Money Laundering

[Blake Lovely]

A question about money laundering and internet poker.
Why are the poker sites as in independent entity concerned with money laundering? Why are they concerned with credit card fraud for that matter?

Being overseas they are subject to US law.
They still get the rake from these illegal transactions.

Possible reasons i can think of.
1)transferring fees become more than the money they make from rake. (which would offer possible kick back opportunities if you wanted to launder money through the site.)

2) possible damage to end users in the US. A large portion of the revenue comes out of the US. If the US government became increasingly aware of the problem, then they would take action that would cause problems for US poker players.

[Thythe]

example: Somebody steals a credit card and buys in for $500. He think dumps these chips to a friend who cashes out. The original credit card owner charges back the transaction and the poker site is out $500.

[Blake Lovely]

What exactly do you mean?

Once the credit card is charged, the company can somehow withdraw payment?

As long as the poker site doesnt give out chips until the transaction clears then they cant be forced to return funds that have already been recieved.

Nor do i think the credit card company would refuse payment in the event of fraudulent use (not real sure, any expert advise would help there)

But more importantly what about this situation.

Lots of drug money i want to clean. I have in overseas accounts. I deposit the money to a poker site then lose it to my friend who withdraws it in the US and pays taxes on it. Money is clean.

Or I buy drugs from someone who has an account on a poker site, and I pay them by losing that money to them online.

In that situation, why does the poker site care?

that is perhaps a better example then the credit card issue. However, so long as the poker site recieves payment in the event of a credit card fraud, why would they care?

Not that I condone any of the above, just thought it was an interesting question.

[Alobar]

[ QUOTE ]

In that situation, why does the poker site care?


[/ QUOTE ]

The poker site cares because it has to protect the intergrity of the game. No one is going to play at a site that is full of drug dealers dumping chips and other illegal things going on.

[TwoGun]

People could do that at a B&M casino and heave less paper trail.

You and I sit at the craps table. We then go to the bathroom. I give you $4k worth of chips. We go back to the craps tables for a second. Guess I lost that money at the casino and you won! And whaddya know, we did it all in cash too, so it can go even less detected!

[Alobar]

Two men going into the bathroom together and one of them coming out 4K richer, so many jokes I could make here..... [img]/images/graemlins/smile.gif[/img]

[Cubswin]

A guy with an avatar of a guy in spandex cracking a joke about two guys going to the washroom together....the irony of it.

[BottlesOf]

Who sits at craps tables?


....sorry, couldn't resist....

[Kurn, son of Mogh]

Being overseas they are subject to US law.

Last I checked, U.S. jurisdiction stops at the border.

[47outs]

Check again.

outs