Internet Casinos and Prepaid Cards/E-Cash (ACAMS Notes)

Internet Casinos
• Prime mode of payment used is Credit Card.
• Casinos being on offshore location prevents prosecution
• Government receive tax dollars due to internet casino and therefore have lax controls
• Citibank has banned the usage of Visa and Mastercard for Internet Casino usage
• Banks can identify the type of transaction conducted via credit card by interpreting the transaction codes.
• Internet enables fast transmission of money<
• Online gambling does not lend to any cash movement.

PrePaid Cards and E-Cash
• New Payment technologies like internet payment, mobile payment, digital precious metals, prepaid cards)
• Prepaid cards are like cash, they are portable, exchangeable, valuable and anonymous.
• The cards can be purchased by one person and used by another and that too in a different part of the world.
• There maybe an account for each prepaid card issued or alternatively there may be a pooled account that holds funds for all issued prepaid cards.
• Potential Risk Factors

• In Germany, adding value to a prepaid card is considered as making a deposit and therefore the card issuers are considered credit institutions which require full banking license and follow country’s AML regulations.
• Electronic Purses (or stored value cards) are cards that electronically store value on the chips embedded on the card.
• E-Purses issuance is declining
• Potential Risk Factors for E-purses

• Measure to limit Prepaid/E-Purse vulnerability to AML

This entry was posted on 22 Aug 2009 at 18:23 and is filed under AML. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.