Anti-money laundering agency warns casinos to watch gamers playing with bank drafts

Anti-money laundering agency warns casinos to watch gamers playing with bank drafts

Financial Transactions and Reports Analysis Centre of Canada, known as Fintrac, issues operational alert

Canada’s anti-money laundering agency is warning casinos to carefully eye customers who pay for their gaming with bank drafts — the latest method of choice for criminals trying to disguise dirty money.

The federal Financial Transactions and Reports Analysis Centre of Canada, known as Fintrac, says in an operational alert issued today that cash is falling out of favour in illicit casino transactions due to intense media and government scrutiny.

Instead, criminals are opting for the liquidity and quasi-anonymity of bank drafts, Fintrac’s recent analysis of suspicious casino-related transactions shows.

Professional money launderers are constantly adapting their methods, Fintrac director Nada Semaan said in an interview.

“They will always be looking at different ways to do it, and our job is to be a step ahead of them and figure that out,” she said.

“We can’t stop everybody, but we are working extremely hard on this and we are committed to doing more.”

Fintrac tries to zero in on cash linked to terrorism and money laundering by sifting through millions of pieces of information annually from banks, insurance companies, securities dealers, money service businesses, real estate brokers, casinos and others.

Overall, the centre disclosed 2,276 pieces of intelligence to police and security agencies such as the RCMP and Canadian Security Intelligence Service last year.

Fintrac is publishing the latest alert as part of Project Athena, an RCMP-led public-private partnership aimed at disrupting money-laundering activity in British Columbia and across Canada. The effort is modelled on previous initiatives targeting the fentanyl trade, romance fraud and human trafficking.

Semaan plans to discuss the alert Tuesday at a Fintrac forum in Ottawa intended to bolster co-operation against money laundering in the gaming sector.

ALSO READ: Large cash purchases, ‘lifestyle audits’ to fight money laundering gain support in B.C.

The centre says it has made more than 30 financial intelligence disclosures so far in relation to Project Athena.

The alert — and a list of signs that dirty money is being washed using casinos — was developed through the analysis of Fintrac’s financial intelligence in collaboration with the Combined Forces Special Enforcement Unit in B.C.

B.C. launched a public inquiry into money laundering in May after a series of independent reviews revealed that billions of dollars were being laundered through the province’s casinos, real estate market and other sectors.

Based on the reports it has received, Fintrac suspects many of the people involved in suspicious casino-related transactions were money mules who moved crime proceeds, wittingly or unwittingly, on behalf of a money launderer.

READ MORE: $50,000 reward offered for B.C. man wanted in international money laundering scheme

The first type commonly reported their occupation as “student” or simply “unemployed,” the alert says. “Their bank accounts demonstrated in-and-out activity, with a high volume of cash deposits from various unknown sources, which were then used to purchase bank drafts payable to third parties or casinos.”

The centre says the second type of money mule often reported their occupation as “homemaker.” Their bank accounts typically had a lot of cash deposits from unknown sources, wire transfers from third parties or trading companies, the purchase or redemption of various investments and casino-gaming activity.

Fintrac is advising casinos to scrutinize patrons who:

  • Deposit a high volume of bank drafts to a gaming-fund account or who regularly use bank drafts as a form of gaming buy-in;
  • Are accompanied to a casino by someone subject to a gaming ban;
  • Live in a jurisdiction subject to currency-control restrictions or sanctions and have no local ties to family or businesses.

The centre has also compiled a list of possible tell-tale signs to help banks and other financial institutions detect illegal casino-related dealings.

In one scenario, a client’s account is funded by various means, such as cash deposits, casino cheques, wire transfers from trading companies, or investment redemptions such as Guaranteed Investment Certificates. The funds are then largely depleted through credit-card payments, account transfers or transactions involving casinos.

In another revealing pattern, a client engages in circular activity by depositing casino cheques, then purchasing bank drafts that are ultimately used at one or more casinos. Soon after, casino cheques — whose memo indicates that the funds are not the result of casino winnings — are deposited back into the bank account.

Some financial institutions and casinos have already taken action by adding identifying information on bank drafts and requiring casino patrons to provide a source-of-funds receipt for gaming buy-ins over $10,000, Fintrac notes.

Jim Bronskill , The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

This Doughnut of society and planetary boundaries from Doughnut Economics is described as a compass for human prosperity in the 21st century, whose goal is to meet the needs of all people within the means of the planet. (Kate Raworth and Christian Guthier image. CC-BY-SA 4.0)
P0st-pandemic: Shuswap resident puts focus on how community can thrive

Groups hire expert to find path for city to recovery and sustainability

Michelle Jacobs receives her first dose of the COVID-19 vaccine at the Coast Capri Hotel on April 28, 2021. The pop-up clinic was hosted by the First Nations Health Authority. (Aaron Hemens/Capital News)
126 new cases of COVID-19 in Interior Health over the weekend

There are 22 individuals hospitalized due to the virus, and 13 in intensive care

Vernon local Ryan Lazar – who specializes in 2D background design and 3D animation – is ready to start his career after a tough yet rewarding two years of studies. (Contributed)
Okanagan College students get animated at graduation

‘The pandemic has resulted in more video consumption and the animation industry is so hot right now because of it’

Salmon Arm RCMP seize a handgun, drugs and cash at a Silver Creek property on Friday, May 14, 2021. (File photo)
Police seize handgun, drugs and cash at a Shuswap property

Salmon Arm RCMP said warrant for Silver Creek revealed cannabis, possible cocaine, magic mushrooms

Salmon Arm RCMP are seeking witnesses to a single-vehicle collision that occurred on Highway 1 on May 16, 2021. (File photo)
Salmon Arm RCMP seek persons who transported injured driver, motorcycle to hospital

Motorcyclist involved in a single-vehicle collision on Highway 1

An avalanche near Highway 1 in Glacier National Park. Avalanche Canada will benefit from a $10 million grant from the B.C. government. (Photo by Parks Canada)
Avalanche Canada receives $10-million grant from B.C. government

Long sought-after funds to bolster organization’s important work

Barriere RCMP nabbed two suspects who were allegedly breaking into cabins in McLure. (File photo)
Thieves nabbed by Barriere Mounties during McLure break-ins

Police Service Dog Kody instrumental in making the arrest

(File photo)
Repeated cougar sighting on Okanagan Rail Trail

Plenty of bear sightings around the valley too

B.C. Health Minister Adrian Dix and provincial health officer Dr. Bonnie Henry update the province’s COVID-19 vaccine program, May 10, 2021. (B.C. government)
B.C.’s COVID-19 infection rate stays below 500 a day over weekend

14 more deaths, down to 350 in hospital as of Monday

Royal Bay Secondary School’s rainbow crosswalk was vandalized shortly after being painted but by Monday, coincidentally the International Day Against Homophobia, Transphobia and Biphobia, the crosswalk had been cleaned up and students had surrounded it with chalk messages of support and celebration. (Zoe Ducklow/News Staff)
B.C. high’s school’s pride crosswalk restored following ‘hateful’ graffiti attack

Hate terms, racial slur, phallic images spray-painted at Greater Victoria high school

RCMP vest
Penticton beach brawl results in one arrest but no charges

People took to social media after a fight broke out at the fire pits at Okanagan Lake Saturday

Terrance Mack would have celebrated his 34th birthday on May 13, 2021. Mack’s family has identified him as the victim of a homicide in an apartment on Third Avenue in Port Alberni sometime in April. (SUBMITTED PHOTO)
Family identifies Ucluelet man as victim of Vancouver Island homicide

Terrance Mack being remembered as ‘kind, gentle’ man

A single motorcycle parked outside of the Kelowna Hells Angels clubhouse at 837 Ellis Street on July 9, 2020. (Michael Rodriguez - Capital News)
Kelowna Hells Angels prospect sentenced to 9 months in jail for aggravated assault

Colin Michael Bayley pleaded guilty to the downtown Kelowna assault earlier this month

Vernon Search and Rescue, along with Shuswap members, rescued three kayakers near Lumby Sunday, May 16, 2021. (VSAR Instagram)
3 kayakers rescued in North Okanagan

Shuswap, Vernon search and rescue teams make swift-water rescue Sunday

Most Read