In the wake of recent revelations surrounding Cash App and the U.S. authorities’ investigation into allegations of money laundering and the facilitation of illegal offshore gambling activities, a concerning pattern emerges—one that is not limited to the shores of the U.S. FinTelegram has revealed that numerous European financial institutions are acting as payment facilitators for illegal offshore casinos. This issue, however, seems to be met with a starkly different response in the EU, where regulatory bodies and law enforcement agencies appear either uninterested or uninformed compared to their U.S. counterparts.
The situation with Cash App, a popular payment application scrutinized for potentially leaving the door open to money launderers and terrorists, highlights a significant challenge in the financial ecosystem. Allegations suggest that Cash App and entities providing transaction services to its users performed inadequate customer due diligence, potentially enabling money laundering and terrorism financing. This case has prompted action from federal financial regulators in the U.S., showcasing a proactive stance against financial crimes linked to illegal gambling operations.
Read our reports about illegal gambling here.
Contrastingly, in Europe, financial institutions’ facilitation of payments for illegal offshore casinos has not elicited a similar level of concern or action. FinTelegram’s investigations reveal a disturbing complacency or lack of understanding among European authorities regarding the severity of these offenses. Illegal gambling operations pose significant risks, including money laundering, fraud, and the financing of other illicit activities. The support of such operations by payment processors, intentionally or otherwise, undermines the integrity of the financial system and the rule of law.
Read our reports about Dama Group and its payment facilitators here.
The discrepancy in regulatory response raises critical questions about the commitment of European authorities to combat financial crimes associated with illegal gambling. While the U.S. takes decisive steps to address and mitigate these risks, the apparent tolerance for such offenses in Europe sends a concerning message. It suggests a landscape where the facilitation of illegal gambling payments by financial institutions is considered a minor transgression, unworthy of significant regulatory attention or intervention.
Read our reports about the NewEra Group and its payment facilitators here.
This situation calls for a wake-up call to regulators and law enforcement agencies across the European Union. It is imperative to recognize the gravity of the issue and the potential repercussions on the financial system’s integrity and public trust. The support of illegal casinos by payment processors—whether through negligence, lack of due diligence, or deliberate action—should not be considered a tolerable offense.
FinTelegram urges European authorities to take a leaf out of the U.S. playbook and adopt a more robust, informed, and proactive approach to tackling this issue. It is not merely about penalizing the facilitators but about safeguarding the financial ecosystem, protecting consumers, and upholding the rule of law. The time to act is now.
European regulators and law enforcement must acknowledge the problem, understand its complexities, and implement effective measures to combat the facilitation of payments for illegal offshore gambling operations. Let this be a call to action—a demand for accountability, transparency, and a commitment to the financial system’s integrity and the welfare of its users.
