Let’s say I have 500k in cash from fraudulent activities. It seems like I could just go to a casino and play games in a way that minimises my losses or even, if let’s say I was a big organisation, try to work with some casinos for them to launder my money for a lower fee.
I suppose there are rules in place to prevent this type of activities. But what are they? How is this prevented from happening? It seems like it’s really easy to launder money if I needed to
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Answer: it’s largely not. There are multiple KYC (know your customer) laws in place that provide a veneer of security, like the requirement of a CTR (currency transaction report) on buy-ins or cash-outs exceeding $10,000, or the option of an SAR (suspicious activity report) that is filled out at the discretion of an employee and/or at a lower cash-in/out amount set in policy.
These options are greatly fallible and quite easy for someone with even a baseline understanding of how they work to circumvent them almost entirely. Casinos check and operate at the level they are legally obligated to by US law, and not an inch further. Casinos understand their place in the dark money cycle, and do not wish to alienate gamblers with unsavory sources of income, as it negatively influences their bottom line.
I suspect that this charade will be blown open and closed in our lifetime as anonymous cash transactions are all but completely phased out and any gambling activity will be done 100% verifiably, electronically, and taxed accordingly.
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