Myths and Facts About Online Gambling- Money Laundering in United States
General Accounting Office, Money Laundering: Rapid Growth of Casinos Makes Them Vulnerable,GAO/GGD-96-28 (4 January 1996) United States General Accounting office, Money Laundering: Extent of Money Laundering through Credit Cards is Unknown;GAO-02-670 (22 July 2002). This report states: “The extent to which money laundering through credit cards may be occurring is unknown. Bank regulators, credit card industry representatives, and law enforcement officials we interviewed generally agreed that credit card accounts were not likely to be used in the initial stage of money laundering when illicit cash is first placed into the financial system, because the industry generally restricts cash payments.
Bank regulators and credit card industry representatives we interviewed acknowledged that credit card accounts might be used in the layering or integration stages of money laundering. For example, by using illicit funds already placed in a bank account to pay a credit card bill for goods purchased, a money launderer has integrated his illicit funds into the financial system. Most law enforcement officials we met with were unable to cite any specific cases of credit card–facilitated money laundering in U.S.–based financial institutions. Further,a FinCEN analysis of its database of SARs filed by U.S.-based financial institutions revealed very little evidence of potential money laundering through credit cards.”United States General Accounting Office, Internet Gambling: An Overview of the Issues, GAO-03-89 (2 December 2002). With respect to money laundering, this report states: “Representatives of law enforcement agencies, regulatory bodies, and the credit card and gaming industries expressed mixed views regarding the vulnerability of Internet gambling to money laundering. Law enforcement officials said they believed that Internet gambling could potentially by a powerful vehicle for laundering criminal proceeds at the relatively obscure layering stage of money laundering . . .
Law enforcement officials acknowledged the lack of adjudicated cases involving money laundering through Internet gambling sites but cited what they believed to be contributing factors, including the lack of any industry regulations or oversight. Banking and gaming regulatory officials did not view internet gambling as being particularly susceptible to money laundering, especially when credit cards, which create a transaction record and are subject to relatively low transaction limits, are used for payment. Likewise, credit card and gaming industry officials did not believe Internet gambling posed any particular risks in terms of money laundering. Gaming industry officials did not believe that Internet gambling was any more or less susceptible to money laundering than other types of electronic commerce and pointed out that, in their view, the financial industry, which is responsible for the payments system, is better suited to monitoring for suspicious activity in the area than the gaming industry itself.”(emphasis supplied)American Gaming Association, Fact Sheet: Money
CasinoWatch.Org [Anti-Gambling Advocacy Group], “Money Laundering in Casinos.” This site documents a number of money laundering incidents in United States land-based casinos. [