Financial Crime and Gambling in a Virtual World

Financial Crime and Gambling in a Virtual World

A New Frontier in Cybercrime

Clare Chambers-Jones and Henry Hillman

In this unique book, the authors examine the relationship between real world legislation and new advancements in technology, showing how this can lead to loopholes in legislative protection. They draw on empirical research to highlight the jurisprudential issues relating to economic internet crime and digital currencies.

Chapter 5: Global regulation of financial crime: gambling as an associated link

Clare Chambers-Jones and Henry Hillman

Subjects: economics and finance, economic crime and corruption, law - academic, corruption and economic crime, criminal law and justice, finance and banking law, internet and technology law


This chapter will argue that, given the legal loopholes which enable gambling to occur in virtual worlds, social networking sites and online games, and given also the clear link between financial crime (specifically money laundering) and unregulated and illegal gambling activities, this demonstrates an associated link between financial crime and gambling within virtual realities. The chapter will examine the laws on financial crime of the United Kingdom, United States of America and Korea (for consistency with the empirical research in other chapters of the book), and also consider the academic and legal debates suggesting support for the hypothesis of an associated link. It is not the purpose of the chapter to examine the origins and scope of money laundering, and the academic literature on it, as this has been covered elsewhere. What is of value here is to look at the regulatory stance in these three countries in respect of money laundering to determine the level of protection they offer users of virtual worlds, social networking and online games. The chapter begins with an overview of the policy agendas on this issue of the United Nations and the European Union, before moving on to an examination of the law and policy of each of the three specific countries. The United Nations has taken an interest in controlling and preventing money laundering globally because it has been so closely linked to narcoticsthroughout history.

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