Updated: FIU Money Laundering Report Released
The Financial Intelligence Unit's recent annual report revealed a huge increase in money laundering cases in 2019, with a 49% jump compared to the previous year. A significant number of the reports came from gambling sector. It's mandated that operators in this field take steps to prevent such activity.
In their report, the German central authority for receiving, collecting and evaluating money laundering reports highlighted significant growth in suspicious cases, with over 37,500 more reports received than in 2018. This marks a growth of around 49%. Since 2009, the volume has nearly quadrupled. The FIU acknowledged that the legal requirements have had a positive impact on banks and payment service providers' vigilance.
Distinctively, officials divided these reports between financial and non-financial sectors. In this case, 98% of the total came from the financial sector, generating an additional 35,000 reports compared to the preceding year. Furthermore, they split these statistics between authorities and other obligated parties, some of which are gambling providers.
The number of registered obligated parties in the gambling sector increased from 45 to over 300 within a year. The FIU mentioned that these operators utilize their website to access relevant information and enhance their understanding of money laundering prevention. The report emphasizes that registration indicates potential suspicious activities, but not necessarily their occurrence.
Reported cases from the non-financial sector increased disproportionately, with a 150% surge. With 24 reports stemming from the gambling sector in 2018, there were a total of 116 such cases in 2019. This increase is partly attributed to the involvement of registered obligated parties at trade fairs, such as AdvocTec and DKM. Many attendees used these events to gain a comprehensive understanding of the regulatory landscape.
The gambling industry provides multiple options for money laundering through its branding, partner companies and high turnover rates. Additionally, using cash transactions under the 2,000 euro identification threshold increases the risk of criminal activity. According to the FIU report, there was a rise in reports of fictitious accounts and high transaction amounts exceeding the reporting threshold.
Cryptocurrencies like Bitcoin also saw a rise in reports, with 760 suspects identified in 2019. The risk lies in transferring funds to foreign trading platforms. Online gambling experiments have long utilized cryptocurrencies.
The head of the FIU, Christof Schulte, welcomed these improvements. "The rising number of suspicious transaction reports submitted to the FIU demonstrates the effectiveness of the FIU's extensive sensitization and coordination efforts. The epidemic has increased attention towards identifying suspicious circumstances in connection with possible money laundering and terrorist financing," he said.
Schulte emphasized that only valuable cases will be passed to law enforcement agencies to ensure efficient use of their resources. He highlighted the need for strong collaboration among all parties.
The gambling industry is taking this issue very seriously and actively combating corruption and gambling manipulation, closely linked to money laundering. The MGA recently implemented new gambling regulations. Additionally, a Europol report highlighted the magnitude of illegal betting scams, urging closer public-private cooperative efforts. The EU police agency noted estimated annual proceeds of 120 million euros primarily stemming from lower gaming classes.
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Source: www.onlinecasinosdeutschland.com
