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

The Binche Fishing Derby at Stuart Lake is fast approaching. (Binche Fishing Derby Facebook photo)
Binche shares excitement for upcoming fishing derby

“It’s more than just fishing,” says Dave Birdi

A person receives a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. (THE CANADIAN PRESS/Jonathan Hayward)
Local youth vaccination clinics underway

Pfizer vaccine will be used

Priya Sharma. (Submitted)
Column: Why ultimatums don’t work

By Priya Sharma It is a common misconception that people can choose… Continue reading

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
‘Springsteen on Broadway’ clears way for AstraZeneca recipients to attend show

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Gary Abbott (left) and Louis De Jaeger were two of the organizers for the 2014 Spirit of the People Powwow in Chilliwack. Monday, June 21, 2021 is Indigenous Peoples Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 20 to 26

Indigenous Peoples Day, Take Your Dog to Work Day, Onion Rings Day all coming up this week

Gwen Spencer Hethey with her uncle and mentor Major Frederick Richardson. (Courtesy of Greater Victoria Sports Hall of Fame)
‘She was a killer’: The B.C. woman who pioneered female sharpshooting

Gwen Spencer Hethey made military men ‘look like turkeys’ says her son

Central Okanagan Grade 12 grads are set to get $500 each after a more than $1 million donation from a Kelowna couple. (File photo)
B.C. couple donating $500 to every Grade 12 student in the Okanagan

Anonymous donors identified as Kelowna entrepreneurs Lance and Tammy Torgerson

Rita Coolidge played the main stage at Vancouver Island Musicfest in 2017. (Black Press file photo)
This year’s Vancouver Island MusicFest to virtually showcase beauty of Comox Valley

Returning July 9 through 11 with more than 25 hours of music performances

British Columbia’s premier says he’s received a second dose of the Oxford-AstraZeneca COVID-19 vaccine. (Twitter/John Horgan)
B.C. premier gets 2nd dose of AstraZeneca COVID-19 vaccine

John Horgan shared a photo of himself on social media Friday afternoon holding a completed vaccination card

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Most Read