Casinos may attract new wave of fraudsters
Casinos may be the next big magnet for fraudsters, unless the government puts more stringent controls in place, warns KPMG.
Forensic experts are warning the government’s recent agreement to wide-ranging deregulation of casinos, as part of the reform of UK gambling laws, may represent another headache for the law enforcement community.
The loophole for money launderers exists because UK casinos are not subject to 1993 Money Laundering Regulations. This means that casinos are not required to identify their clients or keep records for anti-money laundering purposes.
Adam Bates, head of KPMG forensic, said: ‘It is vital that we avoid a proliferation of small casinos which would prove difficult to regulate effectively and could act as a magnet for criminal funds in the same way that the lower end of the unregulated bureaux de change industry has over the past decade.’