Money laundering risks facing Indian casinos
Interesting article from a former agent for the IRS Criminal Investigation Division who worked as an undercover agent in money laundering investigations. He notes that the large amount of cash involved in casino operations makes them vulnerable to exploitation by criminals for money laundering and other fraudulent purposes, and that because Indian casinos, like banks, are defined as financial institutions, they need to comply with money laudering laws and regulations or face liability.
Some requirements the author recommends Indian casinos should follow include:
- Establish internal procedures and controls which assist in identifying money laundering
- Designation of a compliance officer
- Establishment of an ongoing employee-training program
- An independent audit function to test the program.
See here for the full article featuring the author's guidance and recommendations (e.g., “red flags” or identifiers of possible money laundering transactions that casinos need to be on the look out for).