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

B.C. Finance Minister Selina Robinson outlines the province’s three-year budget in Victoria, April 20, 2021. (B.C. government video)
B.C. deficit to grow by $19 billion for COVID-19 recovery spending

Pandemic-year deficit $5 billion lower than forecast

FILE – Wet’suwet’en hereditary chiefs have agreed to sign a memorandum on rights and title with B.C. and Ottawa, but elected chiefs are demanding it be called off over lack of consultation. (Thom Barker photo)
Wet’suwet’en hereditary chiefs, Lake Babine Nation get provincial funding for land, title rights

Government says it’s a new, flexible model for future agreements between Canada, B.C. and First Nations.

The property on which a residential school (pictured) that was torn down years ago in Lower Post is to be the location of a cultural centre. (Indian Residential School History and Dialogue Centre photo)
Lower Post residential school building to be demolished, replaced with cultural centre

Project to be funded by federal and provincial governments, Daylu Dena Council

Photo collage of loved ones lost to substance use and overdose. (Photo courtesy Moms Stop The Harm)
B.C. overdose deaths still rising 5 years after public health emergency declared

Moms Stop the Harm calls on B.C. to provide safe supply in response to deadly illicit drug use

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has suspended indoor dining at restaurants and pubs until at least April 19 in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C. sets new COVID-19 daily record with 1,293 cases Thursday

New order allows workplace closures when infections found

FILE – NDP Leader John Horgan, right, and local candidate Mike Farnworth greet one another with an elbow bump during a campaign stop in Coquitlam, B.C., on Friday, September 25, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. won’t be using random individual road stops to enforce travel rules: Safety Minister

Minister Mike Farnworth says travel checks only being considered at major highway junctions, ferry ports

A man pauses at a coffin after carrying it during a memorial march to remember victims of overdose deaths in Vancouver. THE CANADIAN PRESS/Darryl Dyck
B.C. announces historic half-billion-dollar funding for overdose crisis, mental health

Of it, $152 million will be used to address the opioid crisis and see the creation of 195 new substance use treatment beds

Children’s backpacks and shoes are seen at a CEFA (Core Education and Fine Arts) Early Learning daycare franchise, in Langley, B.C., on Tuesday May 29, 2018. THE CANADIAN PRESS/Darryl Dyck
B.C. budget to expand $10-a-day child care, but misses the mark on ‘truly universal’ system

$111 million will be used to fund 3,750 new $10-a-day spaces though 75 additional ChildCareBC universal prototype sites over the next three years.

Mak Parhar speaks at an anti-mask rally outside the Vancouver Art Gallery on Sunday, Nov. 1, 2020. Parhar was arrested on Nov. 2 and charged with allegedly violating the Quarantine Act after returning from a Flat Earth conference held in Geenville, South Carolina on Oct. 24. (Flat Earth Focker/YouTube.com screenshot)
Judge tosses lawsuit of B.C. COVID-denier who broke quarantine after Flat Earth conference

Mak Parhar accused gov, police of trespass, malfeasance, extortion, terrorism, kidnapping and fraud

Ambulance paramedic in full protective gear works outside Lion’s Gate Hospital, March 23, 2020. Hospitals are seeing record numbers of COVID-19 patients more than a year into the pandemic. (The Canadian Press)
B.C.’s COVID-19 infection rate declines, 849 cases Tuesday

Up to 456 people now in hospital, 148 in intensive care

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Christy Clark, who was premier from 2011 to 2017, is the first of several present and past politicians to appear this month before the Cullen Commission, which is investigating the causes and impact of B.C.’s money-laundering problem over the past decade. (Darryl Dyck/Canadian Press)
Christy Clark says she first learned of money-laundering spike in 2015

The former B.C. premier testified Tuesday she was concerned the problem was ‘apparently at an all-time high’

Most Read