Where Will It Go If The Money Comes From Illegal Source

[coin-investor]

Part of casinos' terms of service is banning your account if you cannot justify your source of income or they think it comes from an illegal source, so if a casino bans your account. You have 6 digits in your account; where will the money go, and do they have the right to keep the money? There is no provision; I read they will turn over the money to the authorities.

Is it legal for casinos to keep the money?

This discussion is based on a question of our bro seoincorporation

Casinos ask for KYC to avoid money laundering, but if the gambler isn't able to give the requested data then the casino keeps the money. If the casino keeps the money isn't that Money laundering?

Let's have an open conversation on this

[Davidvictorson]

They do not keep the money to themselves. I think it works this way. When they seize the funds, they then report to the authorities. the authorities will then start an investigation while the investigation is on, the casino still has the funds. When the investigation is completed and it turns out that the cash comes from an illegal source, the casino then hands over the funds to the authorities and their hands are off. However when the reverse is the case, the funds are returned to the account of the owner and their account is unfreezed or unbanned.

[ryzaadit]

Nope, after they lock and seize your fund. Mostly they will transfer the money to authorities.
1. They getting contacted by authorities for suspicious transactions and are involved in crime on their service platform.
2. Casino receives the order and will begin to lock your account & seize the fund.
3. Mostly users will contact the casino for the reason why their account is locked.
4. Casino explain the situation
5. Once the casino explain these things, and passed a period of time. They will send the the fund to authorities

Remember, (CASINO) is not gonna to check, scan, or question your transaction to their service platform unless they are contacted by authorities. So, even your source transactions are coming from illegal activity they will not gonna to due research of your account/transaction.

[SmartGold01]

They do not keep the money to themselves. I think it works this way. When they seize the funds, they then report to the authorities. the authorities will then start an investigation while the investigation is on, the casino still has the funds. When the investigation is completed and it turns out that the cash comes from an illegal source, the casino then hands over the funds to the authorities and their hands are off. However when the reverse is the case, the funds are returned to the account of the owner and their account is unfreezed or unbanned.

This is a good input but along the line there is something I want to also asked this question to know as well..
Let say for instance, I am from Nigeria and I have account with one of the casino's probably my account was ban for completing kyc and they noticed that since I can't complete it and they money is suspected to as laundering knowing too well that its personal funds, how would their authority knows that the money is not from illegal source or legal source knowing too well I am from another country or jurisdictions. Will they have to contact our authorities?

[Hirose UK]

I think what the casino will do is the same as when gambler cheats, namely by freezing the account along with all the money in the account balance.
Casino will not keep the money and of course the casino will check and also track every activity that was previously carried out, so that it can be seen clearly what really happened.
Once everything is clear, the casino will hand over the money to the authorities to use as evidence and this is also done to avoid casino involvement in illegal money laundering activities.
Everything will have its own way of working based on the existing provisions and every money laundering problem, the casino will always have various ways to solve it.

[mindrust]

Even if they give the tainted coins to the authorities, that's still theft. The player is may not be aware of the tainted coins he has. Just because somebody else before him used these coins to commit crimes, doesn't mean another innocent person should get punished for the crimes he didn't commit. That's way too retarded. If they think this player who deposited the money is the guy who did all those bad things, then why don't they just catch him? If he is innocent, why seize his funds? That's problematic on so many levels.

Either we empower decentralized services or nobody will safe in any centralized services that accept crypto.

[qwertyup23]

I think the ToS is clear about their stipulations regarding their KYC implementation system.

Generally, online gambling companies that require KYC will at least inquire on the legitimacy of your funds in your wallet to prevent any form of money laundering. Assuming that you deposited more than 6-digits if money to your gambling account, this will necessarily alert the gambling online company to double check the legitimacy of your funds. If they discover something that is not right, they may suspend your account or they may alert you with their CS about it.

Now if their CS asks about the nature of your funds and the person cannot justify with certainty its legitimacy, then the gambling companies would have custody over your funds and they, on the other hand, may turn it over to the officials. Though this may be the case, some gambling companies also may freeze your account and your funds would be transferred to them.

At the end of the day, it is all about their KYC. If you violate any of their terms which is explicitly stipulated, then you will experience its consequences.

[acroman08]

I read they will turn over the money to the authorities.

if the money is proven to have come from an illegal source, yes, it is part of AML regulation(as far as I know), as members have already mentioned, the casino doesn't keep the money, they must report if they believe the funds from an account came from an illegal source. also, if casinos don't report incidents like this, they will most likely lose their license and face penalties.

[angrybirdy]

I read they will turn over the money to the authorities.

if the money is proven to have come from an illegal source, yes, it is part of AML regulation(as far as I know), as members have already mentioned, the casino doesn't keep the money, they must report if they believe the funds from an account came from an illegal source. also, if casinos don't report incidents like this, they will most likely lose their license and face penalties.

That's correct, once it is proven that the money enters in your account is came from illegal sources then your account will be freeze or banned and the money from your account will be reported to the authorities, Casino will not take your money because they are not allowed and every cases like this will be reported to the authorities for reviews and actions. there's a corresponding team or people who's assigned to process this type of cases.

[danherbias07]

It can become a problem for them if they keep the money. Anti-Money Laundering Act will be in effect here especially if they don't know where the money came from which is probably the case on why a banned account happens and freezing their funds.

I think it's legal for them to keep the money until the authorities take it from him. There's nothing they can do unless the owner of the account proves that the money is legal and can prove that he has the source to create such money.
It's better if we could hear some professional answers here from online gambling site's owners or financial team so that we can be clear about this.

[Mr. Magkaisa]

Part of casinos' terms of service is banning your account if you cannot justify your source of income or they think it comes from an illegal source, so if a casino bans your account. You have 6 digits in your account; where will the money go, and do they have the right to keep the money? There is no provision; I read they will turn over the money to the authorities.

Is it legal for casinos to keep the money?

This discussion is based on a question of our bro seoincorporation

Casinos ask for KYC to avoid money laundering, but if the gambler isn't able to give the requested data then the casino keeps the money. If the casino keeps the money isn't that Money laundering?

Let's have an open conversation on this

      -   When that happens, you can probably feel a lot of pressure and depression because, at 6 digits, you don't know if you can recover or not. And even if others say that they are going to submit it to the authorities, I doubt that they will actually do it completely.

For sure, the others there will also be reduced by the casino owner himself; even if they turn it over to the authorities, they will not give it in full. And we who own the fund are the unfortunate ones because they have feasted on money that is not theirs.

[alani123]

If a casino locks your account without having received a notice from authorities, but just out of precaution... Then there's two possible outcomes if you can't provide sufficient proof that your funds origin is clean:

1. They might deny your winnings or part of it, give back your initial deposit and prevent you from playing further.

2. They might retroactively contact the authorities and keep the funds until they can get a green light to do something specific.

In my experience, the most common outcome is #1, and a certain few casinos will even be more generous in paying out winnings as well, so long as you weren't also involved in match fixing etc. Others will deny every single cent you won and never mind the hit their reputation can have. That's why I like to search in this forum for accusations before I deposit anything significant in a casino.

[Text]

The casino conducts what's called Customer Due Diligence and Enhanced Due Diligence to verify the source of funds when they deem a player's funds suspicious. So if a player fails to provide the requirements in the KYC process, their account may be frozen or closed, and the funds they're trying to bring into the platform may be tagged as illegal. Do you think the casino will be honest in this scenario? Will the authorities be able to find out if they have a case where funds from a closed account are in the casino?

[Hewlet]

I read they will turn over the money to the authorities.

if the money is proven to have come from an illegal source, yes, it is part of AML regulation(as far as I know), as members have already mentioned, the casino doesn't keep the money, they must report if they believe the funds from an account came from an illegal source. also, if casinos don't report incidents like this, they will most likely lose their license and face penalties.

that's what I was actually looking out for. There is every possibility that the money wouldn't get to the authority even after it's been withheld from the person's account but I guess to avoid sanction they wouldn't want to keep the money to there self.

But the main issue is how to identify that a particular money is from a fraudulent means or not. People have sources of income that's not all that illegal but that's also not that genuine to have made it public as an occupation or so and if that's going to be the reason for ceasing a person's fund it might be a bit unjust.

[Porfirii]

The casino conducts what's called Customer Due Diligence and Enhanced Due Diligence to verify the source of funds when they deem a player's funds suspicious. So if a player fails to provide the requirements in the KYC process, their account may be frozen or closed, and the funds they're trying to bring into the platform may be tagged as illegal. Do you think the casino will be honest in this scenario? Will the authorities be able to find out if they have a case where funds from a closed account are in the casino?

And how/when do they deem a player's fund suspicious? I am curious about how bank work in that regard too. Is it because of public regulations, do they have their own system, or it is simply an algorithm that halts the operations in certain cases where different causes are very hard to explain?

Sorry because that's not the topic discussed here, but I find it very interesting and both topics are closely related.

[Solosanz]

Of course it's legal for the casino to withhold someone else money and they will send it to the authority when the gamblers can't verify their KYC and the cases already too long. Check this address, it's belong to U.S. government https://platform.arkhamintelligence.com/explorer/entity/usg

Any licensed and regulated centralized sites have a right to steal your money legally.

[sunsilk]

They do not keep the money to themselves. I think it works this way. When they seize the funds, they then report to the authorities. the authorities will then start an investigation while the investigation is on, the casino still has the funds. When the investigation is completed and it turns out that the cash comes from an illegal source, the casino then hands over the funds to the authorities and their hands are off. However when the reverse is the case, the funds are returned to the account of the owner and their account is unfreezed or unbanned.

This is likely the process of what casinos does if someone isn't able to provide requirements for kyc and prove that their funds are clean and not dirty.

That's the main purpose of KYC, to know where your funds comes from as the casinos are also just checking in if the money flowing in to them are clean and they're regulated by the authorities.

So, there's due process and they don't really keep the money unless they'll treat it as a dormant account. Maybe, they can do that or not and that can be a different story and scenario.

[Gozie51]

What I'm certain of is if such reg flag is raised then the authority is informed about the suspicion and investigation will commence by the government and if that money is laundered then it will be seized and converted to state fund while the holder is taken for charges but the question is what happens if the money is genuine after the casino has raised the flag and investigation conducted while they have banned the account, because sometimes you could have hard time trying to get on with your KYC and it might be misunderstood to be fraudulent reason. So the question is what if the money happen to be a genuine money after the owner gambling account is banned 

[khiholangkang]

Part of casinos' terms of service is banning your account if you cannot justify your source of income or they think it comes from an illegal source, so if a casino bans your account. You have 6 digits in your account; where will the money go, and do they have the right to keep the money? There is no provision; I read they will turn over the money to the authorities.

Is it legal for casinos to keep the money?

This discussion is based on a question of our bro seoincorporation

Casinos ask for KYC to avoid money laundering, but if the gambler isn't able to give the requested data then the casino keeps the money. If the casino keeps the money isn't that Money laundering?

Let's have an open conversation on this

This is ambiguous about what attitude the casino might take, basically if it is true that it is illegal money then it should be handed over to the government that regulates the casino if the user does not provide personal data properly to the casino to justify that it is his money and the results of his work or whatever it is with his money.

But the interesting question is actually whether the casino will hand over the money to the government when the account user who has the nominal does not provide the data to the casino, this is no provision, so it could be kept by the casino or given to the government, and this is difficult to determine because it questions what steps the casino might take.

[salad daging]

Like so, the casino with the frozen money will be handed over to the authorities but I don't know the mechanism of how the casino runs it, whether it is waiting for a lot of money to be frozen to be directly reported or every thing that is done will be reported directly.

But in this case there must be a lot of money frozen from several users with a small amount of the rest of the casino hoarding more and then after a long time there is no follow-up from the user then maybe it will be reported directly with some data provided.

That is my own assumption, honestly we never know and where the casino keeps the money frozen.