The UN warns about increased money laundering and shadow banking risks from Mekong casinos.

Transnational criminal groups are using Southeast Asia's fast-growing digital gambling industry to secretly move and clean their illegal money, according to United Nations experts who spoke to VOA.

The UN Office on Drugs and Crime, using fresh research and info from local law enforcement, thinks that casinos and online gambling sites in the region handle a huge amount of money—maybe tens or even hundreds of billions of dollars each year from illegal activities like gambling, drug trade, scams, and other crimes.

The UNODC officials also mentioned that the same digital tools that help this growth are making it tough for authorities to follow and stop the money trail.

When talking to VOA, they highlighted an underground banking system, big and hidden, mostly found in countries along the lower Mekong River, Laos, Thailand, and Vietnam.

 

[CR7]

The United Nations Office on Drugs and Crime (UNODC) has warned about the increased risks of money laundering and shadow banking associated with the fast-growing digital gambling industry in Southeast Asia. Transnational criminal groups are utilizing this industry to covertly move and launder their illegal funds, making it challenging for authorities to trace the money trail.

According to the UNODC, casinos and online gambling sites in the region handle significant volumes of money, potentially reaching tens or even hundreds of billions of dollars annually. These funds are believed to originate from various illicit activities, including gambling, drug trade, scams, and other criminal enterprises.

The UNODC underscores the role of digital tools in facilitating this growth and also hindering the efforts of law enforcement to combat the illicit financial activities. Authorities are particularly concerned about the existence of an underground banking system operating in countries located along the lower Mekong River, such as Cambodia, Laos, Myanmar, Thailand, and Vietnam. This hidden banking system enables the laundering of large sums of money, further complicating detection and prevention efforts.

The proliferation of digital gambling platforms has likely contributed to the increased risks associated with money laundering and shadow banking. This industry's rapid expansion provides criminal organizations with a convenient avenue to disguise the origins of their illicit funds, making it vital for authorities to enhance their efforts to monitor and regulate these activities effectively.

The UNODC's research and collaboration with local law enforcement provide valuable insights into the scope and nature of these illicit financial activities. Governments and regulatory bodies in Southeast Asia need to prioritize enhancing their anti-money laundering measures, strengthening regulatory frameworks, and promoting international cooperation to effectively counter the risks associated with the digital gambling industry.