Intelligence Agency Issues Warning About Fentanyl Cash Laundering Through Online Betting Sites
According to Canada’s financial intelligence agency, online gambling platforms may be used to launder proceeds from fentanyl dealing and production.
In a recent operational alert, the Financial Transactions and Reports Analysis Centre of Canada suggests that individuals could be depositing and withdrawing funds at online casinos to hide profits from trafficking fentanyl and other opioids as gambling activities.
The alert mentions that known fentanyl traffickers have been transferring money to digital gambling sites and receiving funds from associated payment processors in Canada, Malta, and the United Kingdom.
Fintrac, the federal center responsible for identifying cash linked to money laundering and terrorism, analyzes data from various sources to detect suspicious activities and shares intelligence with partners like Canada’s spy agency and law enforcement.
The operational alert provides guidelines for businesses to detect and report potentially suspicious transactions related to fentanyl, which has contributed to a severe overdose crisis in the country.
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Fintrac analyzed around 5,000 suspicious transaction reports related to fentanyl and synthetic opioids between 2020 and 2023 to create the alert.
Most reports indicated the suspected distribution of synthetic opioids within Canada and imports of precursor chemicals from China and India for domestic production.
The agency utilized data from foreign sources and assessments to detect evolving trends in illegal fentanyl supply, often associated with organized crime groups using illicit financial services online.
Transactions possibly related to opioid production involved wire transfers to high-risk jurisdictions for the procurement of chemicals and equipment, with routes often diverted through intermediary countries to avoid detection.
Distribution networks are concentrated in major cities, and transportation companies conducting cash transactions are warned of potential involvement in transporting synthetic opioids.
The alert concludes by highlighting the movement of opioids from distribution hubs to various cities, emphasizing increased production and distribution within North America driven by criminal groups utilizing online platforms and traditional methods.
