Daily Archives: June 23, 2009

600 Million dollars embezzled from bank then laundered through an Australian Casino

Casino Watch Focus has reported on just how important loss limits were to preventing money laundering and keeping criminal elements out of our state.  Now a story from Australia shows us just how much damage can be done when no gambling limits are imposed.  An online article explains the story:

Chinese criminals convicted of embezzling over $605 million from the Bank of China say Crown and other Australian casinos were their venues of choice to launder the stolen money. Despite transactions involving huge amounts of cash, no red flags were observed by warning systems built into the gambling industry Down Under.

The Herald-Sun reported that at least $23.6 million was washed at Crown casinos by the ringleaders and their henchmen. One of the gang leaders, Yu Zhendong, told US authorities upon apprehension that Australia was the favored spot for laundering stolen money.

As much as $7.5 million was moved to Crown casinos in a single transaction, but detection systems designed to prevent money laundering failed to alert casino officials. Crown executives declined comment while they ran internal investigations to determine how the embezzlers were able to avoid detection.

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