Sydney’s ‘Mini Casino’ Venues Suspected for Money Laundering

Richard Marley
December 09, 2021
3 minutes read
1980

Sydney’s 10 “mini-casino” poker venues have been suspected of money laundering activities.

According to confidential intelligence uncovered by NSA gaming regulators and organized crime investigators, 10 of Sydney’s “mini-casino” poker venues have been suspected of laundering millions of dollars in dirty cash. These venues had hundreds of poker machines and at least one of them has been used for money laundering activities since 2014.

The regulatory authorities investigations sighted by The Sydney Morning Herald estimated 10 venues account for around 40% of $6 million in suspected money laundering act that organized crime investigators have tracked down over the past weeks. However, according to briefings, most of the money launderers were part of the Vietnamese organized crime group involved in drug trafficking activities. Tax evasion has also been associated with an increase in money laundering.

The investigations indicated that due to significant increase in the number of poker machines, money laundering activities will continue to occur across NSW. The regulatory authorities have also described the money laundering flow;

The “feeder” places immense amounts of black money into poker machines.
After topping up the machines, money launderers quickly cash it out on a ticket and collect the “clean” money.
Multiple “link chasers” gamble huge amounts through linked machines using tainted money to play.
Criminals aim to win the bonuses, then take the jackpot to their organizer to cash in as “clean” winnings.

The sources also stated that the NSA gaming regulator as well as the Independent Liquor and Gaming Authority (ILGA), lacked the tackle to counter money laundering in poker venues, while the local police and Federal Anti-Money Laundering unit “AUSTRAC” lacked the resources to counter the problem.

In a statement, Mr. Perrottet’s stated he was still evaluating the allegations of money laundering made by David Bryne, the chief NSW gaming investigator. He said investigations showed NSW’s 95,000 poker machines were used for money laundering activities. Mr. Bryne also estimated, more than $1 billion from financial crimes is likely being washed through gaming machines.

Mr. Perrottet also stated that the Premier was still considering for further inquiries.“Serious and complex matters have been raised and the government is giving them careful consideration. The NSW government will work with the Independent Liquor & Gaming Authority and stakeholders to ensure offenders are caught and prosecuted,” the statement said.

The Ministry for Customer Service Victor Dominello has also pushed for a commission of inquiry into poker slots utilized in money laundering. The decision is backed by MPs, although government sources said ministries are upsetting venues owners with only a few machines.

“It speaks volumes of undue influence of the gambling industry within the Liberal and Nationals parties that there would be any push to remove Victor from the portfolio while the Bergin inquiry findings are yet to be implemented and allegations of money laundering in clubs and pubs are yet to be fully investigated,” Mr. Field said.

“If Victor is removed before there is a commitment to a Special Commission of Inquiry into money laundering in the clubs and pubs the public would be right to wonder if Clubs NSW and the Hotels Association are dictating the cabinet positions and policies of the Perrottet government.”

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Latest News

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ASIC Expands its Team to Enhance Cryptocurrency Regulations
Australia’s financial regulator has enhanced the size of its crypto team. The crypto regulatory measures include their application for financial services licenses and show that specific crypto platforms have particular liquidity in reserve.

After shifting popular blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) system, ASIC, Australia’s financial regulator, has increased the size of its crypto team.

U.S. Security and Exchange Commission Chairman Gary Gensler stated that PoS-based tokens might be classified as securities.

The decision of ASIC to keep PoS tokens for example Ethereum, Cardano and Solana under its remit will further clarify the situation and enable crypto regulations to be more effective. To cope with the latest regulatory reforms, the crypto exchange must either delist the tokens or start complying with robust crypto laws.

Such moves may force a few crypto firms to manage their operating models. Even the largest stablecoin of the crypto market, Tether, has been caught in a controversy created over the failure of holding enough dollar reserves to back the stablecoin.

The crypto regulatory measures include their application for financial services licenses and show that these platforms have particular liquidity in reserve.

The final decision by the regulator has not been issued yet. Greg Yanco, the executive director for marketers, said that ASIC won’t be a “cheerleader for crypto assets.”

SEC Newgate carried out research the last November. It showed that 44% of Australian retail investors reported holding crypto. Out of these investors, only 20% viewed crypto as high-risk.

The chairperson of ASIC responded and said that the regulators were “concerned that there are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulating crypto-assets to better protect investors.”

According to Yanco, until the last year, cryptocurrency was not such a high priority. Still, due to the decline of cryptocurrency in the previous few years and investors wiped out around the globe, ASIC expanded its team. It made crypto one of its “core strategic projects.”

Suggested Read: Regulatory Authorities to File a New Bill to Secure the Citizens from Cyber Criminal Activities

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Forensic document verification involves incorporation of scientific rules in examining the authenticity of records. There are experts in this field who carry out all the operations using specialized methods. Nowadays, the use of forensics is rising, especially in courts where no document is accepted without authentication. By using several techniques like handwriting identification, ultraviolet light sources, microscopes, photography, and infrared imaging in the laboratories, a document is verified. All the major jurisdictions have formed dedicated institutions which overlook the process of document verification. The American Board of Forensic Document Examiners (ABFDE) is the primary authoritative body responsible for monitoring forensic operations in the US, and any person carrying out these activities anywhere in the country must be a member of this board.

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Sydney’s ‘Mini Casino’ Venues Suspected for Money Laundering

Forensic Document Verification – A New Standard

How Forensic Document Verification is Carried Out?

High-Profile Crime Cases of Document Fraud

Gang Arrested for Printing Fake Documents in Greece

Criminal Network Busted for Distributing Fake Documents

Regulatory Authorities Monitoring Document Fraud

Canada

Australia

Document Forgery Forensic Authentication – Ensuring KYC Compliance

What Shufti Pro Offers?

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Let’s prove your customer’s

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