The recent money-laundering scandal has prompted British Columbia newly-elected government to call for tough new anti-money laundering rules in an effort to crack down on money laundering. This Tuesday, British Columbia’s Attorney General David Eby made public Peter German’s first two interim recommendations. According to the new set of rules, the casino operators will be required to present Source of Funds Declarations to prove the source of the funds that their customers deposit. Furthermore, Gaming Policy Enforcement Branch (GPEB) representatives need to be available around-the-clock at the high-limit gaming facilities in order to ensure better control on the big money that flows through the Lower Mainland casinos.
After the money laundering scandal, which engulfed the whole casino industry in flames, the new B.C. government promised to reduce the risk of organized crime laundering funds. To do so in the most efficient way, Attorney General David Eby appointed the former deputy commissioner of the RCMP and Correctional Service Canada Peter German as an independent expert to investigate the money laundering case and present a final report by the end of March next year.
This morning, the gambling community woke up to the news that the first set of recommendations is already released. Yesterday, Mr. Eby announced that the government is to implement them as soon as possible as part of the upcoming money laundering crackdown. He added that Mr. German did not provide any specific details regarding his ongoing investigation, but he only alarmed about suspicious transactions at B.C. casinos.
What Does the Set of Recommendation Say
The self-regulated B.C. casino industry has become an easy target for the money launderers, who used to conceal their ill-gotten gains and make them look like legitimate. However, the B.C. government already started to look for an efficient solution to the problem. Casino Reports have produced a number of articles, that are centered around the money laundering problem in B.C. casinos. Last week, it emerged on the surface that the British Columbia Lottery Corp. (BCLC) is given more power to oversee the industry in the province and sanction wrongdoers.
Apart from giving more power to BCLC, the new government announced that it is to unveil a serious money laundering clampdown. The crackdown is awaiting Peter German’s report and his recommendations, which is to introduce by 31st March 2018. As aforementioned, the first two set of recommendations is already introduced and the government will waste no time to introduce them.
The casino operators will have to complete Source of Funds Declarations for cash deposits of C$10,000 or more. These declaration is to require information about the customer, the source of the funds and the financial institution and account where the money comes from. What is more is that the casino will be allowed to accept two large deposits from the same customer only in case that the cash is verified as legal. Under the other condition, the non-stop presence of a regulator, who will be tasked with overseeing the practices at the casino.