The conviction of a payment processor accused of aiding Internet gambling companies highlights the compliance hurdles anti-money laundering officers face when maintaining accounts for merchant transactions, say bank and law enforcement officials. Ira Rubin pleaded guilty Tuesday to money laundering, bank fraud and gambling violations for his role in helping three of the largest online gambling companies accept illegal bets. In April, federal prosecutors accused Rubin and four other payment processors of creating fake Web sites to fool bank officials into opening accounts used to funnel bets and gambling winnings. Rubin's plea follows the convictions of payment processors Bradley Franzen...
Financial institutions may need to update anti-money laundering controls, due diligence and screening associated with their third-party payment processor customers, particularly those based internationally, according to U.S. Treasury guidance issued Monday.
The U.S. government's crackdown on the largest online gambling operations this month has prompted American gamblers to place their bets elsewhere on the Web, with few signs of a long-term slowdown for the industry.
The U.S. Justice Department is seeking $3 billion in forfeitures and fines from three of the largest online gambling businesses and the financial institutions and individuals that helped to process bets.