Tracking down the trillions of dollars that flow through the virtual and brick and mortar casinos around the world is a monumental task. In a world where seven-figure bets are common, how does a casino ensure that the source of its income is above the boards?

With US regulators on the verge of requiring casinos to verify the source of the funds behind large wagers, the ability to investigate customers sensitively and discreetly is a new skill that gaming companies are developing.

Banks and other financial institutions have long had anti-money laundering processes in place to help prevent fraud. Subject to a litany of regulations, these institutions are accustomed to researching their customers to ensure both party’s assets are protected. The gaming industry has a history of literally and figuratively protecting the sources of its income; potentially it could be challenging to investigate players that disproportionately boost the bottom line. But, through the use of several similar processes and tactics, gaming companies can align with the financial sector and protect themselves and their customers.

A global threat

Gaming companies around the world face the threat of being an unwitting part of a money-laundering scheme. A recent survey from PwC found that 37 percent of companies in Hong Kong and Macau, mainly banks and casinos, had experienced money laundering in the past two years. The global average according to the study was just under 11 percent.

This meant that Hong Kong had the highest reported rate of money laundering in Asia and the ninth highest globally, behind Britain, South Africa, the Czech Republic, Russia, Zambia, Australia, Kenya and Ukraine.

There is significant incentive to ensuring that the funds being gambled in casinos are legit. In August, Sands Casinos incurred a $47 million fine for lapses in its money laundering controls. And reports indicate that additional Vegas companies are under investigation. But, how can gaming companies protect themselves?

Process alignment

In banking, the key assets for research are massive data sets of public and proprietary information that span property records, criminal records and internal databases that the banks utilize. In the gaming industry, the technologies such as facial recognition, RFID monitoring of chips and in-depth record keeping are no secret. But aligning this data collection processes with the investigation teams is where the efficiencies can be identified.

Ensuring that the analysis of the available data is fueled by common data entry technologies, and that the investigation teams are aligned on how to allocate resources and even a standard for which the results are judged are all vital. In addition to that, here are three tips gaming companies can utilize while investigating suspected money laundering activity:

People: a team with members that are at the top of their respective fields is vital. The ability to work with global banks, governments and regulatory agencies to identify risk, fraud and operational weaknesses comes with experience.

Process: eliminating wasted time, resources and money can be achieved through an organized process that plays to the strength of the team. While every institution has unique processes, Alacer has seen great results from its Lean Kaizen approach and Six Sigma expertise that enables streamlined procedures and added efficiency for bottom line results.

Technology: efficient systems rely on process-driven technology. Alacer has built custom system solutions that mirror AML processes, focusing the power of big data technologies and advanced analytics to identify, investigate and combat money laundering and fraud with integrated solutions.

If you’re working in the gaming industry, aligning yourself with not only the latest technologies, but also the most efficient processes possible are vital.

Is your company monitoring for money laundering activities? It should be and the Alacer Group can help do it well. You can learn more about our anti-money laundering activities now.

by Ed Sarausad