Illicit gambling & casinos end in the outflow of over a trillion yuan yearly [around $146.5 Bln] from China, added Liao Jinrong, the director-general of the International Cooperation Department beneath the Chinese Ministry of Public Security.
Explaining further, he revealed that the operators of the overseas gambling platforms & casinos collect the funds from gamblers employing virtual currencies, making the investigation into these activities tougher for the authorities.
While speaking at an event in Beijing, Liao added that the illicit outflow of such an enormous amount can erode the economic security of China. He added that if the “gangs” behind the casinos and cryptocurrency-based gambling would conspire with the “foreign powers” against the subcontinent, it might pose a financial security risk.
Liao further added that the inadequate supervision of suspicious transactions by payment service providers, 3rd-party institutions, merchants & e-commerce platforms are the cause for such unprecedented outflow of funds from China. Additionally, Liao revealed that there’s difficulty in tracing the flow of funds to overseas gambling platforms & casinos due to the collaboration between payment industry practitioners as well as criminal organizations.
Liao added that the govt. has already increased the value of opening payment accounts at non-financial institutions, used simpler ways for the identification of bizarre transactions, and has made it mandatory for account holders to use actual names. These measures, consistent with him, have helped China suppress the flow of funds to illicit gambling platforms as well as casinos overseas.
The statement comes only a month after the Chinese exchange regulator, the State Administration of Foreign exchange, revealed that its plans to figure on more stringent supervision policies to curb crimes like “underground banks” & cross-border gambling.