The study covers East and Southeast Asia.

The UN Office on Drugs and Crime (UNODC) Regional Office for Southeast Asia and the Pacific has released a report that says casinos, junkets and cryptocurrency have become a key part of the underground banking and money laundering infrastructure in the regions.

The study shows that the number of illegal online casinos, electronic junkets and cryptocurrency exchanges has increased in recent years. At the same time the region has seen an increase in international crime rates.

Online casinos and underground banking

According to the report, online casinos and related businesses are being used by large organized crime groups to move and launder huge amounts of state currency as well as cryptocurrencies.

The cases examined in the report also highlight that illegal online casino operators have diversified their business to include cyberfraud and cryptocurrency laundering.  

The report recommends “increased knowledge, awareness, policy, capacity and coordination” to help governments manage the situation.

Boom of unregulated online gambling platforms

UNODC Regional Representative for South-East Asia and the Pacific Jeremy Douglas said: “Casinos and related cash-rich businesses have been a vehicle for underground banking and money laundering for years, but the explosion of unregulated online gambling platforms and cryptocurrency exchanges has changed that.”

“The expansion of the illicit economy has required a technological revolution in underground banking to enable faster anonymous transactions, commingling of funds, and new business opportunities for organized crime. The development of scalable, digitized casinos and cryptocurrency-based solutions has led to an increase in criminal business across Southeast Asia and especially in the Mekong.”

Learn more about responsible business at SiGMA Eurasia

From February 25 to 27, 2024, industry representatives from around the world will share valuable knowledge and quality time in Dubai. The unifying event will be the fourth SiGMA Eurasia, and the main location will be the ultramodern entertainment centre Dubai Festival City with an area of more than 5 thousand square meters, capable of accommodating 15.5 thousand delegates. Get your ticket now with an early bird price.

Asia

Meta bets big on gaming boom in India

Bloomberry secures $1.25 billion refinancing deal

Vietnam cracks down on $72 million illegal gambling ring

Responsible Gaming

Jackpot switching: A risky gamble

Gambling addict head of finance jailed for stealing from employer

BGC’s global comparative best practice guide for iGaming