A study of casino junkets by the Philippine Anti-Money Laundering Council (AMLC) has revealed multiple instances in which suspicious transactions were not reported, despite clear evidence that they took place.
According to Inside Asian Gaming, the study identified non-reporting as a leading risk for the country’s casino sector, and stated, “Suspicious Transaction Reports filed by high-risk integrated resorts echo the need to strengthen the AML/CFT controls in the casino sector.”
The study cited just two instances, both associated with an unidentified resort referred to as “Casino A.”
In the first case, “Junket 1” was required to submit daily reports on suspicious transactions, whether they took place or not. While Junket 1’s reports consistently denied suspicious transactions, a review of video footage verified that more than 20 deposits totaling US$29 million in cash were made to a single account over a three-month period.
In the second instance, between Casino A and Junket 2, large transactions were made by individuals who did not then go on to gamble. In that case, the casino terminated its agreement with Junket 2 for breaking the rules.
The AMLC identified four things to watch for to prevent these transactions, which have been linked to money laundering and terrorism financing:
- non-reporting of transactions in violation of casino-junket agreements;
- involvement of junket operators in criminal conspiracies;
- buying a large amount of chips with small-denomination currency, but not using them to gamble;
- financial transactions that aren’t commensurate with declared sources of funds
“The heavy use of physical cash by casino players of covered and suspicious transactions by certain casino junket operators contributes to the [issue],” the AMLC said, “coupled with the non-reporting vulnerability of high-risk integrated resorts to money laundering risks.”
