Legal workaround/possible $$ laundering for US players?

wadea · #1 07-16-2007, 06:19 PM

I'm in the US with no plans to leave. I have non-US friends. If:

1. I send Friend a check or give him cash when I see him.
2. Friend opens an account at FTP under his name.
3. Friend gives me the password to the FTP account.
4. I play and win on this account.
5. Winnings are withdrawn as a check to Friend.
6. Friend deposits check at his bank.
7. Friend writes me a check for the winnings or gives it to me in cash when he sees me.

I'm pretty sure this constitutes money laundering. Tell me if I'm wrong. The REAL question is: Would I get caught? What would be the penalty? Assume all transactions involve under $1000 USD. Does anything change if I just played on Friend's existing account and we kept track of who won what (assume absolute trust and organization)?

wadea · #2 07-16-2007, 06:20 PM

As a note, I'm not planning to actually do this. I realize that if I had planned to do it, posting about it on 2p2 would be a horrible idea.

TheJokerIsWild · #3 07-16-2007, 07:26 PM

Ummmm...why don't you just open your own Full Tilt account? Seems a lot easier?

wadea · #4 07-16-2007, 07:39 PM

[ QUOTE ]
Ummmm...why don't you just open your own Full Tilt account? Seems a lot easier?

[/ QUOTE ]

How will I cash out the winnings? My understanding is that US banks will not process checks from online gaming sites. Or transfers. Is that wrong? Can I transfer money from my FTP account directly to another person's bank? I guess my real question becomes this: As a US player under the current law, how do I cash out my online poker winnings?

DMoogle · #5 07-16-2007, 07:55 PM

[ QUOTE ]
[ QUOTE ]
Ummmm...why don't you just open your own Full Tilt account? Seems a lot easier?

[/ QUOTE ]

How will I cash out the winnings? My understanding is that US banks will not process checks from online gaming sites. Or transfers. Is that wrong? Can I transfer money from my FTP account directly to another person's bank? I guess my real question becomes this: As a US player under the current law, how do I cash out my online poker winnings?

[/ QUOTE ]
Well if you couldn't, your friend couldn't either, right? Also you're wrong to think that banks won't process checks from online gaming sites. Most of them won't even know. I don't know about most sites, but FTP only allows bank wire transfers that are >$20k right now.

The easiest thing to do is set up an account in your name and withdraw by check.

wadea · #6 07-16-2007, 08:10 PM

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Well if you couldn't, your friend couldn't either, right?

[/ QUOTE ]

In this case, my friend would not be a US resident and would have a bank account set up in another country (say Thailand), so the laws would be different.

If I took a check and it was denied by my bank, what then? Could I sign it over to a foreign friend and have them deposit the 3rd party check or just redeposit in into FTP and try something else?

DMoogle · #7 07-16-2007, 08:47 PM

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[ QUOTE ]
Well if you couldn't, your friend couldn't either, right?

[/ QUOTE ]

In this case, my friend would not be a US resident and would have a bank account set up in another country (say Thailand), so the laws would be different.

If I took a check and it was denied by my bank, what then? Could I sign it over to a foreign friend and have them deposit the 3rd party check or just redeposit in into FTP and try something else?

[/ QUOTE ]
I don't think you would have trouble with it being denied (I don't think there have been any cases so far with FTP checks having problems depositing), but you should e-mail FTP and see what they say.

Also, FWIW, I requested my first check ever a few days ago and it got approved today. I'll see what happens when I receive it and try to deposit it.

ZBTHorton · #8 07-17-2007, 02:33 AM

[ QUOTE ]
[ QUOTE ]
Ummmm...why don't you just open your own Full Tilt account? Seems a lot easier?

[/ QUOTE ]

How will I cash out the winnings? My understanding is that US banks will not process checks from online gaming sites. Or transfers. Is that wrong? Can I transfer money from my FTP account directly to another person's bank? I guess my real question becomes this: As a US player under the current law, how do I cash out my online poker winnings?

[/ QUOTE ]

Sigh. Where do people hear these things?

BigAlK · #9 07-17-2007, 11:31 AM

[ QUOTE ]
How will I cash out the winnings? My understanding is that US banks will not process checks from online gaming sites.

[/ QUOTE ]

Not true. The UIGEA doesn't have any prohibition against receiving money from gaming sites, it focus is strictly on funding (and that only electronically). Getting money out isn't a problem. I've received several checks from FTP and had no problems depositing them at my bank. If you have a problem change banks.

[ QUOTE ]
Or transfers.

[/ QUOTE ]

This is different since it is electronic.

ALav10 · #10 07-17-2007, 09:18 AM

Just as a heads up... If you use Citizens Bank, FTP warns you that your check may not go through. I use them and mine did, so it seems like no worries.

But, they advised to try to go to the bank that issued the check. This is probably good advice for anyone, since you could just get cash from the issuing bank.

And pay taxes.