Casino’s AML and Reform is the New Buzz Topic in Gambling Centres
The global gambling regulatory agencies that govern the course of casino industry gambling around the world renew their focus on reforms and AML protocols. The increased scrutiny being put on casinos around the major gambling centres is focused on the two aforementioned primary issues. It’s become a necessity for this industry to rapidly clean up its act, and there is no greater means to achieve that than the current focus being accrued against anti-money laundering protocols, and the reform agendas that have been promised by the industry’s biggest moguls.
After a couple of major international scandals in the global casino industry, the regulators and law enforcement tasked with keeping order have been forced to act – bringing a wave of tighter and stricter control mechanisms. ©Tumisu/Pixabay
Global regulators are driving the pressure on big gambling business operators following several years of crackdowns against those failing to meet the standards legally enforced on industry participants. Cases of blatant money laundering criminality and misconduct at several of the world’s most popular and successful casinos has renewed interest from regulators. Scrutiny is on the rise, and the combined force of global law enforcement is slowly being dragged further into the fold.
Crown Resorts is perhaps one of the most notorious cases in the developed world of a big casino business lending itself as a tool for criminals to execute their day-to-day operations. After turning a blind eye to money launderers at several of its venues in Australia, the Crown leadership was drastically overhauled and slapped with a series of legal and regulatory sanctions – its future still hangs in the balance as the aftermath of this case is dealt with from the side-lines by new management teams and shareholders.
Law enforcement have not taken lightly to the seemingly brazen nature of the criminality at some of the venues listed in the filings. Some are considering the threat of exploitation at national casinos to be one of the biggest threats to national security currently in existence. Given the highly lucrative nature of the crime, there is a large degree to which the criminals are willing to go to protect their dominance in the market.
Risks & Regulation on the Rise for Macau and Australian Operators
The government of Macao has already taken initial steps to grant the executive of its law-making authority the power to reign in the licenses granted to casinos operating in the region, the powers have been granted under an initial proposal of national security. Operators could be forced to reduce the amount of people allowed to visit their venues at any given time, or pay more taxes in what would be seen as a sudden hike on the rates that are currently applicable to the participating businesses across the city.
The enforcement of higher taxes on casinos in Macao has been causing a great deal of concern, particularly with casinos that are fearful of a return to the high paying tax days of the past, when the industry was seen merely as a quick and easy way to diversify the public tax burden. Given the enormous financial difficulties the casino business has faced in the short-term, it’s certainly no surprise that the bosses of the city’s biggest casinos have been eager not to break any rules levied upon them. The biggest breakthrough in the criminality surrounding this whole saga would have been the arrest and incarceration of Alvin Chau.
Elsewhere in Australia, and it has been much of the same as controversy and criminality reared their head in the most unlikely of places. When Australia came to terms with the fact that perhaps two of the largest and most trusted gambling brands in Australia had been party to a complex ring on money laundering, many believed that it may be the end for the operators. The Star management team had been caught playing along with a money laundering plot that saw over $900 million moved through the casino’s bank accounts, and Crown Resorts had seen hundreds of millions processed illegally on China UnionPay cards.
In the aftermath of these crimes, the states of Victoria and Queensland have been hot to pursue the loose ends on both sides of the table. Introducing more regulation to combat the reoccurrence risk of these crimes has already been introduced. Expansion of regulatory reporting requirements, stricter compliance, and tougher penalties for violations are all on the table – finding their way towards a joint package of deterrence measures.
