\nThe number of cases reported to police by provincial regulators doubled between 2011 and 2013<\/p>\n
\tTwo years after steps were made to stop money laundering through B.C. casinos, the problem appears to have worsened.<\/p>\n
\tOn Thursday, Finance Minister Mike de Jong acknowledged that reports of suspicious transactions at government-licensed casinos has more than doubled since a 2011 government audit identified lax rules in how B.C. Lottery Corporation reports suspicious transactions.<\/p>\n
\tSince 2011, BCLC and the province\u2019s gaming policy and enforcement branch have tightened up how they report and deal with large transactions that could be money-laundering. In 2011, the branch forwarded 459 suspicious cases to police for investigation. By 2013, the number had jumped to 1,013.<\/p>\n
\tIn an interview, de Jong acknowledged that some casino and enforcement branch staff are frustrated and said he, too, is unhappy with the continuing perception that B.C.\u2019s casinos are a haven for money launderers.<\/p>\n
\t\u201cWhat I am detecting is a degree of frustration on the part of some officials who collect that information, forward it on and lose track of what becomes with it,\u201d he said.<\/p>\n
\t\u201cThere is training for staff and there are initiatives designed to move folks who gamble and participate in gaming away from a cash-based system to electronic transfers, which is by far and away the easier way and better way for this to happen. But we\u2019re clearly not there yet and there are still these examples that raise eyebrows, and you can understand why they raise eyebrows.\u201d<\/p>\n
\tUnder Canadian and B.C. laws on proceeds of crime, money laundering and terrorist financing, casino staff are supposed to log and report transactions of $10,000 or more. Often, legitimate gamblers bring in large amounts of cash. But over the years, casinos have also been seen by criminals as an easy way to launder dirty money, by converting a large amount of cash into chips (or putting the cash on account with the casino), using a small portion of them at tables and then cashing out and asking for cheque.<\/p>\n
\tOn Wednesday, CTV reported that none of the 1,013 suspicious cases reported to the RCMP last year resulted in charges. Citing confidential documents it obtained from the enforcement branch, it reported several cases in which individuals brought hundreds of thousands of dollars of cash into Great Canadian Gaming\u2019s River Rock Casino in Richmond.<\/p>\n
\tIn one 2012 case \u2014 after BCLC had tightened its rules \u2014 a man described as \u201cMr. F\u201d brought $200,000 in $20 bills into the casino\u2019s VIP room. The report cited by CTV said the man had once brought in $1.6 million in a single month and had a long history of suspicious transactions. The enforcement branch believed the man and others were being supplied by a source with large amounts of money.<\/p>\n
\tThe accounts are similar to ones media reported in 2011 that triggered a government investigation that found loopholes in BCLC\u2019s structure for reporting suspicious transactions. The review found that the lottery corporation didn\u2019t consider gambler losses as a sign of money laundering, a viewpoint at odds with police and other experts who said criminals were willing to absorb small losses as the cost of laundering dirty cash.<\/p>\n
\tIn a statement in 2012, BCLC said it had changed its views and was working more closely with police. It said it had also enhanced its anti-money laundering programs by:<\/p>\n
\t\u2022 Marking cheques returning unspent balances to patrons as \u201cReturn of Funds \u2014 Not Gaming Winnings\u201d as a way of foiling launderers from claiming they earned it through gambling.<\/p>\n
\t\u2022 Allowing patrons to link bank accounts to their casino accounts, and buying chips through debit cards to reduce the amount of cash being brought into the facility.<\/p>\n
\t\u2022Improving training of staff to identify and report suspicious transactions.<\/p>\n
\tDe Jong\u2019s office said it believes that training may be why there has been a rise in the number of suspicious transactions reported. It said the minister is also considering banning cash transactions of $100,000 or more at casinos since other, more secure methods of deposit are available.<\/p>\n
\tThe renewed attention to potential criminal activity in the province\u2019s casinos come a year after BCLC was accused of under-reporting large cash transactions.<\/p>\n
\tAn audit by the gaming enforcement branch in 2012 found that for the prior three years BCLC has not complied with rules issued by the Financial Transactions and Reports Analysis Centre of Canada. Fintrac requires reporting of smaller, repeat transactions that cumulatively make up more than the $10,000 threshold for reporting.<\/p>\n
\tAlthough the lottery corporation has properly reported single cash transactions of $10,000 or more, it has a difference of opinion with Fintrac over how multiple transactions submitted by the same person within a 24-hour period totalling more than $10,000 should be reported.<\/p>\n
\tIn 2011, the federal agency fined BCLC nearly $700,000 for errors made in more than 1,000 reports. On Thursday, de Jong\u2019s office confirmed that case has is still before the courts.<\/p>\n
\tThe lottery corporation has also come under criticism from the RCMP\u2019s proceeds of crime division for not reporting some of the large cash transactions as suspicious transactions. The RCMP did not respond to a request for comment.<\/p>\n
No replies were posted for this topic.<\/p>\n","protected":false},"excerpt":{"rendered":"
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