The hospitality industry is not immune to the pervasive threats of money laundering and terrorism financing. It is so important to have effective anti-money laundering (AML) and counter-terrorism financing (CTF) program in place. Equally important is the training of staff to recognise and report suspicious activities.
A Real-World Example of Suspicious Activity
Earlier this year, a male patron at a club displayed behaviour that caught the attention of a vigilant gaming attendant. The man spent minimal time at a gaming machine before heading directly to the cash redemption terminal (CRT). The attendant’s suspicion led to the club’s compliance officer reviewing the CCTV footage.
Uncovering Suspicious Behaviour
The review revealed a clear pattern of suspicious activity. The individual approached a gaming machine, inserted $776, and immediately cancelled the credit, obtaining a ticket from the machine. He then proceeded to the CRT to cash in the ticket. Notably, this individual was a member of the club.
The Power of Awareness and Reporting
Thanks to the staff member’s awareness, evidence was gathered, and a Suspicious Matter Report (SMR) was submitted to the relevant authorities. This incident is a reminder of the importance of vigilant staff and effective AML/CTF programs.
The Moral of the Story: Money Laundering is Real
This example provides a stark reality check for those who might think money laundering is a non-issue in the hospitality sector. Money laundering is not only real but is a significant risk that requires constant vigilance and proactive measures.
Conclusion
This case highlights the critical role that well-trained staff play in identifying and mitigating financial crimes. It is essential for all hospitality businesses to implement comprehensive AML/CTF programs and ensure their staff are well-educated about the signs of money laundering.
If your organisation needs assistance in developing or enhancing its AML/CTF program or training staff to recognise suspicious behaviours, do not hesitate to contact me.