Money launderers have found a new way to clean their ill-gotten gains, according to Canada’s financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (Fintrac). In a recent warning, Fintrac has raised concerns about the increasing use of online gambling sites by criminals to launder money.
The agency’s spokesperson, Hannah Jones, explained that online gambling sites have become an attractive option for money launderers due to the ease of transferring funds and the lack of regulation in the industry. “These sites offer anonymity and convenience, making it difficult for authorities to track and monitor suspicious activities,” she said.
According to Fintrac’s latest report, there has been a significant increase in the number of suspicious transactions involving online gambling sites in Canada. Many of these transactions involve large sums of money being deposited and withdrawn quickly, with little or no actual gambling taking place. This pattern, known as “smurfing,” is a common tactic used by money launderers to avoid detection.
In one recent case, a criminal organization was able to launder over $1 million through online gambling sites in just a few weeks. The funds were transferred between multiple accounts before being withdrawn as clean money, making it nearly impossible to trace the origin of the proceeds.
Fintrac is working closely with law enforcement agencies and online gambling operators to combat this growing trend. The agency has implemented new guidelines for reporting suspicious transactions and has increased its monitoring of online gambling activities. “We are committed to identifying and disrupting money laundering activities in all forms, including through online gambling sites,” Jones said.
Authorities are urging the public to be vigilant and report any suspicious activities they may encounter on online gambling sites. By working together, they hope to stop money launderers in their tracks and protect the integrity of Canada’s financial system.
