Reports indicate that the mafia relies heavily on German online gambling sites to launder money. The police are powerless in the situation due to unclear laws, which the European Court of Justice is now set to review.
Human trafficking, forced prostitution and drugs represent huge sources of revenue for the mafia. A current UN study estimates that organized crime rakes in 2.1 billion dollars (1.56 billion euros) a year. But what use is all of that money if there's no way to put it into legal circulation? That's an essential question for the mafia, which must find ways to shuffle cash back into the legal marketplace.
"Money laundering is no trivial offense. Instead, it represents a key issue for organized crime," said University of Hamburg economist Ingo Fiedler, who has done extensive research on online gambling, in an interview with DW.
"If there were no money laundering, there wouldn't be a mafia," he added. Fiedler says that mafia bosses prefer the simplest and cheapest means of putting money earned illegally back into normal circulation, and Internet gambling platforms are just the way to do it.
'Unbelievable' sums changing hands
Bet dirty money, win clean money back. Even money laundering on this scale is losing some of its appeal to the mafia. Ingo Fiedler sees clues that organized crime groups are now trying to buy up online betting arenas or found their own gambling sites. And the websites are often based in tax shelters with favorable privacy laws. When an online casino claims to have taken in millions, it can be difficult for authorities in other countries to verify whether that's so.
"There is no exchange of information between the countries," Fiedler said, adding, "No one can find out where the money is coming from. But it can be paid out to the casino's owners in a perfectly legal way."
However, there are signs that the Italian mafia is particularly active in German online gambling forums. In November 2012, a public parliamentary committee hearing was held in which Italian senior public prosecutor Roberto Scarpinato, known for his efforts to unmask the mafia, took questions. Scarpinato said that "unbelievable" sums of money were flowing between Italy and Germany. He added that 45 mafia whistleblowers had confessed to him that Germany is one of the most sought-after countries for money laundering, with its gambling halls and online gaming venues being favorite targets.
read more ... http://www.dw.de/online-gambling-playing-into-the-mafias-hands/a-16554107
Human trafficking, forced prostitution and drugs represent huge sources of revenue for the mafia. A current UN study estimates that organized crime rakes in 2.1 billion dollars (1.56 billion euros) a year. But what use is all of that money if there's no way to put it into legal circulation? That's an essential question for the mafia, which must find ways to shuffle cash back into the legal marketplace.
"Money laundering is no trivial offense. Instead, it represents a key issue for organized crime," said University of Hamburg economist Ingo Fiedler, who has done extensive research on online gambling, in an interview with DW.
"If there were no money laundering, there wouldn't be a mafia," he added. Fiedler says that mafia bosses prefer the simplest and cheapest means of putting money earned illegally back into normal circulation, and Internet gambling platforms are just the way to do it.
'Unbelievable' sums changing hands
Bet dirty money, win clean money back. Even money laundering on this scale is losing some of its appeal to the mafia. Ingo Fiedler sees clues that organized crime groups are now trying to buy up online betting arenas or found their own gambling sites. And the websites are often based in tax shelters with favorable privacy laws. When an online casino claims to have taken in millions, it can be difficult for authorities in other countries to verify whether that's so.
"There is no exchange of information between the countries," Fiedler said, adding, "No one can find out where the money is coming from. But it can be paid out to the casino's owners in a perfectly legal way."
However, there are signs that the Italian mafia is particularly active in German online gambling forums. In November 2012, a public parliamentary committee hearing was held in which Italian senior public prosecutor Roberto Scarpinato, known for his efforts to unmask the mafia, took questions. Scarpinato said that "unbelievable" sums of money were flowing between Italy and Germany. He added that 45 mafia whistleblowers had confessed to him that Germany is one of the most sought-after countries for money laundering, with its gambling halls and online gaming venues being favorite targets.
read more ... http://www.dw.de/online-gambling-playing-into-the-mafias-hands/a-16554107
hno:.. even a meth head or some other drug user could care less about funding terrorism.. he just wants a fix 
