Stages of Money Laundering 2022: How it happens in Online Gambling

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Online gambling in Canada is headed to unprecedented heights as investors take it as a way of generating massive revenues annually. However, some people have used gambling to launder money. According to the United Nations, about 2-5% of the world’s GDP is laundered every year. 

Moreover, it isn't easy to collect the actual data of money laundered globally every year. Money laundering is a serious criminal act that is more prevalent than we may think. Most of us are willing to learn the connection between online gambling and money laundering. Our expert Michelle H Thomas discusses the stages of money laundering and how it happens in the online gambling industry.

Placement

Many people are attracted to Canadian casinos for various reasons. Some visit online gambling platforms to have fun, while others take the initiative as a source of income. The bold risk their bankroll to play for real money while newbies learn how to play using the demo versions. 

Criminals have used the placement method to clean their dirty money for a while. The process involves depositing dirty money into financial institutions registered under a business or a middleman. However, those money launderers who are not careful enough while using the placement method land in the hands of detectives. Some make wrong moves by depositing massive amounts of money into a business, or middleman accounts raise suspicion.

Layering

It is another exciting process used in laundering money. The method involves creating complex layers of financial transactions making the source untraceable. It is a stage where cybercriminals impersonate the money trail, making it more challenging. Layering is achieved by depositing funds into multiple bank accounts in different names and countries. The process is also done by changing its currency, buying luxurious assets, including houses and cars.

Integration

It is the final process where money launderers work to get their clean money by integrating a legitimate financial system. A successful transition makes everything appear legal where money is integrated through bank transfers to newly created businesses or in salary forms. Once the money is laundered successfully, it is challenging for the security forces to trace the dirty money.

How does money laundering occur in online casinos?

Online gambling has created a variety of options for laundering money. Examples of existing options include:

Opening a gambling account

Opening a gambling account involves a verification process where players must provide a bank account number. An online casino has a variety of payment methods that gamblers can use depending on their preferences. Newbies read online casino reviews to get to know the best online casino in Canada before they stake their money. 

A gambling site with multiple payment methods will consistently rank high. Money launderers deposit money using credit cards, debit cards, prepaid cards, cheques, cryptocurrencies, etc. Money deposited in gambling accounts is paid out and given legal status.

Place the money as bets

It is a second option used to launder money where a player makes a deposit anonymously. In addition, players can bet on games where they can play a hand in glove with other gamblers. The scenario works where one player will lose to benefit another player. The situation is prevalent in poker games and online roulette by coordinating the stakes. The method is expensive, but most launderers are willing to pay the price to get clean money.

Using a gambling account for effecting payment in illegal transactions

This is where a buyer and a seller of illegal goods come together and hold a gambling account that facilitates online gambling transfers. Money is easily moved from one gambling account to another through the player-to-player transfer. The seller has money on their gambling account paid out to their payment account. When a question is paused about the origin of money, the seller can confidently say that the money is from gambling profit. The gambling account acts as a bank account.

A gambling account held with an illegal provider

It is a final option where the account is used in keeping money and hiding it from law enforcement agencies. Some confuse it with the previous method, but keen readers can draw a line. In this method, cash is concealed and retrieved from a gambling account using the same payment method that stands as anonymous.

The above are the stages of money laundering 2022 and how money laundering happens in online gambling.