Chinese Bank Helps Police Dismantle ‘Major’ Online Gambling Money-Laundering Ring

A branch of a major Chinese commercial bank has helped police “dismantle” a crime ring that laundered money for online gambling operators.

Per a report from the China Banking and Insurance News Network (via Sina Finance), police say that a branch of China Construction Bank in Ruian, Wenzhou, successfully identified an online gambling-linked money laundering operation.

The operation, the bank explained, had been carefully disguised as a discount network for players of the state-run sports lottery.

Police said the bank acted quickly to identify “unusual transactions,” and also assisted officers in their efforts to apprehend suspects.

Officers said the branch’s “professional anti-fraud capabilities” had “contributed significantly to safeguarding financial security and defeating cybercrime.”

Chinese Bank: Online Gambling Fears Confirmed

The branch’s employees began to sense something was amiss on September 2 this year, when “a young male customer” visited in person to request new permissions on his account.

While handling this request, a cashier noticed “an unusually high volume of transactions.” The employee said they noticed multiple payments of between 500 and 1,000 yuan ($70-$140) flowing out of the bank account to an Alipay e-wallet “within a short period of time.”

The cashier grew suspicious and asked the customer about these transactions. His response was “inconsistent,” the bank said.

At first, the man said he had attempted to repay an online loan. But then he changed his story, explaining that he had been “buying sports lottery tickets.” His evasive language and nervous demeanor caused the cashier even more concern.

The cashier decided to act, reporting the case to their line manager. The bank branch conducted a review of the customer’s transaction details over the past month.

This revealed a further 34 transactions totaling 30,000 yuan ($4,217), all involving fixed amounts transferred to an Alipay account.

The bank pressed the customer on this, asking him to clarify the situation. Eventually, the customer caved and “revealed the truth.”

He explained he had contacted a poster on TikTok who was offering “discounted rebates” on sports lottery tickets.

This “ticket seller,” however, “used fake promises” and “mirrored money laundering models used by online gambling operators,” the bank explained.

The bank then contacted the Wenzhou police force, which dispatched officers to the branch.

Using the bank transaction data, the officers were “quickly” able to identify the “lottery discount” provider as a “channel for laundered gambling funds.”

The police questioned the man and understood that he had no further links with the TikTok channel operator.

Officers were able to use the evidence they now had to identify the operator. They said that the operator had processed “tens of thousands of yuan,” using their “sports lottery discount guise” to “conceal the flow of gambling funds.”

China’s official sports lottery ticket sales rose by 26% year-on-year last year, Xinhua reported, with the combined official lottery industry now worth around $7.95 billion a year.

Wenzhou police said that the bank’s “joint efforts” helped dismantle “an elaborate criminal network.”

The branch claimed that it has sophisticated protocols that help its staff react to evidence of gambling- and crypto-related scams.

Earlier this month, a powerful storm swept through Southern China, heavily impacting footfall and revenues at Macao’s top casinos.