Greek officials accused of laundering millions through gambling loophole

The Anti-Money Laundering Authorities in Greece are investigating nearly 200 people for using a loophole in gambling laws to launder money. These individuals include some unnamed ministry directors and public officials. 

Authorities uncovered the scheme after cross-checking tax filings against gambling transactions. 

This is not the first time that online gambling has become associated with money laundering, with the UK Government raising the levels of risk recently. 

The loophole

A loophole in regulation allowed individuals to deposit cash in retail intermediaries, such as petrol stations or convenience stores, which were acting as collection agents for legitimate betting operations. 

Players would deposit cash with agents inside these stores, which was then credited to the gambling agents before being transferred to their personal bank accounts. 

The use of cash meant the suspects could avoid any trace through bank transfers. 

Once this money was in their accounts, the accused were able to disguise it as legitimate gambling winnings. 

Key facts

There are a lot of aspects to this investigation, but here are the main points: 

• The money laundering was through around 10 betting companies.

• These operators are also under investigation for failing to comply with Anti-Money Laundering regulations.

• Gambling amounts reached up to €1M, sometimes just in a single deposit.

• The loophole that allowed money laundering through legal betting operations was closed as soon as the authorities became aware of it. 

Who is involved  

The investigation started with the Anti-Money Laundering Authorities (AMLA), who then informed the Gaming Control Supervisory Committee of Greece. This committee oversees any violation of the regulations. 

The original investigation was led by the Supreme Court deputy prosecutor, Charalampos Vourliotis. The authorities investigated the declared income and gambling expenditure of the alleged money launderers. This resulted in several discrepancies.

In one case, there was a deposit of nearly 1 million euros whose source could not be explained. 

The accused were unable to explain the source of funds used for gambling, and the authorities were also unable to find the source. 

What next?

Suspicion was first raised as the amount of money being gambled (nearly a million euros in some cases) did not match the levels of income they had declared.

The investigation is ongoing with fears that a lot more could be incriminated. Possible consequences include prosecutions, regulatory reform and operator accountability. This would mean a change in how the public in Greece can access gambling.

It is yet to be discovered if gambling operators were aware of the money laundering. If so, they will have to answer why they didn’t comply with the regulation. 

Other questions include just how many people were involved in the activity and how long it was occurring.