053007: US Net gamblers used Western

By Dennis D. Estopace

Reporter

A FEDERAL grand jury in Salt Lake City has indicted seven individuals and four companies that used Western Union to wire funds for illegal Internet gambling to associates in the Philippines. The US Justice Department said, “the indictment alleges that the defendants conspired to offer their illegal Internet gambling web sites as another payment-processing option through Western Union wire transfers.” The indictment, which does not include Western Union, also alleges the defendants’ businesses “. . .assisted Internet gambling web sites by arranging fund transfers between bettors in the United States and various Internet gambling web sites using Western Union wire transfers.” Internet-based sports and casino gambling web site BetUS was also charged in a case of conspiracy that involved more than $150 million (P7.2 billion at $1=P48) in payment to such web sites. “According to the indictment, the defendants caused the illegal Internet gambling web site’s customers to wire funds through Western Union to people in the Philippines who were associated with the defendants.” The US Justice Department added that the “defendants then caused these associates in the Philippines to transfer funds to accounts controlled by the defendants.” Western Union executive Angela Heng called from Hong Kong to stress that the company “has not been accused for doing something wrong.” Said Heng, Western Union’s Asia Pacific vice president for corporate affairs. “We’re actually the victim here.” She added she only read a news wire story citing the company’s involvement in the case but “we haven’t received any document from official channels” on that case. Heng said despite the company’s anti-gaming program, “we still can’t say if a person sending money to another person would be intended for gambling. We do as much as we can to curb these irregularities. We cooperate with law enforcement agencies. We talk to the Anti-Money Laundering Council very often and we are happy to help as much as we can.” When asked to comment on the case, AMLC executive director Vicente Aquino said that “if there is a case then surely it would go into our database.” When asked if the council is launching a probe on Western Union, Aquino replied, “All I can say is AMLC is doing its job.” According to Republic Act 9160 or the Anti-Money Laundering Act of 2001, the AMLC has the authority to freeze any deposit or similar account and to inquire into bank deposits of accounts suspected of being used for money laundering.

 

http://www.businessmirror.com.ph/05302007/headlines09.html