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Sports Gambling – A Growing Money-Laundering Risk

A Report by CYS Global Remit Legal & Compliance Office 



In a recent article from the Wall Street Journal, the spotlight fell on the risks associated with online gambling, particularly its potential to facilitate money laundering through significant financial transactions, global operations, and anonymity.  Addressing these risks necessitates a steadfast commitment to a comprehensive strategy, incorporating regulatory frameworks, strengthened due diligence protocols, and advanced technological interventions.  

  

As a cross-border payment service provider, CYS Global Remit faces the labyrinth of challenges in combating money laundering through sports gambling, it requires a multi-faceted approach involving regulatory measures, industry cooperation, and technological solutions.  Here are several strategies CYS Global Remit adopted to address this issue effectively.  

  

Customer Due Diligence (CDD)  

Customer Due Diligence (CDD) entails comprehensive procedures to verify the identities of individuals and evaluate their risk profile.  This involves collecting identification documents, conducting background checks, and monitoring user activity for signs of suspicious behaviour.  

  

Transaction Monitoring  

Implement automated systems to oversee financial transactions within online gambling platforms, specifically targeting unusual or suspicious activity. This entails monitoring significant deposits, withdrawals, and transfers, along with identifying transaction patterns that may suggest potential money laundering activities.  

  

Enhanced Due Diligence  

Strengthen Know Your Customer (KYC) protocols for high-risk customers, particularly those involved in substantial transactions or exhibiting atypical behaviour.  This might entail conducting additional verification checks, gathering more extensive information, and implementing ongoing monitoring of high-risk accounts.  

  

AML Training and Awareness  

Implement training and awareness initiatives for employees to educate them about the risks of money laundering and how to recognize suspicious behaviour.  Instruct employees to promptly report any unusual activity to designated compliance officers.  

  

Technological Solutions  

Harness advanced technological solutions such as artificial intelligence and machine learning algorithms to detect and prevent money laundering in real-time.  These technologies have the capability to analyse large volumes of data and identify patterns indicative of illicit financial activities.  

  

Collaboration with Law Enforcement 

Promote collaboration among regulatory authorities and law enforcement agencies to share information on money laundering activities. This involves reporting suspicious transactions and cooperating in joint investigations. 

  

By implementing these strategies collectively, CYS Global Remit can mitigate the risk of money laundering in sports gambling and uphold the integrity and credibility of the industry. 



Source: wsj.com

 

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