A recently released, previously confidential report indicated River Rock Casino Resort south of Vancouver, British Columbia, Canada, a favorite of wealthy Asian gamblers, was investigated for potential money laundering after it accepted million in unsourced cash in the single month of July 2015. That caught the attention of the B.C. Gaming Policy and Enforcement Branch. Provincial Attorney General David Eby said, “I received a series of briefings that caused me to believe that our province could do more to combat money laundering at B.C. casinos. I am making that report public today.”
River Rock owner Great Canadian Gaming Corporation said in a statement it strictly follows all regulatory requirements.
An independent examiner conducted the investigation into cash transactions and play records from September 2013 to September 2015. Their 400-page report stated, “Reasonable grounds to suspect money laundering activity through the use of unsourced funds has been confirmed. While the patron may be bona fide, the unsourced cash being accepted by the casino may be associated with criminal activity.”
The report said, “The majority of this cash is being presented by persons commonly referred to as high roller Asian VIP clients,” many of whom are non-residents or businesspeople with interests in Vancouver and China. Patrons would receive cash believed to be connected to illicit activity via late-night drop-offs at the casino or just outside the property. Gamblers would call a local contact for cash delivery that would later be repaid through cash holdings in China, the report said, noting Chinese patrons likely used funds from underground banks to evade currency controls at home. Chinese citizens have an annual foreign-exchange quota of $50,000; in the past year, Chinese officials have tightened regulations to control capital outflows and violations.
The report said River Rock Casino “fostered a culture accepting of large bulk cash transactions.” Casinos must file reports on cash transactions of more than C$10,000, but it’s up to the venue to follow up on suspicious transactions or to ban high-risk patrons. During the two-year period under investigation, River Rock reported 54,187 large cash transactions but only filed 1,194 suspicious transaction reports and 1,209 prohibition bans, the report stated.
Eby said, “We are serious about doing everything we can to identify money-laundering activities, and ensure policies are in place to prevent it from occurring in B.C. casinos.” He stated he soon would appoint an independent expert to review money laundering in the province.
Meanwhile, Paragon Gaming’s new Parq Casino opened in downtown Vancouver last Friday, September 29. Observers said it and all of the province’s casinos are on the verge of a new era of oversight and disclosure.
