Money laundering is a serious risk, and no institution or financial institution is immune from these types of fraud and laundering risks. To address these risks, financial institutions and other financial organizations need to develop strict policies and procedures designed to reduce and prevent such incidences. For this reason, the Association of Settlement Companies offers several recommended remedies to help clients avoid and mitigate the risks associated with money laundering. Among these recommendations are: A risk-based policy that require prescreening of new business opportunities and applicants; a requirement for company seals and a statement of integrity; creation of a confidential reporting program and enforcement of that policy; and prompt response to any reported instances of money laundering. Our website provides a listing of only a few of the names of reputable and highly rated commercial banks, credit unions, and money transmitters with policies and procedures that meet our recommendations.
There are two reasons for this. First, in most cases, an online casino, which is conducting business offshore will first and foremost be a front company for another criminal enterprise. In other words, the owners of such enterprises will set themselves up in different countries and then open accounts in those countries. Once their business is established in a foreign country, they may transfer funds from their account to help fund their own illegal enterprises. Thus, we have gambling money and currency being laundered.
Risk Vs Gain
Second, because of very loose standards of tracking and enforcement of accounts held by clients, some foreign online gambling money laundering facilitators have very lightly enforced policies which allow for funds to be laundered through various channels and jurisdictions. Some may only require that an individual pay through a credit card, while others allow customers to move funds through various prepaid and cashable debit cards. Thus, even though a company may have multiple accounts in different countries, the chances of each one being monitored and investigated for illicit activities are very low.