A respected gambling reported has published an article in the Online Poker Report in which he claims that money laundering is nearly impossible on American sites.
Steve Ruddock penned the article in which he claims: "There is simply no incentive for money launderers to choose regulated online poker to scrub their money. There are countless ways that this can be accomplished that are easier, cheaper, and leave less of a paper trail."
Money laundering is one of the main arguments used by anti-online gambling bodies such as the Coalition to Stop Internet Gambling, even though most reasonable gambling pundits argue that the act is unlikely to occur.
Ruddock also goes on to opine that banning online gambling in the States would encourage sleazy offshore casinos to open up, in which players could be put at risk.
Ruddocks' other arguments for regulation include:
KYC (know your customer) requirements insist on operators demanding proof of identity and age which includes the provision of accurate and provable details such as Social Security number, along with name, date of birth and address.
That there is no tangible evidence or data that demonstrates prohibition will work.
Regulated markets that ring-fence their players make money laundering useless, as the players must be in the same state to even compete against one another, destroying the golden rule of money laundering – do it internationally.
Regulations require compliance with the Bank Secrecy Act, through which any large deposit or withdrawal will be reported. Ruddock quotes Attorney Sanford Millar, who during his testimony at the recent California online poker hearing, told the committee, “Money laundering is not an issue for intrastate online poker…there are too many trails.”
Regulated markets do not allow player-to-player transfers, and in any case players can no longer deposit or withdraw large sums of money unquestioned at US-legal sites.