The British Columbia Lottery Corporation recently announced a strategy to target Chinese high rollers who play more than ,000 per hand. Chief Executive Jim Lightbody stated such players frequently entered the casino with “bags full of money for their buy-ins.”
Some observers are concerned the crown corporation’s strategy of targeting mainly-Chinese high rollers risked money laundering or bypassing China’s annual cash-export limit of $50,000. For example, former Crown Prosecutor Sandy Garossino, now an anti-expanded gambling advocate, said the BCLC is “playing with fire.”
But a BCLC official said the strategy of targeting high-roller Chinese players “centers mainly on tourists and visitors to the country who are here often for business and family visits.” The BCLC official said it was confident in its “comprehensive anti-money laundering program” which includes conducting due diligence on players and reporting all large cash transactions in its casinos. The official noted the BCLC knew about China’s cash-export limits.
Barrister Christine Duhaime, an anti-money laundering expert who advises governments, corporations, casinos and wealthy individuals, said high-rollers in Canadian casinos, unlike Macau, presented “no real risks” of money laundering. “Casinos in Canada are the most regulated business sector in the country. Casinos have vetted high rollers in advance in terms of identity and those clients are well-known to them. If the casino is comfortable with the client, it follows anti-money laundering law procedures and the person can gamble,” Duhaime said.
She noted gamblers with income from non-mainland China could legitimately apply for a permit and circumvent China’s $50,000 annual export limit. “Common reasons a person is authorized to do so include relocation to Canada for immigration, or studying in Canada. In addition, places like the Shanghai Free Trade Zone allow for unrestricted movement of funds,” said Duhaime.
However, she said Chinese high-rollers are not the area to be concerned about: that is the luxury real estate market in Metro Vancouver and Toronto. “People from mainland China routinely buy houses for millions of dollars in cash in Canada and those transactions may be problematic for money laundering. Real estate agents in Canada apply very relaxed anti-money laundering standards on real estate sales.” Duhaime said real estate agents have the same anti-money laundering obligations as casinos “but do not apply the same level of stringent controls. If there is a place where a crackdown is needed, it is with real estate,” she said.
