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Costa Rican Money Laundering
http://www.dcia.com/lapenca.html
the interesting part of this is below. doesn't have to do with gambling directly but it does deal with banking.
One of the problems to which the Commission has given the most attention is the one related to money laundering, which in very simple terms can be defined as the attempt to clean dirty money in order to present it as legal or clean. Something fundamental about this should not be forgotten, which is that in this crime the intervention of metallic money is required, because "...a seller of drugs acting in the street does not collect through personal chits or credit cards; what he wants is metallic money. A supplier asks for metallic money. The reason why criminals work in metal is simple: people don't want a written record of illegal transactions, so it becomes necessary to launder the money..." (see Roberto Powis, "Hacia el final del dinero sucio, separata). The essential ides that should be tied to money laundering refers to the inevitable handling of large amounts of cash, generally in bills of that type. This is one of the most serious problems faced by the drug trafficker, especially because of the act of handling low-denomination bills, because, for example, two million dollars in 20-dollar-bills have a total weight of 112 kilograms, and if that same amount were in 10-dollar bills, the weight would be 224 kilos. (Ibid). Given this difficulty, the simple fact of exchanging those bills for others of a larger denomination is one of the simplest methods of money laundering.
There are various methods for "washing" the money, but among those used the most the following can be mentioned: a - The flow of dollars in cash comes from the U.S. to any country, among them Costa Rica. The important thing is that the drug trafficker evades U.S. laws with relative facility, because the mobilization of that money has no documentary backing. Later that money will reenter the U.S., generally, or other developed countries. What is interesting in this case is that the money was always in the possession of the same person, because when it reenters bank accounts in the U.S. or other countries, the legitimization of the money has been achieved through its mobilization. There was never really an authentic bank transaction. In Costa Rica, this method would operate as follows: the person comes from abroad on commercial flights, bringing in his luggage an important amount of dollars in cash. Once in the country, the dollars are deposited in a number of bank accounts, from which "cover companies" have accounts to be drawn upon, and from those accounts drafts are drawn on other accounts in the U.S., Panama or other countries. (See Posis - ob.cit. p. 51) b - It is also possible to create a more sophisticated method in which a network of companies is used as follows: "...the most frequent mode of operation, which is carried out by using commercial accounts, includes several companies,-- Corporation A, Corporation B and C, which begin to channel substantial amounts of cash to Bank D. Once in the bank, and through drafts /bills of exchange/ or telegraphic draft, the funds are assigned to the account of Company F in Bank E of Panama. Company F in a Panamanian fiduciary company subject to the laws of that country. Its real owners are the same individuals who control corporations A, B and C. However, Panamanian banking secrecy laws prevent the U.S. authorities or any other person from being able to learn their identity. When the money is now in Bank E of Panama, part of it is transferred by telegraph to Ochoa Investments in Bank G, located in Colombia. This transfer is for paying the drug suppliers. The rest of the funds available in Bank E are again transferred to bank accounts that corporations A, B, and C maintain in Bank H in the U.S..." (Posis, ob. cit., p. 51, 52.) This lengthy quote illustrates very well what an ideal type of "money laundering" would be. In this case the purpose of banking secrecy is perverted totally; on the other hand, the mobilization of such sums is only aimed at legitimizing money of illegal origin, which actually never changed owners.
c - One can hide the earnings of drug trafficking and legitimize those revenues through the use of two or more fictitious companies with which legitimate commercial transactions &re conducted. According to the purposes of circulation of money, the drug trafficker can sell merchandise or services at artificially high or low prices, according to the case. In this procedure the money is hidden or legalized through double invoices.
d - The mobilization of dollars in cash is one of the most serious problems of drug trafficking and laundering of dirty moneys as already stated; in this sense it is worth mentioning that one of the methods for mobilizing and laundering money consist of putting the money in cars entering the country illegally, in collusion with the Customs authorities. This money then enters money exchange shops that operate by violating the laws regulating bank operations.
The person in charge of the money exchange shop uses bank accounts in the name of several firm names, from which he sends transfers to the U.S., usually to banks in Miami. In Costa Rica the police authorities have managed to establish the possibility that the fraudulent entry of vehicles has been used as an instrument for bringing into the country the dollars requiring full legalization. The vehicle allows easy hiding, the relatively ample space occupied by the amounts of money in bills in small denomination. It is also possible that dollars have been brought into Costa Rica through flights of small aircraft that land on landing strips located near the border with Panama.
the interesting part of this is below. doesn't have to do with gambling directly but it does deal with banking.
One of the problems to which the Commission has given the most attention is the one related to money laundering, which in very simple terms can be defined as the attempt to clean dirty money in order to present it as legal or clean. Something fundamental about this should not be forgotten, which is that in this crime the intervention of metallic money is required, because "...a seller of drugs acting in the street does not collect through personal chits or credit cards; what he wants is metallic money. A supplier asks for metallic money. The reason why criminals work in metal is simple: people don't want a written record of illegal transactions, so it becomes necessary to launder the money..." (see Roberto Powis, "Hacia el final del dinero sucio, separata). The essential ides that should be tied to money laundering refers to the inevitable handling of large amounts of cash, generally in bills of that type. This is one of the most serious problems faced by the drug trafficker, especially because of the act of handling low-denomination bills, because, for example, two million dollars in 20-dollar-bills have a total weight of 112 kilograms, and if that same amount were in 10-dollar bills, the weight would be 224 kilos. (Ibid). Given this difficulty, the simple fact of exchanging those bills for others of a larger denomination is one of the simplest methods of money laundering.
There are various methods for "washing" the money, but among those used the most the following can be mentioned: a - The flow of dollars in cash comes from the U.S. to any country, among them Costa Rica. The important thing is that the drug trafficker evades U.S. laws with relative facility, because the mobilization of that money has no documentary backing. Later that money will reenter the U.S., generally, or other developed countries. What is interesting in this case is that the money was always in the possession of the same person, because when it reenters bank accounts in the U.S. or other countries, the legitimization of the money has been achieved through its mobilization. There was never really an authentic bank transaction. In Costa Rica, this method would operate as follows: the person comes from abroad on commercial flights, bringing in his luggage an important amount of dollars in cash. Once in the country, the dollars are deposited in a number of bank accounts, from which "cover companies" have accounts to be drawn upon, and from those accounts drafts are drawn on other accounts in the U.S., Panama or other countries. (See Posis - ob.cit. p. 51) b - It is also possible to create a more sophisticated method in which a network of companies is used as follows: "...the most frequent mode of operation, which is carried out by using commercial accounts, includes several companies,-- Corporation A, Corporation B and C, which begin to channel substantial amounts of cash to Bank D. Once in the bank, and through drafts /bills of exchange/ or telegraphic draft, the funds are assigned to the account of Company F in Bank E of Panama. Company F in a Panamanian fiduciary company subject to the laws of that country. Its real owners are the same individuals who control corporations A, B and C. However, Panamanian banking secrecy laws prevent the U.S. authorities or any other person from being able to learn their identity. When the money is now in Bank E of Panama, part of it is transferred by telegraph to Ochoa Investments in Bank G, located in Colombia. This transfer is for paying the drug suppliers. The rest of the funds available in Bank E are again transferred to bank accounts that corporations A, B, and C maintain in Bank H in the U.S..." (Posis, ob. cit., p. 51, 52.) This lengthy quote illustrates very well what an ideal type of "money laundering" would be. In this case the purpose of banking secrecy is perverted totally; on the other hand, the mobilization of such sums is only aimed at legitimizing money of illegal origin, which actually never changed owners.
c - One can hide the earnings of drug trafficking and legitimize those revenues through the use of two or more fictitious companies with which legitimate commercial transactions &re conducted. According to the purposes of circulation of money, the drug trafficker can sell merchandise or services at artificially high or low prices, according to the case. In this procedure the money is hidden or legalized through double invoices.
d - The mobilization of dollars in cash is one of the most serious problems of drug trafficking and laundering of dirty moneys as already stated; in this sense it is worth mentioning that one of the methods for mobilizing and laundering money consist of putting the money in cars entering the country illegally, in collusion with the Customs authorities. This money then enters money exchange shops that operate by violating the laws regulating bank operations.
The person in charge of the money exchange shop uses bank accounts in the name of several firm names, from which he sends transfers to the U.S., usually to banks in Miami. In Costa Rica the police authorities have managed to establish the possibility that the fraudulent entry of vehicles has been used as an instrument for bringing into the country the dollars requiring full legalization. The vehicle allows easy hiding, the relatively ample space occupied by the amounts of money in bills in small denomination. It is also possible that dollars have been brought into Costa Rica through flights of small aircraft that land on landing strips located near the border with Panama.