Greece’s Independent Authority Against Money Laundering has identified over 200 individuals who funneled undeclared money through gambling operators. Among the suspects are high-ranking civil servants, including directors within ministries and public services.
Several betting companies are under investigation for serving as “laundromats” for illicit funds. The Greek Reporter states that at least 10 licensed gambling operators are accused of facilitating money laundering.
According to the authority’s findings, Greek officials placed wagers of up to €1 million (about $1.1 million), which far exceeds their declared income. No individuals or companies have been named in the investigation as yet.
Scheme Used Shops as Deposit Agents
The scheme is said to have involved various businesses that allowed funds to be deposited and then disguised as gambling profits.
Players would first create accounts with licensed gambling operators. The illicit money was then laundered by depositing cash into betting accounts through affiliated retail shops, such as convenience stores and gas stations.
Subsequently, they transferred the funds to personal bank accounts under the guise of legitimate gambling winnings. The shops acted as deposit agents, and crucially did not verify the source of the cash.
Companies Required to Follow Strict AML Procedures
Under Greek gaming laws, gambling companies are required to monitor large deposits and withdrawals for suspicious activity. Any transactions above a certain threshold, which ranges from €2,000 to €10,000 depending on the type, should be flagged.
If companies suspect the involvement of illicit funds, fraud, or tax evasion, they must report to the Hellenic Financial Intelligence Unit (HFIU).
It is unclear whether the gambling companies were involved in the scheme. If they were, they could face hefty penalties. In the UK, ProgressPlay was recently fined £1 million for failing to do due diligence in checking the source of customer funds.
The rise of alternative payment methods has also increased the risk of money laundering, according to gambling regulators. The Turkish government announced plans to impose new restrictions on crypto exchange transactions, aiming to prevent criminal organizations from hiding illegal funds.
The UK Gambling Commission also published updated guidelines earlier this year, warning operators of their responsibilities under anti-money laundering regulations. The commission noted the rise of crash games at online casinos as a particular risk due to their fast-paced nature.
The investigation in Greece shows that it is not only a problem with cryptocurrencies and crash games, however. Authorities are now further scrutinizing the individuals and companies involved to determine the extent of the scheme.
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Greece’s Independent Authority Against Money Laundering has identified over 200 individuals who funneled undeclared money through gambling operators. Among the suspects are high-ranking civil servants, including directors within ministries and public services. Several betting companies are under investigation for serving as “laundromats” for illicit funds. The Greek Reporter states that at least 10 licensed gambling operators are
The post Greek Officials Accused of Laundering Money Through Gambling Companies appeared first on CasinoBeats.