Mafia & Money Laundry Through Online Gambling in Germany

Mafia using online gambling games in Germany for money laundering. Police made helpless, because the rules are so complex. European Court of Justice is now reviewing the law in Germany.

Human trafficking, forced prostitution, drug trafficking. Of this crime mafia gained huge income. UN actual studies conducted show, organized crime grossed 2.1 billion dollars per year. But what does all this money, if it can not be played in the circulation of money legal? For mafia, the practice of money laundering is the main thing.
“Money laundering is not a crime but a multiplication for organized crime.” Explains the origin of Hamburg economist Ingo Fiedler in an interview with Deutsche Welle.

“If there is no money laundering, mafia will not exist.” Fiedler estimates, the mafia boss happy to take advantage of the opportunities of the most convenient and inexpensive for money laundering. And for the online gambling games top ranks.

Online gambling Mastered Mafia

Dirty money bet. Win money clean. With “single money laundering action” such organized criminals feel very satisfied.
According to Ingo Fiedler there is a hint, that the criminal organizations while this is direction ally purchase online gambling exchange or shape itself. The corporate offices of online gambling games are mostly located in countries categorized as a haven for tax plangent and offenders.

If an online casino rake in millions of euros, the German competent authorities can not prove it. “The exchange of information between countries are not going well,” said Fiedler. “Nobody can prove where the money is. But the owners of the company can legally pay it.”

While this is no indication that the Italian mafia is very active, especially in the online gambling game in Germany. In an open hearing at the Board of Finance, November 2012, the Public Prosecutor and the Italian mafia Roberto Scarpinato hunters questioned on this matter.

Based on the result of prosecution there is “tremendous cash flow”, which moved from Italy to Germany and vice verse. 45 The main witness mafia case when questioned told him, that Germany is one of the countries selected for the purpose of money laundering mafia. Which is mainly used intensively are places arcade games and online gambling games.

Swiss law expert Andreas Frank was present when the explanation of the Italian prosecutor in Berlin. That makes it shake his head: “Although the exposure is so clear, the response of the politicians I do not think there is,” said Frank.

Also to present the finance ministry reaction responsible for the problem of money laundering “is equal to zero.” Nothing happened. The central government in Berlin to let the states alone to face the problem.
In practice since 2007, states are responsible for organizing things related to gambling. Decisions that have a major impact.

In January 2012 the German state of Schleswig-Holstein declared unilaterally, online gambling games for the managers from the European Union, as it is legal. Almost one year later the state’s politicians appealing the decision. Dated January 24, 2013 the state government of Schleswig-Holstein terminate the step itself.
But the license has been granted to gambling, can not be withdrawn abruptly. Andreas Frank confident, powerful action to combat laundering and mafia activity in this matter, is almost impossible.

The political efforts recently, by issuing “additional regulation for money laundering law” in December 2012, according to legal experts view it is not enough. Because as well as efforts to curb the illegal market in the sector of gambling games, the rules did not issue any warnings.
Police Helpless

In theory it sounds, as if people can keep an eye on legal employers gambling game online legally and illegal hunting. “But the reality is not so”, said Sebastian Fiedler of the German criminal association officers.
No action to tackle illegal gambling games on the internet. And support of the political? According to Fiedler it inadequate. Personnel trained specifically for the task is very less. And thus illegal online gambling market in Germany continues to grow. Police can only be looked at. The manager does not need to be afraid.
“The condition of this kind of police shock desirable politically,” added economist Ingo Fiedler. Doubts too big, whether in situations of complex legislation in Germany so far, in accordance with the policy of the European Union.

Because, basically, the decision to ban gambling law of the European Court should only be issued, if it have the grounds of public interest, such as the fight against addiction to gambling. But in 2012 the Germans did not hesitate to issue a license for online gambling games, even though it is only done by one state alone the Schleswig-Holstein.

European Court therefore doubted this argument. Dated January 24, 2013 the Supreme Court of Germany filed a formal request to the European Court of Justice to conduct a review of the rules relating to online gambling. If German law is not strong enough in testing, the German market should be open to all entrepreneurs gambling games through a virtual path.


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44 Comments

  1. Not only in gambling, people do money loundry in every ways. They interfere with banking regulation, trading gold, property etc. So why government always blame gambling?

    • Is there any indication that a particular person or group in the government have certain desires?

    • @bernardbear we need one of your specials on the definition of “Laundering” and then how it could effect the flow of casino money.

      • @ardodd : In my opinion money laundry definition is: an act that done by people who earn money from dirty way (corruption, trafficking, drugs trading etc), and then they try to cover up their dirty money to avoid the authority investigation which can make them end up in jail. They cover up their money in many ways, for example, they investing their money in “honest business” like property, stock market, etc, by using 2nd party or person their trust who pretend to be the business owner and run the business.. Answering @ardodd question about how it influence casino money flow… simply like this, they invest their money to built a landbase/online casino using 2nd person name their trust to run the business.. forgive me if i’m wrong..

        • @bernardbear, you absolutely right explanation. From bottom to up people’s could do laundering. Maybe they don’t know what they’ve done.Laundering will become commin habit even government or corruption watch couldn’t touch deeply.

  2. Topic articles of interest, money laundering is always associated with gambling. Though not all of the crime of money laundering is always associated with gambling. Many businesses other than the legal gambling businesses that serve a money laundering. And it will look at the cash flow of money from the bank where are the business objectives mafia empties.

    • For some countries, the role of mafia become the first choice due to the country still feels strong mafia domination. Money laundering efforts into a separate business field for the organization

      • Well at some point, money laundry sometimes help the nation it self. For example: a foreign money laundrer invest at some country, they create a job, they increase the country national gross product. And if they invest it at some stock market, it will grow the market enthusiasm that will effect the company (which sell it stocks at stock market) value into it best price.

  3. Govt should take strict action against the mafia because of them the gambling industry is accused.

    • what if the government itself infiltrated by the mafia, could be solved?

      • @gozy : mafia won’t grow if they dont have a back up from a government officer, milatary or police. I hope it will answer your question.

        • @bernardbear, you we’re right. Until now.I Never found really clean government.Do wheel of Government with right policy. Maybe it’s only dreams.What we do just play the game of life with what we believed, don’t we?

    • I dont think the govt can do it. Remember capone? He spread his network in every level of governance. Elliot ness who caught him, work in shadow, because no one support him. Some honest people join him not because the government act, it was more like self initative. But at the end, goverment supported him due to his bravery.. and finally “the untouchable” capone, ended up in alcatraz. And who is the next eliot ness? We’ll see..

  4. Even based in religious institutions were already many who practice money laundry, under the pretext of the public will always look good with that institutions.

    • Owwh… there was also a religious institution of money laundering ?. How, anyone and who is involved?

      • The religious institution? Pardon me before, maybe someone here had read about bank of vatican? And how pope pius, due to musollini dictate him, was made an agreement with adolf hitler to made the bank of vatican as one of their financial institution, to park those two nation money to fund their war at ww2?

  5. I think not all of laundering money made by gambling business, because in reality a lot of money laundering is done in other businesses do not even rule out the possibility can occur in institutions or agencies that are considered good by most people

    • Any way still done by people who have an interest for example in the areas of health, transportation etc.

  6. Such instances actually bring a bad name to gambling. It’s unfortunate how easily stuff can be manipulated and misused. As a matter of fact, people do get a bad impression due to such happenings. What the society doesn’t realize is that anything can be good or bad depending on the use. You can drink water and it is necessary for survival. You can drown someone into water and it becomes a criminal act. USE is what matters!

    • so anything done, good or bad outcome depends on yourself.

  7. yes as I know, the term mafia exists in Italy. but is applied to the political players money or money laundering wherever located. it is this that must be considered by the OC, such as for example, Liberty Reserve to be closed because the company has been exploited by the mafia money laundering, then the aggrieved certainly the member who has been entrusted on the site.

    • The Sicilians are accused of owning 17 seemingly construction-related businesses and employing straw men as managers. According to the indictment, the men used the companies to help launder money in exchange for a fee.

  8. Good point mbach, i agree with you. Awareness are important at some point, but on the other hand, the innocent costumer doesnt like to be treat like criminal, so a flexible rule will be nice..

    • If there is synergy and symbiosis mutualism between the Government and the organization or community, it is possible to be an increase in terms of security. comfort, the spirit of doing business

  9. it’s not only in germany. it’s in every country i think.

    • That’s true Vicbro, money laundering is an attempt to conceal or disguise the act of origin of money / funds or treasure. Every person in every country will try to do this.

  10. Now is easier to money laundry like clothes laundry and every sector in government in many country can’t stop it totally. They like a ghost…..

    • I agree with you Lier, it is a problem that is ingrained in every country and online casino must remain vigilant about things like that. “there may be a state official who wants to become a financier in the online casino, and we do not know that he has done its share of money laundering against it”. I hope it does not happen to OC

  11. in terms of business , which is more favorable between human trafficking, prostitution , drugs trafficking and casino .. ?
    whether we are thinking the same ?

    • I think there is nothing more profitable than it all if the law is illegal

      • The advantages of an effort to be viewed from various perspectives,

    • In the business world, there are many ways to make a profit. business goes according to government rules will too.

    • Gambling i guess.. anytime, anywhere, even accidently or not we could gamble.

  12. Gambling business is far more safe, Rudz. But things you mentioned above was a mafia business. Whether you like it or not.

  13. Usually the mafia set their business like this. The legal one and the illegal one. One of The legal business they have is casino. And the illegal are.. you know what i’m trying to say..

    • Business conducted by the mafia as a giant octopus, what do you think ?.

  14. Good relations and cooperation will always be created because the Mafia usually use gambling games online for money laundering as happened in the German states.

    • Due to this reason, it happens tremendous cash flow from italy to German and vice versa

  15. Thanks @cozy very well written article. The biggest poi.t to make is how is the laundering taking place. For example: Is it through fake accounts that use stolen credit cards to put money into an account and then trans fer it out in the form of check or wire to different bank account?
    I think we need a follow-up article showing different ways the money laundering is actually happening.

    • Thank you for your comments, adodds. It would be interesting if we could write a follow-up article, the process or mechanism of money laundering. Hopefully the member can write it.

    • @ardodd : no need to use a fake account. For example, simply you can use many of your trusted friends bank account to park your money. because the international regulation about bank account secrecy, a government or a president cannot interfere or examine your account. Even for a single dollar bank account, Need a sign from governor of federal bank and minister of treasury if an authority want to examine it. But still, not that easy..

  16. @gozy? You put very nice efforts to make this article more and more interesting and appreciable. I have review almost all the discussion on this article. Especially @bearnardbear discussion on this article is more considerable regarding money laundering either it is any of type. And of course, there is many laws against money laundry in any country, but they are all just by name or definitions etc. They are not for to implement in their right ways to avoid money laundry. The only main reason is that, The Govt. of any country is the only biggest mafia in that country. According to me.

    • I agree with you @hafidz786, The biggest mafia is the govt themself, they have power, they have every resource in their hand, so, is their choice wheter they use it for good or bad.. But one thing for sure, history told us there is a good and clean government, so let us hope it will happen again..

      • @bernardbear, i was surprised when you told us there was a good and clean government..can you tell us?.

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