Uncovering Money Laundering in Gaming and Betting Apps via Kirana Stores 🕵️♂️
The Enforcement Directorate (ED) has unearthed a clandestine operation involving illegal gaming and betting apps, utilizing local retail stores to launder money, according to a report by Times of India.
Under the guise of the Reserve Bank of India’s domestic money transfer (DMT) framework, unsuspecting local shop owners were roped in for facilitating instant money transfers within the country.
– Banks can designate intermediaries and agents to collect cash from migrants and send it to their relatives
– Cash is pooled into a common account before being transferred to the recipient’s UPI account
– Aimed at providing a secure money transfer option for migrants without access to formal banking services
Exploiting Kirana Stores and Small Retailers for Illegal Transactions 🕵️♂️
The ED’s investigation revealed that a significant amount of money flowing through local kirana stores and small retailers was actually payouts to winners of gaming and betting apps.
– Illegal gaming operators utilize kirana stores and small retail outlets to disburse winnings in small amounts
– These small denominations make it challenging for authorities to trace the illicit funds
– Transactions are conducted through hawala networks, cash payments, or even cryptocurrencies
Estimating Massive Betting Amounts and Monetary Movements 🕵️♂️
Sources within the federal probe agency believe that losses incurred by unsuspecting gamblers could surpass Rs 1 lakh crore, with funds being circulated through various channels such as cryptocurrencies and investments in the stock market.
– Suspected movement of funds involves remittances, round-tripping, and payments for fake service imports
– More than two dozen offshore gaming applications are currently under scrutiny by the ED
– These illicit apps are operated by individuals based in countries like the UAE, Sri Lanka, and other South Asian nations
Hot Take on Money Laundering via Gaming and Betting Apps 🕵️♂️
Dear Crypto Enthusiast, the emergence of illicit activities in gaming and betting apps, particularly using kirana stores as a front for money laundering, underscores the need for increased vigilance and regulatory oversight in the digital ecosystem. It is essential to adopt robust measures to curb such practices and safeguard the integrity of financial systems.
Sources:
– [Times of India Article](insert link)
– [ET Report](insert link)
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