In a move to curb illicit cross-border money transfers related to gambling, China’s tough crackdown has inadvertently funneled criminal entities towards numerous casinos and online gambling forums across Asia. This rhetoric came from a seasoned official of the United Nations, shedding light on the deeply-rooted issues of illegal currency exchanges shrouding the gambling industry.
Situated across the Lower Mekong River, casinos in Laos and elsewhere have become vulnerable hotspots for money laundering. Benedikt Hofmann, the deputy representative for the UN’s Office of Drugs and Crime in Southeast Asia and Pacific regions, brought this issue to light through his address to Voice of America.
In 2013, Macau casinos hit a record jackpot, leveraging an astounding $45 billion off gamblers. However, China’s President Xi Jinping harboured concerns over the connection between this overwhelming wealth and criminal activity. The massive financial exodus through Macau, an infamous tax haven, set off alarm bells regarding China’s national security.
With the Chinese government hot on their heels, money launderers have rapidly shifted their base to other parts of Asia. Tracking the intricate trails of money, Hofmann indicated that Cambodia, Laos, Myanmar, Thailand, and Vietnam have emerged as prime destinations for these illicit operations. The surge in annual gaming revenue in these countries coincides with China’s stringent crackdown on junket groups facilitating mainlanders’ visits to Macau.
The COVID-19 pandemic further precipitated this move, leading to an increased online circulation of dirty money through offshore gaming platforms that lag in money laundering safeguards. The anonymity, limited regulation and international reach inherent to online gambling lures those aiming to disguise shady transactions.
The emergence of online gambling has amplified Southeast Asia’s historic involvement in money laundering, creating unforeseen escalation. Addressing money laundering at an international level is integral to global peace and economic balance. The UN is making strides to rectify this issue, leveraging the Global Program Against Money Laundering (GPML). Each nation on the Lower Mekong is an affiliated UN member, and therefore a central focus for this initiative.
Even closer to home, the Philippines recently fell short on adequate money laundering protection, leading to the Financial Action Task Force placing it on their “Increased Monitoring” list. However, the nation’s president stands firm on his pledge to implement robust money laundering safeguards.
Now, having touched on the global issue of money laundering and its relevance to the gambling industry, it’s natural that our readers might be wondering how to navigate the online gambling scene while staying safe and legal.
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