Money Laundering Hotspots: A Global Concern

Macau Casinos: A Haven for Money Launderers

Macau, a special administrative region of China, has become the world’s largest gambling hub, surpassing Las Vegas. However, this success comes with a dark side - an estimated $200 billion is laundered through its casinos each year.

The High-Risk Environment

• Macau’s casinos rely heavily on cash exchange and large crowds flowing in and out every night.
• Gamblers often use foreign bank accounts, making it easier for money launderers to turn “dirty” money into clean funds.
• Junkets, which offer traveling gamblers premium payments and accommodations, pose a significant obstacle for money laundering prevention.

India’s Dual Economy: A Haven for Money Laundering

India’s economy has a dual personality, with “white” and “black” cash transactions dominating the latter. Companies often launder from black to white and do the reverse as well, acting as stockbrokers bringing together buyers and sellers of a much-sought-after commodity.

The Process of Laundering

• Companies like Company A write a cheque to shell company B and receive cash in return minus company B’s commission.
• Company A accounts for it as a commission, while company B accounts for it as contractual income, both to reduce their tax.
• The money is then routed through various shell companies, sometimes more than 10, to avoid income tax.

Extortion Emails: A Blackmail Attempt to Steal Thousands of Euros

Millions of French people have received fake emails signed by hackers pretending to be the police, making it a blackmail attempt to steal thousands of euros. The principle of these emails is to make their recipient believe that he is summoned for serious crimes, such as child pornography.

Hints to Detect Fake Emails

• Thieves use temporary bank accounts, often opened in a foreign bank with a light KYC policy.
• The police will not send you an email but will be there early in the morning for an arrest.
• The emails often contain syntax and spelling mistakes.
• Hackers write with emails that do not have the official ending.