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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Interior Health reported 79 new cases of COVID-19 and two new death in the region Friday, Jan. 22, 2021. (Ben Hohenstatt/Juneau Empire)
79 new COVID-19 cases, two deaths reported in Interior Health

Both of Friday’s deaths were both recorded at long-term care homes

Interior Health reported 91 new COVID-19 cases in the region Jan. 20, 2021 and three additional deaths. (Jennifer Smith - Morning Star)
95 new COVID-19 cases in Interior Health, two deaths

Another member of Vernon’s Noric House has passed

Voting is the number one, bare minimum way to have your voice heard by government. (File photo)
Jocelyn’s Jottings: Want to make change? Here are some suggestions

As a citizen you have a voice, you just have to know who to talk to

Amanda Parsons, a registered nurse on staff at the Northwood Care facility, administers a dose of the Moderna vaccine to Ann Hicks, 77, in Halifax on Monday, Jan. 11, 2021. THE CANADIAN PRESS/Andrew Vaughan-Pool
61 new COVID-19 cases, two more deaths in Interior Health

Twenty-nine people are in hospital, seven of whom are in intensive care

Toronto Public Health nurse Lalaine Agarin sets up for mass vaccination clinic in Toronto, Jan. 17, 2021. B.C. is set to to begin its large-scale immunization program for the general public starting in April. THE CANADIAN PRESS/Frank Gunn
B.C.’s COVID-19 mass vaccinations expected to start in April

Clinics to immunize four million people by September

Sunnybank in Oliver. (Google Maps)
Sunnybank long-term care in Oliver reports third COVID-19 death

The facility currently has an outbreak with 35 cases attached to it

Chief Public Health Officer Theresa Tam speaks during a daily briefing in Ottawa. (THE CANADIAN PRESS/Adrian Wyld)
31 cases of COVID-19 variants detected in Canada: Health officials

Dr. Theresa Tam made announces 13 more variant COVID-19 cases in Canada

Royal Inland Hospital in Kamloops. (Dave Eagles/Kamloops This Week file photo)
COVID-19 outbreak declared at Kamloops’ Royal Inland Hospital surgical unit

Despite 6 South being a surgical unit, RIH said surgeries are continuing at the hospital

Daily COVID-19 cases reported to each B.C. health region, to Jan. 20, 2021. Island Health in blue, Northern Health green, Interior Health orange, Vancouver Coastal in red and Fraser Health in purple. (B.C. Centre for Disease Control)
B.C.’s COVID-19 infection rate stays stable with 508 cases Friday

Vaccine delivered to more than 110,000 high-risk people

Volunteer firefighters from Grand Forks Fire/Rescue head towards the scene of fatal car crash near Gibbs Creek Road, below Highway 3, Thursday evening, Jan. 21. Photo: Laurie Tritschler
Motorist dies in Highway 3 crash west of Grand Forks

City first responders were called to the scene Thursday evening, Jan. 21

Vancouver Giants defenceman Bowen Byram could be playing for Colorado when the NHL resumes play. (Rik Fedyck/file)
Cranbrook product Bowen Byram makes NHL debut with Avalanche

Highly touted prospect marks first pro game following World Junior tournament in Alberta

The District of Saanich’s communications team decided to take part in a viral trend on Thursday and photoshopped U.S. Senator Bernie Sanders into a staff meeting photo. (District of Saanich/Twitter)
Bernie Sanders makes guest appearance municipal staff meeting in B.C.

Vancouver Island firefighters jump on viral trend of photoshopped U.S. senator

School District 57 headquarters in Prince George. (Mark Nielsen, Local Journalism Initiative Reporter)
Prince George school district settles with sexual abuse victim

Terms were part of an out-of-court settlement reached with Michael Bruneau, nearly four years after he filed a lawsuit

Most Read