The spectre of money laundering by casinos, however inadvertently, raises its ugly head even in well-regulated jurisdictions. Not so long ago the casino industry in South Africa was accused of not doing enough to ensure that proceeds from heists could not be made legitimate through gambling. More recently New Zealand’s casinos have been under investigation for money laundering and loan sharking. In many countries around the world there are now strict legal requirements to report suspicious transactions as well as record buy-ins over certain amounts.

The casino mecca Macau is often named as a hot-spot for money laundering. In 2006 a US State Department report said that Macau still had a long way to go in its fight against money laundering, and urged that bills submitted to the Legislative Assembly after years of drafting be implemented. By August that year laws were passed requiring casinos and other financial institutions to report suspicious transactions. However, keeping track of transactions is difficult as most Macau casinos employ junket operators who provide credit facilities to high rollers who do not then have to navigate local currency controls.

Money laundering is usually associated with organised crime and terrorism. News from Thailand adds another aspect – political manipulation. The Thai authorities believe that large amounts of cash coming through Burmese casinos will be used to buy votes against the draft constitution referendum on Sunday. Soldiers on the northern border have set up checkpoints to apprehend those with bogus casino winnings. There is also concern that the same tactics will be employed at the next general election.

Of course it is not just casinos that are the focus of attention of those attempting to clean money obtained illegally. The property market is also a useful tool, as are luxury automobiles. Governments may comply with international efforts to contain the problem and issue new Finance Acts, but it is estimated that funds generated by money laundering are still being deposited in offshore centres at a rate that exceeds US$500 billion annually. (E-08.15.07)

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