Laundering of fentanyl cash linked to online gambling, intelligence agency warns

Canada’s financial intelligence agency, the Financial Transactions and Reports Analysis Centre of Canada (Fintrac), has raised concerns about the potential use of online betting platforms for money laundering linked to fentanyl trafficking and production. According to a recent operational alert issued by Fintrac, there is evidence to suggest that individuals are using online casinos to disguise proceeds from fentanyl and other opioids as gambling wagers and winnings.

The alert highlights instances where known fentanyl traffickers have been observed sending money to digital gambling sites and receiving funds from associated payment processors in Canada, Malta, and the United Kingdom. Fintrac, which analyzes millions of data points from various financial institutions and businesses, shares its intelligence with law enforcement agencies to combat money laundering and terrorism financing.

By examining a sample of suspicious transaction reports related to fentanyl and synthetic opioids filed between 2020 and 2023, Fintrac identified patterns indicating the distribution of synthetic opioids within Canada. The reports also revealed suspected imports of precursor chemicals and equipment from China and India for the production of synthetic opioids domestically.

The alert further emphasizes the growing involvement of organized crime groups in the illegal supply of fentanyl and synthetic opioids in North America. These groups are increasingly using dark net marketplaces and virtual currencies to distribute and facilitate payments for illicit opioids on an international scale. In some cases, individuals have received high-value email money transfers from payment processors associated with online gambling, raising suspicions due to their links to fentanyl trafficking.

Fintrac notes a shift in North America from being primarily a consumer to a producer of illicit opioids, with Vancouver and Toronto identified as primary distribution hubs. The agency warns of the use of shipping and logistics companies that deal in cash to transport synthetic opioids, with distribution networks extending from Vancouver to Calgary, Edmonton, and Ontario cities like Toronto, London, and Hamilton.

Overall, Fintrac’s alert underscores the need for vigilance in detecting and reporting suspicious financial activities linked to the trafficking and production of fentanyl. By leveraging data analysis and information sharing, authorities can better combat the illicit opioid trade and protect communities from the devastating impact of the fentanyl crisis.