FINTRAC Warns of Online Gambling’s Role in Laundering Fentanyl Trafficking Profits

Canada’s financial intelligence agency, FINTRAC (the Financial Transactions and Reports Analysis Centre of Canada), has identified online gambling platforms as a potential avenue for laundering money generated from fentanyl trafficking. In a recently issued operational alert, the agency detailed how traffickers exploit these platforms to deposit and withdraw funds, disguising illicit earnings as gambling activity.

“As observed in suspicious transaction reports, known fentanyl traffickers frequently sent funds received from multiple incoming email money transfers to gambling sites and received payments in return from associated payment processors based in Malta, Canada and the United Kingdom,” FINTRAC stated.

The agency further explained, “It is suspected that individuals are depositing and withdrawing funds at online casinos, using these platforms to disguise proceeds from fentanyl and opioid trafficking as wagers and winnings from online gambling.”

The alert also revealed the importation of precursor chemicals and laboratory equipment for fentanyl production, with China being the primary source, followed by India. These shipments often pass through intermediary jurisdictions like Singapore and Hong Kong to avoid detection.

“Organized crime groups are using darknet marketplaces, virtual currencies, and traditional methods to traffic fentanyl and synthetic opioids globally,” the alert emphasized.

FINTRAC pointed to Canadian cities such as Vancouver and Toronto as critical distribution hubs for these operations, noting that opioids are funneled from these areas to regions like Calgary, Edmonton, and Ontario. The Greater Toronto Area and Lower Mainland British Columbia serve as major export points, with fentanyl being smuggled out of Canada via marine, air cargo, and land routes.

The organization also issued a stark warning about the evolving nature of the fentanyl trade, highlighting the growing risk of North America transitioning from a primarily consumer market to a producer and exporter of the drug.

By fLEXI tEAM