The CEO of South Africa’s National Gambling Board, Advocate Majake, has commented on the controversial statement made by Reserve Bank Governor Tito Mboweni that casinos undermine attempts to combat money laundering. Peermont Global is suing the Reserve Bank over its refusal to exchange R220,000 (US$29,786) in dye-stained bank notes that were received through casino bill validator machines. More sophisticated bill validating machines are now available, which can detect when notes have been stained with dye following a heist.

The National Gambling Board, a statutory body that regulates and supervises the gaming industry, has responded to the controversy between Reserve Bank and casino operators by reiterating that casinos should not benefit from the proceeds of crime. Whilst accepting that bill validators do not require any physical handling of money, and that the machines are now more technologically advanced, the National Gambling Board supports the Reserve Bank’s case.

Board chairman Chris Fismer has added to fuel to the fire surrounding the controversy by saying that the Board does not support the claim by the casino and that no casino should benefit from the proceeds of crime. So, the National Gambling Board of South Africa, just like the Reserve Bank, maintains that any casino finding dye-stained bank notes will have to absorb the loss. It also agrees with Tito Mboweni that some casinos are not helping police to catch money launders whilst agreeing that casinos generally adhere to requirements regarding prevention of money laundering. (E-09.29.06)

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