Money Laundering Counter-Measures in Casinos

Year
2019
Number
B85
Sponsor(s)
Delta

Whereas there is credible evidence that links casinos in British Columbia to organized crime and money-laundering on a very large scale; And whereas the current regulatory and monitoring system has failed to stop money fraud in BC casinos: Therefore be it resolved that the BC Government be requested to take immediate steps to address money laundering in casinos, and to undertake an evaluation of cashless gaming systems, whereby account-based card technologies are used to verify player identity and track gambling transactions on all gaming devices.

Provincial Response

Ministry of Attorney General The Government of BC and the BC Lottery Corporation BCLC are committed to keeping dirty money out of casinos and have taken immediate action to prevent money laundering in BC Our goal is to eliminate money laundering through targeted actions and tools to be able to identify, prevent, enforce and disrupt this illicit activity. In September 2017, Attorney General David Eby appointed Dr. Peter German to review the provinces anti-money laundering practices and policies in the gambling industry and released his report and 48 recommendations in June 2018. Work is underway on all recommendations, including 17 that have been fully addressed. In January 2018, based on Dr. Germans recommendation, our government implemented a new policy requiring every casino customer who tries to buy-in with cash of 10,000 or more within a 24-hour period to provide documentation showing the source of those funds. There has already been a dramatic decrease in suspicious transactions and large amounts of unsourced cash entering BC casinos. The Gaming Policy and Enforcement Branch has also created a dedicated Enforcement Division and has hired additional investigators to be deployed at casinos during peak times. The BC Lottery Corporation is seeking an enhanced AML software solution that will enable it to continue to meet its reporting and regulatory requirements for recently implemented and anticipated new AML controls. The system will enable earlier detection and reporting while integrating and extending existing reporting capabilities, intelligence and analytics. The BC Lottery Corporation is actively analyzing options for account-based play, including carded play and a digital wallet for the player. There are a range of account-based gambling options with various levels of complexity and scalability. BCLC and Government will consider these as part of our shared commitment to ensure the continued safety and security of BC casinos, increase non-anonymous play, reduce reliance on cash on the gambling floor, and combat money-laundering activity.

Convention Decision
Endorsed