How do AML systems evaluate cryptocurrency withdrawn from casinos?

[Dave1]

That's a nice questions to be honest. Even I would like to know if there's actually any platform that offers the service to check for such funds.
As far as I know, whenever someone scams others the addresses get flagged and the platforms keep tracking them to know where the funds are going.
May be this is how the AML authorities do it too.

Yes, the rule will always be carried out, because using AML authority in gambling will minimize money laundering crimes and several other crimes.

So early detection can be done with AML, if someone does not want to use AML then he cannot increase the withdrawal to a larger extent because every casino has a threshold for withdrawal and if it exceeds then AML is very much needed to know who you are and where the money is going.

But it's the question whether uses AML or any blockchain analysis tool if there are any to check if the coins are clean? And are we sure that the casino's coins are also clean and not tainted as we don't know were the funds is coming from? It is directly from bitcoin mining or just they buy from exchanges and then keep it in their hot wallets as funds to pay for gamblers?

So we still don't know how AML will track everything. And we might be surprise that one day, our accounts might be identified as being tainted when we really don't know the source of our funds in the first place? So it's really very very tricky and it seems that there are more questions from us.

[pawanjain]

But it's the question whether uses AML or any blockchain analysis tool if there are any to check if the coins are clean? And are we sure that the casino's coins are also clean and not tainted as we don't know were the funds is coming from? It is directly from bitcoin mining or just they buy from exchanges and then keep it in their hot wallets as funds to pay for gamblers?

So we still don't know how AML will track everything. And we might be surprise that one day, our accounts might be identified as being tainted when we really don't know the source of our funds in the first place? So it's really very very tricky and it seems that there are more questions from us.

AML policies are crucial in preventing money laundering and enuring transparency and it's not applicable to gambling but every financial sector.
On the other hand, the effectiveness of these AML policies cannot be guaranteed since we don't know how are they tieing up with different sectors.
For example: Money can be glowing from crypto gambling to fiat to real estate and it would be difficult to determine if the AML regulatory bodies are able to cope up with these sectors.
If not then these AML policies are only increasing the burden of legitimate users.

[Antotena]

My questions are for those who withdraw cryptocurrency from casinos:
Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

I'm curious because I know that in the fiat financial system, transactions related to casinos are categorized as high-risk traffic, and some financial service providers are suspicious of funds associated with gambling.

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

Any withdrawals you make from casino doesn't comes from another person, it comes directly from hot wallet of the casino, they operate the way centralized exchanges operate, so when you initiate a withdrawal from casino to centralized exchanges, the funds source is directly from the casino wallet which I'm not sure the centralized exchange are going to reject especially if the casino wallet is identified with a name on the blockchain network.

Unless the casino is been tagged by chain analysts that they have accepted some tents Bitcoin from their wallet, like Bitcoins that are scams, Bitcoin that are drain from victims wallet, if such Bitcoin is a large amount of Bitcoin and it eventually get deposited into the casino and the casinos accepted it, I'm sure that any coin that is withdrawn from such wallet will be seize taken to any reputable centralized exchanges.

[taufik123]

Any withdrawals you make from casino doesn't comes from another person, it comes directly from hot wallet of the casino, they operate the way centralized exchanges operate, so when you initiate a withdrawal from casino to centralized exchanges, the funds source is directly from the casino wallet which I'm not sure the centralized exchange are going to reject especially if the casino wallet is identified with a name on the blockchain network.
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Whether or not it is rejected actually depends on how each CEX is regulated, but most CEXs implement AML to avoid money laundering as often happens with casino wallets, CEXs even have to comply with the regulations that are applied not to receive funds from gambling activities.

Instead of having to be confused about making a withdrawal, it is better to use a Non-Custodian wallet and it can be withdrawn easily, then just send it to the CEX, the problem is solved.

But some withdrawals from casinos must include KYC if the maximum limit of funds withdrawn is reached, with the aim of avoiding money laundering practices.

And for some casino wallets it will indeed be detected on the Blockchain and you can check it directly on the https://platform.arkhamintelligence.com, and everything will be visible. As in this Rollbit Hot Wallet.


https://platform.arkhamintelligence.com/explorer/entity/rollbit