Pimps using betting shops to ‘clean’ money, claims Senator

Some gambling outlets are being used as banks to lodge the proceeds of crime, claims Independent Senator Gerard Craughwell.

He said he was referring in particular to pimps who ran sex-for-sale operations.

“I have anecdotal evidence of pimps who bring tens of thousands of euro to betting shops or bookies and request that it be divided equally across all races or gambling activities on that day,’’ he said.

“In this way, they clean their money.’’

Mr Craughwell said some of the large gambling institutions were far from such and were actually banks.

“Criminals leave tens of thousands of euro on deposit with the large gambling institutions in question,’’ he said. “When they need a few bob, they draw money out.’’

He suggested the Proceeds of Crime (Amendment) Bill, which was under discussion by the Seanad, be amended to end the practice.

"It is a scandal that these institutions have become the fraud banks for criminals,'' said Fine Gael Senator Martin Conway. "These accounts can be opened at will and there are no questions about where the money comes from.''

Sector vulnerable

Fine Gael TD

David Stanton

, the Minister of State for Justice, said the gambling sector was potential vulnerable to being used to launder the proceeds of crime.

He said all private members’ clubs, in which gambling activities were carried out, were required to register with the Department of Justice.

An EU anti-money laundering directive required the Government to review risks and consider further controls.

Mr Stanton said any new legislation would be considered as part of the law regulating gambling. The heads of a gambling control Bill had been agreed and were with the Office of the Parliamentary Counsel.