Gambling cash flow out of China surpasses US$145bn

The director-general of the Ministry of Public Security’s International Cooperation Department has said the industry should “increase efforts.” 

China.- About RMB1 trillion (US$145.5 billion) in funds flow out of China every year through gambling, Chinese authorities have said. 

Speaking at the 9th China Payment and Settlement Forum in Beijing, the director-general of the International Cooperation Department at China’s Ministry of Public Security, Liao Jinrong, said gangs running illegal operations were increasingly using digital currencies to transfer funds, making it more difficult to track the sources.  

He said there were insufficient controls when opening bank accounts and inadequate supervision of suspicious transactions between payment institutions.  

Liao blamed overseas casinos, saying the details of assets held by Chinese entrepreneurs, individuals and related parties were not investigated thoroughly. 

He warned: “Industry supervision urgently needs to clarify responsibilities and increase efforts. We and the central bank’s competent authorities will first notify the personnel found to facilitate gambling crimes, and second, severely crackdown in accordance with the law.” 

China has been tightening security checks on cash flows overseas and has even announced it will create a blacklist of nations that are considered gambling destinations and consequently a security risk for the Chinese government.  

Liao said cross-border gambling groups often colluded with foreign forces and that Chinese authorities had issued new policies, achieving positive initial results.  

Several channels used by the gambling industry to move funds, including cryptocurrency platforms have been shut down in recent few months, something that has had an impact on the VIP clientele that usually visited Macau’s casinos.