (fortunately) never experienced something as serious or displeasing as having my money frozen because the casino thought I was some random crook on the internet or something similar to it.
Also, I believe it also depends much on the local legislation and the degree of corruption some countries could be going through, whether some casinos with bad influences would be willing to seize funds and not give it to authorities, instead keeping it for their own trunks. That is something I could see happening in countries in Asia and Africa where prosecuting that kind of bad behavior by shady casinos (backed by corrupt politicians) can be very tiring and expensive for the average citizen to try to get their money back.
If we have seen stories on betting operators cheating their gamblers, stuff like that would not surprise me.

A question like this has been raised many times in the past even before the crypto era and only three answers keep winning over and over again. Even the centralised financial systems and services are also applicable in this regard. However, to summarize it and without mincing words, the following three points should be considered as where your money will go in this kind of situation.

1. If your casino is duly registered and regulated, and is sincere with integrity, such money would be disclosed to the authority after a certain duration of time (grace time). This could take months, if not years to give time for you to reclaim the money with legitimate means/proofs. How the casino and the authority will deal with the money now depends on the two of them.

2. Some casinos will do partial revelation. They will reveal some cases and cover the others. And since it is their system we are talking about, it will be easier for them to do so.

3. For the last set, they will try as much as possible to keep the whole money for themselves whether you like it or not, no revelation whatsoever. This is especially if the regulation tying them is very weak.

Regardless of your source of income, when you use a crypto casino site and make a crypto deposit, they will have no ability to know whether your source of income is legal or illegal. But if you don't follow the casino sites rules or try to fool their algorithm or use hacking tools on their site then they can ban your account. Gambling sites should hold an amount of money that you will use to gamble again later and that you have the ability to lose. so in this case, if your account is banned for any reason, it will not cause you any major loss. one should never hold large amounts of money between gambling sites

It is natural that online gambling companies will require KYC to prevent any kind of money laundering and they will take this step to confirm the legitimacy of the funds in your wallet. But i think it's fine not to search for personal information in very small cases. On the other hand it will be considered as the best security because when your fund is considered valid they will ensure your fund is always safe. Even if you violate their terms, you may suffer a lot. So i think key is always better if your mean amount is big. But according to your secret report you can gamble from hide.

If the fund is suspected to have come from an illegal origin, the account will be locked and reported to the authorities. After submitting the proof of source and investigation had been carried out, if it turns out the owner's business is legit, the funds will be unfrozen but if he's into illicit activities, the funds will be handed over to the authorities. Also, if he fails to submit the necessary documents, the funds will be handed over to the authorities.

If the casino is a legit one then they will give send the money to the authorities after deep investigation but if the casino is a shady one then they'll keep it for themselves after banning the account. Let's say if the casino in case is 1xBit then the user should forget about his funds because that shady casino really doesn't care to send the funds to authorities or allow the user to use those funds once again.

This shit is a conspiracy, casino owner itself doesn’t launder money especially if they are licensed since all there transactions is regulated and audited so doing money laundering is a suicide for them.

This conspiracy is true on the off shore casino located on 3rd world country with less restrictions. It’s very hard to collude with laundering as online casino owners with license since crypto has blockchain records to track all the transactions.

Also, Casino owners doesn’t meet anyone regardless of the amount involved.

So does this mean that those users who go to the scam accusation board to write a complaint about their casino withholding their withdrawal, freezing their account, or outrightly banning, were instructed by the authorities? I thought that it was the other way around and that the authorities do not have an involvement unless they are called upon by the casinos for them to investigate a suspicious account.

I am yet to see any news of any person whose account was blocked by the casino and reported over the authorities being arrested or jailed for their offense. It could be that these cases are not reported on the news or the internet for others to read. We do not even know the conclusion from the authorities.

If the money is suspicious then actually the online gambling owner has full power to lock the funds in that account and that is usually stated in the TOS.

If you have 6 digits that you want to launder in an online casino, you must first meet with the casino owner because it would be very stupid if you launder criminal money but end up having your money locked in that account, usually online casino owners have several active contacts. people who often launder money on their platforms, the term KYC is just a cover, even though they launder criminal money behind the camera.