India Probes $2.46B Online Gambling Scheme

In India, the Financial Intelligence Unit (FIU-IND) and GST intelligence (DGGI) are investigating the activities of an unnamed online gambling syndicate in the state of Telangana.

Scale of the Scheme and Money Flows

According to investigators, around $2.46B passed through 177 shell companies.

These entities were used to process transactions and conceal their true nature.

Shell Companies

Some of the entities were presented as legitimate merchant firms or resellers, but were found to be dummy and non-operational upon verification.

Several identified companies were linked to gaming websites and applications.

Role of Payment Infrastructure

According to DGGI, the investigation has, for the first time, highlighted the role of payment aggregators, gateways, and banks in the operation of an international iGaming network.

These entities facilitated transactions and earned around 1% commission for processing payments.

Onboarding Violations

Investigators state that counterparties were onboarded without mandatory checks, audits, or risk monitoring.

It is also noted that when shell company accounts are frozen, large sums remain in banks without claimants.

Intermediaries and Integration

Three companies — PS Rao Digital Solutions, Billexpress Solutions, and Powerfin Technology — acted as intermediaries and enabled the onboarding of around 36 shell entities into the payment infrastructure.

Further Actions

DGGI has sent banks a list of eight suspected intermediary companies and requested additional information.

Investigators also state that transactions were conducted through these entities without issuing tax documents, allowing turnover to be concealed.