Last February 2016, the Central Bank of Bangladesh sent afraudulent remittance casehas confronted the world with the closeness of illicit funds and casinos.

The criminals first hacked into the Bangla Central Bank's system and attempted to transfer nearly US$1 billion from the Bangla Central Bank's account at the Federal Reserve Bank of New York in the US to bank accounts in the Philippines and Sri Lanka. Although the US$20 million sent to Sri Lanka was successfully recovered due to an entry error by the criminals, a portion of the US$81 million (approximately 9.1 billion yen) that went to the Philippines was subsequently lost due to the influx of money to casinos, making recovery impossible.

Why did the money "disappear" in this way in the casino? This is because in casinos, where money is constantly in flux with customers, it is difficult to track the whereabouts of funds brought in by a single person. Furthermore, the banking services offered by casinos, such as deposits, currency exchange, money transfers, foreign currency exchange, cash advances, and check cashing, further complicate the movement of money within the casino. They lack the records of money operations that a bank would have kept clearly, and they are more likely to escape government regulation and scrutiny. In short, the very nature of casinos makes them places where people not only enjoy gambling, but also run the risk of inciting crimes involving "dirty money.

Thus, in connection with money laundering and illicit transactions,Cases and ways in which casinos are usedThe two are many, if you look at them in detail. However, the casino's role in illicit money management can be summed up in two ways: to produce clean money, and to remove dirty money. Money obtained through theft, embezzlement, bribes, etc. can be claimed as "clean" money that was only made through gambling when it leaves the casino. Also, by handing over chips bought with illicit funds to fellow players in the casino, the dirty money can be deemed to have disappeared after losing a bet. On the other hand, when drugs or other illegal transactions take place in the casino, chips are sometimes used in place of money. The money that enters the casino itself is not dirty, and the amount used for the transaction can be claimed as lost bets, making it difficult to ascertain.

The casino as a "safe" financial institution for illicit money management is made even more significant by its cross-border nature.Revenue Ranking by Company in 2015The top two companies in the list are Las Vegas Sands (U.S.) and MGM Resorts (U.S.), both of which have stores in the U.S., Macau, Singapore, and other global locations. Some companies have a system whereby chips and checks purchased at one location can be picked up at the other location, making international money transfers easy. Recently,Online Casinosbe beyond one's controlenlargementThe ease of doing so is spurred on by the electronic funds transfer system.

In addition, the "junketThe existence of a middleman, the "junket," makes the movement of money more complicated and opaque. Junkets are intermediary organizations that plan and operate tours to casinos and assist customers with all aspects of their trip, including accommodations and transportation. Some are run by casinos, while others are separate organizations. While there is nothing wrong with their existence, they sometimes serve as "couriers" to divert illicit funds out of the country or outside legal restrictions. For example,Mainland China to MacauThe "money-laundering" system, which has a limit on the amount of money that can be brought into Macau, has greatly assisted Chinese bureaucrats in money laundering by allowing them to deposit money in a junket before departure and receive it at a Macau casino after it has been transported by ferry separately from the passenger.

Finally, the secrecy of casinos makes them even more valuable to those who attempt to operate illicit funds. Casino operations rely heavily on the presence of VIPs and people who gamble large sums of money, for example, in Canadian casinos,80% of sales are VIPs of 1% of all customersThis is created from the This reality has prevented the casino from bringing the events in the VIP room to light,Seeing cheating but tolerating itand sometimesActively shelter them.The casinos have been in the business for years. In some cases, criminal organizations have even become casino owners themselves. In any case, it is clear that both the VIPs and the casinos have profited greatly from the secret space of the VIP rooms.

Inside the casino Photo: Municipalidad de Talcahuano/flickr(CC BY-SA 2.0)

In recent years, casinos have become a hotbed of illicit money management.AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism)is being strengthened at the global level, the AML/CFT movement was launched at the G7 Summit in 1989 as an intergovernmental organization to combat money laundering,FATF (Financial Action Task Force)The first of these was the "Japan Anti-Money Laundering Agency (JAM)" (JAM), which was established in 1974, and later became responsible for combating the financing of terrorism because the need to identify and block the funding routes of terrorist organizations overlaps with the need to prevent terrorism, which overlaps with the need to prevent money laundering. CurrentlyIMFThe company is also working with theAPG (Asia-Pacific Group on Money Laundering)Countermeasure organizations at the local level are also active, such as the

The purpose of introducing casinos as a policy is to create jobs and attract tourists to statistical resorts (IR), including casinos, and to develop local economies as a result. However, the way capital from developed countries is being invested in developing regions in Asia and Africa, and casinos are being built, it appears as if they are looking for new locations to avoid regulatory scrutiny. The debate over the harmful effects of casinos is,Poverty caused by gambling addiction and dependenceThe main concern is that casinos can be safe zones for criminal organizations and individuals who engage in fraudulent activities, and the danger of establishing networks on a global level is even more worrisome. For example, Macau's economy has been dependent on revenues from casinos and related facilities for the past two years due to the purging policies of the Xi Jinping administration,Chinese bureaucrats, the company's main clientele, have lost foot traffic and revenues have plummeted.The "casinos" are not the only ones who have been corrupt. It highlights how casinos have come to rely on "dirty money" born of their corruption.

Who really benefits from casinos, even if it is for economic development? Are they local residents, casino operators, VIPs from across the border, or criminal organizations? Outside the glittering buildings of Macau, old houses await.

Casino and surrounding houses (Macau) Photo: doviliux/pixabay

 Writer: Miho Kono 
Graphic: Miho Kono