The United Nations Office on Drugs and Crime (UNODC) Regional Office for Southeast Asia and the Pacific has published a comprehensive report shedding light on the increasing significance of casinos, junkets, and cryptocurrency in the underground banking and money laundering infrastructure across East and Southeast Asia.
The study underscores a notable rise in illegal online casinos, e-junkets, and cryptocurrency exchanges in recent years, coinciding with a surge in cross-border criminal activities within the region. Major organized crime groups, according to the report, have utilized online casinos and associated ventures as conduits for the movement and laundering of substantial amounts of state-backed fiat currencies and cryptocurrencies.
Examining specific cases, the report highlights the diversification of business lines by illegal online casino operators, incorporating cyberfraud and cryptocurrency laundering into their illicit operations. In response to these alarming trends, the report offers recommendations aimed at enhancing knowledge, awareness, policy frameworks, capacity, and coordination, providing governments with tools to effectively address the evolving situation.
Jeremy Douglas, UNODC Regional Representative for Southeast Asia and the Pacific, commented on the findings, stating, “Casinos and related high-cash-volume businesses have been vehicles for underground banking and money laundering for years, but the explosion of underregulated online gambling platforms and crypto exchanges has changed the game.”
Douglas continued, “Expansion of the illicit economy has required a technology-driven revolution in underground banking to allow for faster anonymised transactions, commingling of funds, and new business opportunities for organized crime. The development of scalable, digitised casino – and crypto-based solutions has supercharged the criminal business environment across Southeast Asia and particularly in the Mekong.”
The UNODC report serves as a stark reminder of the evolving challenges posed by technological advancements in the criminal landscape, urging collaborative efforts among nations to mitigate the risks associated with the illicit use of casinos, e-junkets, and cryptocurrencies in money laundering activities.
