Casinos Still a Key Conduit for Chinese Money Laundering Networks, Warns FinCEN

Casinos are once again at the centre of international financial crime concerns, as U.S. authorities warn that Chinese money laundering networks (CMLNs) continue to exploit gaming floors and related industries to conceal billions of dollars in illicit funds.

A fresh analysis by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) shows that between 2020 and 2024, casinos—alongside banks and money service businesses—were heavily represented in suspicious activity reporting tied to Chinese laundering operations.

Out of the 137,000 suspicious activity reports (SARs) reviewed by FinCEN, banks made up the majority. However, casinos and their related financial operators still played a major role, flagging more than $24 billion in questionable transactions over the five-year window. The filings included patterns such as irregular chip purchases, “chip walking” (where gamblers leave the floor without redeeming chips), and large cash deposits that bore no relation to reported income.

Analysts say these findings confirm long-standing fears about the sector’s vulnerability.

Casinos, especially in global hubs such as Las Vegas and Macau, have long been appealing to criminal networks hoping to disguise dirty money as gambling proceeds.

“Casinos remain vulnerable points in the global financial system,” the FinCEN report stated, highlighting repeated links between suspicious gaming practices and Chinese passport holders or students studying in the United States.

The report paints a picture of Chinese laundering networks operating across a broad spectrum of industries, from adult daycare centers in New York to multimillion-dollar property deals. Yet casinos stood out as one of the rare venues where vast amounts of cash could still be cycled with relatively limited scrutiny.

The cases detailed are striking. In one example, a Chinese national categorized as a “student” was tied to more than $22 million in suspicious casino-linked activity, most of it flagged directly by gaming houses. In another, an individual associated with four California colleges surfaced in reports involving more than $81 million in questionable transactions, encompassing casino gambling, wire transfers from China, luxury shopping sprees, and real estate investments.

The laundering tactics ranged in complexity. Some patrons bought chips with unexplained stacks of cash, played minimally, and then cashed out to receive payouts that looked like legitimate winnings. Others layered casino activity with shell companies, luxury purchases, and property transactions as part of more intricate schemes designed to obscure the origins of funds.

Although Macau—the world’s largest casino market—was not explicitly named in FinCEN’s analysis, experts note its role looms in the background. The city’s gaming-heavy economy has historically acted as a channel for mainland Chinese wealth outflows. In recent years, Beijing has cracked down on cross-border gambling and VIP junket operators, both to curb capital flight and to rein in laundering practices of the type now flagged by U.S. authorities.

The timing of the report underscores growing international pressure on casinos to tighten anti-money laundering (AML) programs. In the United States, the Bank Secrecy Act mandates casinos to report suspicious activity, but compliance across the sector has been inconsistent.

“Casinos are designed to move money quickly, often anonymously,” said a former U.S. Treasury official with knowledge of the report. “That makes them catnip for launderers, especially when combined with demand from Chinese nationals seeking U.S. dollars outside Beijing’s strict capital controls.” 

By fLEXI tEAM