Review of October 9, 2019 | News of October 9, 2019 | Page: 1/4

Games increasingly at risk of money laundering: suspicious transactions up 66% in one year

Data and reanalysis during an Anti-Money Laundering conference organized by the European School of Banking Management. Gaming service providers reported suspicious transactions (SOS) from 1.864 in the first half of 2018 to 3.102 in the same period of 2019. The amounts reported in the two periods examined increased from €85,4 million to €250 million (+192,7%).

SUSPICIOUS TRANSACTION REPORTS SINCE 2015

Transactions worth €250 million have been targeted by the Anti-Money Laundering Authority. Reports of suspicious transactions originating from gaming service providers have increased by 66% in just one year. A fraudulent scheme involving foreign companies, Italian businesses, and cash has been monitored by tax investigators.

This issue, also noted by the Bank of Italy's Financial Intelligence Unit (FIU), was addressed during a conference organized by the European School of Banking Management, which presented the twenty-third edition of the master's program in anti-money laundering, chaired by Sergio Silvestri. The focus on "games" was addressed by Emiliano Marvulli, an official at the Italian Revenue Agency, a tax expert, and co-author of the book "Immobili e attività finanziari detainute all'estero," published by Nel diritto Editore in 2015.
According to the data provided during the conference, suspicious transaction reports sent to the Bank of Italy's Financial Intelligence Unit (FIU) by gaming service providers increased by 66%, from 1.864 in the first half of 2018 to 3.102 in the same period of 2019. The gap in reported amounts between the two periods examined was also enormous, rising from €85,4 million to €250 million (+192,7%). This is the same scenario described by Marvulli during the roundtable discussion.

The Revenue Agency and the Guardia di Finanza may request the identity of the beneficial owners from financial intermediaries and gaming providers.

Regarding gaming, Marvulli illustrated a practical example of the anomalous use of video lottery machines (VLTs), with a fraudulent scheme involving foreign companies, Italian businesses, and cash. "The Revenue Agency's International Tax Crimes Countering Section and the special units of the Guardia di Finanza (Financial Police) can request—in derogation of any legal provision and with prior authorization—the identity of beneficial owners from financial intermediaries and gaming providers, also accessing data collected by those required to fulfill customer due diligence obligations," Marvulli concluded.