FIC Notes High Money Laundering Activities In Casinos In It’s 2023 Money Laundering Report Trend 2023!!
The Financial Intelligence Centre (FIC) has observed an increasing activity of abuse in the casino sector for money laundering and other illegal activities.
In its 9th Money Laundering and Terrorism Financing Trends Report 2023, the FIC noted the high usage of cash in casino operations, with the operating model facilitating the payment of bribes and avoiding the creation of a transaction audit trail. The Centre reported that the lack of a transaction audit trail allowed casino proprietors to under-declare income.
“It was noted that proprietors of casinos were registering their Zambian workers, such as cleaners, home helpers, receptionists, and gardeners, as legal owners of the casino enterprise. This was a scheme to mask beneficial ownership of the casino. Furthermore, it was observed that the majority of casinos had not disclosed their beneficial owners to the Patents and Companies Registration Agency as required,” the report outlined.
Additionally, the report disclosed that some casinos were involved in the illegal cross-border transportation of cash.
“Financial institutions were de-risking casinos; consequently, casinos began to hide their real identity behind false business names to access the financial system,” it stated.FIC suggests the need to strengthen the casino regulatory regime by vetting applicant procedures, including preventing suspected criminals and their associates from holding an interest.
