Money laundering also came to my mind after reading the "being engaged in fund-passing activities". It would be nice if the platform could explain exactly what it means, but seeing the response they gave to the OP, I doubt we'll see an explanation.
I did dig around and this is what I found out in the Arbusers forum
The admin of the forum made a post (
Fund passing at Betfair), and the practice seems bad and highly discouraged.
We are noticing a growing number of fund passing incidents lately, and we believe it is time to make some things clear, and warn both, genuine smart bettors like our members, and bad will fund passers.
We are not here to educate fund passers but for the sake of the argument, we will explain what fund passing is without explaining the details. Like this, genuine smart bettors will know a priori when their activities resemble fund passing and will refrain from practising it.
Fund passing is when you use a low liquidity market in an exchange, in order to move funds from one exchange account to another. To achieve that, a potential fund passer will intentionally ask for wrong odds to make sure (even though you can never be sure) that funds will go in his desired direction.
On top of that, there is fund passing 2.0, when fund passers are using the extra liquidity provided by agents in order to suck funds from the agent and the exchange. This is the reason why some agents went bust and the reason why only underground agents are providing extra liquidity these days.
As you understand fund passers are damaging the genuine business of the smart bettors (arbers, value bettors, etc). In addition, a lot of criminal activities might be hidden behind fund passing that spawns far beyond the trivial crimes of money laundering, terror funding, etc. There is a lot of bad will and no real smart betting in this technique.
Those who are fund passing might believe they found the holy grail of betting, others might have their epiphany moment, but have no doubt that exchanges and agents are determined to stop these activities ruthlessly. As a result, when they detect fund passing activities, they usually confiscate winnings and initial deposits.
A growing number of players are posting in our forum their complaints about funds confiscation based on fund passing accusations. We are more than happy to see some players getting their funds back, due to a wrong assessment of the situation from the exchanges and the agents. We actively help our members to get their funds back, especially if they are referred by arbusers. But at the same time, we are against and condemn every fund passing activity, and we will not support anyone with such a record.
In addition, we do not advise our members to use these techniques as the risk of capital evaporation is immense, and there are other ways to make money from betting in a noble way.
It's definitely a common practice in those platforms and they will not hesitate to confiscate the funds and block the accounts once discovered
