International risk posed by gambling networks and illicit financial activities
Title: Organized Crime Threatens Global Stability Through Gambling Activities
ICYMI, a recent UN report reveals that criminal organizations in the gambling sector pose a considerable threat to the financial stability of nations and public well-being. These bad apples stretch their tentacles beyond conventional gambling, engaging in:
- Money laundering
- Cybercrime
- Negatively impacting mental health
And get this – research hints at a connection between the workings of these criminal structures and the rise of gambling addiction, particularly among vulnerable populations.
The UN zeroes in on the situation in Southeast Asia, where supposed gaming zones are popular spots for money laundering, thanks to ill-gotten gains. Here's a peek at the most common money laundering methods through the gambling industry:
- Shell players: These "players" receive funds from shady sources, followed by a minimum gambling turnover, and culminating in the allegedly "legitimate withdrawal of winnings".
- Cryptocurrency: It's the go-to tool for concealing the trail of financial transactions due to its widespread use.
- Cyber fraud: The rise of online gaming has seen a parallel growth in the development of cybercrime like phishing, account hacking, and betting fraud.
Shortcomings in Online Gambling Regulation
The UN points out the rapid expansion of online gambling and the easy access to these activities via digital tools. Today, even those excluded from such entertainment in the past, are finding their way into the gaming world.
The primary reasons for this shadow market's growth include:
- Weak or non-existent regulation in some countries
- Using offshore jurisdictions and complex money withdrawal schemes
- The difficulty in tracking cryptocurrency transactions
- Lack of transparent international standards in the gambling realm
Time for International Cooperation
UN experts believe that effective action against these threats can be ensured by setting up a global monitoring and control system over the gambling industry's cash flows. Particular focus should be on combating cyber fraud and tightening control over digital transactions.
UN document states.
So, what's the deal with global gambling-related crime? Let's dive deeper into ongoing measures, challenges, and the future direction of international cooperation.
[1] S. Harper, "Cambodia Puts Pressure on Online Gambling Agencies," Southeast Asia Globe, April 10, 2019, sea-globe.com.[2] United Nations Office on Drugs and Crime, "The Internationalization of Organized Crime in Asia," UNODC, December 2019, unodc.org.[3] S. Harrington, "How Chinese Police Took Down the Largest Cybercrime Group in History," ZDNet, November 14, 2018, zdnet.com.[4] S. Harper, "Migrant Workers in Myanmar Left Vulnerable as Anti-Brokerage Campaign Targets Betting Shops," Southeast Asia Globe, November 22, 2018, sea-globe.com.[5] United Nations Office on Drugs and Crime, "Advancing Transnational Cooperation in the Fight Against Organized Crime in the Southeast Asia Region," UNODC, August 2017, unodc.org.
- The UN report indicates that criminal activities in the gambling sector, such as money laundering, cybercrime, and impacting mental health, pose a significant threat to the financial stability and public well-being of nations.
- In Southeast Asia, supposed gaming zones are popular for money laundering, with ill-gotten gains being laundered through methods like shell players, cryptocurrency, and cyber fraud.
- The rapid expansion of online gambling and the easy access to these activities via digital tools is a concern for the UN, as it contributes to the growth of a shadow market.
- The UN suggests that global cooperation can effectively combat these threats by setting up a monitoring and control system over the gambling industry's cash flows, focusing on cyber fraud and controlling digital transactions.
- There is a connection between the workings of these criminal structures and the rise of gambling addiction, particularly among vulnerable populations, according to research.
- The general news outlets like Southeast Asia Globe and ZDNet have been reporting on measures being taken, such as Cambodia putting pressure on online gambling agencies and Chinese police dismantling large cybercrime groups.
- Policy and legislation surrounding the gambling industry will play a crucial role in addressing these issues, as the future direction of international cooperation continues to evolve.
