The Interactive Gaming Council recently submitted a
letter to the Financial Action Task Force in an effort to help Internet
gambling shed its image as an industry that is compatible with money
laundering.
Rick Smith, the executive director of the IGC, said
his association, a trade association for the Internet gambling industry
that promotes responsible business practices, is "only too happy to work
with the FATF on the worldwide problem of money laundering."
"We submitted our written comments, and offered to
work with them on our common concerns," Smith said.
The letter was a response to the FATF's request for
comments from industries that may be targeted by money launderers. The
comments were to be in response to a consultation paper that was
released in May. The FATF is an international organization that seeks to
eradicate money laundering.
The comments will be considered by the FATF for
inclusion in a formal report on money laundering that the organization
will release in the first quarter of next year.
Smith said the IGC explained the FATF that online
casinos and betting sites can protect against money laundering with
player registration and ongoing verification that players are who they
say they are, in addition to regulatory oversight and banking
regulations. The gaming group stated that the above efforts, coupled
with the computer technology available to assist gaming site operators,
are a strong deterrent to money laundering.
"Online gambling does not lend itself to any form of
cash movement. Because of the online nature of the business,
specifically, there is no face-to-face contact in the businesses," the
IGC said.
Jim McKennon, the CEO of Action Online, an online
casino based in the Isle of Man, spoke about the IGC's letter to the
FATF at a press conference at the Global Gaming Expo in Las Vegas last
month.
McKennon, the vice chairman of the IGC, noted that
Internet gambling is less susceptible to money laundering than
land-based gambling because online operators do not take cash, and any
funds that are deposited have already been processed; they have already
been put in a bank account somewhere or deposited in an e-cash account.
In addition, he said, the online environment makes for easier monitoring
of players than the land-based environment does.
"We know everything that our customers do," he said.
"Every keystroke."
The IGC also recently announced a few new additions
to its Seal of Approval program. The program requires participants to
provide fair and honest gambling activities for players and to put
player protection practices into place. The operation is also required
to abide by the results of a dispute resolution process should a
conflict arise between a player and the site. The agreement additionally
has requirements regarding payout procedures, record keeping and fraud
control and advertising policies.
Upon approval of their applications, Captain Cook
Casino, Casino Kingdom and English Harbour will be admitted to the Seal
of Approval program.
"Players should be especially reassured when they
gamble at a site that displays the Seal of Approval," Smith said. 'While
we expect all members of the IGC to follow our code of conduct, SoA
(Seal of Approval) participants agree to abide by an even higher
standard of self-compliance."
There are currently five members in the program: VIP
Sports and VIP Soccer, which are operated by VIP Services, along with
Casino Fortune, Mapau Casino and Miami Beach Casino, which are operated
by Sunny Group.