NJ - Paulk, 34, is charged with helping lead the gang and laundering more than $1.6 million in drug revenues at casinos in Atlantic City and Mississippi.
Alleged Drug Dealer Bought Guns For Protection/AP & kyw.com/9.21.04 L16
NJ - In federal court in Camden, a conspiracy trial opened in which Paulk stands accused of helping lead a ruthless cocaine and heroin gang, laundering more than $1.6 million at casinos, and attacking rival drug dealers.
Suspect called dealer, reformed man/Philadelphia Inquirer/John Shiffman/9.21.04 L17
IOWA - As reported by the Des Moines Register: "Iowa drug dealers have pinpointed casinos as ideal places to quietly launder the large bills they earn selling methamphetamine, cocaine or other illegal drugs.
Drug Money Laundered in Iowa Casinos/www.casinocitytimes.com/12.22.03 L23
NJ - Since the first casino opened in Atlantic City, the Boardwalk has attracted criminals looking to launder money. By converting illegal profits into chips - and then cashing those chips in at a booth - organized-crime members and other illegal operators easily rid themselves of stashes of incriminating evidence. "The biggest problem the Asian organized-crime groups have is laundering money," said Keith Halton, an investigator with the New Jersey State Police. "These groups deal in cash, and law enforcement is playing catch up."
Casinos clean up money laundering/The Press of Atlantic City/PETE MCALEER/5.05.03 L31
Iowa law-enforcement and gambling officials say they are paying more attention to the practice of drug dealers laundering large and voluminous bills through unwitting casinos. The DCI, which places officers at the casinos, has handled about 150 drug cases at the state's gambling facilities since 1999. "We've known drug dealers to frequent casinos," said Mark Hein, the Des Moines resident agent for the U.S. Drug Enforcement Administration. "When you think about it, you've got some money in your pocket or you're making money off drugs, it'd be a good place to go and hit a jackpot and have some 'legitimate' money," he said. Dexter Temple, a confessed former drug dealer from Davenport, told the Register that he used a local casino to break large bills that could have attracted attention if used at other businesses or that might have been marked by undercover drug officers.
Officials examine money launderers' use of Iowa casinos/www.lasvegassun.con/ & AP/12.23.03 L22
MS - Pham was caught at the Isle of Capri casino last year and is awaiting a trial on federal racketeering charges, including one for the robbery of a Vietnamese restaurant here in 1994. Law enforcement officials arrested six Vietnamese residents Monday on federal charges of money-laundering and drug distribution. Those arrested, and six more that have been indicted, are charged with running a violent drug organization that operated in several states.
VIETNAMESE GANGS ON THE RISE IN BILOXI/THE SUN HERALD/BRAD BRANAN/6.30.98 L24
Federal sleuths are taking a closer look at the mushrooming Indian casino industry, where the rivers of cash flowing through slot machines and across gaming tables could be a tempting target for international terrorists. Investigators tracking suspected money laundering now want the name of anyone who spends as little as $5,000 and exhibits "suspicious" behavior at a casino.
Casino Cash: Terrorist Temptation?/WWW.CTNOW.COM/Rick Green/9.10.03 L19
S.D. - Seven federal agencies have started pooling resources and working together to investigate crime in the nation's burgeoning American Indian casino industry, which now rivals Las Vegas and Atlantic City combined. Theft, embezzlement, organized crime, money laundering and other corruption are common crimes associated with casinos.
Federal agencies working together against Indian casino crime/www.grandforks.com & AP/Carson Walker/7.01.04 L20
Las Vegas - In the aftermath of Sept. 11 and the passage of the Patriot Act, Nevada casinos have a heightened awareness of big bettors and their wagering activities. The potential of laundering money to support terrorism is a major concern in this city because of its fast action and big bankrolls. With Las Vegas's high betting volume, it might seem like a haven for money-launderers. The Tokyo Police Department arrested Kajiyama, who allegedly maintained foreign accounts at several major Las Vegas casinos, among them the MGM Grand and Caesars Palace. U.S. authorities believe Kajiyama's foreign agent accounts, set up in the spring of 2003, might have been used to launder several million dollars in the U.S.
Casinos avert laundering scheme/www.drf.com/RALPH SIRACO/12.06.03 L26
NV - Several Las Vegas casinos have been tied to money laundering activities involving a major Japanese loan shark who was arrested Thursday in Japan, according to Nevada gaming regulators.
Money laundering involving Japanese loan shark alleged/Las Vegas Review-Journal/ROD SMITH/11.14.03 L29
NV - The Nevada Gaming Control Board, not the Tokyo Metropolitan Police Department, originally uncovered suspected money laundering activities taking place at local casinos by Tokyo loan shark Susumu Kajiyama and tipped off law enforcement agencies in the United States and Japan.
MONEY LAUNDERING: Gaming board pushed for probe/Las Vegas Review-Journal/Rod Smith/11.22.03 L27
WASHINGTON - Casinos need to be certain they are following federal policies aimed to prevent money laundering by terrorists, members of the Senate Banking Committee said Tuesday.
Casinos seen as terrorist target for money laundering/LAS VEGAS SUN/ Suzanne Struglinski/9.29.04 L14
IL - Atty. Gen. Lisa Madigan said Rosemont's location near O'Hare International Airport would make it harder for law enforcement to watch for gambling-related crimes such as money laundering.
Stephens rebuts concern on casino/www.chicagotribune.com/2.17.04 L21
UK - As the UK prepares for a new generation of mega-casinos, Jeffrey Robinson, a world authority on money laundering, warns that Britain must take action to prevent suffering the same fate as the US, where, he says, casinos are still viewed by organised crime groups as "giant laundromats". He says casinos are targeted by organised crime groups because they process large amounts of cash on a daily basis. "Nevada has one of the largest FBI offices in the states because of crime linked to gambling," Robinson says.
Casino expansion risks dirty money on the table/WWW.SUNDAYHERALD.COM/10.24.04 L13
CT, CA - Connecticut's Indian casinos, along with other tribal and commercial casinos around the country, are considered fertile ground for criminals and terrorists looking for cover when moving large amounts of cash. In 1997, the FBI broke up a money-laundering operation at a casino on a California Indian reservation.
Casino Cash: Terrorist Temptation?/WWW.CTNOW.COM/RICK GREEN/9.10.03 L30
WASHINGTON - President Bush signed legislation making it easier for FBI agents investigating terrorism to demand financial records from casinos, car dealerships and other businesses.
Bush signs bill expanding FBI authority/AP & www.kansascity.com/12.14.03 L25
OTTAWA - Canadian drug traffickers are laundering illicit cash through casinos and clandestinely shipping shady money to the Caribbean and South America, says a U.S. intelligence report. The August DEA report, Money Laundering in Canada, says Canadian drug traffickers intent on using casinos to launder their proceeds begin by purchasing chips or opening an account at the gambling establishment. The trafficker gambles, but is careful to lose only a relatively small sum of money, the report notes. "The trafficker, or an associate, will then cash in the chips or withdraw the funds, which appear to be legitimate winnings from the account."
Traffickers laundering money through casinos: U.S./www.thestar.com/11.19.03 L28
Station Casinos Inc., which runs the Thunder Valley Casino in Placer County for the United Auburn Indian Community, has been fined $2.2 million by Nevada regulators for violation of rules intended to prevent money laundering, according to published reports. The investigation arose from a similar probe of the MGM Mirage in Las Vegas, which eventually resulted in a criminal conviction and a $5 million fine for some 15,000 paperwork violations.
Thunder Valley manager fined in Nevada case/Sacramento Business Journal, CA/9.27.04 L15
PA - State Police Lt. Col. Ralph M. Periandi predicted that criminal activity surrounding casinos will range from assaults and disorderly conduct to loan sharking and more complex criminal enterprises such as money laundering and conspiracy. The threat of terrorism at casinos _ institutions viewed by some as emblematic of American capitalism and popular culture _ also is something the board should plan for, said consultant Tom Sterling.
PA Gaming Control Board considers security issues of employees, gamblers, including threat of terrorism/AP/MARK SCOLFORO/12.15.04 (L1)
PA - Armed troopers in plain clothes will roam casino floors to augment private security...The troopers will handle crimes including theft, assault, cheating, identity theft and money laundering.
State Police Establish Gambling Squad/ www.gamblinggates.com/News/9.7.04 L18
Toronto - Law enforcement officials say loan sharking, money laundering and other criminal activities have become a reality inside Ontario's legalized casinos.
Criminal activity a reality in casinos, police say/CBC 2004 L11
The U.S. Treasury's Financial Crimes Enforcement Network (FinCen) plans to issue rules in the next 30 days to extend the 2001 USA Patriot Act's anti-money-laundering and terrorist-financing rules, which were first applied to banks, credit unions, casinos, securities broker-dealers and mutual funds.
Money-Laundering Law to Be Extended/media.washingtonpost.com/Bill Arthur/11.03.04 L7
Ottawa - International terrorists and crime syndicates seem to be using Canada to launder dirty money at a sharply rising rate, concludes a federal report released Thursday. It has been only in the past year and a half that the government completed the reporting requirements for a wide variety of entities, including banks, brokerage firms, mutual funds, real estate agents and casinos.
Money-laundering up sharply, report says/Canadian Press/11.04.04 L8
UK - Conservative Party Leader Michael Howard has stepped up his attack on the Government over money laundering concessions for casino operators.
Rule change 'could let Mafia run casinos' UK'/NEWS.INDEPENDENT.CO.UK/Marie Woolf/11.05.05 L12
TESSA JOWELL, the culture secretary, has come under fire from Britain's most senior police officers over moves to grant American casinos an exemption from Europe's strict money laundering rules. Acpo's gaming committee, led by Phillip Brear, deputy chief constable of West Yorkshire, wrote to the Treasury about concerns criminals and terrorists may exploit a relaxation of rules. Money can be laundered through casinos by gamblers who buy chips, then cash them and provide a receipt to legitimise the proceeds. The Acpo concern is shared by Scotland Yard, the National Criminal Intelligence Service and the City of London.
"The increase in potential jackpots will make casinos the ideal place to launder cash."/www.timesonline.co.uk/11.09.04 L10
UK - A LIVERPOOL MP today warned that mafia elements could infiltrate Merseyside if the government's plans for super casinos go ahead. "These megacasinos are like huge washing machines for washing dirty money. "They bring in their wake organised crime, drugs and prostitution, as well as money laundering."
Mafia fear over new casinos/Liverpool Echo/Ian Hernon/11.01.04 L9
PA - The Genovese crime family controlled an offshore gambling venture through which members of four area mob groups placed millions of dollars in illicit sports bets, authorities charged Wednesday. Twenty-four alleged Genovese associates and bookmakers operating under Gatto were charged with a litany of criminal offenses, including racketeering, gambling, drug distribution, money laundering, arson for hire, extortion and trafficking in stolen property.
Gambling ring bust/The Record, NJ/ TOM TRONCONE/12.2.02 (L2)
MEXICO - Mr. Hank is carrying more baggage than most politicians. Over the past 15 years, his political enemies and United States law enforcement officials have suspected him of links to the killings of journalists, laundering money for drug cartels and smuggling wild animals, among other deeds of questionable virtue. Nineteen years ago, Mr. Hank moved to Tijuana, where his proclivity for the high life led him into the gambling business. In addition to the racetrack, where they run only dogs these days, he owns dozens of off-track betting parlors.
Will New Mayor Sweep Away Vice? You Could Bet on It/WWW.NYTIMES.COM/By JAMES C. McKINLEY Jr./12.03.04 (L3)
Mexican Cardinal Norberto Rivera has come out against the possible opening of casinos, saying that while he is not opposed to entertainment as long as casinos can be used for money-laundering authorities must not allow their presence in Mexico.
The social debate on Mexican casinos/MEXIDATA . INFO/Enrique Andrade González/11.22.04 (L4)
NY - The (Chinese) gang members were accused in three indictments of an unusually wide array of charges, including racketeering, attempted murder, extortion, alien-smuggling and money-laundering. The gambling parlors that served as their bases... The gang members were accused in three indictments of an unusually wide array of charges, including racketeering, attempted murder, extortion, alien-smuggling and money-laundering.
The gambling parlors that served as their bases /New York Times/Julia Preston/11.13.04 (L5)
Miss. - John Daly's wife pleaded guilty Friday to a federal money laundering charge. Sherrie Miller Daly and her parents, Alvis and Billie Miller, were indicted on charges stemming from what authorities said was a drug ring and an illegal gambling operation.
Daly's Wife Pleads to Money Laundering/www.kansascity.com/11.12.04 L6
MONEY LAUNDERING IN CASINOS
Compiled by GRIEF
Gambling Research Information & Education Foundation
Pat Andrews: Chairman
Casinos Criminal networks launder an estimated $1 trillion a year, and the casino industry is a growing target. The rise of legalized gambling and the high cash volume associated with gaming have increased the casino industry's vulnerability to this type of criminal activity.
"Anti-Money Laundering"/Ernst & Young/ www.ey.com/global/content.nsf/US/AABS
Money laundering is inextricably linked to the illicit U.S. drug trade. The Office of National Drug Control Policy projects the street value of illicit drugs sold in the United States during 2000 to exceed $62 billion.27 Controlled by violent drug traffickers, these revenues--greater than the gross national product of 150 nations--pose a serious threat to the economic integrity and security of the United States. Drug traffickers launder illicit profits and ultimately integrate the funds into the legitimate economy. Laundered drug proceeds are used to finance drug operations and other crimes, fund insurgency and terrorist organizations, and promote corruption. Consequently, U.S. anti-money laundering efforts are critical to destabilizing drug trafficking organizations and limiting their power. The New York/New Jersey HIDTA estimates that drug traffickers launder between $4 billion and $8 billion annually in the New York/Northern New Jersey metropolitan area. Gaming Industry. The gaming industry in the United States remains vulnerable to drug money laundering. One technique used to launder drug proceeds through casinos involves structuring cash purchases of casino chips or tokens to avoid reporting requirements and subsequently redeeming the chips for checks drawn on, or wire transfers from, casino bank accounts. Corrupt casino employees have also facilitated drug money laundering activities.
"Money Laundering"/National Drug Intelligence Center/October 2000/ www.usdoj.gov/ndic/pubs/647/money.htm
WASHINGTON (AP) - The Bush administration's efforts to crack down on money-laundering by terrorists may require Nevada casinos to be more vigilant of suspicious financial activity, government officials say.
"Money-laundering rules let Nevada clubs report to state"/Las Vegas Sun/9.28.01
Anti-Money Laundering Proposal for Casinos to be discussed at Regional Meetings: The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) will hold four regional meetings this summer to provide an opportunity for casino industry representatives and other members of the public to comment on a proposed rule announced in May which would require casinos and card clubs to report suspicious activity. The proposal was issued under the authority of the Bank Secrecy Act (BSA) -- Treasury’s key tool in the fight against money laundering, financial fraud and tax evasion.
FOR IMMEDIATE RELEASE/ June 26, 1998 / US government/Treasury
There is little concern that a money laundering bill passed by the House will hurt casinos, gaming industry officials say. The House version of the anti-terrorism bill stiffens the reporting requirements financial institutions must adhere to in dealing with overseas accounts and transactions. It also makes it a crime to attempt to smuggle $10,000 or more in currency across U.S. borders.
"Gaming industry is unconcerned about terrorism bill"/LAS VEGAS SUN/10.22.01
The $500 Loss Limit Protects Missouri
from Terrorists Laundering Money
Tew said the GAO report is particularly important because "there are earlier peculiar links between casinos and terror." He cited prosecutors' statements that Shafal Mosed, one of the Lackawanna, N.Y., terror suspects, visited a casino and spent $89,000 despite his seemingly humble lifestyle. He also cited statements that an associate, Yahein Taher, who also claims to have little money, exchanged $15,700 in U.S. currency for Canadian in October at Casino Niagara, the same Niagara Falls, Ontario, casino that suspect Mosed visited. Tew also said Mohammed Atta made several trips to Las Vegas before Sept. 11 and cited a videotape of the MGM Grand casino-hotel among possessions of the Detroit terror "sleeper" cell disrupted by the Justice Department last month. Last week, the U.S. Treasury Department issued anti-money laundering rules that for the first time require brick-and-mortar casinos to report suspicious transactions. "Inconsistent regulation problematic, analyst says"
By ROD SMITH/ Las Vegas Review-Journal/ 9.24.02
Canada - The United Nations defines money laundering as "any act or attempted act to disguise the source of money or assets derived from criminal activity." Essentially, money laundering is the process whereby "dirty money"produced through criminal activity is transformed into "clean money," the criminal origin of which is difficult to trace. * Gambling in casinos: Individuals bring cash to a casino and buy gambling chips. After gaming and placing just a few bets, the gambler redeems the remainder of the chips and requests a casino cheque. Effective June 12, 2002, they also have to report transactions if there are reasonable grounds to suspect that the transactions are related to the commission of a terrorist activity financing offence.
"Policies and Procedures for Canadian Customers Regarding Money Laundering"/
Canada - During the last 15 years, countries around the world have been trying harder to fight drug trafficking, organized crime and terrorism by making it harder to launder criminal proceeds. A key aspect of Canada's new laws includes a demand that banks, casinos and even real estate brokers report electronic or international transfers of more than $10,000.
"Balance privacy with war on terror"/By SANDRA CORDON /Canadian Press/ 4.8.03
High-rollers who fancy a flutter at a casino could soon find themselves under the scrutiny of Treasury Department investigators, who want documents of any suspicious transactions at the teller's booths involving more than $3,000. The Treasury Department said it is trying to clarify existing reporting regulations on casinos, which have been used by the agency's financial crimes enforcement network to track money laundering and other financial crimes. More than half of the suspicious-activity reports that Treasury collects show indications of money laundering, the agency says. Treasury's financial crimes center says it uncovered evidence in 1998 and 1999 that casinos were being used to launder money under a scheme in which people would wire advance deposits to casinos, then turn up to cash them in for chips. In all of the cases, "the customer gambled minimally or not at all," but just returned the chips for cash and left the casino."
High-rollers come under federal scrutiny"/Gambling News/4.11.02
NV/NJ - Nevada Gaming Control Board member Bob Siller questioned Bally's-Paris casino executive Joseph Rahi on Wednesday, trying to determine whether Rahi recognized his role in an apparent money laundering scheme. The wire produced the transcript that Siller used in his questioning, which soon saw Rahi acknowledge that he had explained techniques to bypass federal cash transaction laws. One popular method: have several friends buy casino chips for $9,900 each and then give them to Abdelraouf.
"Regulator voted against temporary license for exec"/By DAVE BERNS/
Las Vegas Review-Journal/3.7.02
NJ - A former Bally's casino host pleaded guilty Tuesday to money laundering, admitting he helped "clean" $180,000 he believed was drug-trafficking proceeds.
"Ex-Bally's casino host admits laundering $180,000"/South Jersey Publishing Co./11.11.98
NV - A second suspect, James D. Greenbaum, 46, Las Vegas, was expected to plead guilty but was found dead at the Fiesta hotel-casino Thursday afternoon. Standing next to his attorney in federal court Thursday morning, Joseph Cronin of Reno, Jolcover pleaded guilty to charges of conspiracy to commit securities, mail and wire fraud, and money laundering in connection with the sales of securities to the public in wireless television systems.
"Fraud suspect kills self"/By Bob Shemeligian/Las Vegas Sun/3.20.98
The state Gaming Control Board filed a complaint against Bally's Las Vegas, accusing the Strip casino of violating regulations aimed at stopping money laundering.
"LV casino hit with Gaming Board complaint"/Las Vegas SUN/3.15.01
Atlantic City, NJ - A French fugitive who is charged with laundering money through Atlantic City casinos requested that a federal judge seal a hearing this week with prosecutors investigating the fundraising practices of U.S. Sen. Robert G. Torricelli, D-N.J., records show. While in America, Hababou was convicted in absentia in France in February1996 of fencing stolen money, falsifying checks, and using falsified checks. Based on the extradition complaint, he was arrested at the Taj Mahal Casino in Atlantic City on Dec. 23, 1998, with $60,000 in casino chips in his possession, records show. Hababou also was charged with laundering the stock sale proceeds through three Atlantic City casinos, in a 23-count indictment that said he conspired with an unidentified accomplice. Prosecutors also sought the forfeiture of $6.5 million in property.
"Judge seals hearing on Torricelli fundraising"/By DAVID VOREACOS/Bergen Record Corp./9.30.00
ATLANTIC CITY -- A state task force's recommendations on how New Jersey can better fight money laundering may cause a battle with gaming halls here. Officials with the city's casinos say at least one of the two proposals geared for their industry isn't practical, and may start a lobbying effort to have it changed. But in hopes of cracking down on money laundering, the federal government recently proposed a new rule that would require reporting of any "suspicious" activity of $3,000 or more.
"Cool to anti-laundering plans"/By THOMAS BARLAS/South Jersey Publishing Co./10.5.98
TRENTON -- The state Assembly passed a bill Monday that amends the Casino Control Act to require casino cashiers to keep a record of any suspicious transactions in attempt to thwart money-laundering activities.
"Casino bill targets money laundering"/South Jersey Publishing Co./11.16.99
MO-Two former employees of Station Casino-St. Charles have been sentenced for conspiracy and money laundering charges involving more than $2 million. LaShonda Clark, 27, of Black Jack, Mo., was sentenced to 24 months in prison and ordered to pay restitution of $2.1 million. Michelle Howell, 35, of Cahokia, Ill., received three years probation and ordered to pay restitution of $2.1 million. The two were part of six former casino workers charged in the scheme.
"Two former casino workers sentenced to jail"/No author given/9.3.02/St. Louis Business Journal
LA- Three men have been arrested in connection with the theft of approximately $1 million from the Isle of Capri Casino. On March 7, investigators, with assistance from the Calcasieu Parish Sheriff's Office, arrested Latin D. Berry, 23, of Sulphur; Michael D. Jackson, 31, of Lake Charles; and Phillip E. Mitchell, 28, of DeQuincy. Berry and Jackson were each booked into the Calcasieu Correctional Center for skimming of gaming proceeds, theft over $500, and money laundering. Berry's bond was set at $250,000 while Jackson's was $125,000. Mitchell was booked on the charges of skimming gaming proceeds and theft over $500. His bond was set at $25,000.
"Isle of Capri employees arrested for skimming, theft, laundering $1M"/Eric Cormier/ 3.15.02/www.americanpress.com/
There's less of a supervisory oversight over the nonbanks, whether we're talking about money transmitters or check cashers or, in some cases, casinos, broker dealers, insurance firms and the like, or the regulatory scheme is different. And so when we become more effective with banks, the bad guys will start moving their money through nonbank organizations who provide financial services -- a check casher who probably also has ties to a Western Union agent and maybe even loans money on the side; large casinos will often provide credit for gambling, wire money, issue checks, and the like. So, if you're going to be looked at very carefully at the bank and not looked at so carefully at the casino, you go to a casino.
"CLEANING UP THE MONEY LAUNDERERS"/An interview with Stanley Morris, Director of the Financial Crimes Enforcement Network (FinCEN)/by Jerry Stilkind/
LA - The young men accused this week of defrauding companies of about $500,000 through fake electronic transfers included a security guard at Harrah's Casino, who, like some of his co-defendants, dropped out of college during the past year. The five New Orleans men, ages 19 to 21, are facing federal wire fraud, mail fraud and money laundering charges.
"Fraud suspects included college dropouts"/By Pamela Coyle/The Times-Picayune/1.8.00
The alleged head of a Lake Charles drug-trafficking ring used alleged drug money to buy more than $1.65 million in gaming chips at casinos and eventually lost more than $400,000 of it gambling. The six defendants are charged in a 44-count indictment. They are accused of being members of a "well-organized, lucrative, drug-trafficking organization" that conspired to traffic more than 5 kilograms of cocaine and crack cocaine, and more than 1,000 pounds of marijuana. Jurors heard Monday from Internal Revenue Service Special Agent Jeff Goins of Lafayette who used cash transaction reports and casino records to show how defendant Troy Marks laundered drug money at eight different casinos in Louisiana and Las Vegas.
"IRS agent details alleged laundering of drug money through casinos"/BY HECTOR SAN MIGUEL/American Press/2/4/99
LAKE CHARLES, La. (AP) -- The daughter of former Kansas City Chiefs kicker Jan Stenerud was among 20 people who sold cocaine and marijuana, then laundered the money by buying and cashing in casino chips, according to indictments unsealed this week.
"Prosecutors: drug ring used casino chips to launder drug money"/AP/6.19.97
CAMDEN, NJ -- Four defendants federal and state authorities charge ran or supplied crack cocaine and heroin to a Camden drug organization that grossed more than $120,000 a week in sales ... Authorities broke up what they allege was a vicious drug gang that was called the Tuten Drug Organization, named after its alleged leader, Darnell "Big Lips" Tuten, 31, of Deptford Township, who is still at large. Authorities allege Paulk and another man supplied drugs to members of the Tuten Organization and that Paulk, on four separate occasions, deposited or exchanged drug proceeds totaling $56,000 at the Tropicana Hotel and Casino in Atlantic City as way to launder the drug money.
"Bail denied drug ring suspects"/By Shawn Menzies/Gloucester County Times/4.3.03
Las Vegas gambling figure Jack Binion, whose license in Illinois was denied by the Illinois Gaming Board in part because of his association with high-roller Kamel Nacif, is now suing Nacif to recover $4.177 million in outstanding gambling debts. Nacif -- whom the Nevada Gaming Control Board said was associated with narcotics, firearms sales and money laundering and who in 1993 was bailed out of jail by Binion when Nacif was arrested on Mexican tax evasion charges -- was sued by Binion in Clark County District Court on Wednesday.
"Binion sues high-roller for casino debts/ Defendant tied to loss of Binion's license in Illinois"/By Grace Leong/LAS VEGAS SUN/7.13.01
Exactly what the FBI is looking at is unclear, but the focus appears to be on what happens to the millions of dollars a year generated at the tribes five casinos, including one in Tampa. Areas of inquiry include money laundering, skimming and income tax evasion.
"Chiefs hold on Seminoles is slipping"/By JEFF TESTERMAN/St. Petersburg Times/4.29.01
Camden, NJ - In all, an unsealed federal indictment alleges a total of 13 men were involved in various capacities with the alleged drug organization, named the Tuten Drug Organization, after its "owner" Darnell "Big Lips" Tuten, authorities said. U.S. Attorney Christopher J. Christie has called the takedown of the main players from within the organization part of an ongoing war to rid the city of Camden of its ruthless gangs, like the Tuten Organization, who he stated "peddled heroin and crack cocaine and protected its operations by threats and violence, including murder."
"12 drug suspects denied bail"/ By Shawn Menzies/Gloucester County Times/ 4.12.03
Atlantic City, NJ - Four employees at three Atlantic City casinos (Ballys Park Place, Resorts & Showboat) were arrested Thursday in a sting, accused of allowing 'customer' to use fake identifications to launder more than $400,000 in what they allegedly believed was drug money. Gayed, who said he has worked in the casino industry for 20 years, said his job as a host was to help high-rollers who wanted to gamble. "Who is gambling in the casinos but the drug dealers?" Gayed said. "Do you think doctors are in the casinos? Do you think lawyers are in the casinos? ...the director of player development and a marketing executive were arrested. "Agents Charge 4 casino hosts in money-laundering sting"
By Michele Darnell/South Jersey Publishing/ 6.12.98
Camden, NJ - Paulk, 34, -- step-father of Cleveland Cavaliers professional basketball star and Camden High School product Dajuan Wagner -- is alleged by authorities he supplied a Camden City drug gang with crack cocaine and heroin to the organization. He is also alleged to have deposited or exchanged approximately $56,000 in drug money on at least four occasions at the Tropicana Hotel and Casino in Atlantic City as a way to launder the proceeds, authorities said.
Court date set for 12 Tuten ring members/By Shawn Menzies/Gloucester County Times/ 4.11.03
NJ - Fleifel and Rahi were among four casino officials arrested in a June 11 money-laundering sting. A federal jury sitting in Newark agreed that the sting that snared them was entrapment. Rahi would not disclose the legal toll of his ordeal but said, "It took us backward five years." The two other casino officials arrested in the sting pleaded guilty to money-laundering or related charges last year. They worked at Bally's Park Place and Resorts Casino Hotel.
"2 acquitted former Showboat casino hosts regain licenses"/By Joe Weinerrt/ South Jersey Publishing/2/4/99
IL - This year, however, money-laundering is at the heart of Cook County prosecutors' strategy for breaking up Chicago's drug operations, which they believe have already been splintered with the imprisonment of top gang leaders. Police and prosecutors will approach the Illinois Gaming Board to develop intelligence about drug dealers who launder their cash at riverboat casinos. The jangling world of casinos--from the riverboats that ring Chicago to the luxury palaces of Las Vegas and Atlantic City--is one of the favorite places for drug dealers to launder their cash. A few undercover cases have demonstrated to police and prosecutors that casinos are a rich resource for money-laundering. Breaking down large cash deposits or exchanges into smaller amounts is a common money-laundering technique called "smurfing.'" At that point, the piles of cash he earned from drug sales on Chicago streets had already been laundered twice: once through currency exchanges and next through the casino. The chips were a form of untraceable currency that he could carry to his hotel room, where he hooked up with his Texas cocaine supplier. Over six months, the Chicago man laundered more than $2 million in Las Vegas at three casinos that police won't identify.
"Chasing dirty money"/BY CARLOS SADOVI AND FRANK MAIN/Chicago Sun Times/ 4.8.02/www.suntimes.com/special_sections/crime/cst-nws-gangb08.html
NV - A retired radiologist and a former casino executive must spend five years on probation for their roles in a $1.2 million money laundering scheme, a federal judge ruled Monday. Yin, 61, and his 40-year-old wife, the former director of marketing at Bally's, each pleaded guilty in October to one count of conspiracy to commit money laundering.
"Judge sentences couple to probation for money laundering infractions"/Las Vegas Casino
FL- The Seminole Tribe's former operations manager and two business partners have been charged in a 15-count federal indictment with conspiracy to embezzle $2.77-million from the tribe and with using a shell company to launder the money through Belize. Accused of conspiracy, embezzlement from an Indian tribe, illegal monetary transactions and money laundering are former Seminole operations manager Timmy W. Cox, tribal computer services consultant Danny Wisher and Wisher's son-in-law, Michael Crumpton. (The Seminoles operate several gambling institutions in Florida)
"3 accused of diverting tribe funds"/Jeff Testerman/6.25.02/St. Petersburg Times
In addition, there was a negative response from Servando Sarabia, executive director of the Association of Maquilas of Juarez, who suggested this type of business is often run by mafias who use casinos to launder dirty money.
"GAMBLING CONTROVERSIES IN NEW MEXICO AND CD. JUAREZ"/By Dr. Jose Garcia, professor of Government, New Mexico State University, New Mexico/
Depriving criminals of profit is a major goal of the Department's asset forfeiture program. In 1990, as a result of a money laundering investigation in Florida, the Department of Justice (Department) seized the Bicycle Club (Club), a card casino in Bell Gardens, California. An indictment is returned in Miami, Florida, following a money laundering investigation conducted by the USAO for the Southern District of Florida. The indictment names individuals with links to the Bicycle Club casino. Individuals with links to the Bicycle Club are convicted for laundering drug smuggling profits. Several witnesses, including some current and former employees of the Club, detail persistent management problems and allegations of criminal activity at the Club, including skimming of profits, drug dealing, extortion, loan sharking and money laundering.
DEPARTMENT OF JUSTICE SEIZURE AND DISPOSAL EFFORTS FOR THE BICYCLE CLUB CASINO/Audit Report 98-06, (2/98)/
The effect of casinos on crime is also different because of the interest of organized crime. Known mob figures frequent casinos to gamble and launder money, and organized crime families attempt continually to infiltrate ancillary industries and to capitalize on an increased market for drugs, illegal gambling, and other ills.
"Maryland Attorney General Curran's Executive Summary On Casino Gambling"/ www.ccmagazine.org/features/curran.htm
This article describes the money laundering process...For example, the proceeds of the illegal drug trade are mostly small-denomination bills, bulkier and heavier than the drugs themselves. Converting these bills to larger denominations, cashier's checks, or other negotiable monetary instruments is often accomplished using cash-intensive businesses (like restaurants, hotels, vending machine companies, casinos, and car washes) as fronts. Casinos are sometimes used because they readily take cash. Once converted into chips, the funds appear to be winnings, redeemable by a check drawn on the casino's bank. The integration stage is the big payoff for the criminal.
"UNDERSTANDING THE WASH CYCLE"/By Paul Bauer, Economic Adviser, and Rhoda Ullmann, Research Assistant, Federal Reserve Bank of Cleveland/
Seven Mississippi casinos have agreed to fines totaling $1.05 million for multiple violations of anti-money-laundering reporting requirements under federal banking laws. Isle of Capri Casinos Inc., which is seeking regulatory approval to buy the Flamingo Hilton Casino in Kansas City, was among the gambling operations cited by the U.S. Treasury Department's Financial Crimes Enforcement Network, also known as FinCEN. A 1986 law added cash-intensive casinos to the Treasury Department's widespread monitoring of financial institutions to detect money laundering activities. Missouri casinos are less vulnerable to laundering because of the state's $500 wagering loss limit.
"Isle of Capri Casinos agrees to pay $1.05 million in fines"/By RICK ALM/The Kansas City Star/5.8.00
RI - CASINO MONEY LAUNDERING? In an attempt to discredit key government witness David C. Ead, who has testified he arranged bribes for Mayor Vincent A. Cianci Jr., defense lawyer Richard M. Egbert floated the implication yesterday that the convicted businessman laundered bribe money at Foxwoods Casino. Egbert said he had evidence of "someone going in there and laundering money to legitimize the money he took."
"Foxwoods tracks who and how much"/Projo.com Providence City Hall on Trial.htm / 5.23.02
Any business which handles large amounts of cash, such as a casino, is targeted by the legislation. Casinos are examples of "non-bank financial institutions", which were included under the BSA in 1985 if they had gross annual gaming revenue over $1 million. The BSA rules are not the same for all businesses. They're not even the same for all casinos. For example, Nevada casinos, by agreement with the Treasury Department, have an exemption from certain BSA reporting requirements. Of course, despite these convenient alternatives, money laundering also takes place through casinos. In any case, cash in amounts smaller than $10,000 may be conveniently laundered through any of the casinos. Larger amounts may also be laundered, but will have to be spread across different gaming areas (in Nevada casinos), or different gaming days (in BSA or Nevada casinos), or divided up and laundered across several BSA, Nevada, or tribal casinos. You may have noticed that slot machine payoffs of $1 million and more tend to take place on casino gala opening nights with plenty of photogenic "beautiful people" in attendance and extensive press coverage. This is not surprising given that some slot machines are controlled by software that has certain override features--"back doors" which give casino managers the ability to force payment of a jackpot. The same back door can also be a convenient money laundering mechanism, since payouts of verified winnings are not matched against personal identifying information under Nevada gaming law. Naturally, the existence of these software back doors is a secret guarded as carefully as the existence of back doors in banking software.
"Money Laundering through Casinos"/by J. Orlin Grabbe/ freedom.orlingrabbe.com/money_laundering/casinoml.htm
FL - In the meantime, a task force of agents from the FBI, Drug Enforcement Administration and U.S. Treasury Department continues to investigate Seminole gaming activities. The investigation led last year to the federal indictment of Lauderhill cigar importer Steve Weil, Tamarac lawyer Yale Garber and two other men on money laundering charges. They were accused of conspiring to launder $425,000 in cash purported to be the proceeds of illegal drug trafficking.
"Tribe, casino operator split"/By JEFF TESTERMAN/St. Petersburg Times/ 5.27.00
Detroit - A couple accused of trying to launder stolen money at the Greektown Casino were arrested Wednesday morning.
"Couple Accused Of Laundering Yen At Casino"/NBC Local 4/ 1.8.03
"When federal investigators unveiled the details of their 'Aces Split' cocaine and marijuana bust last summer, one aspect of the ongoing case stood out as a striking example of what federal officials say is an alarming trend. The drug dealers, prosecutors allege, were trying to launder their drug money through Louisiana casinos by buying chips and later cashing them in. "Casinos deal with large amounts of cash and offer an array of financial services for customers, from wire transfers to deposit accounts and debt instruments known by gamblers as 'markers.' All of this makes casinos easy targets for criminals seeking ways to disguise origins of money from the sale of drugs or other illegal means, said Peter Djinis, associate director of the Treasury Department's Financial Crimes Enforcement Network, known as FinCEN. "'This is not idle speculation,' Djinis said. 'We have seen an increase in the illegal uses of casino services over the last several years. Many of these have led to criminal enforcement activity, some against the customers of the casino, some involving people within the casino itself who have worked in concert with ... individuals to help launder funds.'"
Times-Picayune/7.15.98/compiled by Ronald A. Reno www.family.org/cforum/hotissues/
OH - Three Hamilton County residents have been indicted on charges that include operating a gambling house and money laundering.
"Day-care providers indicted over games at bingo parlors"/By Marie McCain/The Cincinnati Enquirer/ 2.27.02
NJ - On May 31, 1998, Governor Whitman asked the Attorney General to review the current system of combating money laundering and to make recommendations for improvements where appropriate. Thereafter, the Attorney General formed a Money Laundering Working Group consisting of state, federal, and local law enforcement entities... In addressing the unique concerns associated with the use of casinos for money laundering, a joint state-federal task force was recently formed entitled the Atlantic City Casino Task Force. This Task Force comprises agents from various federal agencies, and members of the State Police, Division of Gaming Enforcement, Division of Criminal Justice and the Atlantic County Prosecutor's Office, and is designed to target those individuals who engage in money laundering through the casinos. As noted earlier, New Jersey is particularly susceptible to money laundering by virtue of the gambling industry in Atlantic City. One of the methods employed by money launderers is a cash-for-cash transaction at a casino designed to launder proceeds to make them appear to be gambling winnings. In such circumstances, a patron purchases chips with proceeds from illegal activity and then cashes out the chips, receiving either cash or a monetary instrument such as a check or wire transfer. (f) proposing legislation to curtail use of casinos by money launderers, including initiatives designed to prevent money launderers from engaging in cash for cash transactions, and to disqualify convicted money launderers from licensure and to require their exclusion from casinos;...Moreover, New Jersey is particularly susceptible to smurfing activity by virtue of the presence of our gambling industry. At casinos, smurfs often purchase a significant quantity of chips, engage in a minimum amount of gambling, and then exchange the chips for "clean" cash or a monetary instrument from the casino. Casinos and gambling are one of the more significant economic activities for the state of New Jersey. The presence of casinos, however, makes New jersey particularly susceptible to money laundering, for the industry presents a convenient locale to exchange large sums of money without drawing undue attention to the person exchanging funds, and can allow criminals to convert proceeds undetected. Once funds are exchanged at the casino, the currency loses its illegal taint and is identified as gambling proceeds, giving the criminals the opportunity to use their ill-gotten gains with the appearance of legitimacy. The casino floor presents a target of opportunity for the criminal enterprise in need of a means to convert their funds from illegal to apparently legitimate income.
"1998-09-23 -- Money Laundering -- White Paper"/New Jersey Department of Law and Public Safety/Peter Verniero, Attorney General/www.state.nj.us/lps/dcj/monlaund
LAWRENCE, Kan. - Jimmy Cisneros, former Kickapoo gaming commissioner and tribal treasurer, accuses tribal officials of maintaining an atmosphere for money laundering, misuse of casino revenues and racketeering. Cisneros claims he was fired from the gaming commission in 1998 because he uncovered a system he believes is open to organized crime and money laundering.
"Ex-Kickapoo treasurer says tribal government is corrupt"/by: Mary Pierpoint/Indian Country Today/ 8.2.00
The ruling "enables an Indian tribe to become a political cash register that can gulp 'soft money' from any source and disgorge it as 'hard money' contributions or expenditures," explains Ed Zuckerman, editor of the PACs and Lobbies newsletter. Zuckerman concluded that the FEC gave tribes "a unique opportunity to earn transaction fees and commissions by utilizing their tribal accounts to launder soft money into a new form of hard money that might be called 'political wampum.'"
"The McCain-Feingold Indian Giving Loophole"/by Michelle Malkin/Capitalism Magazine/ 4.12.01
This is the transnational crime of Money Laundering which organized crime groups, from drug syndicates, arms trafficking and the other burgeoning areas of criminal activity, to perpetuate their existence, expand their operations and institutionalize their presence in a mafia type fashion. 5. Money is disguised as casino winnings. The money is wired from the criminals offshore bank account to a casino in some tourist center abroad. The casino pays the money in chips; the chips are then cashed in; and the money is repatriated via a bank check, money-order or wire transfer to the criminals domestic bank account where it can be explained as a result of good luck during a gambling junket. This trick is used sporadically because winning too often will attract attention.
"MONEY LAUNDERING"/ www.pctc.gov.ph/edocs/papers/MoneyLaundering.htm
Its almost an urban legend by now, but every gambler knows that 90% of all $100 bills have traces of cocaine on them. Unfortunately, casino chips don't leave a tell-tale residue.
How Not to Launder Money and Get Caught Doing It. . . ./by L.J. Winsome/ Huntington Press 1997
Mexico - The profits of the Latin American-U.S. drug trade being laundered through Mexico is conservatively estimated by U.S. and Mexican investigators to amount to some US$10 billion to $15 billion per year, equivalent to around 3% to 5% of Mexico's GDP. Casinos are widely considered another business which are important conduits for laundering cash and it is noteworthy that Mexico's fifty-eight year ban on casino operation is currently under review. Linked to the latter it is known that casinos can be places of money laundering," said a recent discussion paper from The Mexican Federation of Business Organizations (Coparmex), one of the leading and most powerful business associations in Mexico.
"Money laundering in Mexico"/Latin Trade/ September 1997
Casino operations will be monitored by the government to find out if they are being used to launder dirty money.
"Philippine's Casinos Monitored For Money Laundering"/ Poker Mag/ 4.9.03
Law enforcement information and SARs filed by U.S. financial institutions confirm a shift in suspected money laundering activity involving Mexico. Rather than transiting through Mexico en route to Colombia or other Central and South American destinations, a shift has been made toward using techniques and schemes in which drug proceeds are cycled through Mexico directly back into the U.S. As reported in SARs, for example, patterns of large wire transactions ($1.5 million or more per transaction) moving funds to U.S. payees from Mexi-can money exchange houses and other financial institutions have been observed that may at least, in part, be attributable to changes in the laundering cycle. Generally speaking, such changes in patterns are believed to stem from the heightened profile of Mexico-based criminal groups in drug trafficking in the U.S. which, in turn, creates a corresponding increased threat of money launder-ing activity linked to Mexico. Suspicious Activity Reported by Casinos. A review of SARs filed voluntarily with FinCEN by gaming establishments reveals patterns of suspicious activity in which casino accounts are used to transfer sig-nificant amounts of funds through non-bank financial transaction channels. The funds are cashed out by the client or moved to other accounts with minimal or no gaming activity. SAR filings by casinos located in Connecticut, Illinois, Missis-sippi, Nevada, and New Jersey during 1998-1999 indicate that wire transfers and cashiers checks are used to put funds on deposit as credits, or "front money," for use by the client for subsequent gambling activity at the casino. All of the SARs indicate that the client gambles minimally or not at all, and in the majority of the cases, takes the balance out in cash on the same day or within a matter of days.
(Refer to FinCEN SAR Bulletin Vol. 2, No. 1, August 2000, for additional infor-mation). "Increased SAR Reporting Involving Mexico"/ www.fdic.gov/news/news/financial/2000/sarsec2.html
In 1998, leaders of the Rincon tribe in California pleaded guilty in connection with accusations of acting as a front for a Pittsburgh crime family plotting to take control of their casino to launder money. Federal prosecutors said it was a classic example of the mob's infiltration of a cash-based business.
"Indian casinos spend to limit US oversight"/By Sean P. Murphy/Boston Globe/ 3.12.01
Three-and-a-half years ago, investors in another Rincon gambling operation were accused of acting as a front for a Pittsburgh crime family plotting to take control of the facility to launder more than $2 million raised through other criminal activities. Seventeen people, including a member of the Rincon tribal council, were indicted in what federal prosecutors described as a textbook case of organized crime's notorious appetite for infiltrating casinos and other businesses that generate large amounts of cash.
"Tribes make easy criminal targets"/By Michael Rezendes/Boston Globe/ 12.13.00
Lax regulation in the cardroom industry has created a "vacuum," as described by Attorney General Dan Lungren, ripe to attract criminal activity.  For example, Los Angeles Sheriff's Department recently uncovered evidence from Bell Gardens Bicycle Club's security cameras, recording a $60,000 money-laundering transaction.
"Gambling in California and Multi-State Gambling Law Survey"/by Donald Leonhardt & Elaine Paplos/www.uchastings.edu/plri/spr96tex/calgam.html
St. Paul bar owners Walter G. Awada and Gary A. Erickson were indicted Wednesday on federal gambling and money laundering charges in connection with what authorities called a large sports bookmaking operation.
"2 bar owners indicted on gambling charges"/Paul Gustafson/Star Tribune/4.3.03
Potential for Organized Crime: Additionally, the Department of Justice has a concern about the potential for the involvement of organized crime in Internet gambling. Traditionally, gambling has been one of the staple activities in which organized crime has been involved. Indeed, many of the recent indictments brought against members of organized crime groups have included gambling charges. We have now seen evidence that organized crime is moving into Internet gambling.
Testimony of John G. Malcolm, Deputy Assistant Attorney General, United States Department of Justice Before the Committee on Banking, Housing, and Urban Affairs United States Senates/3.18.03
Drug distributors and users pose a significant threat to public health and safety throughout the state. In 1999, the New York and New Jersey HIDTA conducted more drug investigations in New Jersey than in New York. Despite law enforcement arrests of key members of several criminal groups in New Jersey, traffickers continue to smuggle in large amounts of drugs, which they distribute locally and nationwide. Numerous drug trafficking organizations (DTOs), criminal groups, and gangs transport and distribute drugs to and through New Jersey. Israeli and Russian criminal groups transport other dangerous drugs (ODDs), particularly MDMA, (3,4-methlyenedioxymethamphetamine) to New Jersey where OMGs, teenagers, and young adults then control most of distribution in the state. Several street gangs are involved in drug distribution and violent crime throughout the state. Survey responses to the National Drug Intelligence Center (NDIC) National Street Gang Survey Report 2000 illustrate that most of the 19 reported street gangs in New Jersey distribute drugs and commit violent crimes, including assaults, drive-by shootings, and homicides. The Bloods, Latin Kings, and Ñetas street gangs and Five Percenters, a cultural group, are the most prominent (have the most chapters). All distribute cocaine, heroin, and marijuana from Jersey City and Irvington, New Jersey. The money laundering problem is exacerbated by the casino industry in Atlantic City. Corrupt casino employees facilitate money laundering activities. Drug money launderers also use Atlantic City casinos to convert cash into casino chips or tokens and draw checks on casino bank accounts. The importance of casinos in money laundering is difficult to quantify at present. A money laundering commission was established to more closely monitor these issues.
"New Jersey Drug Threat Assessment"/National Drug Intelligence Center/May, 2001/
RALEIGH -- A judge said Friday the former state transportation chief could stay out of jail after he and his father were indicted on illegal gambling and money laundering charges. Former state Department of Transportation secretary Garland Garrett Jr., 62, and his 84-year-old father, Garland Garrett Sr., were indicted Wednesday. They face 246 charges related to a video poker machine business they owned in southeastern North Carolina.
"Garrett free on bond in gambling case"/charlotte.com, AP/12.22.01
The former Michigan and Detroit Country Day star is known back home as the man who allegedly received $280,000 (all funds US) from booster Ed Martin, tarnished his school's image and is scheduled for a July trial on charges of obstruction of justice and lying to a federal grand jury. Martin, who died last month, pleaded guilty last May to conspiracy to launder money, admitting he took gambling money, combined it with other funds and lent it to several players while they were still amateurs.
"Webber looks forward to going home"/waymoresports.com/3.29.03
Laundering is made easy for criminals due to immense numbers of offshore casinos which fail to comply with international regulations. The idea is simple, an account is set up with a gaming site and the ante is stumped from whatever source. The 'gambler' just decides when he wants to stop gambling (regardless of whether they have or have not placed a wager) and according to a British source close to the fight against money laundering, they casino will then "send out a check or bankers draft made payable to whoever you want." It's estimated that between $600 billion and $1.5 trillion is laundered worldwide annually.
Canada - Last June, a small businessman with a gambling addiction was convicted of passing counterfeit bills at the Niagara Falls casino... Not only have loan sharks operated in the casino, police have broken up a protection racket preying on the loan sharks. Then there was the 1997 trial that revealed international drug smugglers had used the facility to launder more than $2-million. In Windsor, it became known in 1996 that dozens of employees at the local casino had criminal records, and that some had connections to organized crime.
"Heads they win, tails we lose"/Donna Laframboise/NATIONAL POST ONLINE/3.22.01
Canada - Organized criminals, in particular drug traffickers, generate inordinate amounts of cash. Criminals must make their illegally acquired wealth appear legitimate to derive a maximum benefit from their illegal activities. This is called money laundering. #Gambling in casinos Cash may be taken to a casino to purchase chips. After gaming and placing normal bets, chips are redeemed at the cashiers cage where a casino cheque is issued.
Royal Canadian Mounted Police/FINTRAC (The Financial Transactions and Reports Analysis Centre of Canada)/www.rcmp grc.gc.ca/gfx/menus_sub/banner_e.gif
Canada - When the regulations came into effect in 1993, the casino industry in Canada was relatively small and no specific provisions were established in the regulations for this sector. The industry has grown significantly since that time. Given the need to ensure that Canada's anti-money laundering regime remains current and the international consensus on the importance of bringing casino operations under the scope of anti-money laundering efforts, it is proposed that the regulations be amended to cover casinos in Canada.
Government of Canada - Department of Finance/News release 97-060 - Regulations Amending the Proceeds of Crime ... /www.fin.gc.ca/news97/data/97-060_1e.html
Canada - Globally, an estimated $1 trillion is laundered each year, $17-to $40-billion of it in Canada. In the evening, our gangster goes to a casino and gives a few of his associates $10,000 each. Some accomplices in this scheme are just gamblers looking to earn some cash. How it works: Each of 10 accomplices keeps $1,000 as his cut. They buy casino chips with the remaining $9,000, then go through the motions of playing for a while, winning a bit, losing a bit. Then they go to the wicket to cash in their chips. They may be asked to fill out forms and show identification before they are issued their cheques for $9,000, but as they are not drug lords this doesn't bother them. The mobster then deposits all the cheques, in separate accounts in separate banks, saying he's had a big win at the casino. He does this three times over a few weeks. Laundered: $300,000 Casinos can be useful in the money-laundering racket. Over a period of days, dozens and dozens of chip purchases are made by accomplices carrying the mobster's cash. The amounts are kept at less than $1,000, the amount above which most casinos might ask that forms be filled out.
"How To Launder A Million In Eight Easy Steps"/By Adrian Humphreys/The National Post/PAO Police Association of Ontario
EDMONTON, Canada - The rise in legal gambling in Alberta is linked to gambling-related crime, including money-laundering, fraud and counterfeiting, says a new study. City police records indicated casino transactions accounted for 27 per cent of counterfeit money seized in Edmonton during the 18 months of the study. Police also believe casinos provide criminals the opportunity to launder money. "Some of the biggest high rollers in Edmonton are drug dealers," Smith said.
"New study ties gambling to financial crime"/Larry Johnsrude/The Edmonton Journal/4.17.03
Australia - DAVID HARDAKER: Welcome to Sydney's Star City Casino, a place where convicted criminals have a chance to launder vast sums of money and where loan sharks stand over patrons down on their luck. Earlier this year on the 7:30 Report he, and others, went public with their claims of what the high rollers were up to behind the glitzy facade of the casino. MARK WELLS: There's evidence of prostitution taking place, there's evidence of drug dealing taking place there, there's evidence of proceeds of crime being put through the casino. DAVID HARDAKER: Their claims added to revelations that a heroin dealer had put close to $100 million through the casino.
NSW calls for national approach to combat casino crime/Transcript www.abc.net.au/7.30/s170201.htm/8.31.00
MELBOURNE'S Crown Casino paid a triad boss $2.5 million while he was running an international drug network from suites in its hotel. Tong's Crown Casino gaming record reveals he funded his massive gambling sprees with chips worth more than $45 million that he paid for with cash and cheques. Prosecutor Brent Young alleged in court that Tong was laundering money through the casino. He said Tong, eventually arrested in August 1999, and senior gang members Lisa Vuong and Dat Thinh Ong were caught discussing massive heroin deals on listening devices planted in Tong's Crown Towers room. Austrac told the National Crime Authority about Tong's high-living and high-rolling and this prompted detectives from the "Operation Blade" Asian organised crime unit to investigate. It also claims Tong dabbled in people smuggling using the same routes he established for heroin importations. Bugged telephones, constant NCA surveillance and listening devices and video recorders hidden in Crown Towers hotel rooms, helped establish that Tong was using the casino as the headquarters of his drug distribution and money-laundering syndicate.
"Casino feted heroin baron"/By KEITH MOOR/Advertiser Newspapers Ltd/7.26.01
Thailand - Money from the drug trade and other illegal activities is believed to be laundered through several businesses there including the casino. A Thai owned casino has been operating there for a few years.
"Popular way to launder money from drugs and illegal deals"/The Irrawaddy News Magazine/www.irrawaddy.org/database/1997/vol5.4.5/business.html
German police routinely set up checkpoints on roads leading to and from banking havens in Switzerland, Liechtenstein and Luxembourg in order to crack down on money-laundering. These have led to dozens of arrests and millions of pounds in various currencies being recovered and confiscated. Whatever the truth about what went on in Bietingen, Europe is currently facing its worst-ever levels of international money-laundering. Across the world, money-laundering accounts for between 2% and 5% of the world's total economic output, according to the Financial Action Task Force on Money Laundering -- a 31-member inter-governmental organisation under the auspices of the Organisation for Economic Co-operation and Development. In the UK the situation is even worse, with the cost of money-laundering running to around 10% of the nation's gross domestic product, or £100bn a year, according to the National Criminal Intelligence Service (NCIS). One money-laundering racket was exposed when an employee of a casino offered to wash money for a gangster who turned out to be an undercover police officer.
"Dirty money: a global scam"/Sunday Herald/www.sundayherald.com
The border regions in the Golden Triangle formed by the intersection of Burma, Laos and Thailand have long been lawless zones where rebel groups hold sway; the smuggling of drugs, weapons, timber and people flourishes; aids and malaria are rife. Gambling is just the next logical step. Casinos have become the hottest new business for former opium kingpins, mass murderers and shady politicians. Thai military and law enforcement officials say the gambling houses are money laundering operations and that criminals may be using the easy cross-border passage they provide to smuggle people and drugs.
"Bad Boys Abound in 'Vegas East'"/By ROBERT HORN/Time Asia/ 7.24.00
JAKARTA: Corrupt Indonesian businessmen used Australia's high-rolling Christmas Island casino to launder money when it was owned by a crony of Indonesia's former dictator Suharto, a former shareholder believes.
"Casino 'used to launder money'"/The Canberra Times, AAP/ 6.30.02
Aruba plays a significant role as an offshore center for drug-related money laundering. Money laundering organizations are well established on Aruba and enjoy protection from considerable bank secrecy laws and a stable currency. The organizations use Aruba's offshore banking and incorporation systems, free-zone areas, and resort/casino complexes, to transfer and to launder drug proceeds. In 2000, the GOA issued several decrees on money laundering that included increased oversight of casinos and insurance companies. The Netherlands Antilles' large offshore financial sector, bank secrecy, casino/resort complexes, high volume of American and Dutch tourism, and stable currencies make the country conducive to money laundering. Trinidad and Tobago is not an important regional or offshore financial center. However, drug traffickers reportedly have laundered money using overvalued purchase prices, real estate, casinos, stockbrokers, insurance companies, and other nonfinancial establishments.
"The Drug Trade in the Caribbean: A Threat Assessment"/U.S. Drug Enforcement Administration/This report was prepared by the Strategic South America/Caribbean Unit (NIBC) of the Strategic Intelligence Section of the Office of International Enforcement Support. The Attorney General has determined that publication of this periodical is necessary in the transaction of the public business required by law of the Department of Justice./ August 2001
The criminal's choice of money laundering vehicles is limited only by his or her creativity. Money is laundered through currency exchange houses, stock brokerage houses, gold dealers, casinos, automobile dealerships, insurance companies, and trading companies. A review of SARs filed by gaming establishments reveals patterns of suspicious activity in which casino accounts are used to transfer significant amounts of funds through non-bank financial transaction channels. The funds are cashed out by the client or moved to other accounts with minimal or no gaming activity. Variations on this theme involved an initial deposit by wire or bank cashiers check, but then the funds would be wired out to another account. The funds were then stored for a period of time in a casino safety deposit box or held in the form of safekeeping markers, and then cashed out. In several instances the client was observed transferring chips to other individuals to cash out, as well as cashing out a greater amount than held on deposit (with no gambling winnings to account for the excess amount). The growing number of casinos also could become venues for money laundering. (Belarus) Dominican banks and casinos also are used to launder funds. Italian organized criminal groups-particularly those in the southern part of the country-continue to engage in narcotics and alien smuggling, contraband cigarettes smuggling, extortion, usury, and kidnapping, and launder the proceeds of these activities through Italian banks, casinos, real estate, and the gold market. The Principality of Monaco is not a regional financial center. However, it is considered vulnerable to money laundering because of its strict bank secrecy laws and extensive network of casinos. Russian organized crime and the Italian Mafia reportedly have laundered money in Monaco. Polish currency exchange businesses and casinos also are venues for money laundering.
"Money Laundering and Financial Crimes"/About the State Department Press and Public Affairs Travel and Living Abroad/globe U.S. Department of State/ freedom.orlingrabbe.com/money_laundering/ml_intro2000.html