Sports Betting: Recent Money Laundering Scandals Shake Global Gambling Markets
Date Published: October 27, 2023, 06:47h
Last Updated: October 27, 2023, 06:47h
Money laundering continues to plague the global gambling industry, with recent busts in Singapore shedding light on the involvement of Chinese criminal gangs. As increased international scrutiny exposes their activities, these gangs are starting to crumble like dominoes.
In addition to Singapore, countries like Australia, India, and Italy have also cracked down on money laundering activities. However, the United Nations Office on Drugs and Crime estimates that this underground market is worth a staggering $2 trillion annually, making it difficult to eradicate completely.
To combat this widespread problem, anti-money laundering (AML) efforts are projected to cost a substantial $4.10 billion by the end of the decade, according to Data Bridge Market Research. This represents over a 300% increase from current spending levels.
Spain Part of the List
In September, Spanish authorities dismantled an international criminal group responsible for laundering money across Europe and Asia on behalf of drug traffickers. The arrest of 27 individuals, including Chinese and Albanian nationals, highlighted the extent of their operations.
Reports suggest that the group managed to launder approximately $68 billion in just a year, although the authorities may never uncover the true scale of their illicit enterprise due to the lengthy investigation.
Europol has confirmed the significant roles played by Chinese individuals within the criminal group. Notably, two Chinese agents recruited Asian businesses in Spain, such as Chinese restaurants and independent shops, to facilitate money laundering activities.
Chinese Gangs Lend a Hand to the ‘Ndrangheta in Italy
The month of October witnessed a flurry of anti-money laundering efforts in Italy. Reuters reported the arrest of 33 individuals involved in a massive money laundering scheme, with seven of them being Chinese nationals. This group acted as money brokers and laundered up to $53 million for various criminal organizations, including the ‘Ndrangheta mafia.
Italian authorities are confident that their operation has only dismantled approximately 20% of the money laundering network, indicating the presence of more individuals and a larger operation than initially thought, as explained by Colonel Francesco Ruis of Italy’s Guardia di Finanza.
Australia Breaks Up Long River Gang
The Australian Federal Police (AFP) recently seized over AUD50 million (US$32 million) in assets and arrested seven individuals connected to a money laundering syndicate known as “Long River.” Among the detainees were four Chinese nationals and three Australian citizens.
Authorities suspect that the syndicate, believed to be of Chinese origin, laundered criminal proceeds amounting to AUD229 million (US$145.07 million) derived from cyber fraud, the trafficking of illegal goods, and involvement in violent crimes through a major money remittance service named “Changjiang Currency Exchange” in Australia.
This marks the third instance this year in which the AFP has exposed Chinese-linked money laundering activities. Simultaneously with the Long River arrest, another Chinese national was apprehended for allegedly utilizing an Australian crime syndicate to launder AUD100 million (US$63.35 million). Additionally, in February, the AFP pressed charges against nine members of a Chinese-Australian money laundering syndicate, resulting in the seizure of assets valued at over AUD150 million (US$95.02 million).
India Deals With Major Scandals
India has not been immune to money laundering scandals, with the recent apprehension of four individuals, including Guangwen Kuang, a Chinese national serving as the head of administration at Vivo, a prominent phone manufacturer.
In a separate case, Indian law enforcement has filed criminal charges against Vivo and its competitor Xiaomi for their alleged involvement in the illicit transfer of funds to a news portal currently under investigation for disseminating Chinese propaganda.
Vivo, owned by China’s BBK Electronics, holds a significant market share in India’s smartphone industry. With 17% of shipments, the company plays a vital role in the Indian market.
Another money-laundering scandal involving India and Dubai has emerged. Indian authorities have charged 14 individuals connected to the illegal sports betting app “Mahadev Book,” with nine suspects still at large. The app, launched by two Indian entrepreneurs but based in Dubai, allegedly generated profits of up to $24 million per day and utilized a network of individuals throughout Asia, including China, to launder the illicit proceeds.